DP 1980 - Recurring Subsidy

 

The Banking Tutor

                            Daily Point 1980

Recurring Subsidy 

 Recurring Subsidies are not linked to the capital assets or capital structure of the recipient firm. Interest Subsidy is example for Recurring Subsidy. Other best example is Subsidy on Gas.  Banks get interest subsidy relating to particular borrower frequently at regular intervals till the closure of the loan account.

 

Sekhar Pariti

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