When Loans Are Really Grants

By PSAB Staff
Published: 2015

Public sector entities lend money primarily to achieve policy objectives (for example, to support regional development or give economic assistance). In some cases, public sector entities make loans and provide the borrower with future funding to repay the loan. In other cases, public sector entities provide loans with concessionary terms or forgiveness clauses. Finally, a public sector entity could simply forgive the loan.

When Loans are Really Grants

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