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The interest rates are dependent on the borrower’s creditworthiness.
• Debt Forgiveness: The money owed by the borrower is forgiven or deemed a non-recurring subsidy.
• Tax Forgiveness or Deferral: Tax payments are either less than owed or deferred.
• Provision of Goods and Services: The government provides goods and services to a company for less compensation than valued.
These and other types of subsidies can be used for health care, education, and businesses, as well as other industries in times of hardship.
CASE STUDY: AGRICULTURAL SUBSIDIES
The focus on the need for agricultural subsidies was never more evident than in 2004 when 4 successive hurricanes hit Florida...
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