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And in that case, is there a credible threat to force recalcitrant debtors to pay?
Also, Russian banks have gone from being net debtors to net creditors.
That probably never happened, but it was common for debtors to end up as slaves.
It is particularly hard to persaude debtors to pay foreign creditors.
Fobaproa lent some banks emergency cash, helped others to restructure loans and helped debtors to repay.
Otherwise it is too easy for debtors to claim hardship and walk away without paying.
Together with low interest rates, this has allowed debtors to scrape by.
We don't send debtors to penal colonies or put them in bonded labor.
The deadline ought to encourage banks and debtors to agree on how to share losses.
Or will European leaders remain too focused on punishing debtors to save themselves?
Creditors push austerity as the best way for debtors to repay their debts.
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