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Ep 135 ft. Ben Heller
Clauses & Controversies
Avoid insuring against bad behavior with the same party
Using an instrument to dilute debt in case of default can be problematic when it involves a country insuring against its own bad behavior. In this case, El Salvador writing insurance on its own bad behavior is not ideal, as one would not want to purchase insurance on El Salvador behaving poorly from El Salvador itself.
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