Subsidized financing

Subsidized financing

Funding provided by a government or other entity that is available at a below-market interest rate.

Subsidized Financing

A loan or other form of financing that a government provides directly or guarantees. Subsidized financing is available at a lower interest rate because the government does not need to make a profit and can better afford the risk of loss. Subsidized financing often is offered to lower income people, for example, to encourage home ownership. See also: Co-signer.
References in periodicals archive ?
The SBP on Saturday had launched a subsidized financing programme worth Rs100 billion for startups and small-to-medium enterprise to create self-employment and opportunities for others in the country.
Similarly, the State Bank had earlier announced a subsidized financing facility under which banks will be provided Rs 1 million or 50 percent of the loan amount at an interest rate of 1 percent while the end borrowers will be charged at 5 percent.
SBP also introduced Shariah compliant version of Long Term Financing Facility (LTFF) enabling Islamic banking customers to avail subsidized financing from Islamic banks for setting up export oriented projects.
KDFA, acting in conjunction with the Kansas Department of Health and Environment (KDHE), provides municipalities throughout the state with subsidized financing for water supply (drinking water) and sewer system (clean water) improvement projects.
Lebanese expats and qualifiers residing in country could access subsidized financing to purchase homes at values up to $800,000 and $533,000 respectively, via BDL and the housing bank.
The Dubai Green Fund (DGF) will not make subsidized financing; ultimately, it needs to attract private sector institutional investors who seek market based returns.
The SBP earlier said that it will introduce a subsidized financing facility for low cost housing by providing liquidity to the financial institutions at subsidized rate.
They provide subsidized financing. They select industries where they want to dominate, and that means state control of industrial policy.
Luis Maizel: Japan and Finland are good examples of the Government using subsidized financing to direct specific fields of growth, in many cases allowing small business to participate.
During the event, Hariri said in his speech the Rafik Hariri Center would host young entrepreneurs and allow innovators to create their own businesses, benefiting from the resources of Smart ESA and the subsidized financing made possible by the Central Bank.
The "Rafic Hariri Center" will host young entrepreneurs and allow innovators to create their own businesses, benefiting from the resources of "Smart ESA" and the subsidized financing provided by the Central Bank.
If banks had to put more of their equity on the line, rather than rely on cheap and essentially subsidized financing from deposits, they would be more heedful of risk, the Stanford professor argues.