TOXIC LOANS
A toxic loan is a structured loan that ends up against the borrower.
Indeed, if all toxic loans are structured loans, all structured loans are not toxic.
A structured loan is a variable rate loan whose interest rate varies according to the financial index on which it is indexed (unlike the fixed rate which is set once and for all).
It is said to be "structured" because it includes several periods.
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For example, the interest rate can be indexed to the Euro-
As the WAT$ is not convertible and the credits are at the 1% fixed rate imposed by the FMU, the risks of rate variation no longer exist.