Borrowing
in sentence
1116 examples of Borrowing in a sentence
Such opposition seems counter-intuitive, given that the ECB’s mere announcement of the OMT program calmed sovereign-debt markets and reduced
borrowing
costs in peripheral countries.
Because oil consumers generally spend extra income fairly quickly, while governments (which collect the bulk of global oil revenues) usually maintain public spending by
borrowing
or running down reserves, the net effect of lower oil prices has always been positive for global growth.
Europe’s Futile Search for Cheaper MoneyBRUSSELS – Various forms of common “European bonds”, more precisely eurobonds, have been proposed recently as a way out of the current euro crisis, with proponents stressing the promise of lower
borrowing
costs.
What debtor countries gain in terms of lower financing costs would be offset by the losses for creditor countries both in terms of higher
borrowing
costs and lower interest income.
The same applies to countries: making some claims senior to others would not lead to lower average
borrowing
costs, owing to the higher cost of private financing after it is reduced to junior debt.
As
borrowing
costs tend to rise proportionally more than the increase in risk, a country with a large volume of European bonds outstanding might actually face higher
borrowing
costs.
Of course, if member countries were willing to pool all their borrowing, they might gain, on average, a small reduction in debt-service costs.
It would be better still if governments were legally bound to use these independent forecasts in their budget plans
(borrowing
an innovation from Chile).
It is often argued that the United States, as the major reserve-currency issuer, enjoys what then French Finance Minister Valéry Giscard d’Estaing famously called in the 1960’s an “exorbitant privilege,” in the form of lower
borrowing
costs (a benefit estimated to be worth as much as 80 basis points).
Weakness in the periphery has led to capital flowing back to Germany as a regional safe haven, lowering German
borrowing
costs.
In effect, Germany has had the double exorbitant privilege of lower
borrowing
costs and a weaker currency – a feat that a non-monetary-union currency like the US dollar cannot accomplish.
It also requires a substantial reform of the monetary union’s system of economic governance, aimed at restoring financial stability and lowering
borrowing
costs, together with a boost in external demand in order to compensate for the effects of austerity.
Otherwise, speculation on member states’ national debt will persist, keeping
borrowing
costs at levels that are inconsistent with the conditions required to sustain economic recovery.
First, with its bank-dominated financial system, China (along with Europe and many emerging economies) suffers from a maturity mismatch, owing to short-term
borrowing
and long-term lending.
For a while, the government dodged trouble by turning to an improved local bond market, which helped reduce
borrowing
from the central bank.
Indeed, the government's market
borrowing
as a ratio of its total financing needs increased to 66.5% in the current fiscal year, compared to 20.6% in fiscal 1991-92.
France latched onto the idea, because its
borrowing
capacity was also weaker than Britain’s.
Their
borrowing
costs fell as they locked their currencies into a union with countries – Germany, in particular – with a stronger reputation for stability.
Some
borrowing
over the seven-year MFF period may be possible, while upholding the medium-term objective of a balanced budget.
One is the cost of
borrowing
by the government, and the other is the cost of
borrowing
by the private sector.
Relentless government
borrowing
and high payroll taxes (employer-paid social security) have long sustained citizens’ illusion that they are getting something for nothing, while perpetuating successive governments’ misconception that taxing business is a painless way of financing welfare and public services.
And in the period prior to the financial crisis, the yen depreciated against most currencies, as well as having lower interest rates, so
borrowing
in yen and investing in high-interest-rate currencies such as the Australian dollar or the Turkish lira was very profitable.
This meant that an investor who was pessimistic about equities, but who might face constraints in hedging that risk by using derivatives or selling equities short, could reduce his exposure to equity markets by reversing the carry trade –
borrowing
in Australian dollars and investing in Japanese yen, for example.
The Treasury and Federal Reserve are adding preferred stock to the balance sheets of the US mortgage giants Fannie Mae and FHLBC and the insurance giant AIG in the hope of shoring up their capital cushions and lowering their
borrowing
costs so that they can buy more mortgages.
The Eurozone’s Calm Before the StormNEW YORK – A little more than a year ago, in the summer of 2012, the eurozone, faced with growing fears of a Greek exit and unsustainably high
borrowing
costs for Italy and Spain, appeared to be on the brink of collapse.
The best way to strengthen eurozone financial resilience is to address
borrowing
incentives.
Until now, the countries of emerging Europe withstood the global financial squeeze remarkably well, coping with the slowdown in important export markets and increased
borrowing
costs.
For starters, customer expectations will evolve as the millennial generation increasingly accounts for a larger portion of earning, spending, borrowing, saving, and investing.
By attacking Britain and seeking to increase British
borrowing
costs, France is only creating more conflict between itself and Britain, while creating more tensions within Europe as a whole.
Today, by contrast, most local private sectors have been
borrowing
abroad to finance what were, until recently, rising current account deficits.
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