they had contracted
Past perfect they conjugation of contract.

contract

As the number of defaults increased, these mortgage lenders began to experience difficulties in repaying the short-term loans they had contracted with other banks.
Quand le nombre de défauts de paiement a augmenté, ces organismes financiers ont commencé à éprouver des difficultés à rembourser les emprunts à court terme qu’ils avaient contractés auprès des autres banques.
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