Accordingly the Central Bank had arranged, as part of the liquidation plan, to exchange the PN for marketable bonds. The Government agreed to this on the basis that the bonds to be exchanged would be very long-term and carry floating rate interest.
4 Capital markets are prone to bouts of euphoria, which is why it is best if banks and other deposit-takers keep a polite distance from the riskier end of the spectrum, and avoid lending against the more speculative assets. Nonetheless, for all their occasional dislocations, the development of equity and debt markets has been important in the advance of the modern economy.