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DEBT (Causes of the debt crisis (When countries stack up too much debt,…
DEBT
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Possible Solutions
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Debt Restructuring
To reduce and renegotiate its delinquent debts in order to improve or restore liquidity so that it can continue its operations
Debt restructuring is a process used by companies and governments to avoid the risk of default on existing debt or to take advantage of lower available interest rates. Debt restructuring can be carried out by individuals on the brink of insolvency as well, and by countries that are heading for default on sovereign debt.
Debt forgiveness.
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Countries have spent decades of paying a high percentage of their GDP and exports to meet external loan repayments and yet no where near to either finishing off those loans or bringing them to such low levels where most of the GDP is used for development
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