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DSRA – Debt Service Reserve Account

The debt service reserve account (DSRA) works as an additional security measure for lenders. It is generally a deposit which is equal to a given number of months projected debt service obligations. This tutorial explains how to code a transparent and efficient DSRA, and how it is linked to the financial statements without circular references.

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Debt service reserve account (DSRA), financial modelling considerations

The debt service reserve account (DSRA) is a key component in almost every project finance term sheet and financial model. The primary purpose of the DSRA is to protect a lender against unexpected volatility, or interruption, in the cash flow available to service the debt (CFADS). These funds, essentially put aside for a rainy day, are usually established at the end of a construction period, once the loan becomes repayable.

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The OFFSET( ) function returns a cell (or range of cells) that is a specified number of rows and/or columns from the reference cell. In this tutorial we will explain the most common OFFSET( ) applications, and mistakes that are often made using this function in Microsoft Excel.

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Avoiding circular references when modelling debt service reserve accounts (DSRA) with sculpted principal repayments

I generally don’t post the many questions that I respond to directly from readers; however, this will provide some useful insight into something that causes so many model builders, auditors and managers sleepless nights. There is no rocket science (sorry!) just a healthy dose of experience and practicality.

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MMRA – major maintenance reserve account

When capital expenditure is lumpy and/or large it is common to need to consider and model a major maintenance reserve account (MMRA). This tutorial describes the function of MMRA and how to code and link it to the financial statements.

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