PT  - JOURNAL ARTICLE
AU  - Curtis A. Spillers
TI  - Implications of Economic Turmoil to Emerging Market Project Finance Transactions — A Rating Agency Perspective
AID  - 10.3905/jsf.1999.320193
DP  - 1999 Jan 31
TA  - The Journal of Structured Finance
PG  - 9--12
VI  - 4
IP  - 4
4099  - https://pm-research.com/content/4/4/9.short
4100  - https://pm-research.com/content/4/4/9.full
AB  - Current economic turbulence is creating stress for the first time with many projects. Well-designed structures with a proper sharing of risks should help bring most project investors the luck they need. Among the risk mitigation measures Spillers describes are sponsor guarantees of construction, sponsor sharing of commodity price risk, and reserve accounts and the direct involvement of ECAs and multilaterals as co-lenders to mitigate currency risk. He notes that a host government is unlikely to interfere with the payments to project lenders when the value of the project's export can only be realized by specific buyers and those buyers must pay into an offshore trust.