When the Latvian government told Riga it couldn't borrow the equivalent of $1 billion to build a bridge over the river Daugava in 2005, Deutsche Bank stepped in. Its solution – enhanced vendor financing (EVF) – would provide the money in a series of payments, allow the city a five-year grace period before repayments start this year and not need to be reported as debt, the bank claimed. The downside was the expense: 46% of the total 567 million lati bill for the bridge was interest.
Riga went ahe
The week on Risk.net, July 7-13, 2018Receive this by email