Sentences with phrase «higher 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.

That's because raising rates means sooner or later consumers will pay higher debt servicing costs.

Not exact matches

This will set off a vicious cycle of higher deficits that lead to higher debt, which in turn will mean higher interest costs and less funding available for healthcare, education and other provincial services.

This would not only mean high, long - term debt - servicing - costs, it could also challenge the U.S.'s credit worthiness.

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

The cost of borrowing in China has been cut aggressively since the autumn of 2014 in response to the slowdown in the economy and the distress caused to property owners, local government and corporations by high debt - servicing costs.

What passed for Soviet Marxism lacked an understanding of how economic rents and the ensuing high labor costs affected international prices, or how debt service and capital flight affected the currency's exchange rate.

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.

I have explained elsewhere some of the reasons that determine whether a country's debt is «excessively high», and I hope formally to list these reasons more fully in my next book, but the key is the gap that is created between projected debt - servicing costs and the projected revenues earmarked to service the debt when an economic entity suffers an unexpected surge in debt or an unexpected decline in growth.

Higher borrowing costs would discourage business investment and raise the cost of servicing government debt to unhealthy levels.

Their self - destructive real estate bubble has loaded down their labor force with high debt service and housing costs, whilst their giveaway of public infrastructure to insiders (with no price regulation) has led to high basic living costs.

As a striking example, and noting the total B.C. Budget is approximately $ 50 billion per year, servicing B.C.'s debt using Ontario's credit rating (and resulting higher interest rates) would cost B.C.'s taxpayers an extra $ 2.3 billion every year.

«Most discussions of how company balance sheets will react to higher yields assume an instantaneous jump in debt - servicing costs — but borrowing is fixed - rate for several years,» Barclays says.

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.

City - funded spending is projected to increase at an average annual rate of 4.6 percent between Fiscal Years 2013 and 2018, driven by higher labor costs and debt service.

«Achieving these lapse — or savings — targets will be a significant budgetary challenge, especially in light of the high levels of fixed costs for FY 2018, such as debt service payments, pension contributions and other costs.»

This is a grant program designed to assist high - performing charter schools with rent, lease, debt service, and Proposition 39 pro-rata payments or costs related to purchase, acquisition, design, new construction, and renovation.

Borrowing costs may be higher because of PA's 5 credit downgrades AND lawmakers who support this borrowing have not shared how they plan to pay for these substantial new debt service payments in future budgets.

The burden is even more problematic if you consider the country's high interest rates — the policy rate was just raised to 12.75 %, one of the highest among major economies — which dramatically increase the costs of servicing debt.

Even if the path for tightening is described as ultra-slow and measured, investors will need to weigh just how much the higher costs of borrowing might adversely impact the cost of debt servicing for corporations; that is, we may see further erosion of profitability from an earnings picture that is already flat.

As far as the government is concerned, there is also the problem of demand for the (existing) debt at such low yields and that more new debt can't be issued at higher yields without increasing the cost of servicing that debt.

Unless one believes US debt levels have peaked, despite debt interest servicing costs at historic lows, gold prices appear set to move higher over time.

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

I ran into difficulty with my other debt due to the high payments to service that debt and the high cost of living in the Bay Area.

Total Consumer Debt as % of Discretionary Income (Send me email for the chart) The problem with the «consumer debt as percentage of discretionary income» measure (the above chart) is that it ignores the true cost of debt since higher debt levels in a low - interest - rate environment may not result in a high debt service burden (interest and principal payments) on the consuDebt as % of Discretionary Income (Send me email for the chart) The problem with the «consumer debt as percentage of discretionary income» measure (the above chart) is that it ignores the true cost of debt since higher debt levels in a low - interest - rate environment may not result in a high debt service burden (interest and principal payments) on the consudebt as percentage of discretionary income» measure (the above chart) is that it ignores the true cost of debt since higher debt levels in a low - interest - rate environment may not result in a high debt service burden (interest and principal payments) on the consudebt since higher debt levels in a low - interest - rate environment may not result in a high debt service burden (interest and principal payments) on the consudebt levels in a low - interest - rate environment may not result in a high debt service burden (interest and principal payments) on the consudebt service burden (interest and principal payments) on the consumer.

As discussed in Chapter 3, sustainable home ownership requires a stable and adequate individual income to service debt; access to financial institutions; and a strategy to address the high cost of housing against the low value of land in remote communities.

As corporations seek more and more profits, all levels of governments are increasing taxes and closing tax loopholes, new technology costs are increasing (cell phones, internet), higher and higher levels of consumer debt (debt servicing) increase... these all erode cash flow for the average family.

«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.