Escrow

Another common term used in debt financing is the “escrow”. Here it relates to cash,securities or other valuable instruments that are held by a third party to ensure that the obligations under a contract are discharged. By doing so,the third party’s risk is being mitigated. This is commonly used in infrastructure projects like road,power,etc where an escrow account can be set up at a bank for depositing the payments.

• Real Estate Developments News In Vietnam