4.4 • 1.6K Ratings
🗓️ 21 January 2019
⏱️ 39 minutes
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At the heart of government debt is a promise to pay back creditors. But governments sometimes don't do this - either by defaulting on their bonds or restructuring their debt. How are these decisions made? And what happens to borrowings that governments say should never have been done at all?
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1:26.5 | to dig into a slightly geekier subject and that would be sovereign debt restructuring. |
1:33.0 | This is when governments opt to exchange their loans or bonds for new loans or bonds, |
1:38.0 | you know, typically less expensive ones, or when they decide to pay back their debt at a slower pace or a cheaper pace or whatever. |
1:46.4 | All of this hashed out amongst lawyers, typically acting on behalf of the borrower, |
1:50.9 | the country that borrowed the money and the lenders, the investors that lent it. the But before you turn this podcast off, we are actually going to be marrying one of the biggest |
2:05.2 | stories in finance and markets right now with the theme of sovereign debt restructuring. |
2:10.9 | And that story is 1MDB, the 1 MDB scandal that is currently rocking Asia and has certainly extended beyond the region all the way over to Goldman Sachs in New York. |
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