The Effects of Derivatives Regulation on Infrastructure Finance : Some Evidence from Emerging Markets / Ignacio Quintana.

Format:

Book

Government document

Author/Creator:

Quintana, Ignacio.

Contributor:

Konidaris, Tanya.

Quintana, Ignacio.

Sands, Peter.

Series:

Other papers.

World Bank e-Library.

Other papers

Language:

English

Subjects (All):

Finance and Financial Sector Development.

Financial Structures.

Infrastructure Economics and Finance.

Infrastructure Finance.

Local Subjects:

Finance and Financial Sector Development.

Financial Structures.

Infrastructure Economics and Finance.

Infrastructure Finance.

Other Title:

Effects of Derivatives Regulation on Infrastructure Finance

Place of Publication:

Washington, D.C. : The World Bank, 2019.

System Details:

data file

Summary:

This study seeks to assess the effects of post-crisis regulatory reforms on derivatives used to hedge infrastructure finance transactions in Emerging Market and Developing Economies (EMDEs). The motivation for this analysis stems from the importance of infrastructure in EMDEs, the mandate of the WBG to mobilize financing for infrastructure, and the role that derivatives play in the structuring of infrastructure financing transactions. Although this study suggests that there has been an impact resulting from regulatory reforms, the effect on infrastructure finance transactions in EMDEs has been mitigated by several factors. Infrastructure projects have specific characteristics of structure, quality and recovery rate that suggest there is scope for further analysis to explore enhancements to the regulatory framework affecting the instruments used to hedge the risks of investing in infrastructure assets - without undermining the achievement of the overall regulatory objectives. In order to move toward new patterns of infrastructure financing, risk management in infrastructure projects will become more important than previously.