> If Party B is charging too much for the loan, surely another "greedy" party will undercut them and offer better terms to Party A.
You are assuming perfect competition in the area of loans to nation-states: this is certainly not the case. There are only a handful of lenders playing at this level, and they are mostly driven by politics, not profit.
You are assuming perfect competition in the area of loans to nation-states: this is certainly not the case. There are only a handful of lenders playing at this level, and they are mostly driven by politics, not profit.