Loan
Assuming that all debts will be repaid, only a liquidity problem prevails: in the short run, the convertibility of notes is constrained by the level of reserves. However, there are always some debtors who default on their debt, which can lead to solvency problems in the long run.
Loan
Assuming that all debts will be repaid, only a liquidity problem prevails: in the short run, the convertibility of notes is constrained by the level of reserves. However, there are always some debtors who default on their debt, which can lead to solvency problems in the long run.
