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Interest During Construction

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
Interest during construction
Interest accumulated during construction period, which usually equals capitalized interest.

Interest During Construction
In project finance, the interest that accumulates on a loan that finances the construction of a building or development. The IDC is a cost for the project, though it is not always calculated as such. The IDC is calculated until the project begins to generate revenue, when the company financing the project begins to service its debts.


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The Ex-Im Bank loan also covers local costs related to the project and interest during construction.
Costs are bound to inflate to nearly three-times higher than predicted once owners factor in the price of land, interest during construction and likely cost escalation.
Putting off the fees will ease the pressure on builders who won't have to pay interest during construction, McMahon said.
 
 
 
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