IRegarding the loans issued by the IMF in particular, borrower nations do not be

Question

IRegarding the loans issued by the IMF in particular, borrower nations do not bear very much of a risk of acting to address the balance of payments deficits in ways that would be economically disadvantageous, and they (the borrowers) are not required to forfeit large amounts of physical collateral to secure funds for these purposes. In addition, the structure of many of these loans is such that prospects of repayment of the IMF by debtor nations is more likely than not, providing the opportunity for debts extinguished to fund future loan transactions.

Can you rewrite this sentence in a simpler manner because I have trouble putting it in my own words.

Explanation / Answer

It is observed that, when IMF issues loan to any of the borrowing nations, these nation do not bear much risk to address the balance of payments deficits. Also it is not mandatory for them to forfeit a large amount of physical collateral, in order to secure the fund/s. In addition to this, the structure of many of these loans is such that the prospect of repayment of debt to IMF is more unlikely. This also provides opportunity for debt extinguished to fund future loan transactions.This could be economically disadvantageous.

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