JUN.'11 '87 11:01 IMF WASH DC RAPICOM6300 477-7491
-13-
ASSUMPTIONS FOR FINANCIAL PROJECTIONS
P.021
Annex i
Page 1 of 3
The principal assumptions used in preparing the base case financial forecasts are as follows:
1.
2.
Rate of New Investment by CIC: $8,000,000 per annum;
Average after Tax Cash Return on Investments:
0% p.a. in First year
10.0% p.a. in Second year
20.0% p.a. in Third year and thereafter;
3. Average Return on Short Term Investments:
4.
per annum ;
Average rate paid on borrowed funds (excluding Loan Notes): 10.0% p.a.i
5.
%. Non Performing Investments: 5% throughout;
6.
X Losses on Investments : 5% same as (5) above;
% "Carried Interest" to Actual Cash Investments: 50% (This would include fee income, profits from compensation trade,
etc.)¡ ̧
Salaries and Administrative Expenses of 1.5% and 0.75%, respectively, of average total investment (short term and project investments);