Problem

High interest rates

Other Names:
Exorbitant interest rates
Structural usury
Prohibitive cost of money
Exorbitant debt interest
Deepening debt cycle
Nature:

Relatively high interest rates slows borrowing, stagnates business and creates hardships on individual borrowers. Economic policies in the industrial countries determine interest rates worldwide.

Incidence:

High real interest rates are adding significantly to structural budget deficits in both developed and developing countries.

 

Counter Claim:

The organized money-market, even if developed in agricultural regions, would tend to find that loans by verbal agreement, without security, and dependent on ability to repay based on income constantly subject to climatic hazards and price fluctuations, involve an unacceptably high risk. The unorganized money-market has the advantage of making cash readily available under conditions which official institutions would not accept.

Problem Type:
F: Fuzzy exceptional problems
Date of last update
06.11.2017 – 19:38 CET