English to French Bus/Financial Finance (general) Financing of a projet (risk allocation)

Financing the Forex Gap

The World Bank and the Asian Development Bank (ADB) have explored a contingent debt product that would

provide the project company with access to debt once exchange rates exceed an agreed band. This product

would be offered to projects whose revenue stream was linked to inflation, under the theory of purchasing

power parity whereby inflationary pressures on prices will over time compensate for shifts in foreign exchange

rates