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Borrowing in sentence

1116 examples of Borrowing in a sentence

But the statement, “The more the government borrows, the more it has to pay for its borrowing,” is sometimes true and sometimes false.
Local banks and firms go on a borrowing binge and pile up dollar-denominated debt – debt that pundits consider perfectly sustainable, as long as the local currency is strong.
Taking advantage of ultra-low interest rates in advanced countries, emerging-market banks and firms have been borrowing like never before.
Conventional wisdom also once held that dollar borrowing binges occur only in countries with fixed exchange rates, with the central bank de facto insuring borrowers against currency risk.
There are risks even for banks that make the effort to match their dollar borrowing from abroad with dollar loans extended at home.
The borrowing will be arranged through the new European Fund for Strategic Investment, operating under the umbrella of the European Investment Bank.
But the program remains legally dubious, as it creates a massive shadow budget financed by borrowing that will operate parallel to the EU and national budgets, thereby placing a substantial risk-sharing burden on taxpayers.
Making matters worse, only a fraction of the new borrowing enabled by the mutualization of liability will be factored into national budgets.
Because the ECB has already been using its balance sheet to help bring down borrowing costs in the eurozone’s periphery, it has been cautious in its approach to monetary easing.
As some confidence returns in an eventually recapitalized banking system, and long bond yields decline with the fall in inflation, mortgage and other borrowing rates will fall and monetary transmission mechanisms will revive, supporting economic activity and stabilizing real house prices, albeit at a substantially lower level.
That idea took advantage of the positive externality associated with borrowing costs as low as those merited by the credit risk of any single creditor (or lower).
For example, if people thought that government borrowing was simply deferred taxation, they might save more to meet their expected future tax bill.
Although some cuts in traditional outlays should be part of efforts to rein in spending, this approach should be supplemented by reducing “tax expenditures” – the special features of the tax code that subsidize health care, mortgage borrowing, local-government taxes, etc..Limiting tax expenditures could reduce the annual deficit by as much as 2% of GDP, thereby reducing the debt-to-GDP ratio in 2021 by more than 25 percentage points.
For decades, countries borrowing from the World Bank and regional development banks have begged for the loan process to be expedited; most cannot afford to wait more than two years to find out whether a loan has been approved.
This is especially true for government borrowing, but corporate interest rates, too, are at record lows.
Finally, to finance the plan, the EU could use its AAA borrowing capacity to issue long-term bonds.
Excess savings have been transferred from the core to the periphery, creating conditions for extensive borrowing and accumulation of debt.
A prolonged recession, punctuated by high – or prohibitive – borrowing costs, makes achieving either the fiscal or the reform targets increasingly difficult, if not impossible.
Those countries succumbed to the resulting temptation to increase government borrowing, driving the ratio of government debt to GDP to more than 100% in Greece and Italy.
They are, instead, effectively borrowing in a “foreign” currency (or, rather, a currency that they cannot individually control).
To have a significant impact on Italian and Spanish borrowing costs, the latest effort must be big enough to dispel the convertibility risk that underlies the extreme polarization of government bond yields across the eurozone: investors are loathe to hold Spanish and Italian debt, because they fear that both countries might be forced to leave the currency union.
Unfortunately, it is highly unlikely that the ECB will do enough to persuade investors that membership is unequivocally forever, not least because Germany’s Bundesbank opposes any open-ended commitment to capping borrowing costs.
Spain, Italy, and the eurozone periphery face unprecedentedly high real borrowing costs, which are preventing a recovery in investment and hence economic growth.
The Italian and Spanish governments argue that their high borrowing costs largely reflect convertibility risks, and that the ECB should do as much as necessary to address them.
But eurozone members that currently benefit from exceptionally low borrowing costs – Germany, Austria, Finland, the Netherlands, and, to a lesser extent, France – maintain that Italian and Spanish borrowing costs largely reflect these countries’ failure to reform their economies and strengthen their public finances.
Opponents of open-ended ECB action argue that Italian and Spanish borrowing costs are not actually that high: interest rates have merely returned to levels seen in the run-up to the introduction of the euro, when investors distinguished properly between the countries that now share the euro.
High borrowing costs are needed to focus minds and instill discipline.
In nominal terms, Italian and Spanish borrowing costs are indeed comparable to the levels of the late 1990’s.
And countries facing depressions and rapidly weakening inflation typically face very low borrowing costs: investors purchase government bonds for want of profitable alternatives.
This is what we see in the United Kingdom and the United States, where borrowing costs remain at all-time lows, despite both countries’ weak public finances and poor growth prospects.
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