The advantage to the borrowing country of a Brady bond versus a loan from an FI is the much longer maturity and thus the lower payment schedule of a Brady bond.

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Brady bonds typically have longer maturities (up to 30 years) compared to traditional loans from financial institutions, which typically have shorter repayment periods (5-10 years). This longer maturity allows the borrowing country to spread out payments over a longer period of time, resulting in lower payment schedules.

The Advantage to the Borrowing Country of a Brady Bond