Jun
9
How when we borrow money we’re charged about 6% interest, but when a big project borrow money only 1%?
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Doo.ri
You know when one country develop a big project like oil refinery or toll road, sometimes they borrow money from many banks of many country. How can they only charged 0,5% to 2%?
You know when one country develop a big project like oil refinery or toll road, sometimes they borrow money from many banks of many country. How can they only charged 0,5% to 2%?
10 pts. for good or detailed answer.
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Rarely are publicworks projects financed with private money (for profit banks). If a developing country wishes to borrow money to build a road school or sewer system, they generally apply to the world bank. That Bank is run by the governments of industrialized countries, that lend the money to country at subsidized rates. The government gaurantees the payment.
Industrialized countries usually raise funds for their projects by selling tax free bonds at the state level. Federal projects are paid for out of the general budget, and deficits are covered by selling treasury bonds.
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