Some other countries are much more likely to have trouble
servicing their debt as global growth continues to slow.
But looking at the numbers, there was no possible way Greece could
service that debt as a base case scenario and, therefore, something had to give.»
Not exact matches
Meanwhile,
as the government takes on more
debt to fund its daily operations, the cost to
service that
debt will take up a larger chunk of government spending
as well.
Prices plummeted, but few producers were willing to slow their pumping; many needed to bring in
as much cash
as possible to
service their
debt.
They've become routine,
as companies struggle to
service the
debt they took on to finance their drilling; there were 77 North American energy bankruptcies between the beginning of 2015 and mid-May.
As Bloomberg pointed out last month, Spotify's recent deal to raise $ 1 billion in convertible
debt valued the company at roughly $ 8 billion and put additional pressure on the streaming
service to go public.
«
As long as you can service your debt handily, then debt is your friend,» Cycon say
As long
as you can service your debt handily, then debt is your friend,» Cycon say
as you can
service your
debt handily, then
debt is your friend,» Cycon says.
While a Parent PLUS loan can't be transferred into your child's name, you can always refinance this into a private student loan carried by them
as they become financially independent and able to
service the
debt.
Sheffield Resources has mandated finance group Taurus to arrange a $ US200 million ($ A255 million)
debt facility for development of its Thunderbird mineral sands project, and also named GR Engineering
Services as its preferred contractor.
Some of the proceeds of the IPO will go to repay outstanding
debt Zipcar owes to financial instutitutions, and «approximately $ 5.0 million to repay amounts owing to certain former shareholders of Streetcar»
as well
as a portion of the net proceeds to invest in «companies, technologies,
services or assets that complement our business.»
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.
Paran Johar, chief marketing officer of mobile advertising solutions provider Jumptap, says mobile advertising is particularly well matched to small - business verticals such
as financing and
debt - consolida - tion firms, and quick -
service restaurants.
They also fear that at such elevated levels, many Canadian households would be unable to withstand a financial shock such
as a loss of income, or a sudden spike in interest rates that raised
debt services charges.
Gurley noted the disruption from ride - hailing
services is especially dangerous to companies that have large
debt holdings,
as does Hertz.
As well, Canada's
debt -
service ratio, which measures interest payments and amortizations relative to income, is at 2.9 per cent.
The fresh numbers come
as an international financial group owned by the world's central banks says Canada's credit - to - gross - domestic - product and
debt -
service ratios show early warning signs of potential risk to the banking system in the coming years.
Shares of Singapore - listed offshore
services company Ezra Holdings hit record low on Wednesday
as concerns over its
debt obligations continue to mount.
Your
debt -
service coverage ratio, also known
as the
debt coverage ratio, is the ratio of cash a business has available for
servicing its
debt, which includes making payments on principal, interest and leases.
Meanwhile, the total household
debt service ratio, measured
as total obligated payments of principal and interest
as a proportion of household disposable income for both mortgage and non-mortgage
debt, remained flat at 13.8 per cent in the fourth quarter.
Yet this does not (always) require taking out another loan to pay existing
debts such
as those seen in other
debt consolidation
services.
If we do not generate sufficient cash flow from operations to satisfy the
debt service obligations, we may have to undertake alternative financing plans, such
as refinancing or restructuring our indebtedness, selling of assets, reducing or delaying capital investments or seeking to raise additional capital.
As Scotiabank mentioned in a note last week: «Higher interest rates are going to make the burden of refinancing the debt considerably heavier, and as more money goes into servicing the debt, it means less money is available to spend on other things, which could lead to less infrastructure spending and increased austerity.&raqu
As Scotiabank mentioned in a note last week: «Higher interest rates are going to make the burden of refinancing the
debt considerably heavier, and
as more money goes into servicing the debt, it means less money is available to spend on other things, which could lead to less infrastructure spending and increased austerity.&raqu
as more money goes into
servicing the
debt, it means less money is available to spend on other things, which could lead to less infrastructure spending and increased austerity.»
Michael's post seems to have three suppositions: Chinese companies price capital incorrectly; Chinese companies invest in value destroying projects; There is no correcting accounting mechanism in China for these projects
as exist in other countries, thusly Chinese GDP inflates «real» growth and
debt servicing ability.
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.
On the demand side it seems plausible that,
as people get richer, more of their income can be spent on financial
services, including
debt servicing,
as proportionately less needs to be spent on necessities.
But
as most
debts are denominated in euros — and owed mainly to foreign banks or their local branches — devaluation would cause a sharp jump in
debt service, causing even more defaults and negative equity in real estate.
The ratings agency Moody's maintained the US's top - notch «Aaa» credit rating Thursday, saying, «The diversity, dynamism, and competitiveness of the US economy, along with the US dollar's status
as the preeminent international reserve currency and very large size and depth of the US Treasury market, offset rising fiscal pressures stemming from aging - related entitlement spending, higher
debt -
service payments, and recent policy actions that will likely reduce future revenues and increase expenditures.»
This means that they have to go into
debt to finance nearly everything we think of
as government, from fake airport security to the national parks to the Internal Revenue
Service.
We can also add to the justification that
as divisions of larger media companies, both publishing divisions contributed to
debt service all along.
Both new companies,
as others have argued, have sufficient cash flow to make the
debt service.
As the news
service noted, «five - year notes of Spain, with $ 935 billion of
debt and an 8.5 % deficit, yield 5.5 %.
As debts grow, more income must be paid out as interest and amortization rather than being available for spending on goods and service
As debts grow, more income must be paid out
as interest and amortization rather than being available for spending on goods and service
as interest and amortization rather than being available for spending on goods and
services.
Toward debtor countries American diplomats work through the World Bank and IMF to demand that debtors raise their interest rates and impose taxes and austerity programs to keep their wages low, sell off their public domain to pay their foreign
debts, and deregulate their economy so
as to enable foreign investors to privatize local electricity, telephone
services and other infrastructure formerly provided at subsidized rates to help these economies grow.
The financial sector accordingly aims to shift taxes off its major customers (real estate and monopolies) so
as to leave more revenue «free» to be capitalized into bank loans and paid out
as debt service.
Interest and amortization payments to savers tend to increase beyond the economy's overall ability to pay
as debt service absorbs more and more personal disposable income and corporate cash flow.
But of course, the rich consume in different ways — while a large swath of the population is pauperized and is stripped of its assets
as well
as future earnings after taxes and
debt service are extracted from their paychecks.
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 investm
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 investm
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 investm
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 investm
debt level but rather the nominal
debt level plus estimates of contingent liabilities likely to rise as a consequence of wasted investm
debt level plus estimates of contingent liabilities likely to rise
as a consequence of wasted investment.
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.
There comes a moment when the
service of the
debt,
as we see in Greece, becomes unsustainable.
And even more important, to the extent that incomes do rise, they are paid out
as debt service.
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.
The ruble's exchange rate has fallen
as more rubles are thrown onto currency markets to obtain the dollars needed to pay interest and
debt service on foreign loans (and to sustain capital flight in the absence of controls).
But even if this is all there were to
debt — and in fact in my classes at both Peking University and, previously, at Columbia University I propose to my students that one way to think of the lability side of the balance sheet is precisely
as a series of formulae that distribute the operating earnings of a company (or the total production of goods and
services of a country)-- this would still make it singularly important in understanding the functioning of and prospects for an economy.
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.
As the rouble falls, the cost of
servicing its mortgage
debt will rise.
Before joining Thundelarra in April 2012, he spent 29 years working in both the equities markets
as a mining research analyst specialising in the exploration and early producer segment; and also in the
debt markets
as a project financier and
as a corporate banker
servicing the financing, hedging and day - to - day transactional banking needs of Australian resource companies of all sizes.
Assuming that the total amount of bad
debt in the banking system exceeds total bank capital — something which is almost certainly true — the conversion of
debt which can not be
serviced into an equity position that is unlikely to generate much more (and in an economic downturn, which is when we are most concerned about the
debt burden, we can assume that the decline in value of these equity positions will be highly correlated) leaves the net indebtedness of the banking system unchanged, and so the contingent liabilities of the government are unchanged even
as reported
debt in the system declines.
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.
When the G - 7 deputies came to Moscow in late November 1991, just a few days after Gaidar had come to power
as head of Yeltsin's economic team, the main focus of the G - 7 message was the urgency that the Soviet Union should continue to
service the external
debts at any cost.
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).