To reduce losses on developing country loans,commercial banks sometimes sell their loans,at a discount,to a developing country government for local currency which is then used to finance purchases of ownership shares in developing country industries.This practice is known as:

Question

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This practice is known as a debt/equity swap, where the debt is exchanged for equity in local industries, allowing the developing country to use local currency to purchase ownership shares.

To Reduce Losses on Developing Country Loans,commercial Banks Sometimes Sell