International Loans Research Articles

Does it pay to be Green? The impact of equator principles on project loans

Some financial institutions voluntarily adopt the Equator Principles, requiring them to monitor the environmental and social (ESG) impacts of projects they finance. We investigate the incidence of these costs on corporate borrowers, as well as evidence of benefits in the form of improved loan terms. Using detailed international loan data, we find that borrowers dealing with green banks derive several economic benefits including lower loan spreads. We argue that dealing with ‘green banks’ allows firms to signal their ESG commitment and can help them manage ex post ESG-related risk. The empirical approach also addresses endogeneity concerns. We document other benefits including greater lender participation and the support of Multilateral Development Banks. Our counterfactual analysis, however, shows that if regulatory changes were to encourage working with green banks, firms that only deal with them as a result of the policy would not obtain lower loan spreads.

The Drunken Satyr from the Villa dei Papiri at Herculaneum

Prior to the international loan exhibition Buried by Vesuvius: Treasures from the Villa dei Papiri at the Getty Villa in Los Angeles (26 June – 28 October 2019), the Museo Archeologico Nazionale di Napoli (MANN) generously lent the ancient bronze statue of a Drunken Satyr for study, analysis, and conservation. Discovered in pieces in tunnels excavated through what has come to be recognized in the outer peristyle garden of the Villa dei Papiri at Herculaneum on July 10, 1754 and restored in 1759 at the Royal Foundry at Portici, the Drunken Satyr was praised as one of the most beautiful bronze statues to survive from antiquity. This paper provides an overview of its history and presents the results of recent study, analysis, and treatment that shed greater light on the techniques of the statue’s ancient manufacture and its alteration and state of preservation at the time of recovery. It also addresses the nature and extent of the post-antique restorations that can be identified and their ramifications on the statue’s appearance. These collective findings allow for a more comprehensive understanding of the Drunken Satyr.

The price of politics: What the 2020 oil shocks in Nigeria teach us about transactional political systems

Political spending—funds that elite actors use to buy and sell political power—is the lifeblood of Nigerian politics. It fuels backroom deals, forges political coalitions, and is the means to incite or end violence. To date, political spending in Nigeria has largely been financed by its immense oil revenues flowing through the government. It is natural to assume that political budgets should rise and fall with oil’s boom-and-bust cycles, but the reality is not so straightforward. Based on an analysis of the 2020 oil crash in Nigeria, this paper examines how traumatic decarbonization—the sudden, unplanned loss of oil revenues—did not lead to a reduction in political budgets but did force a change in how they were funded and channeled. Despite the loss in oil revenues, patronage and the “contractocracy,” government contracts used to funnel rents to the elite, were protected and expanded massively in 2021 with funding from domestic and international loans. The 2020 oil crash demonstrated the resilience and rising cost of transactional politics in Nigeria, even when it came at the expense of the Nigerian people. Through this analysis, the paper further examines systemically corrupt political systems and how political actors adapt to changes in available political finance.

TRANSFORMING MEDELLÍN: ARCHITECTURE AND URBAN DESIGN AS AGENTS OF SOCIAL CHANGE

This article examines the transformative impact of Sergio Fajardo’s mayoral administration (2003–2007) in Medellín, Colombia, focusing on architecture and urban design projects that have promoted equity. Central to this urban renaissance was the Proyecto Urbano Integral (PUI) Nororiental, which revitalized informal settlements in the city’s northeastern zone. The initiative leveraged financing from Empresas Públicas de Medellín (EPM), a city-owned utility company, ensuring sustainable investment in public works without reliance on international loans. This financial model enabled the redistribution of funds to Medellín’s poorest neighborhoods, fostering transparency and combating corruption. Key to this urban strategy was the involvement of the Empresa de Desarrollo Urbano (EDU) which implemented the PUI with an intersectional planning approach combining public transit, education, culture, recreation, health, and safety initiatives. The PUI emphasized community participation through “Imaginary Workshops” promoting ownership and engagement among residents. The PUI Nororiental, enhanced by the Metrocable transit system and associated public spaces, has successfully integrated isolated neighborhoods while reducing violence and fostering social cohesion. Despite critiques of high costs, this article argues that quality public spaces and civic buildings promote community pride and destigmatization. Medellín’s “social urbanism” serves as a model for addressing inequity in Latin America and the broader Global South, demonstrating how architecture and urban design can drive social change.

Comparative Analysis of Budget Performance in Nigeria: Pre and Post-Covid-19 Impact

This research investigates the pronounced impact of the Covid-19 epidemic on Nigeria's fiscal performance, evaluating the budget dynamics both before and after the pandemic. The findings reveal a persistent pattern of budget underperformance characterized by revenue shortfalls and a reliance on international loans for budget implementation. This is a notable trend, considering Nigeria's status as an oil-producing nation. The study underscores a concerning aspect wherein the country, traditionally recognized for its oil wealth, finds itself in the paradoxical position of servicing significant debt. The fiscal challenges, exacerbated by the pandemic, have necessitated a closer examination of economic policies and their implications. In response to the economic fallout, the Nigerian government enacted the Economic Sustainability Plan (ESP, 2020) as a comprehensive post-Covid-19 recovery strategy. While this plan holds promise for economic revitalization, the effectiveness of its accompanying policies in addressing the root causes of fiscal challenges remains a crucial aspect to monitor. As the nation grapples with the aftermath of the pandemic, there is a pressing need for meticulous policy implementation to ensure that the Economic Sustainability Plan not only alleviates immediate economic concerns but also serves as a catalyst for long-term, inclusive, and sustainable economic development. This study contributes to the ongoing discourse on Nigeria's economic resilience in the face of external shocks, emphasizing the imperative of sound fiscal management and policy efficacy for a robust recovery.

독일의 연방 문화유산법제에 대한 고찰을 통한 우리나라 문화유산법제 개선에의 시사점

With the enactment of ʻthe Basic Law on National Heritageʼ in Korea, The ʻCultural Property Protection Actʼ will be renamed ʻthe Act on the Preservation and Utilization of Cultural Heritageʼ(acronym: the Cultural Heritage Act) from May 17, 2024. The Cultural Heritage Act shall serve as the basic law related to the cultural heritage legislation. The Cultural Heritage Act includes such as contents; the establishment and promotion of the protection of cultural heritage as defined in the Basic Law on National Heritage, the creation of a foundation for cultural heritage protection, and the nationally designated cultural heritage, general movable cultural heritage, and municipal-designated cultural heritage. In the Basic Law on National Heritage, cultural heritage refers only to tangible cultural heritage and intangible cultural heritage is separately classified as intangible cultural heritage. But both tangible and intangible cultural heritage should be considered as the subject of the cultural heritage legislation. Korea had a representative comprehensive cultural property protection legal system in the past, but government recently divided the Intangible Cultural Property Act, the Buried Cultural Property Act, and the Cultural Property Repair Act from the previous Cultural Property Protection Act. Furthermore, Matters related to the preservation and management of natural monuments and scenic spots will be stipulated in newly enacted the “Act on the Preservation and Utilization of Natural Heritage” (acronym: Natural Heritage Act). Although the laws was divided from previous Cultural Property Protection Act, the jurisdiction of the Cultural Heritage Administration remains the same. In order for an effective cultural heritage policy to be activated under the changed legal environment, it is necessary to analyze and examine international agreements related to the globalization of cultural heritage and related legal systems of major countries. And these analysis and examination will be contributed to make legislative and policy improvements to the issues that have been problematic domestically. In this regard, this paper aims to draw implications by examining the German cultural heritage legal system which the federal and state cooperate while maintaining a dual system. In Germany, the protection and management of domestic cultural heritage is protected by the State(Land) in the form of monument protection laws, and the federal government operates the cultural property protection law, which aims to prevent cultural property from being lost by controlling the export, import, and distribution of cultural property. I think it will be a great reference for improving legislation for the globalization of cultural heritage in Korea. In particular, the regulations related to the return of cultural properties illegally leaked abroad and the international exchange of cultural properties are worth referring to. Germany's Cultural Property Protection Act as a federal law has detailed regulations that control the export, import, and distribution of cultural properties, so I think it will be a great reference for improving legislation to globalize Korea's cultural heritage. In particular, regulations related to the return of illegally leaked cultural properties overseas, the guarantee of return of international loans, and the international exchange of cultural properties are worth referencing in Korea's legislative improvement.

Commercial Banking from Oil Crisis to Debt Crisis: The Case of Lloyds Bank

Abstract In January 1998, the British weekly The Economist called the British bank Lloyds a “money machine”. Such an outcome was far from inevitable for a bank that had been one of the hardest hit victims of the 1982 sovereign debt crisis, when most developing countries found themselves unable to repay debts accumulated over the course of the 1970s. Having overextended itself in the developing world, it took Lloyds more than a decade to return to profitability. This result was the consequence of a complete transformation of the bank’s business and management model. Branches and international loans were sidelined, as was the investment banking business, deciding to focus its activities on domestic banking. The article analyses the reasons behind the transformation of Lloyds Bank from a national bank to an international power in the 1970s and, therefore, the reverse process between the 1980s and 1990s following the sovereign debt crisis. Thanks to the examination of archival documents recently opened for consultation, the article sheds new light on various issues analysed from banking and business history, in particular on how risk is calculated, how innovative decisions are made in a context of crisis and on the role of managers in shaping and changing the culture of these institutions.

Regulatory arbitrage and loan location decisions by multinational banks

This paper examines the impact of international differences in capital regulation on multinational banks' loan origination location decisions. International loan location decisions represent a key banking margin that has previously not been examined in the literature on regulatory arbitrage by banks. Our estimation relies on within-loan contribution variation in location options for individual multinational banks that participate in a syndicated loan. We examine how the loan location choice and the intensity of regulatory arbitrage are affected by borrower transparency. We find that greater borrower transparency to a local bank establishment makes loan location at this establishment more likely, and that regulatory arbitrage is more intense in the case of more transparent borrowers.

FINANCIAL SECURITY OF THE TERRITORIES OF UKRAINE IN MODERN CONDITIONS: REGIONAL ASPECT

The article examines the peculiarities of financing regions, cities, and united territorial communities in the conditions of martial law. Sources of funding of the territories are given, which are defined as: tax revenues, state subsidies, subventions, the State Fund for Regional Development, international loans, grants, participation in international projects, programs, sponsorship support. Their structure and changes caused by the war are analyzed. It was determined that the lion’s share of local budgets, on average 70%, is made up of tax revenues. Another 25% are state transfers. The causes of significant economic disparities in the development of the country’s territories have been determined. The impact of migration processes, business relocation on the development of regions as a whole and the filling of local budgets, in particular, is analyzed. Factors affecting the amount of funding for the functioning and development of regions, cities, and communities are given. In particular, the influence of preferential taxation on the filling of local budgets was considered. Changes in the principle of operation of the budget equalization system due to martial law are analyzed and presented. It was studied how the principles, sources and objects of funding of the regions changed during the martial law. The primary objects of financing were: the Armed Forces of Ukraine (assistance in material and technical support), territorial defense, internally displaced persons, citizen security (organization and arrangement of shelters), relocated business. It has been determined what advantages and opportunities have opened up for local self-government thanks to the Law of Ukraine No. 2390 “On Amendments to Chapter VI “Final and Transitional Provisions” of the Budget Code of Ukraine regarding strengthening the flexibility of local budgets and increasing the efficiency of decision-making.” New rules for the distribution of funds from the state regional development fund were considered. It was determined that the population size and the GRP indicator used to be the indicators by which the norms for the distribution of finances were formed. In 2023, the distribution of funds from the fund is planned to be carried out according to the following principle: 50% of the funds of the fund will be distributed among all regions of Ukraine in equal parts, the other 50% will be distributed equally among the 11 regions of Ukraine that were most affected by military actions. The essence and prospects of financing the development of territories thanks to partner projects were studied.

Between Depression, Stagnation and Development

After a century and a half of partition, Poland was reborn in the autumn of 1918, though its geopolitical and economic situ- ation remained precarious. On the one hand, there were armed conflicts during which the new borders of the Republic were being shaped, and on the other hand, the economy of the young state was plagued by an economic depression that undermined the foundations of its existence. It took several years to recover from the crises. The main difficulty that successive governments had to face was the need to integrate the three different fiscal and economic systems and policies that had been inherited from the partitioning states: the German Empire, Austria-Hungary and Czarist Russia. It is noteworthy that in the early 1920s two courses of recovery from economic depression were contemplated. The first (“the German course”) was based on the introduction of a new currency with extensive support for the economy with international loans. The second, called “the Austrian course,” relied solely on bolstering the economy with foreign loans. In the end, the Poles, under the leadership of Prime Minister and Treasury Minister Władysław Grabski, chose a third path: their own. It consisted of, in particular, a rapid collection of property tax, a sweeping currency reform, increasing the profitability of state monopolies, and implementing audits of public spend- ing. All of these measures, which underwent regular modifi- cations, yielded reasonably favorable socio-economic results. Their consequence was a long, arduous but steady recovery of Poland from the post-war economic slump.

Managing Loans in a More Sustainable Future

This paper reflects on the National Gallery of Victoria and its Exhibitions Conservation section over its 30-year history, and assesses the development of sustainable approaches within its programming. The author has managed the section since its inception, providing a unique insider opportunity to examine three decades of exhibition management within a large state institution, working with lenders and borrowers to manage both local and international loans. The paper describes the Exhibition Conservation section before reviewing a selection of exhibition files spanning the period 1975–2020 to evaluate ‘change’ with respect to the mid-range environmental parameters. Relative Humidity, usually considered the most significant issue for lenders, will be the main focus. Experience gained in lending to non-compliant environments is described and the Exhibition Conservation library is reviewed for discussions of sustainability of the profession more generally. Change is discussed in light of the fundamental rethink of collection management occurring within the profession. Finally, tools are offered to assist in the management of loans between differing environments.

Climate finance landscape in Nigeria

The recently launched Nigeria’s energy transition bold and ambitious plan indicates that Nigeria needs a minimum investment of $10 billion annually until 2060 to achieve SDG7 goal by 2030 and achieve its net-zero target by 2060. With the multiplicity of other macroeconomic issues Nigeria is grappling with such as high debt burden, high borrowing costs from external sources, COVID-19 pandemic, and adverse effects of other external shocks, there is a need to understand the climate finance landscape in Nigeria. This paper provides an expository outlook into the climate finance options that Nigeria can take advantage of to mobilise resources domestically for climate action, without overbearing dependence on international loans and grants. Some of the options for domestic climate finance mobilization are green bonds such as sukuk green bonds and diaspora green bonds, emission trading, carbon taxes, budgetary allocations, tax exemptions and import waivers, among others. Reviewing the successes of other countries in sourcing climate finance through these instruments, Nigeria can leverage on the learnings from these countries to set up a more resilient framework for domestic climate finance mobilization to meet the climate change goals.

Delivering transport infrastructure using state-owned enterprises (SOEs): A business history of Vietnam Expressway Corporation between 2004 and 2016

Adopting a business history approach, this paper explores the role and evolution of Vietnam Expressway Corporation (VEC) as a state-owned enterprise (SOE) delivery model for five highway projects in Vietnam's first phase of network development between 2004 and 2016. It draws upon insights from the field of transaction cost economics and resource-based theory to explain why the Vietnamese government employed the SOE model instead of traditional public procurement (TPP) or public private partnership (PPP). The case study shows the government chose to use an SOE to achieve dual policy goals: (1) accelerate the preparation and construction of five priority highways and (2) reduce fiscal pressure on the state budget. As a toll-funded SOE responsible for both the lifecycle delivery of highway infrastructure and debt repayment, VEC effectively economised transaction costs and maximised financial resources from both government and market sources, including a mix of international loans from major development institutions. The SOE model's unique advantages were also difficult to imitate by TPP and PPP. More specifically, the public ownership and not-for-profit mandate of the SOE model gave the government flexibility to effectively mitigate the adverse impacts of unforeseen project-specific risks and macroeconomic uncertainty on project performance. Taken together, these findings contribute to growing academic interest in the role of modern SOEs as a delivery model for transport infrastructure.

Development of territorial communities: aspects of natural capital conservation and budget financing

The development of efficient local governance and establishment of comfortable conditions for the living activity are the major strategic tasks of the public governance and authorities’ decentralization system modernization that is currently underway in Ukraine. The complicated socio-environmental and economic situation faced by Ukraine due to the deployment of military and political events, the collapse of the national currency, the deformation of industrial infrastructure, the depletion of natural capital, the exhaustion of natural resources, the spread of coronavirus infection COVID-19, and other destabilizing factors constitutes an incredibly high threat to the socio-political and economic security of the state as a whole and of each territorial community (TC). In this perspective, each element of the complex national economy system is important and should be translated into the principles of intellectualization in a strategic perspective. Today, the economic systems of both the state and the TCs are largely supported by international organizations – mainly through the provision of international loans and grants. The harmonization of national legislation on the preservation and reproduction of natural capital with European directives is the priority area of the foreign policy of Ukraine. Cooperation with international organizations sets a number of requirements for Ukraine, including the transparency of financial flows and natural capital accounting. Clear regulation of accounting, storage, and reproduction of natural capital is an urgent task of the public administration system. Taking into account the fact that climate security is a global problem, adaptation of national standards to European directives will make it possible to unify the information support of public finances and form a strategy for the development of natural capital. The main factors of economic efficiency in the Republic of Poland and Ukraine are compared. The research verifies the regression relationships between budget funding of territorial communities and the population of these territorial communities and provides conclusions about the efficiency of TCs’ funding in Ukraine.

Success Factors Influencing Peer-to-Peer Lending to Support Financial Innovation

The purpose of this study is to identify success factors that are conducive to developing the ability to create financial innovation within developing countries for the sake of sustainability. The purpose of this research is to contribute to the identification of success factors. The case study involves a peer-to-peer lending (P2P Lending) business operator in Thailand and focuses on the lender perspective. The results consist of 13 potential factors driving financial innovation in process improvement. The study collected data from 300 respondents through a structured questionnaire. The structural equation model was used to analyze the data via Mplus version 7. In order to gain a better understanding, we emphasize that each country’s financial business may show different success factors due to different situations and environments, which might pose a challenge when drawing conclusions from the survey and building sustainability in the financial industry. The research summarizes the factors of success in 3 contexts with 13 factors; namely, the risk context consists of a higher interest rate, inflation increase, macroeconomics, regulation laws, and legal, liquidity, and finance and credit status. The trust context includes demographic characteristics, biological characteristics, and an individual’s reputational capital, and the lender perspective information context includes loan delinquencies, funded loans, politics, and culture. According to our results, the investor or lender will benefit from bringing concepts and methods that involve adopting international loans.

Analysis of State Immunity versus State Property Seizure in Enforcement of Judgment on International loan Agreement: Analytical Study of Some Eac Member States Debt Status for Recovery

Analysis of State Immunity versus State Property Seizure in Enforcement of Judgment on International loan Agreement: Analytical Study of Some Eac Member States Debt Status for Recovery

Public Debt Management Experience: The Case of EECCA Countries

The aim of this study is to cluster the most widely used public debt management tools peculiar to the EECCA (Eastern Europe, Caucasus, and Central Asia) markets. Overall, the results show that the volume of EECCA countries’ public debt relative to GDP declined from 2000 to 2015. However, as their public debt enhanced after 2016 and until 2020, inclusive, the need to choose proper tools for its management intensified. The main cause of public debt in most EECCA countries is the state budget deficit (Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Uzbekistan). The second place was taken by the balance of payments deficit (Armenia, Belarus). The only unique country was Azerbaijan, since it is likely to use public debt to finance economic and infrastructure development projects. No less interesting is that not all EECCA member states generate internal public debt. Kyrgyzstan, Moldova, and Uzbekistan have external public debt exclusively due to the lack of free resources that can be attracted from within the economy. In general, the investigation revealed that the main tool for managing internal public debt in EECCA countries is public bonds issued in national and foreign currencies. As for external public debt management, the top position is taken by external public bonds and international loans. The study has only two limitations: methodological and implementation. Other macroeconomic indicators of economic development were not considered, even though they may change the assessment of the effectiveness of the selected tools of public debt management. Meanwhile, the results can only be applied to those countries whose financial market is already formed and who have access to international financial markets. Otherwise, the tools of public debt management are limited.

FINANCIAL SUPPORT OF THE UKRAINIAN ECONOMY DURING THE WAR

The scientific article is devoted to the analysis of the priority directions of state financing in the conditions of war, coordination of fiscal and monetary policy instruments to meet the defense needs of Ukraine and determination of the causes of Ukraine's public debt. In the course of the study, the main sources of filling the state budget were analyzed. It is established that tax and non-tax revenues, income from capital transactions, transfers formed the basis of state revenues in the pre-war period. It is revealed that in the conditions of war the state is acutely dependent on external financing and domestic borrowing. International loans, grants and proceeds from the sale of bonds (including military bonds) become effective means of covering the state budget. The article contains information on the implementation of this year's state budget and analysis of the structure of financial revenues to the budget of Ukraine from external sources for 2022. The article summarizes the priority areas of public spending: army, social security, education, medicine and post-war reconstruction. Among them, defense expenditures occupy the largest part. The structure of social payments is investigated, among which the following key areas of financing are highlighted: pension fund, assistance to families with children and internally displaced persons, "ePidtrymka", benefits and subsidies. It is proved that the solution of the problem of financial support of the Ukrainian economy in the conditions of war requires a balanced combination of monetary and fiscal policy instruments. Today, the budget deficit is covered mainly by international financing and by selling government securities. The deficit of expenditures should be financed by non-monetary means, as excessive dependence on money emission intensifies
 inflationary processes.

On the Character and Causes of Inequality in Latin America

On the Character and Causes of Inequality in Latin America

International Cooperation of Library and Information Institutions in the Republic of Uzbekistan

Globalization is closely connected with the process of transition to a common information space. Libraries take an active part in this process. They, thanks to the development of cooperation, can use international experience, evaluate their activities and achievements, identify problems, improve the professional level of library specialists and participate in the development of new concepts for the development of library and information business and culture in general, intensify interaction with state and interstate coordination bodies. The article summarizes the experience of organization of work on the development of international cooperation between the libraries of the Republic of Uzbekistan with libraries and leading information, educational and scientific institutions, publishing houses of foreign countries, diplomatic missions, funds, representative offices of international organizations. It includes international document exchange, readers service within the framework of international interlibrary loan; project activities, preparation and holding of international scientific and practical conferences, symposiums, seminars, exhibitions, etc. The main directions of international activities of the National Library of the Republic of Uzbekistan named after A. Navoi and information resource centers of universities are also described. The author comes to the conclusion that for a fruitful solution of problems, it is necessary to create a legal framework, attract grant funds and organize joint commercial international projects.