How foreign loans works? Do lessor country gives the cold cash to his lessee country? How about, if they have a different currencies?
In: Economics
there are no leases involved so the terms lessor and lessee doesn’t come into play. they are called lenders and borrowers or creditors and debtors.
usually the loans are made in a hard currency like the USD, Euro or yen. these currencies are globally acceptable and besides the borrowers usually want the loans to pay for imports and international trade is done in hard currencies mainly the US dollar so that’s what they are after.
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