Economic risk

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Economic risk

In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements.

Economic Risk

The possibility that an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.
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Under the proposed regulations, where there is overlapping economic risk of loss for a partnership liability, each partner is deemed to bear the economic risk of loss in the ratio of the partner's economic risk of loss over the sum of the economic risks of loss borne by all the partners, as shown in the exhibit above.
Global Banking News-February 20, 2014--Bank of Japan to remain alert to economic risks
External economic risks consist of uncontrollable events such as supply shocks, currency fluctuations, trade deficits, natural disasters, and the health of the overall global economy.
The Canadian Mining Research Organization (CAMIRO) will begin work on three research deep-mining projects aimed at reducing geological, health and safety and economic risks associated with mining below 2,000 metres.
With all the requirements, however, the greatest problem companies face is that--if audited--they must provide evidence of the nature of the development activities and document the related technical and economic risks.
Opening a campaign to defeat a constitutional amendment that would require balancing the federal budget, Treasury Secretary Robert Rubin said Thursday that he planned to warn Congress today that it was on the brink of making ``a terrible mistake'' that would pose ``unacceptable economic risks to the nation.
This comes from the fact that a true sale must have occurred between the seller and buyer and a legal requirement of a true sale is that the buyer take some of the economic risks associated with owning the receivables.
Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products, inability to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.
16 /PRNewswire-FirstCall/ -- In 25 of the 50 largest global economies*, multinational organizations face elevated political and economic risks -- including business interruption caused by war, terror attacks and political interference, according to an analysis released today by Aon Trade Credit Global, a unit of Aon Corporation .
Normally, in a general partnership, the partners bear the economic risks of the partnership in proportion to their stated loss interests under the partnership agreement, and they usually, but not always, share the recourse partnership liabilities in the same proportion.
economy and telecom market, the impact of competitive products or technologies, competitive pricing pressures, product development, excess and obsolete inventory due to new product development, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the effect of Westell's accounting policies, the need for additional capital, the effect of economic conditions and trade, legal social and economic risks (such as import, licensing and trade restrictions) and other risks more fully described in Westell's Annual Report on Form 10-K for the fiscal year ended March 31, 2006 under the section "Risk Factors".
In addition to credit risk, investors in these TRS CLOs are exposed to all of the economic risks and benefits of the underlying loans, including market value risk.

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