From the article:
“For many strategic projects in important countries, given their risk profile and their stage of development, equity rather than debt is the most appropriate and most constructive instrument,” said Todd Moss, senior fellow at the Center for Global Development.
The person familiar with the latest version of the bill did not specify exactly how large the new institution would be, but said the bill will aim to raise the new finance institution’s liability limit. OPIC is currently capped at a $29 billion liability ceiling. Raising that would grant the new institution more headroom to pursue financing deals around the world.
“OPIC is a high-performing agency given its size, but it’s still an agency that was launched in the Nixon administration, and its age is showing,” Moss said.
"...Development finance is the future of development policy. We want to shift away from foreign assistance to foreign investment, and countries want to shift away from being aid recipients. They want private investment, and development finance is the public policy tool to catalyze capital flows into productive sectors,” Moss said.
Read the full article here.
