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Banking

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Partial Repudiation

An outright cancellation of a part of current and future external debt and equity obligations of a borrower. This constitutes a borrower’s refusal to admit the binding character of a part of the debt contract. In other words, repudiation is only confined to some part of the debt or its contractual provisions. To that very reason, partial repudiation reflects a partial performance (settlement) by the debtor through repayment of a part of the principal and/or payment of a part of the interest due.


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