Systems Thinking Approach to the Debt Service in Project Finance = Systems Thinking Approach to the Debt Service in Project Finance

다국어 초록 (Multilingual Abstract)

Project financing (PF) has been widely used to facilitate large-scale infrastructure projects that are needed to sustain the economic growth. Since several global financial crises, financial institutions have begun to apply more stringent screening criteria for PF loans, and project sponsors have also started to focus on risk management of debts. This study identifies risk factors of a project and their impact on debt service of PF loan, utilizing causal loop diagrams of system dynamics. The debt serviceability is effectively measured by the debt service coverage ratio (DSCR), and the breach of DSCR results in the trigger of default. This study presents suggestions for policies on those risk factors in the context of causal feedbacks on the cash flow stream.

참고문헌 (Reference)

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