Sentences with phrase «debt servicing costs rise»

However, if rates run too high due to inflation, firms borrowing with floating - rate loans risk default as debt servicing costs rise precipitously.

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.

Therefore, as the U.S. dollar appreciates against a local emerging market currency the debt service costs rise and make a risky asset even more risky.

Not exact matches

Debt servicing costs will rise, too.

Debt servicing costs would rise for the government, too, sparking a budget problem.

The Bank for International Settlements singled out Canada for its accelerated growth in credit relative to GDP and for its susceptibility to a sharp rise in debt - service costs.

Meanwhile, debt servicing costs already consume an additional 10 % and are likely to rise.

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.

Debt service costs have risen to 15 percent of GDP — just short of record highs — according to CLSA.

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.

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.

As the gap widens, it creates rising uncertainty about how excess debt servicing costs will ultimately be allocated, and at the point at which this uncertainty is high enough to alter materially the behavior of economic agents, and so lower the net asset value of the economic entity, the borrowing country has «excessive» debt.

To some extent, these concerns are allayed by the existence of natural hedges, such as foreign currency export income, although rising US dollar - denominated debt servicing costs at a time of falling US dollar - denominated commodity revenues would obviously be problematic.

In addition, the mortgage market looks set for a particularly heavy year of renewals in an environment where debt - servicing costs are already rising at the fastest pace in a decade.

As the rouble falls, the cost of servicing its mortgage debt will rise.

China's public - sector investment, in other words, is value destroying, and because it is funded by debt, additional investment causes China's real debt servicing costs to rise faster than its real debt servicing capacity.

In the 1980s, when the sharp rises in foreign debt and its servicing costs were occurring, the Australian economic debate was, not surprisingly, pre-occupied with these issues.

While falling world interest rates have reduced the servicing cost of foreign debt over the past two years, this has been offset by rising dividend payments on foreign holdings of Australian equity, reflecting the strong profit growth of Australian companies throughout this period.

Further, servicing costs of those households with debt are considerably higher than indicated by the average experience across the household sector, and have risen a good deal over the past ten years.

The rising costs of inputs — agro-chemicals, seeds, fuel — as well as the need to service rising levels of farm debt: combined with the downwards pressure on prices many farmers find themselves in a «cost - price» squeeze

But here's why we can say givebacks are in play: With rising shortfalls forecast for the coming years, with little appetite at the Capitol for raising taxes again, with debt and pension costs rising, and with state - financed, outside services such as group homes already squeezed, there are scant other places to turn.

A rise in the global lending rate increases the cost of servicing debt and magnifies the risk of sovereign defaults in general.»

With interest rates on the rise, Moody's notes that mortgage - servicing costs are likely to climb because nearly half of outstanding mortgages are due for interest rate renewals within a year, adding further strain on households» debt - servicing capacity.

That, coupled with rising debt servicing costs and housing tax measures in B.C. and Ontario, adds more negative psychology for a detached house market that's already softening.

They overestimate how much debt they can service, because if rates rise, they are not prepared for the effect on earnings per share, should the cost of the debt reprice.

As inflation rises, so do central bank interest rates, which means that the cost of servicing their debt rises too.

«The average Alberta household would see debt - servicing costs shoot up by more than $ 1,200 a year — the highest jump in the country — if interest rates rise by one percentage point, according to a new report by RBC Economics.