What is the primary purpose of eurodebt?

The primary purpose of eurodebt is to provide debt in currencies other than the local country. Eurodebt refers to bonds or other debt securities that are issued in a currency that is not the currency of the country in which they are issued. This enables borrowers, such as governments or corporations, to access new pools of capital and diversify their funding sources by tapping into the international market.

By issuing eurodebt, entities can attract investors who prefer to invest in foreign currencies, providing them the opportunity to earn returns in those currencies. This type of financing can help borrowers avoid the constraints of their local currency and potentially take advantage of favorable foreign currency conditions.

While managing currency exchange risks and offering lower interest rates could also be benefits in specific contexts, they are not the primary focus of eurodebt. The intent is fundamentally to widen the access to capital markets and facilitate borrowing in various currencies.