Lastly, he recalled that ‘at the end of May 1982 […] I deemed it necessary to make a 15  16  17  ‘1981: emergenza economica e nuove vie per il risanamento’, in Scritti nella Nuova Antologia, vol. 1, p. 68. ‘Per la riconquista della stabilità e la creazione dell’Europa’, in Scritti nella Nuova Antologia, vol. 1, p. 121.
By agreeing to protect the lender from “downside” risk, the borrower gets cheaper financing, which allows him to retain more of the “upside” generated if his enterprise is successful.