These on-balance-sheet financing mechanisms have nothing to do with covering up profits and losses.
It stimulates management to use financial engineering, such as off balance sheet financing or layering earnings through acquisitions and other games.
Meanwhile on the domestic front, it listed potential threats including rising property prices, which have triggered fears that new asset bubbles could form, along with "excessive off-balance sheet financing" by banks and local governments.
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As the company looks to repair its reputation with customers, it seems to be making strides to fix its balance sheet, recently securing financing from Goldman Sachs and a significant investment from billionaire George Soros.
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Importantly, we believe this strategy would require no immediate use of cash other than the ongoing dividend, and would not pose any maturity, re-financing, balance sheet, or default risk.
"Signing this term sheet is a milestone step towards financing the construction of our polysilicon plant, " said DustinShindoDustin Shindo, Hoku's chief executive.
"Signing this term sheet is a milestone step towards financing the construction of our polysilicon plant, " said Dustin Shindo , Hoku's chief executive.
The big news out of this press conference is that he doesn't seem to agree with ANY effort to involve the ECB's balance sheet in an effort to ease financing constraints for governments.
"No one can question the deterioration in the sovereign balance sheet or banking system, but it seems counterintuitive to cite possible financing gaps when a large, " bond issuance was about to close, said Richard Segal, emerging market strategist at Jefferies International.
On the other hand, when negotiating a financing for your company, you should never present your term sheet first.
Germany was said to be more comfortable with this idea, since it didn't involve any central bank financing governments directly, and it would formally keep the credit risk off the balance sheet of the ECB.
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