17 mayo 2021 | Internacional, Internet

Blended finance, the spinach of investing, will make us stronger

[…] Yet the Congressional Budget Office recently warned that America’s debt will hit 102 per cent of gross domestic product this year — even before new infrastructure spending or Biden’s $1.9tn Covid relief package. And corporate lobbying groups are expressing horror at the idea of raising taxes to fund infrastructure spending.  The question for Congress is whether it can square this funding circle without a political or market firestorm. And the only honest answer is “not easily”. But here is a concept that might help: “blended finance”. The words sound as unattractive to most voters and politicians as spinach to a toddler, especially compared to catchy phrases like “Green New Deal”[…]

What blended finance essentially does is use a dollop of public money to provide a safety net for the private sector to credit risky projects with social value. The idea is to encourage mainstream private investors to finance projects they would otherwise shun because the risks were unmeasurable, long term or too idiosyncratic to hedge.[…]

What blended finance could do now is bring together larger pools of capital to back expensive initiatives such as revamping the US electricity grid and rolling out 5G digital connectivity. It will not solve the infrastructure gap entirely; traditional fiscal spending will be needed too. But we must stop approaching the problem in binary, partisan terms: a taxpayer-funded “Green New Deal”, or nothing.[…]

Fuente: Financial Times

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