How did the eurocurrency market develop

Reference no: EM132172644

Question: 1. What caused the international debt problem of the developing nations in the 1980s? Why did this debt problem threaten the stability of the international banking system?

2. What is a eurocurrency? How did the eurocurrency market develop?

3. What risks do bankers assume when making loans to foreign borrowers?

4. Distinguish between debt-to-export ratio and debt service/export ratio.

5. What options are available to a nation experiencing debt-servicing difficulties? What limitations apply to each option?

6. What methods do banks use to reduce their exposure to developing-nation debt?

7. How can debt/equity swaps help banks reduce losses on developing-nation loans?

Reference no: EM132172644

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