25 Jul 2013

Financial non-sequiturs

I asked a guy who financed water infrastructure (he worked for the German equivalent of the International Finance Corporation) if they would consider funding techniques (e.g., reducing non-revenue water) in addition to their typical method of financing technology (e.g., water treatment plants).

He said no, since they always require "security" for their loans.

But when's the last time an international lender seized and sold water infrastructure from a municipal or institutional borrower? He said they never had, and I certainly know of examples of where default did not result in repossession, or even repercussions.

Sounds to me like some of these bankers live in fantasy. Thoughts?