Debt reduction refers to any action taken to reduce the burden of debt on a debtor nation. This could involve a range of voluntary schemes, which may include debt rescheduling (restructuring of debt payments over an extended period), debt/equity swaps (conversion of debt into equity), or other mechanisms. Therefore, all of the above options are correct.

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Debt Reduction

Question 39

Multiple Choice

Debt reduction

A) Refers to any voluntary scheme that lessens the burden on the debtor nation
B) May be accomplished through debt rescheduling
C) May be achieved through debt/equity swaps
D) All of the above

Correct Answer: