Borrowers will also consider the potential impact of changes in economic conditions such as interest rates and exchange rates, as well as the risk of not being able to make timely payments of interest and principal on the loan if the borrower’s business encounters unexpected difficulties, and the risk of not being able to raise more capital (either debt or equity) if necessary.
TPG2022 Chapter X paragraph 10.59
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By OECD
Category: OECD Transfer Pricing Guidelines (2022), TPG2022 Chapter X: Transfer Pricing Aspects of Financial Transactions | Tag: Financial transactions, Intra-group loan, Lender’s and borrower’s perspectives, Loan, Treasury functions
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