Flashcards in Ch 15 International Financial Crisis Deck (5)
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1
Q
Heavily Indebted Poor Countries Initiative
A
A plan initiated to reduce the debt owed by the world’s poorest countries to multilateral lenders (linked debt reduction to two-stage conditionality process
2
Q
Hot money
A
Financial capital held in short-term instruments that can be quickly liquidated at the first sign of financial trouble
3
Q
Moral hazard
A
A consideration that arises when banks believed that the government will bail them out if they suffer large losses on the loans they have made.
4
Q
Paris club
A
Its primary goal is to negotiate the rescheduling of debts from nonmember governments to the 19 permanent members
5
Q
MDRI
A
Provides full forgiveness of all debt to multilateral lenders for eligible countries