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Project credit card debt is usually held within a enough minority subsidiary not consolidated around the harmony sheet on the respective shareholders.
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This decreases the project’s effect on the cost of the shareholders’ present financial debt and credit card debt capacity. The shareholders are absolutely free to utilize their debt capacity for other investments.
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Because there is restricted or no recourse towards the project’s sponsors, company shareholders are generally liable up to the extent of their shareholdings. The project stays off-equilibrium-sheet to the sponsors and for The federal government.