Category: Financial / Legal / Administrative / Political

Sorry, this entry is only available in עברית.

Sorry, this entry is only available in עברית.

Bank of Israel has imposed limitations on the amount of loans a single borrower or single group may take for fear that if this group were to implode the bank’s stability could be undermined.

Under these restrictions, a bank may not provide credit of more than 15% of their owner’s equity to any single borrower.

This can have a bearing for instance on IEC’s ability to invest without any limit in increasing its generation capacity

The stripping off of one utility function from the others by selling (spinning-off) or in some other way changing the ownership of the assets related to that function. Such as spinning-off generation assets so they are no longer owned by the shareholders that own the transmission and distribution assets

A special vehicle is a company that has been created solely for a special financial transaction or transactions which is set up for special purposes such as achieving lower tax rates. It is a means to limit the liability of the parent company and a corporation can use such a vehicle to finance a large project without putting the entire firm at risk. The SPV is usually a subsidiary company with on the other hand an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt. Infrastructure projects can be undertaken under the framework of a special purpose vehicle to which the banks will lend the funds. All of the project assets and contracts will be vested in the SPV.