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Creditors in sentence

1217 examples of Creditors in a sentence

That way, the burden of adjustment would be shared with other creditors, as has occurred in Greece, and the economy would gain time to recover, particularly as investments in the world’s largest oil reserves began to bear fruit.
Traditionally, low-income countries’ creditors were rich-world governments and multilateral organizations that found it politically unfeasible to call in debts if this meant that borrowers had to cut vital public services such as education or health.
In contrast to the recent rash of bailouts, future government bailouts should protect only some creditors of a bailed-out institution.
A government may wish to bail out a financial institution and provide protection to its creditors for two reasons.
First, with respect to depositors or other creditors that are free to withdraw their capital on short notice, a protective government umbrella might be necessary to prevent inefficient “runs” on the institution’s assets that could trigger similar runs at other institutions.
Second, most small creditors are “non-adjusting,” in the sense that they are unable to monitor and study the financial institution’s situation when agreeing to do business with it.
To enable small creditors to use the financial system, it might be efficient for the government to guarantee (explicitly or implicitly) their claims.
But, while these considerations provide a basis for providing full protection to depositors and other depositor-like creditors when a financial institution is bailed out, they do not justify extending such protection to bondholders.
Thus, when a large financial firm runs into problems that require a government bailout, the government should be prepared to provide a safety net to depositors and depositor-like creditors, but not to bondholders.
The Costs of GrexitPARIS – Earlier this week, following days of tense discussions, the new government in Athens reached an agreement with its eurozone creditors that includes a package of immediate reforms and a four-month extension of the financial assistance program.
Financing from the IMF, the World Bank, the European Bank for Reconstruction and Development, and bilateral lenders, along with debt relief from official and commercial bank creditors, helped relieve the pressure.
Such an effort would quickly reveal that the real divergence is not between the EU’s northern and southern members, nor between its debtors and creditors.
If these were commercial loans, creditors would consider restructuring them – extending the payment schedule and typically writing down principal.
Bail-out facilities were then extended ad hoc to investment banks, mortgage providers, and big insurers like AIG, protecting managers, creditors, and stock-holders against loss.
The IMF’s “Tough Choices” on GreeceATHENS – The International Monetary Fund’s chief economist, Olivier Blanchard, recently asked a simple and important question: “How much of an adjustment has to be made by Greece, how much has to be made by its official creditors?”
And have its creditors given anything at all?
The IMF and Greece’s other creditors have assumed that massive fiscal contraction has only a temporary effect on economic activity, employment, and taxes, and that slashing wages, pensions, and public jobs has a magical effect on growth.
With no path to growth, the creditors’ demand for an eventual 3.5%-of-GDP primary surplus is actually a call for more contraction, beginning with another deep slump this year.
For the other creditors, the toughest choice is to admit – as the IMF knows – that their Greek debts must be restructured.
Greece has met its creditors’ demands far more than halfway.
Yet Germany and Greece’s other creditors continue to demand that the country sign on to a program that has proven to be a failure, and that few economists ever thought could, would, or should be implemented.
A dose of reality on the part of Greece’s creditors – about what is achievable, and about the macroeconomic consequences of different fiscal and structural reforms – could provide the basis of an agreement that would be good not only for Greece, but for all of Europe.
Debates within eurozone member states typically converge on what legal scholars call herrschende Meinung (“dominant opinion”), which, in turn, appears to reflect their countries’ status as creditors or debtors.
In Italy, Prime Minister Matteo Renzi sought to take advantage of post-Brexit instability to use public funds to recapitalize Italy’s zombie banks, without imposing losses on their creditors, thereby bypassing the EU’s new “bail-in” rules for banks.
For starters, they should use the EU’s new bail-in rules to clean up banks’ balance sheets, imposing losses on creditors and compensating any small investors who were sold a false bill of goods.
The scars from the post-2008 split between eurozone creditors and debtors are still visible, and a new fight pits advocates of the open society against proponents of identity politics.
In Greece, the “haircut” imposed on creditors so far has been managed by the European Union and the International Monetary Fund.
The European Commission has proposed a single rulebook for banks’ capital requirements; mutual support between national deposit guarantee schemes; and Europe-wide rules for resolving failing banks that place the main burden on bank shareholders and creditors, not on taxpayers.
As a result, Greece owes an ever-larger share of its debt to official creditors: the International Monetary Fund, the European Financial Stability Fund, and, increasingly, the European Central Bank.
While Greece’s debts to private creditors have been partly cut, this was too little too late, because it cannot even service its debts to official creditors.
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