Borrowing
in sentence
1116 examples of Borrowing in a sentence
The polarization of
borrowing
costs has politically explosive distributional effects: Germany is
borrowing
and refinancing its existing debt at artificially low interest rates.
Other countries, by contrast, face ruinously high
borrowing
costs, which are simultaneously increasing the scale of their reform challenges and narrowing their political scope to address them.
The longer Italian and Spanish
borrowing
costs remain at such elevated levels, the greater the damage to those economies, and the harder it will become to marshal the necessary political support for further reforms.
Investors are demanding a hefty premium to insure against the chance that Italy and Spain are ultimately forced out of the eurozone – thus bringing that day closer by weakening countries’ fiscal positions and raising their private-sector
borrowing
costs (which are set by government bond yields).
But the steep fall in the value of Italian and Spanish banks’ holdings of government debt, combined with mounting bad loans as a result of recessions exacerbated by punitive
borrowing
costs, is forcing the banks to rein in business lending further.
And it is the ECB’s credibility problem, not that of member states, that is the principal reason for unsustainably high
borrowing
costs in Italy, Spain, and other distressed eurozone countries.
In the face of high systemic risk, private capital is leaving banks and the sovereign-debt markets, causing governments’
borrowing
costs to rise and bank capitalization to fall.
For, even if America’s banks were healthy, household wealth has been devastated, and Americans were
borrowing
and consuming on the assumption that house prices would rise forever.
The collapse of credit made matters worse; and firms, facing high
borrowing
costs and declining markets, responded quickly, cutting back inventories.
The entire objective of IMF lending is to help finance the country while it makes adjustments and regains access to private
borrowing.
This, in turn, would bring greater gains from trade, stronger competition, larger cross-border capital flows, lower
borrowing
costs, and more opportunities for sharing risk, all of which were expected ultimately to boost investment and productivity.
Household savings became negative for the first time since the Great Depression, with the country as a whole
borrowing
$3 billion a day from foreigners.
What is now required to resolve the technical issue is some mechanism for assuming existing debt and preventing excessive
borrowing
in the future.
Because a big slice of these deficits must be financed through
borrowing
at high interest rates, a growing public debt relative to income results.
The sheer scale of public
borrowing
precludes interest rates from falling despite the presence of new lenders on the scene.
Budgetary problems, however, were not solved;
borrowing
replaced the promiscuous printing of rubles.
While the
borrowing
lasted, and speculation took the forefront, everybody could dream.Russia is now back to the starting line.
Borrowing
in foreign hard currencies is particularly risky, as depreciation of the local currency can cause liabilities to surge.
The change in a country’s debt burden reflects the size of its primary budget balance (the balance minus interest payments) as a share of GDP, as well as the difference between its
borrowing
costs and its GDP growth rate.
When the difference between
borrowing
costs and growth becomes too large, the primary budget surpluses required to stop debt from increasing become impossible to achieve.
With the US government now
borrowing
around 40% of every dollar it spends, a truly binding debt ceiling would immediately force the government to reduce spending radically and in a disorderly fashion.
Regardless of the details of the ultimate deal, the risk is that the ghost of Russia’s bailout of Cyprus in 2011 could provoke severe side effects across Southern Europe, both for governments’
borrowing
costs and for small savers.
IMF conditionality for the activation of the majority of their
borrowing
could make countries reluctant to turn to the CMIM for support.
The Fed’s 25-basis-point cut in December was puny relative to what is needed; similar cuts by the Bank of England and Bank of Canada do not even begin to address the increase in nominal and real
borrowing
rates that the sharp rise in Libor rates has induced.
Latin America’s low personal debt levels have created an opportunity to build a constructive culture of
borrowing
while expanding economic opportunity.
Greece’s nominal debt stock will matter only once the country re-enters the debt markets and becomes subject to market, not concessional,
borrowing
terms.
Obama’s long-run budget calls for much higher spending, higher taxes, and an explosion of debt that will crowd out
borrowing
in capital markets by private companies, state and local governments, and developing countries.
With growing political uncertainty and a slowing economy, Egypt is likely to witness decreasing government revenues, increasing demands for urgent spending, and rising interest rates on government
borrowing.
For three decades, Mubarak’s
borrowing
only enriched him and his ruling clique while impoverishing and repressing the rest of Egypt.
Perhaps most importantly, the days of
borrowing
to build a large state security apparatus would be gone for good – worldwide.
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