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Greece · Economy & Business · Hard
What is the name of the debt instrument devised by Goldman Sachs in 2001 that allowed the government to defer debt obligations through currency swaps?
Answer: cross-currency swap — In 2001, Goldman Sachs arranged a cross-currency swap that allowed Greece to borrow billions while deferring interest payments, effectively hiding about 2.8 billion euros of debt from EU statistics at the time.
- A credit default swap
- B interest rate swap
- C cross-currency swap ✓
- D total return swap
In 2001, Goldman Sachs arranged a cross-currency swap that allowed Greece to borrow billions while deferring interest payments, effectively hiding about 2.8 billion euros of debt from EU statistics at the time.