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In some poor countries, he hopes to be able to borrow and lend at rates below those for the government's own debt (which in well-run countries is usually the best-quality credit), reflecting his clients' and his firm's superior record of repayment.
Ecuador, which defaulted on its debts in 2008, has used Chinese loans both to fill in holes in its budget and to re-establish a record of repayment in advance of trying to tap bond markets again.But Chinese credit has its attractions in other economies, too.
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Any such borrowers are easy to spot, because loan listings clearly note any past Prosper loans taken out by prospective borrowers, including the record of repayments established by the borrower.
The banks were also woefully inexperienced about analyzing a company's underlying financial strength and based their decisions largely on its record of previous repayment.
There is not much of a modern track record for repayment, said Culverhouse.
This followed record repayments of £7bn, or 2.8% of post-tax income, in the final quarter of 2010 and means that since the middle of 2008 homeowners have invested a total of £63.7bn in housing.
In particular, it gives little credit for the stellar repayment record of most MDB borrowers, and it vastly overestimates the risks posed by the fact that MDB loan portfolios are concentrated in just a few borrowers.
Many said they were furious that the loan provision had been dropped by negotiators, even though majorities of the House and Senate had earlier gone on record supporting repayment.
Telegraph Media Group, which earlier this month reported a £15.7m pre-tax loss for 2008, recorded the latest £40m loan as due to Press Holdings Ltd ,"an intermediate parent company", with "no fixed terms of repayment and interest free".
India has a stellar record on timely repayment of external debt obligations, so it would not be approaching this from any position of weakness, just from the point of innovation and leadership in a finance space that has been so troubling.
The chances of repayment are sinking with Greece's economy.
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