Re:El Salvador expected to default as Bitcoin plummets
by csomar on Wednesday May 11, 2022 @11:50AM
(#31341700)
They are predators, they are usually eyeing the conversion of these loans into assets (which will be bought cheaply) once the country defaults.
> and charged my country interest ON THE AVAILABLE FUNDS
That's actually fair. The problem is that many countries lack the capacity to satisfy the conditions and requirements for unlocking such funds. My understanding (and you can correct me if you have more accurate fact), is that the WB pass this interest to the relevant country rather than charge it for profit. Since the money was allocated by the institutions, they expect yield whether it is deployed or not. Obviously, the WB is not going to bear that cost.
> and charged my country interest ON THE AVAILABLE FUNDS
That's actually fair. The problem is that many countries lack the capacity to satisfy the conditions and requirements for unlocking such funds. My understanding (and you can correct me if you have more accurate fact), is that the WB pass this interest to the relevant country rather than charge it for profit. Since the money was allocated by the institutions, they expect yield whether it is deployed or not. Obviously, the WB is not going to bear that cost.