Sentences with phrase «re debt capacity»

Not exact matches

The outlook could be stabilized if the government's commitment to fiscal consolidation and debt reduction or its capacity to do so was to wane,» the agency added in the same note.

It's the oldest world lender and it has been making headlines amid concerns it doesn't have the financial capacity to cover its bad debts.

«Japan is already undergoing rapid population aging, which will likely limit the market's future absorptive capacity of public debt,» wrote IMF economist Kiichi Tokuoka in a paper this year.

Carney insisted that Aug. 2 is the drop - dead date for the Treasury's cash flow — «beyond that date we lose our capacity to borrow» — and expressed confidence that the debt ceiling would be raised by the deadline.

A significant share of the corporate debt in stressed economies is now owed by companies with weak debt servicing capacity and this could negatively affect bank balance sheets and cut into profits, it added.

«We have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.»

«In our view, China's structural growth deceleration is only half - way through and under the weight of debt and excess capacity, weakening investment demand will remain the main culprit.»

It means that it is proving politically hard to implement reforms as quickly as some in the administration would like, and it also means that we are getting closer to debt capacity constraints.

Debt capacity limits are the major constraint on China's adjustment.

It is only when credit growth begins to decelerate much more rapidly than nominal GDP growth that we can begin to talk hopefully about China's moving in the right direction, and it is only when credit growth falls permanently below the growth rate of the economy's debt - servicing capacity that China will have adjusted.

Assume, for example, that a disorderly rebalancing occurs because Beijing waits so long to force through the reforms that it runs into debt capacity limits (i.e. the growth in debt can not exceed the growth in the amount of bad debt that must continually be rolled over).

In that case any credit - fueled increase in investment would likely have resulted in a net improvement in China's debt servicing capacity, in which case, with government debt at well below 25 % of GDP, rising debt would not be a concern.

Reported nominal GDP growth is around 5 %, but the growth in debt servicing capacity is probably lower.

Debt, in this case, must be rising faster than debt servicing capacity, in which case Beijing's true debt level is not the nominal debt level but rather the nominal debt level plus estimates of contingent liabilities likely to rise as a consequence of wasted investmDebt, in this case, must be rising faster than debt servicing capacity, in which case Beijing's true debt level is not the nominal debt level but rather the nominal debt level plus estimates of contingent liabilities likely to rise as a consequence of wasted investmdebt servicing capacity, in which case Beijing's true debt level is not the nominal debt level but rather the nominal debt level plus estimates of contingent liabilities likely to rise as a consequence of wasted investmdebt level is not the nominal debt level but rather the nominal debt level plus estimates of contingent liabilities likely to rise as a consequence of wasted investmdebt level but rather the nominal debt level plus estimates of contingent liabilities likely to rise as a consequence of wasted investmdebt level plus estimates of contingent liabilities likely to rise as a consequence of wasted investment.

But closing down unnecessary capacity can pay for itself, even if unemployed workers are temporarily put on the government payroll (causing debt to rise, but usually by less than it had before), but only temporarily as Beijing takes other measures to boost household income through wealth transfers from the state and so to boost consumption, a form of demand which is likely to be more labor intensive than the demand created in the process of over-capacity.

But if investment is being misallocated, if investment levels are higher than China's ability to absorb and exploit capital stock, then it should not be surprising at all that debt capacity is becoming a problem.

The fact that China's debt is rising much more quickly than China's debt servicing capacity is consistent with my implicit model — which claims that the optimal amount of capital stock in China is a function of China's relatively low level of social capital, and that Chinese investment has far exceeded its optimal level — but it doesn't prove it.

The fact that debt may be rising faster than debt servicing capacity is not necessarily inconsistent with the capital frontier model.

When this happens and as debt levels rise relative to debt servicing capacity, at some point the major stakeholders — including businesses, creditors, household savers, workers and so on — became uncertain enough about how this gap will be allocated that they take steps to protect themselves from this uncertainty.

Even massive debt - financed spending will not help unless the projects are intentionally designed to durably enhance the long - term productivity of the U.S. economy, to avoid duplicative capacity, and to relieve constraints that threaten to become binding in the future (personally, I remain convinced that renewable energy should be central to that list).

When one compares credit growth to growth in debt - servicing capacity, not only is it uncertain how quickly credit is growing in China but, more importantly, it is even less certain how quickly the country's debt - servicing capacity is growing.

Everyone agreed that debt in China is still growing far too quickly relative to the country's debt - servicing capacity, but the pace of credit growth seems to have declined in 2017, even as real GDP growth held steady and, more importantly, nominal GDP growth increased.

In my email, I went on to discuss why this matters so much and why it is incorrect to think of China's GDP growth as growth in China's underlying economy (or in its debt - servicing capacity, or its productive capacity, or however else one prefers to think of GDP).

What I hope happens is that we never find out how China reaches debt capacity limits because Beijing reins in credit growth well before this happens.

While the purpose of this activity may be to generate employment, if the activity is not productive, the GDP it creates — along with the employment it generates — will be reversed in the future once debt capacity has been reached.

Of course debt growing faster than debt - servicing capacity is unsustainable, so we will set as our first financial sector target the point at which the two grow in line with each other.

The standard proxy for growth in debt - servicing capacity is GDP growth, but this is only valid in economies in which GDP growth data is a systems output that measures the underlying performance of the economy.

Because the amount of bad debt in each period is almost certainly a growing number, it must follow logically that the GDP growth number observers really want, rather than the one they have — that is, GDP growth as a systems output that can serve as a proxy for debt - servicing capacity — is a declining number, and perhaps even a quickly declining number.

I have usually estimated that it would reach debt capacity limits around 2016 - 18 but now I think it is likely to happen earlier.

The information collected by the credit bureau and processed into your business credit profile is designed to reflect the financial condition of your business and its capacity to service debt.

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.

Ms. Caro Diaz is part of the Organizing and Capacity Building Team at the Center for Popular Democracy and provides support to social movements in Puerto Rico struggling against the debt and austerity measures proposed by a Fiscal Control Board.

Essentially what that means is we've got somewhere between $ 1.5 billion and $ 2 billion of debt capacity available to us.

Capacity measures your ability to generate income that can be used to pay back the borrowed debt and is also known as cash flow.

As stated in the capacity section, there is an element around how your business can help service the debt, but that alone doesn't get you a loan.

Once banks refined their cash - flow analysis and SME loan - underwriting skills, they were able to better understand the debt capacity of individual businesses and structure loans according to cash flows.

The Canadian consumer, meanwhile, might be benefiting from somewhat cheaper gasoline, but their spending capacity is stretched thanks to a record high level of household debt.

The loan is granted mainly on the basis of the project's capacity to generate sufficient revenue to service the debt.

As far as I am aware, this agreement is the first since the Young Plan for Germany's reparations debt to subordinate international debt obligations to the capacity - to - pay principle.

In addition, borrowing and lending are forward - looking decisions: borrowers are making judgments about their future capacity to service debt, while lenders are making decisions about future returns.

Since the industry consolidated and management incentives changed to being based on returns on capital rather than growth, capacity (supply) growth has tracked GDP (demand) growth closely, free cash flow generation has been significant and consistent, and the companies have consistently paid down debt, bought back stock and paid dividends.

As an indicator of your creditworthiness how much you owe and how it's broken up across the different types of loans acts as a signal about your capacity to manage your existing debt.

Given the State's limited resources, shrinking statutory debt capacity and unmet capital needs, it is critical that the State prioritize its use of debt and capital resources — including the (windfall) resources deposited in the (infrastructure fund)-- to ensure that they are used as effectively as possible, and with appropriate levels of transparency and accountability.

Among the strategies for adhering to the capacity limit will be transferring and spending up to $ 500 million from the debt reduction reserve fund, the report said.

The plan, which is released following the passage of a state budget presenting an analysis of the spending plan as well as out - year projections, shows that the state's debt capacity is expected to tighten in the coming fiscal years.

New York is expected to remain under its debt capacity limit even as it continues to borrow heavily for new capital projects, according to the state Division of Budget's enacted budget plan released on Friday.

«You know that Kaduna is the second most indebted state in the country and unlike Lagos; we do not have the industrial base or the commercial capacity to bear the debt burden that we have.

«Given the State's limited resources, shrinking statutory debt capacity and unmet capital needs, it is critical that New York prioritize its use of debt and capital resources, including the resources deposited in the DIIF and the other settlement resources, to ensure that they are used as effectively as possible,» the report found.

«There is a debt profiling known as ESLA in place, and we ought to be careful because we are not out of the woods yet, when it comes to our generating capacity.

That was the conclusion of a key Communist Party meeting a decade ago, yet what followed was more of the same: rapid investment - led expansion, which turned China into the world's no. 2 economy, but left it laden with debt, environmental damage and excess capacity.