World Bank2012-03-192012-03-192010-01-01https://hdl.handle.net/10986/2919The three large South Asian countries (India, Pakistan, and Bangladesh), which are the focus of this report, have drawn up large power capacity addition plans to provide for the rapidly increasing electricity demand in the region. The global financial crisis (the crisis), which became acute from September 2008 with the collapse of Lehman Brothers, has had a widespread impact across the world and across sectors through inducing recessionary conditions including falling demand, freezing financial markets, and loss of confidence. The purpose of this report is to assess whether the ambitious plans of these countries were adversely affected by the global financial crisis, and where relevant, to be able to plan better for such future shocks. The report is structured as follows: it starts with the executive summary. After this introductory chapter (chapter one), there are detailed country chapters (chapter two to four) which, inter-alia, map the different sources of financing available to the power sectors in the three target countries and discuss how these sources were affected by the crisis (if at all). An important aspect of this assessment has been the attempt to ring-fence the impact of the crisis per se on power sector projects, as distinct from other policy, implementation, and institutional capacity constraints that already exist.CC BY 3.0 IGOAVAILABILITY OF CREDITBALANCE SHEETSBANK CREDITBANK FINANCINGBANK LENDINGBANKING INSTITUTIONBANKING SECTORBANKING SYSTEMBASIS POINTSBIDBIDSBONDBORROWERCAPITAL FORMATIONCAPITAL INVESTMENTCAPITAL MARKETCAPITAL MARKETSCASH FLOWSCASH RESERVECASH RESERVE RATIOCDSCENTRAL BANKCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKSCOMPETITIVE BIDDINGCONTINGENT LIABILITIESCONVERTIBLE BONDSCORPORATE BONDCORPORATE DEBTCORPORATE DEBT MARKETCOUNTRY RISKCREDIT AGENCIESCREDIT AGENCYCREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT ENHANCEMENTSCREDIT GUARANTEECURRENCY DEPRECIATIONDEBTDEBT DISBURSEMENTSDEBT FINANCINGDEBT ISSUEDEBT MANAGEMENTDEBT-EQUITYDEFICITSDERIVATIVESDERIVATIVES EXCHANGEDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT FINANCEDEVELOPMENT OF CORPORATE BOND MARKETDISBURSEMENTDISBURSEMENTSDOMESTIC CURRENCYDOMESTIC DEBTDOMESTIC LIQUIDITYDUE DILIGENCEEMERGING MARKETSENABLING ENVIRONMENTENFORCEMENT OF CONTRACTSEQUIPMENTEQUITY CAPITALEQUITY FINANCINGEQUITY FLOWSEQUITY INVESTMENTEQUITY INVESTMENTSEQUITY MARKETEQUITY MARKETSEQUITY RETURNEQUITY RETURNSEXCESS LIQUIDITYEXCHANGE BOARDEXCHANGE COMMISSIONEXCHANGE RATEEXPENDITUREEXPORT PERFORMANCEEXPORTERSEXTERNAL COMMERCIAL BORROWINGEXTERNAL COMMERCIAL BORROWINGSEXTERNAL FUNDINGFARM LOANFINANCESFINANCIAL CRISISFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL STABILITYFINANCIAL STRUCTUREFINANCING OF INVESTMENTFINANCING REQUIREMENTFISCAL DEFICITFIXED ASSETSFIXED CAPITALFIXED INVESTMENTFOREIGN BANKFOREIGN BANKSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVEFOREIGN EXCHANGE RESERVESFOREIGN INFLOWSFOREIGN INVESTMENTFOREIGN INVESTMENT FLOWSFOREIGN INVESTORSGOVERNMENT BONDGOVERNMENT BUDGETGOVERNMENT GRANTSGOVERNMENT GUARANTEEGOVERNMENT GUARANTEESGOVERNMENT PAPERGOVERNMENT SECURITIESGOVERNMENT SUPPORTGRANT ALLOCATIONGROSS DOMESTIC PRODUCTHOME MARKETSHUMAN RESOURCESINFLATIONINFLATION RATEINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE FINANCEINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTSINITIAL PUBLIC OFFERINGINSTITUTIONAL INVESTORSINSURANCE CORPORATIONINSURANCE POLICYINTEREST RATEINTEREST RATESINTERNAL RATE OF RETURNINTERNATIONAL BONDINTERNATIONAL BOND MARKETSINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL INVESTORSINTERNATIONAL TRADEINTERNATIONAL TRADE LAWINVESTMENT REQUIREMENTINVESTMENT REQUIREMENTSINVESTMENT VEHICLESINVESTOR DEMANDIPOISLAMIC BANKINGISLAMIC BANKSISSUANCELENDERLENDERSLENDING AGENCIESLENDING LIMITSLETTER OF CREDITLIFE INSURANCELIQUIDITY PROBLEMSLIQUIDITY RATIOLOANLOAN AMOUNTSLOAN COVENANTSLOAN WAIVERLOCAL BANKLOCAL BANKSLOCAL CURRENCYLOSS OF CONFIDENCEMACROECONOMIC MANAGEMENTMARKET CONDITIONSMARKET DEVELOPMENTMARKET ENVIRONMENTMONETARY POLICYMONEY MARKETSNATIONAL INVESTMENTNATIONAL SAVINGOUTSTANDING GOVERNMENT DEBTOWNERSHIP STRUCTUREPARTIAL RISKPAYMENT OBLIGATIONSPENSIONPENSION REFORMSPORTFOLIOPORTFOLIOSPRIMARY MARKETPRIME LENDING RATEPRIME LENDING RATESPRIVATE DEBTPRIVATE EQUITYPRIVATE INVESTMENTPRIVATE INVESTORSPRIVATE SECTOR CREDITPUBLIC SPENDINGREAL ESTATE INVESTMENTREGULAR PAYMENTSREGULATORY AUTHORITYREMITTANCEREMITTANCESREPAYMENTREPOREPO RATESRESERVE BANKRETURNSRISK AVERSIONRISKY LOANSSAVINGS RATESETTLEMENTSOVEREIGN RATINGSSTATE BANKSTATUTORY LIQUIDITYSTOCK EXCHANGESTOCK EXCHANGESSTRATEGIC INVESTORSTERRORISMTRADINGVALUATIONVALUATIONSWORKING CAPITALWORLD FINANCIAL MARKETSWorld Bank10.1596/2919