- 30 Marks
MCBFI – JUL 2020 – L4 – Q2 – Government Shift to Bonds, BoG Forward USD Sales, Sovereign Immunity
Explain the government's shift towards bonds, benefits of BoG's forward USD sales to banks and corporate entities, define sovereign immunity, and discuss lender protections against it.
Question
a) Why is there a shift by government towards bonds?
b) BOG has recently embarked upon the forward sale of USD. What is the benefit of this to:
(i) Banks?
(ii) corporate entities who need USD for their operations?
c)The government of Amarahia borrowed to finance projects but failed to pay taking refuge in the clause ‘sovereign immunity’.
(i) What is sovereign immunity?
(ii) How can lenders protect themselves against this clause?
Find Related Questions by Tags, levels, etc.
Report an error