Non-recourse financing or forgivable loans for developing country humanitarian projects
Online, August 11, 2010 (Newswire.com) - TORONTO, ONTARIO - The most pressing humanitarian needs in developing countries is the alleviation of poverty, and the improvement in standards of living. For a significant period of time, it has been difficult for developing countries to achieve these goals because undertaking sustainable development projects to facilitate poverty alleviation initiatives, involved obtaining conventional loans to finance such sustainable projects. Such conventional financing always came with onerous repayment terms which plunged the borrowing countries into further predictable cycles of debt and poverty.
In order to repay these loans, developing country borrowers have had to make cuts to essential services like health. For instance available statistics shows that countries in the malarial zone need to spend approximately US$35 or US$45 per person a year to meet the essential health need of their populations. However, most of these countries can only afford to spend US$10 per person because the US$30 balance per person per year goes to service debt. For a country with a population of 20 million people, this is approximately half a billion US dollars that could have been used for poverty alleviation initiatives, that instead goes to service the country's debts.
Gone are the days when the only means of financing developing country humanitarian projects was the conventional loan or conventional financing. It is now possible for a developing country, or any country for that matter, seeking financing for a humanitarian project, to obtain a non-recourse or forgivable loan.
New Star Project Consultants Inc., an Ontario consultancy that sources innovative financing for developing country humanitarian projects, as well as other humanitarian projects, is now offering a new non-recourse financing for humanitarian projects, also known as a forgivable loan. It is so called because after the completion of the project the loan is totally forgiven and the borrowing country obtains the project free and clear. For more details, contact New Star Project Consultants Inc.
About the Author
Based in Toronto, Edmund Kwaw, is the CEO of New Star Project Consultants Inc. He is the author of several noteworthy books on financing, including The Law of Corporate Finance in Canada; Grey Areas in Eurocurrency Deposits and Placements; The Law & Practice of Offshore Banking and Finance;
Contact info@newstarprojectconsultants.com