Was it Debt Swap or Collateralised Foreign Currency Loan? Substance over Legal Form Considerations

Phiri Kampanje, Brian (2022): Was it Debt Swap or Collateralised Foreign Currency Loan? Substance over Legal Form Considerations.

Abstract

This is a transaction analysis in which deposit placement by PTA Bank in Malawi was classified as debt swap instead of a medium term loan. There was violation of substance over legal form principle and the study recommends that proper disclosures be made to rectify probable material misstatement of the financial statements.

• Item Type: MPRA Paper
• Language: English
• Keywords: Currency; Swap; FCY; Loan, Debt, Malawi
• Subjects: F - International Economics > F3 - International Finance > F31 - Foreign Exchange; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies

References

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