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hard loan


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A loan on normal market terms as regards interest, including a risk premium appropriate to the borrower's credit rating, the maturity date, the currency in which interest is paid, and when repayments are due. This is contrasted with a soft loan, which may be at a concessional interest rate, with an expectation that interest payments and capital repayments can be easily rescheduled or paid in soft currency.

Subjects: Economics.


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