1. Global strategies
  2. Converting foreign debt into local currencies

Converting foreign debt into local currencies

Context

The conversion of existing loans into local currencies is a variety of swap. It too can be a vehicle for repatriating flight capital, as well as alleviating the drain on foreign currency resources. The most serious drawback is that since domestic interest rates in the debtor countries are usually high, increased debt-servicing costs may exacerbate domestic fiscal problems.

Broader

Swapping debts
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Value

Nonlocal
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Foreign
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Debt
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SDG

Sustainable Development Goal #16: Peace and Justice Strong Institutions

Metadata

Database
Global strategies
Type
(E) Emanations of other strategies
Subject
Content quality
Yet to rate
 Yet to rate
Language
English
Last update
Dec 3, 2024