In effect, the financing arrangement allowed for no interest to accrue on certain furniture purchases financed through charges to a credit card issued to petitioner by a certain credit card company if the charges were completely paid by certain specified dates.
Given full information (that is, assuming that the demonstration effect has already kicked in), lenders may be willing to continue financing countries with mildly bad policies provided that business elsewhere is good.
The foreign debts represent only 6% of total bank assets and the effect on these liabilities is mitigated by the dollar assets banks create with this funding through export-credit financing.