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@pettter
..You loan money to entities you believe can repay it...

I don't think that's always true.
Sometimes the goal of lending is to get someone in a debt they will never repay: any loss of money is well worth it to see them struggling and/or make them kiss your ass.
(And sometimes the interest on those loans is so high that you really don't want them to ever start paying down to principal)

It used to be how the west treated Africa, nowadays it's how China treats Africa and the USA.