What is debt restructuring?
A) A central bank that will no longer monetise the debt.
B) A government that partially defaults on its debt obligations.
C) A government that will no longer run real deficits.
D) A government that will no longer run nominal deficits.
E) A government that will no longer borrow from foreigners.

Question

Quizplus · Accepted Answer

Debt restructuring refers to a government or organization making changes to the terms of their outstanding debt obligations, such as extending the repayment period or reducing interest rates. Option B, a government partially defaulting on its debt obligations, is an example of debt restructuring. The other options (A, C, D, and E) do not refer to debt restructuring.

What Is Debt Restructuring