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IRegarding the loans issued by the IMF in particular, borrower nations do not bear very much of a risk of acting to address the balance

IRegarding the loans issued by the IMF in particular, borrower nations do not bear very much of a risk of acting to address the balance of payments deficits in ways that would be economically disadvantageous, and they (the borrowers) are not required to forfeit large amounts of physical collateral to secure funds for these purposes. In addition, the structure of many of these loans is such that prospects of repayment of the IMF by debtor nations is more likely than not, providing the opportunity for debts extinguished to fund future loan transactions.

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