the world bank is considering a stream of loans to the puglian government to help it develop its nationalized oil fieds and refineries. this is the only set of loans that the World bank would ever give puglia. If Puglia defauts, it receive no further funds from this set of loans from the World Bank.Whether the Puglian government repays the loan or defauts has no other impact on Puglia. the table below shows the stream of loans to Puglia, the principla repayments and interest ayments for the loans, and the increase in oil-export profits from the projects financed by the loans. Would it ever be in Puglia's interest to defaul on the loans? If not, why not? If so, why and when? benefit from not repaying=(1+i)D Cost of not repaying= asstsets that could be seized +denial of benefits of future credit +macroeeconomic costs +general loss of reputation