Hi @crypto.piotr,

Making depts in a country that risks hyperinflation can be very tricky. I can relate from what happens in Turkey where inflation is quite high at the moment.

The only way to fight inflation for a central bank is to increase the interest rates. So most of the time inflation comes together with very high interest rates. So if you have depts that have fluctuating interest rates, your interests will be adapted and you will have to pay much more. You have to imagine that probably your income is also in this currency and it will be equally devaluated. So even though your dept might seem lower in terms of dollars for example, the interests that you have to pay are much higher.

I have friends in Turkey that took depts in foreign currencies but this was also a catastrophe. Even though interest rates were very low, due to the inflation of the turkish money, the interests that had to be paid in foreign currency represented always a bigger part of their income. Their dept grew bigger in Turkish money and in the end my friend had to sell his house and could hardly cover the bank costs.

Conclusion

I would only take depts in such a situation if I had a revenue in a different currency.