Social impact bonds – a sign of things to come in a jurisdiction near you? At the very least, something of interest to contract drafters everywhere:
Goldman Sachs has loaned $9.6M to New York City to fund a new social services program with the aim of “reducing recidivism among young men at Rikers Island.” Details are to be provided later today (Thursday). The loans are being described as “social impact bonds” and they carry a nice return ($2.1 million) if there is a “significant reduction” in recidivism.
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