Concessional finance and impact finance for development

In concessional finance, loans have more advantageous terms than usual, to support a development objective Impact finance funds financially sustainable projects that have difficulty finding finance because of some perceived risk Heike Ruettgers, head of development and impact finance at the European Investment Bank , joins us on this week's A Dictionary of Finance podcast to explain these two terms, which are key to development finance. Heike points out that concessional finance differs from traditional aid, in that as it's a loan "the money comes back. That therefore allows you to reuse the funds for further projects. You can recycle and recommit the funds for other projects ." That, she explains, makes "things happen that otherwise wouldn't happen." Concessional finance uses public money to "crowd in" private finance by providing a cushion for the losses of private investors. Impact finance Concessional finance makes projects financially sustainable. Impact finance backs projects that are already financially sustainable—they just can't find anyone to finance them, because they are in countries or sectors perceived as risky. EIB economists Nina Fenton and Claudio Cali work in impact finance. Both came to A Dictionary of Finance to talk about impact finance, as well as microfinance. Says Nina, "Impact finance doesn't provide money cheaper, as concessional finance does. But it provides money that otherwise wouldn't be there at all." Get new episodes like this every week, when you

You can listen to Concessional finance and impact finance for development online on Radio and Podcast. Open the player on this page to stream the available audio.

Concessional finance and impact finance for development is an episode from A Dictionary of Finance by European Investment Bank.

This episode is 21:10 long.

This episode was published on Jan 28, 2018.

Yes. Use the heart button on the episode page to add it to your favorite episodes list.

Yes. This page shows related episodes from A Dictionary of Finance when more episodes are available from the podcast feed.