Regulation of Institutions Lending to Coal Companies

Abstract

The theory, practice, and legal foundations of lending to coal mining organizations are considered in an era when the cost of servicing external debt is rising and the distribution of investment capital within the coal industry is unstable. Economic and legal mechanisms for the regulation of credit to coal-mining enterprises are systematized. Improvements in the relevant regulations are recommended: in particular, closer monitoring of national banks, so as to track the use of funds allocated to mining enterprises for environmental upgrades. The need to develop preferential banking schemes for mining activities is emphasized.