Further the gap between the original borrower and the ultimate investors widened with a number of vehicles in between. Secondly, events may force banks to re-assume risks they had assumed transferred to other parties – either to preserve a bank’s reputation (eg related to investment funds sponsored by a bank) or to honour contingency liquidity/credit lines.
What are the implications of the global economic crisis for African economies? The health of the global economy matters profoundly for African economies, especially because of its impact on their balance of payments.