While these figures, at first, may not seem impressive, debt specialists have estimated that Mexico alone could convert more than $10 billion of its debt into private-sector equity over the next decade.
Founded in 1956 to stimulate the economic development of its members by providing capital for private enterprises, the IFC has targeted its aid toward less-developed countries and has been their largest multilateral source of private-sector equity financing and loans.
Financial globalization has been associated with the deepening of local markets (in terms of credit to the private sector and equity market capitalization) with varied success: the literature has found a positive influence from market depth to FG (Lane and Milesi-Ferretti, 2008; Kose and others 2010) and vice versa (Baltagi, Demetriades, and Law 2009).
So, the Waxman-Markey 80/20 allowance split turns out to be consistent -- on average, i.e. economy-wide -- with independent economic analysis of the share that would be required to fully compensate (but no more) the private sector for equity losses due to the imposition of the cap, and consistent with my Hamilton Project recommendation of a 50/50 split phased out to 100% auction over 25 years.
Where it is possible to provide little-regulated services within public infrastructure, less incentive seems to exist to engage in the formal private sector, with equity and efficiency implications for service provision.
They will be looking for cash from the private sector including private equity, universities and mainstream business.
Critics complain that the government is a bad investor, but the track record of the DOE loan program is better than nearly every private sector debt or equity investor in clean energy over the same period.
We also find a strong positive association between private sector participation and equity measures – private sector participation is positively associated with reduced urban-rural and rich-poor disparities in access to health care facilities for births and treatment of ARI.
And this history of crisis fed a mood of caution, both on the part of governments — which paid down their debts and accumulated huge reserves — and on the part of the private sector, where debt-equity ratios and other measures of financial fragility fell sharply from 1998 onward.
They fail to see that institutional depositors can withdraw from a fragmented banking system as easily as from a consolidated one, and that it is near impossible for the private sector to hold enough equity in reserve to make guarantees credible enough to stem withdrawals.
