They had only $5,000 in cash, enough to cover the old loan but not a down payment on a new vehicle.

That's not enough to pay off the old loan, which would still have been close to $126,000.

Given the current state of interest rates on old loans, you could be born and die in debt without ever affecting the original sum.

I've come to make a reduction on the old loan.

To make the investments, banks would be required to exchange their old loans for the new shares.

By September 1983, when many of the old loans came due, investors couldn't pay.

Just boring old loans to companies and individuals needing to invest.

In exchange, the banks would get new bonds for their old loans.

Why would forcing them to write off bad old loans make any difference?

Most companies refinancing old loans and bonds these days are doing so to take advantage of lower interest rates.