Borrowing
in sentence
1116 examples of Borrowing in a sentence
A significant part was financed by non-debt-creating inflows of foreign direct investment, but external borrowing, particularly by the private sector, also grew very rapidly.
Socialization of bank debt across borders implies that a country’s private
borrowing
costs are artificially reduced below market rates, as insurance (in the form of credit-default swaps) is provided free of charge by other countries.
Under the umbrella of common deposit insurance, US savings banks made a “gamble for resurrection” –
borrowing
excessively from their depositors and lending the money out to risky enterprises, knowing that potential profits could be paid out as dividends to shareholders while potential losses would be socialized.
Banks never wanted to admit to their bad loans, and now they don’t want to recognize the losses, at least not until they can adequately recapitalize themselves through their trading profits and the large spread between their high lending rates and rock-bottom
borrowing
costs.
After all, huge US foreign
borrowing
was clearly a key factor in creating the recent financial mess, while China’s excessive reliance on export-driven growth has made it extraordinarily vulnerable to a sudden drop in global demand.
These “Red Bonds” would make
borrowing
beyond 60% of GDP more expensive, thereby enhancing fiscal discipline and reinforcing the targets set by the Stability and Growth Pact.
Therefore, the guarantee would not apply to debt crises caused by excessive
borrowing
to finance unsustainable fiscal policies.
Second, countries with high debt levels would welcome this opportunity to control
borrowing
costs and to commit to stronger fiscal discipline after the current crisis.
Between 1993 and 1994, Greenspan once again reined in monetary policy, only to be surprised by the impact that small amounts of tightening could have on the prices of long-term assets and companies’
borrowing
costs.
Favorable
borrowing
costs have fueled an enormous increase in the issuance of corporate bonds, many of which are held in bond mutual funds or exchange-traded funds (ETFs).
Interest-rate spreads for Italy and Spain are widening again, while
borrowing
costs for Portugal and Greece remained high all along.
But recession could also result if deficits are allowed to fester, or are increased with additional stimulus to boost jobs and growth, because bond-market vigilantes might push
borrowing
costs higher.
So they contemplated only a “thin” globalization, with capital flows restricted largely to long-term lending and
borrowing.
They could not stop the Greek government from
borrowing
(indirectly) from the European Central Bank (ECB) as long as credit rating agencies deemed Greek debt creditworthy.
The ECB has lowered the threshold of creditworthiness that Greek government securities must meet in order to allow continued Greek
borrowing.
When the East Asian financial crisis broke out in mid-1997, the advanced countries and the International Monetary Fund were quick to blame the victims -- the
borrowing
countries.
Foreign
borrowing
and capital flight were connected by a financial revolving door, as funds borrowed in the name of governments were captured by politically connected individuals and channeled overseas as their private wealth.
In the last decade, sub-Saharan Africa recorded a "net transfer" (new
borrowing
minus debt service on past loans) of negative $11 billion.
Given the evidence of widespread capital flight fueled by external borrowing, African governments can rightly insist that creditors have the responsibility of establishing that their loans were used for bona fide purposes.
Historical experience – including in the United Kingdom in the 1970s – tells us that financial markets are not always convinced by heavily indebted governments that promise to solve their problems by
borrowing
even more.
That will require establishing effective regulatory structures that facilitate long-term
borrowing
and repayment, while ensuring that lenders do not exploit borrowers, as has occurred everywhere from rural India to the United States mortgage market.
It winds up
borrowing
“temporarily” with short-term debt; then, as
borrowing
accumulates, it is refinanced with longer-term securities.
They also initiated credit easing, or purchases of private assets to reduce the costs of private-sector
borrowing.
The problem is that the elaborate credit systems that they have created to underwrite infrastructure or property development – so-called “local-government financing vehicles” – undermine more sustainable
borrowing
and lending, while weakening state-owned banks’ balance sheets.
In order to make local-government
borrowing
more transparent and accountable, the Third Plenum calls for streamlining the distribution of revenue between the central and local governments, increasing transfer payments to cities, and allowing local authorities to issue municipal bonds independently.
For deficit countries,
borrowing
from international institutions outside the markets would be easier, giving the issuer of such currency some form of international lender-of-last-resort function.
But this unsustainable expansion was financed by foreign borrowing, and the inflation rate has since skyrocketed to over 15%, with the current-account deficit exceeding 5% of GDP.
To deal with the refugee crisis, while putting the EU’s largely unused AAA
borrowing
capacity to better use, requires a paradigm shift.
While the eurozone’s northern members enjoy low
borrowing
costs and stable growth, its southern members face high
borrowing
costs, recession, and deep cuts in incomes and social spending.
The European Central Bank did not follow the lead of other advanced-country central banks, such as the US Federal Reserve, in pursuing a more aggressive monetary policy to cut
borrowing
costs.
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