Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243469 
Year of Publication: 
2020
Series/Report no.: 
Research Papers in Economics No. 2/20
Publisher: 
Universität Trier, Fachbereich IV - Volkswirtschaftslehre, Trier
Abstract: 
We propose Structured Common Project Financing (SCPF) as an stable, beneficial and political feasible financing tool for special purposes, e.g. Corona-Bonds, Green Deal Financing, Common Forces Budget. SCPF is an ABS-based common financing tool managed by a supranational organization like the ESM or the EIB. Our approach allows to overcome the huge and emotionally influenced political obstacle of joint liability by marginalizing the degree of jointness. SCPF creates significant interest savings compared to individual financing, 0.7% p.a. in the benchmark case. It is stable over time, robust to the emission of subgroup scenarios as e.g. a PIIGS bond and an EU-6 bond, and insensitive to the evolution of the macroeconomic environment (risk-free interest rate).
Subjects: 
Structured Common Project Financing
Joint Liability
FiscalUnion
EMU
Sovereign Debt
ABS
Corona-Bonds
Document Type: 
Working Paper

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