Sentences with phrase «debt servicing costs»

Lower yields increases borrowing and lowers debt servicing costs, pushing up consumption.
That's because raising rates means sooner or later consumers will pay higher debt servicing costs.
While debt servicing costs are still low, overall corporate debt is now close to its post-war peak.
It brings down your monthly debt service costs from day one, but you pay more and you pay for longer.
Meanwhile, debt servicing costs already consume an additional 10 % and are likely to rise.
And massive debt service costs could limit the carrier's ability to maintain or raise the dividend on its stock, which is one of the primary attractions for investors.
While debt servicing costs are still low, overall corporate debt is now close to its post-war peak.
«Staff will explore the possibility of charging a pro rata share of debt service costs for occupancy of this space.»
Borrowers with impaired credit histories may have limited access to emergency funds compared with their prime counterparts, giving them less wiggle room when debt servicing costs rise.
We are confident that the marked reduction in debt service costs coupled with the operating efficiencies, we believe we can obtain through the relocation of a majority of our operations to California in the heart of rice country, will set the stage for us to meet the ingredient needs of large CPG and specialty food companies.
Unhedged foreign currency debt, as was prominent in 1997, means that a fall in the currency pushes up debt servicing costs for the government, local corporates and banks, but a rise in interest rates to assist the exchange rate has the same adverse effect.
Although household indebtedness remains a major risk to financial instability in Canada, low interest rates have kept debt servicing costs low by historical standards.
Greece has committed to attaining a primary budget surplus — excluding debt servicing costs — of 3.5 % of economic output by 2018 as part of its third bailout package since 2010.
As has been experienced by Alberta and other jurisdictions, a lower credit rating materially increases debt servicing costs (i.e. interest payments).
A low nominal interest rate can reduce debt servicing costs, while negative real interest rates erodes the real value of government debt.
This is because the province has accumulated a large public debt that given the prospects for an economic slowdown and / or rising interest rates will potentially increase fiscal pressure via debt service costs which in 2016 - 17 totaled $ 11.7 billion or just over 8 percent of total government spending.
Corporate gearing ratios remain conservative by historical standards and debt servicing costs remain low, reflecting the relatively low level of interest rates.
It will reduce the taxation attractions of debt and not erode debt servicing costs to the extent that high inflation does.
The debt capacity law, approved in 2000, limits the amount of new state - supported debt to 4 percent of state personal income and new state - support debt service costs to 5 percent of all - funds receipts in the budget.
This practice does not have any impact on total debt service costs, but increases spending in the year the prepayment is made and reduces it in the subsequent year, thereby causing the growth rate from year to year to appear lower.
«The loss of the tax exemption for interest on advance refunding bonds would eliminate opportunities to obtain savings and to limit debt service costs, by removing a key aspect of debt management flexibility for state and local governments.»
«Rising debt service costs make it more difficult to fund essential programs and balance the State's budget without cutting important programs and passing additional costs on to the people of New York,» DiNapoli wrote.
Huntington, for example, will delay capital projects if borrowing will cause debt service costs to increase, Nadelson said.
Exclude any operating or debt service costs resulting from a referendum from shared costs under the equalization aid formula.
While the official policy of the Big Banks and CMHC is that borrowers should have mortgage debt service costs no greater than a third of their income, or restrict home loan borrowing to less than four times their annual take, comments like these make a lie of it.
However, if rates run too high due to inflation, firms borrowing with floating - rate loans risk default as debt servicing costs rise precipitously.
Having said that, however, roughly 10 percent of Canadian home - owning households have high enough debt servicing costs relative to income that they are vulnerable if mortgage rates were to spike.
The plan includes $ 180.5 million in debt service savings for Fiscal 2018, primarily from re-estimates of debt service costs related to variable - rate bonds and the retention of state building aid revenue by the Transitional Finance Agency.
The report also analyzes how the better farmers are subsidizing the less - productive ones, and how the whole system costs several hundred million dollars a year in debt servicing costs, capital that could be better used to fund tangible and productive assets.
For the last decade of owning rental properties, our annual expenses (excluding debt servicing costs) have averaged between 45 - 55 % (depending on the year) of the gross rent.
Stoking the economy under these conditions, we will breed inflation forcing the Fed to increase interest rates which will stifle growth and increase debt service costs.
Mr. Ceci also announced that the government would legislate a debt ceiling of 15 percent debt - to - GDP in order to hold off a risk of credit downgrades and higher debt service costs.
In the 1990s, the U.S. moved to shorter durations, resulting in instantly lower debt service costs, and a balanced budget.
Debt servicing costs will rise, too.
Debt servicing costs would rise for the government, too, sparking a budget problem.
Debt service costs have risen to 15 percent of GDP — just short of record highs — according to CLSA.
This would sharply enhance growth rates during the expansion phase, much like margin borrowing enhances returns when market prices are rising faster than the debt servicing costs, but at the expense of sub-par performance once conditions reverse.
• Highly Leveraged Firms: If you've got a lot of debt, your debt servicing cost goes up with higher rates.
Huge amounts of money have to be laid out for construction, tracts, and equipment, and getting enough money from ticket sales to cover the debt servicing costs is problematic.
At present, the properties generate a return of 2.39 per cent before debt service costs and 1.12 per cent after debt service costs and the sweat equity Jack invests by doing all repairs, yard work, and so on.
And the Hellas» bad financial situation is aggravated by the debt servicing costs.
However, Ryder said the revenue is needed to cover increases in police salaries, benefits, contractual services and debt service costs.
Speaking before the City Council on Wednesday, vice chancellor for finance Matthew Sapienza said it would be «unfathomable» not to have the nearly half - billion dollars, which represents 30 percent of the system's senior colleges operating and debt service costs.
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