Question

which of the following is not typically involved in rescheduling activities of a troubled sovereign loan? group of answer choices shortening the repayment schedule. the consolidation of several loans into one. the extension of governmental guarantees to private business debt. the granting of a grace period, during which no payments are expected.

Answer 1

Shortening the repayment schedule is not typically involved in rescheduling activities of a troubled sovereign loan.

Governments of independent political entities can issue debt, typically in the form of securities, known as sovereign debt.

Unique risks associated with sovereign debt are not present in other forms of lending.

The creditworthiness of sovereign debtors and the securities they issue is frequently rated by a number of private agencies.

Economies and political systems that are stable are often seen as having better credit risks, enabling them to borrow on more favorable terms.

Governments incur sovereign debt through the issuance of bonds, notes, and other debt instruments as well as by the borrowing of funds from other nations and international institutions like the International Monetary Fund.

Foreign currencies as well as domestic ones may be used to pay off sovereign debt, which may be due to outsiders or to the nation's own population.

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