POLI 2057 Study Guide - United States Agency For International Development
Document Summary
Disadvantages: debt service, paying back your obligation, principle plus interest, problem here is that you acquire so much debt and end up only paying down interests the money isn"t even going to the principle amount, default, stop paying the debt, debt renegotiation, debtors will try to renegotiate the original terms of the agreement, creditors agree because its better to get something rather then nothing in return, paris club vs. london club, paris club is a venue in which states that creditors meet, london club is for private enterprises that have loans with developing countries, imf conditionality. Types of aid: grants, no obligation to repay, technical cooperation, send experts to help formulate policy, credits, use to buy goods, loans, not all has to be paid back, interest rates are low, but you are obligated to pay back, loan guarantees, guarantors, i. e.
