What Is a Debt Swap?

Debt swap is abbreviated as PSI, which means that two debtors use their respective comparative advantages in the international financial market to exchange the type of currency of the debt borrowed or the type and level of the interest rate of the debt through the intermediary of the financial institution to make up for their respective market The relative disadvantages of directly borrowing such currencies or interest rates (or the disadvantages when the market is in an unfavorable time, but urgently need to raise), this mutual complementation, each has its own way of trading becomes a debt swap.