Debt tail (also used in German; rarely financing buffer)

The time difference between – the completion of a longer-term investment and – the term of the loan used to finance this project. – The purpose here is to have a buffer in case of any delay in the completion of the investment. Such a planned maturity mismatch is usually more favorable for the investor than follow-up financing.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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