It is a sentence from OCR textbook, foreign aid is any flow of capital to developing countries that meets two criteria:
it is characterised by concessionary terms; for example interest rates lower than the market rate or longer repayment methods
What does concessionary mean here? Am I right in thinking the criteria is saying the developing country must have a low interest rate to receive foreign aid, but what is the reason of this criteria?
F585 help me understand this sentence Watch
- Thread Starter
- 27-04-2016 16:37
- 27-04-2016 18:27
concessional loans, meaning low interest rates and a favourable length of time to repay it