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What is moderate (maturity matching) financing policy?
Moderate financing policy is defined as the working capital approach to financing in which liabilities and assets with similar terms of maturity are matched. This is done in a way that ensures balances of payments, in the long run, is settled with long-term debt and short-run with short-term debt. The aim is that each asset will be remunerated with instruments of debt that share similar maturity dates/periods.