ECO - I Project Bonds e “The quality of lending”
Roma, 9 mar (Il Velino) - Vi ricordate “Il Mercante di Venezia”? Il punto centrale dell’arringa di Porzia riguarda "The Quality of Mercy", that "the quality of tolerance and forgiveness." About the Project Bonds proposed by the European Commission, one could say that their utility and their value depends on "the quality of lending", ie the quality of projects they
below.
The European Commission's document speaks for infrastructure investments in the order of 1500 to 2000 billion € by 2020. With the advent of the financial crisis, the market for these securities dried up, leaving dry of funds as potential investments for new infrastructure construction in Europe. The Commission aims to provide support to this market, funding projects with the European Investment Bank (EIB). The financing may take two forms. 1) Warranty: EU and EIB grants a line of credit, which the company-the project could draw in the event of insufficient revenues to repay the debt issued on the market. 2) Subordinated debt: European Union and Bei make a loan to the company-project, which would be junior compared to the securities placed with private investors, which would then be reimbursed for first in the event of insolvency of the company-project. In both cases, the purpose is to transfer the credit risk on the financing of infrastructure investments, financial statements of the European Union and the Bei. This should increase the reliability of project bonds issued in the market, giving life to these financial instruments.
They noted, correctly, Angelo Baglioni, Andrea Boitani and Pippo Ranch www.lavoce.info that although the purpose of the overall scheme can be supported, on the one hand, it stretches credibility that funding from the EU do not involve the Bei- 'issuance of additional credit: there are no free meals. From another, it is difficult to envisage a reduction in the risk borne by the Community institutions. On the third, finally - and this is the point notale - the Project Bonds will be worth as much as their underlying projects. At the EU level has occurred very little high quality about it. Not until the second half of the eighties a specialist consultancy was hired to prepare appropriate manuals and six experts were invited to review the work on a voluntary basis, the Eurocracy not ever sent out the product as it was considered "too complicated "accountancy and disseminated a booklet instead of financial analysis.
investments in infrastructure, both material and intangible, present problems of setting standards for evaluation and selection criteria that lead to intergenerational effects, and in each case to quantify the value of social costs and benefits related to population groups with different levels of income or consumption. It is not only a technical work (even if the technical part is essential) because it involves identifying and choosing a social welfare function and make the difficult choices between growth and equity.
In Italy, given that for decades have not updated the manuals could be useful for this to be developed (in collaboration with the competent authorities and academia) from a technical body such as the political CNEL. In Europe, the Eurocracy should roll up our sleeves and continue the work started about a quarter of a century ago. Even as the latest products - one of whom presented with great pomp in Rome in the autumn last - leave much to be desired.
(Giuseppe Pennisi) March 9, 2011 20:28
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