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Creditors in sentence

1217 examples of Creditors in a sentence

The losses that remain after the bad assets have been disposed of will thus have to be borne by the banks’ uninsured creditors, which in this case means those with deposits of more than €100,000 ($130,000).
The key lesson for European policymakers is thus that it is possible to “bail in” a bank’s creditors.
This has not been officially admitted, but Eurogroup President Jeroen Dijsselbloem, the Dutch finance minister, expressed it clearly, saying that, after Cyprus, Europe should become more courageous in bailing in bank creditors.
Other creditors typically cannot do that; in a US bankruptcy, for example, they must first wait for a court to decide whether the debtor company can be restructured.
By restructuring a failed industrial firm’s debts, saving its profitable businesses, and selling its loss-making ones, bankruptcy can minimize a failed firm’s knock-on costs for its creditors and the economy as a whole.
The derivatives market is exempt from rules that stop creditors from grabbing collateral and terminating their contracts when the debtor files for bankruptcy.
They are also exempt from rules that impede better-informed creditors from seizing assets and running off just before a bankruptcy, even if their positions are needed, say, to sell a portfolio intact to another business, and even if the fleeing creditor would eventually be paid in full, with interest.
But, as regulators reflect further, they will recognize that they cannot rely on the derivatives industry to revise its contracts any more than industrial bankruptcy relies on creditors’ contracts to stop failed firms from being ripped apart.
That solution will be incomplete, however, because not all derivatives traders are regulated financial institutions, and because many creditors would find ways to circumvent the contract and the requirement.
For starters, a Greek exit from the eurozone may have been only postponed, not prevented, as pension and other structural reforms put the country on a collision course with its European creditors.
Achieving this requires convincing still-skeptical creditors that women are dependable – and, indeed, valuable – clients, including by citing data on microcredit, which prove that women repay loans as reliably as men, if not more so.
What all such schemes amount to is piling one lot of bonds on top of another in an attempt to square the circle of Greece’s inability to pay, and to minimize the losses faced by its creditors – mostly European banks.
In an historic referendum, they have decisively rejected the deal offered by their country’s creditors.
Prime Minister Alexis Tsipras’s decision to urge the Greek electorate to vote “No” in the referendum on the latest offer by the country’s creditors suggests that the latter has taken precedence.
Striking such a deal will not be easy, though, as it will require Tsipras not only to overcome the resistance of radical Syriza members of parliament, but also the defiant stance of his country’s creditors.
Indeed, this was perhaps the Greek government’s main achievement during its agonizing five-month standoff with its creditors.
One is to exclude bank rescues altogether: only creditors would have to pay for bankers’ mistakes.
Moreover, virtuous creditors should not bail out irresponsible borrowers, be they private or public.
After a bank’s shareholders are wiped out and its creditors take an 8% “haircut,” the European Fund transforms itself into a bailout fund, justifying some of Germany’s fears.
Likewise, debt buybacks would be a massive waste of official resources, as the residual value of the debt increases as it is bought, benefiting creditors far more than the sovereign debtor.
The advantage of a par bond is that Greece’s creditors – banks, insurance companies, and pension funds – would be able and allowed to continue valuing their Greek bonds at 100 cents on the euro, thereby avoiding massive losses on their balance sheets.
Even if the Greek government were to succeed shortly in stabilizing its debt ratio (soon to reach 150% of GDP), it would be at too high a level to convince creditors to continue lending.
On the other side are those who call for the creditors who triggered the excessive debt to be punished for their imprudence.
The best route – admittedly a narrow road – is initially to beef up the financing program for Greece, which cannot finance itself on the market, while at the same time ensuring through moral suasion that private creditors do not withdraw too easily.
The quid pro quo for this easy ECB money is that the Irish government must protect European creditors who would otherwise face large losses.
Creditors could be offered these par bonds, or a shorter-term bond with a higher coupon – but with debt principal marked down.
But Greece’s creditors have already had two haircuts, first in the spring of 2012, and another that December.
Instead, Greece’s creditors chose to tighten the screws.
Furthermore, it seems equally improbable that the immediate impact of exiting the eurozone today would be larger than the long-run costs of remaining, given the insistence of Greece’s creditors on austerity.
Today, the IMF believes that a debt ratio of 173% is possible by 2020, but only if Greece’s official European creditors grant significant further debt relief.
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