Debt replacement

Debt swaps are divided into conventional bond swaps and non-performing debt swaps.
Debt swap can be divided into two types, one is conventional credit swap and the other is non-performing credit swap.
If you want to know what debt replacement is, you must first understand what debt is.
Here is an example of the replacement of bad debts:
A owes B 10W yuan, and there is an IOU as proof, no matter whether A is able to repay, then A is the debtor in this example, and B is the creditor , then if A is unable to repay, then the creditor's right becomes a non-performing creditor's right. This leads to the "debt swap", which refers to the process in which Party C acquires non-performing debt and then replaces it with high-quality assets and non-performing debt. This process can not only recover the loss of B, but also avoid a series of troubles that occur when A fails to pay.
Debtor (obliged to pay the debt): The party who owes money
Creditor (with the right to collect debt): the borrower

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