Risking the future for the present Crisis Response
Local Government Financing Platforms – Process 1 Local Govt #1 takes back the money from the platform It then uses the funds to pay back its debt to Local Govt. #2 Local Govt. #1 is unable to borrow directly from Banks / Capital markets Local Govt. #1 Borrows instead from Local Govt. #2 Financing Platform can borrow from Banks Financing Platform funds projects Loan is used to found and Capitalize a LGFP under Govt. #1’s control Local Govt. Financing Platform #1 is able to borrow from Banks Local Government #1 Loan PROJECT Local Government #2 Capital Injection Controls Repays Loan PROJECT Financing Loan Loan Local Govt. #1’s Financing Platform $$$$BANK$$$$ Loan $$$$BANK$$$$