Why is debt restructuring for countries also in the best interest of global creditors?
In: 6
To ensure that at some stage the debts are paid off, think of the money lending market as a series of promises that are maintained by regular payments. If one of those promises goes bad and cannot be repaid then it makes things shaky for everyone else. So it’s always better to get a smaller amount of money over a longer period of time rather than running a country into the ground and losing out on capital and interest repayments.
Latest Answers