Why is the repayment of a loan called "debt servicing"?
Why is the repayment of a loan called "debt servicing"?
Simplified, then: Because there, from whose language it was translated, debt service is not about paying it to those who owe it, but receiving payment from those who owe it. At the same time, the debt can be converted into securities and sold, but the one who bought it (the pension fund) does not want to collect money himself, so the one who sold the debt to him (the bank) collects money for him, it turns out he provides a service, for a fee. In our country, debt servicing is understood as payment on it, so it turns out to be illogical.