"How many sovereign debtors get to be both in hock to the Russians, and using the United States’ full faith and credit to borrow fresh money?
Though we suppose Ukraine’s a special case:
The loan guarantee will apply to sums borrowed during a period beginning on the date that the Loan Guarantee Agreement enters into force and ending thirty days after such date, not exceeding an aggregate total of one billion United States Dollars ($1,000,000,000) in principal amount… The full faith and credit of the United States of America is pledged for the full payment and performance of such guarantee obligations.
That’s the key snippet from a US loan guarantee issued on Monday — which by Wednesday the Ukrainian government was in the market to turn into eurobonds with a yield not above 2.9 per cent. Egypt, Israel, Tunisia and Jordan have all issued debt under similar US guarantees before, so this part isn’t new."
'via Blog this'
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