Question

In 'Project Finance', the 'Escrow Account' mechanism is used to:

Q: Answer-In 'Project Finance', the 'Escrow Account' mechanism is used to:

An Escrow account ensures that all project revenues are deposited in one place, and the bank lender has the first right to use that money for loan repayments Waterfall mechanism.

A Avoid paying taxes to the government.

B Ensure that project cash flows are used primarily to service debt before any other payments.

C Keep the promoter's personal money separate from the company.

D Transfer funds to foreign countries.

E Store the gold reserves of the company.

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In 'Project Finance', the 'Escrow Account' mechanism is used to:

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