But by taking them as collateral for temporary loans and at a discount, it would lose money only if there is a bankruptcy among the market-makers borrowing Treasury bonds.
The U.S. government has even made sizable profits from many of the temporary bailout loans and investments.
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The IMF's mission was to give countries temporary short-term loans so they could put their economic houses in order, coping with temporary balance-of-payment problems without resorting to destructive tariffs or massive devaluations.
The Treasury will get temporary authority to extend unlimited loans to the firms or to purchase equity stakes in them if their condition worsens.
These declarations also make federal assistance available directly to affected individuals, including temporary housing assistance, low-cost loans, and other resources to help cover uninsured losses.
Others think that it could play a useful role as a lender of last resort, providing governments with short-term loans to tide them over a temporary crisis.
And while small businesses are encouraged to file claims with BP, these loans and deferrals can provide much needed temporary assistance.
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Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster.
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In 2010, the SBA created two temporary programs that enabled existing small businesses to refinance conventional loans at low rates.
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Governments responded first by signing over vast emergency loans to Greece and then by creating an even vaster temporary loan facility (partly using IMF money).
To prevent a catastrophic deflation as speculators turned in their pesos, Cavallo arranged for stopgap loans from the IMF (Argentina was tossed into a temporary recession because the IMF demanded major tax boosts as a condition for the bridge-loan financing).
He is calling for a temporary guarantee with taxpayers' money of new mortgage-backed securities - the bundles of home loans sold on by banks to investors to fund fresh lending.
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