Political Risk in Syndicated Lending:Theory and Empirical Evidence Regarding the Use of ProjectFinance

Christa HainzKleimeier Stefanie
CEIS Working Papers
Why do bank grant project finance loans to borrowers in risky countries? Our double moral hazard model predicts that project finance is optimal if the degree of moral hazard of the firm’s manager is high and either the project faces high levels of politic
Number: 197
Date: Thursday 01 January 2004
Revision Date: Thursday 01 January 2004