Debt renegotiation means:
Correct answer: B. reworking the terms on which a loan will be repaid
- A. allowing and MNC to purchase the debt and invest in the country whose debt it has purchased
- B. reworking the terms on which a loan will be repaid
- C. shifting debt from governmental creditors to multilateral creditors
- D. taking out new loans to pay off old ones
Explanation
Debt renegotiation involves changing repayment conditions such as the maturity, interest rate, or repayment schedule. It is not simply taking a new loan to repay an old one, which is debt refinancing.
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