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Yes, in a normal world it is not bad for these companies if the country can pay their loans back. However, if you follow the logic, if a country is paying back
by coliveira 8y ago
Yes, in a normal world it is not bad for these companies if the country can pay their loans back. However, if you follow the logic, if a country is paying back the loans on time it just means that the first loan was not big enough! The advantage for a company to sell more than the buyer can pay is that for the foreseeable future (a decade more or less) it will make A LOT of money. This is all that CEOs really want. And under the logic of IMF, these loans will be paid in one way or another, so the company will not suffer any problem by selling more than the country really can pay.