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The importance of sub-national authorities avoiding foreign exchange risk when borrowing long-term (英语)

It has become an internationally recognized best practice to match the repayment term of long term debt financing to the expected useful life of the infrastructure financed; sometimes 15 years or more. This makes infrastructure affordable. However, it is equally important to match the currency of the debt repayment to the currency in which the sub-national authority obtains its revenues. When national governments are the ones building and financing...
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