Nature: Loans obtained through or with an element of fraud, or which are used for purposes other than those intended, including diversion to the benefit of a few influential individuals. In some cases the borrower has no intention of using the loan for its stated purpose, and the lending institution may even be aware of this.
Incidence: In the Philippines the Bataan Nuclear Power Plant loan, worth US$2.5 billion is cited as one of the most blatant examples of a fraudulent transaction in that country.
Problem Type: E: Emanations of other problems
Date of last update 27.03.1997 – 00:00 CET