Božović, Miloš; Urošević, Branko; Živković, Boško - In: Economic Annals 54 (2009) 183, pp. 32-55
In order to reduce the exchange-rate risk, banks in emerging markets are typically denominating their loans in foreign currencies. However, in the event of a substantial depreciation of the local currency, the payment ability of a foreign-currency borrower may be reduced significantly, exposing...
