Problem
1. What caused the international debt problem of the developing nations in the 1980s? Why did this debt problem threaten the stability of the international banking system?
2. What is a eurocurrency? How did the eurocurrency market develop?
3. What risks do bankers assume when making loans to foreign borrowers?
4. Distinguish between debt-to-export ratio and debt service/export ratio.
5. What options are available to a nation experiencing debt-servicing difficulties? What limitations apply to each option?
6. What methods do banks use to reduce their exposure to developing-nation debt?
7. How can debt/equity swaps help banks reduce losses on developing-nation loans?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.