Country Risk Management: How to Juggle With Your Arms in a Straitjacket?

Recently, the

Financial Times

reported that

Brazilian officials have begun intensive discussions with foreign bankers and government on the country’s radical plan to convert half its 68 billion dollars (41 billion pounds) debt into tradeable securities.… Under the Brazilian plan, which officials say is subject to negotiation in order to make it more acceptable to banks, about 30 billion dollars of existing bank debt would be converted dollar for dollar into (fixed interest) bearer securities with a maturity of about 35 years.

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