.
+
Funding Options
- 8
11.
There are two funding options: bank landing and the
issuance of debt securities :
(a) Bank Loan
The
consultant
advised that
bank
loans
available for the Scheme would be limited due
to the competing demands from other sectors,
most notably the infrastructure projects
scheduled for completion around 1997. It is
also difficult to secure fixed interest rate
bank loans for the required period because
are cautious about the possible
banks
fluctuation of interest rates.
dominant banks in the retail
Although the
deposit market
could probably afford to lend at fixed rates
for
slightly longer periods, it is difficult to
estimate how much could be available from them.
(b) Fixed Rate Securities
The Consultant
recommended the issue of fixed
፡
rate
securities for
raising funds for the
Scheme; zero coupons
should be issued because
.....