Financial organisations can give zero interest loans in a profitable manner provided the government guarantees the deposit made as a result of the loan. The government does not guarantee the loan only the money deposited as a result of the loan.
The government can stipulate that it will provide this guarantee for loans to finance infrastructure development that meets government 2.0 objectives. Government agencies, private individuals, or other organisations will all be free to apply for loans.
The financial organisations (normally the banks) will set the loan conditions and will monitor the investments to ensure compliance.
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