Banks were willing to swap LDC loans for Brady bonds because

Question

Quizplus · Accepted Answer

The banks were willing to swap LDC (Less Developed Country) loans for Brady bonds because the bonds were marketable and the loans were not. This means that the banks could potentially sell the Brady bonds in the secondary market, whereas the loans were illiquid and difficult to sell. The marketability of the bonds was a key factor in the attractiveness of the swap for the banks.

Banks Were Willing to Swap LDC Loans for Brady Bonds