1. Risking the future for the present
Crisis Response

2. Local Government Financing Platforms – Process 1
Local Govt #1 takes back the money from the platform
It then uses the funds to pay back its debt to Local Govt. #2
Local Govt. #1 is unable to borrow directly from Banks / Capital markets
Local Govt. #1 Borrows instead from Local Govt. #2
Financing Platform can borrow from Banks
Financing Platform funds projects
Loan is used to found and Capitalize a LGFP under Govt. #1’s control
Local Govt. Financing Platform #1 is able to borrow from Banks
Local Government #1
Loan
PROJECT
Local Government #2
Capital Injection
Controls
Repays Loan
PROJECT
Financing
Loan
Loan
Local Govt. #1’s Financing Platform
$$$$BANK$$$$
Loan
$$$$BANK$$$$