Question

Which of the following is a benefit to the lender in a loan rescheduling?

A. The FI may become locked into a particular loan portfolio structure.

B. Rescheduling may close the market for future loans.

C. Rescheduling may create interruptions in the flow of international trade since letters of credit may be more difficult to acquire.

D. Rescheduling may lower the present value of future payments in hard currencies.

E. The FI may receive additional fees, collateral, and option features on the loan.

Answer

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