Creditors
in sentence
1217 examples of Creditors in a sentence
Year after year, Greece’s
creditors
have promised that the bailout packages would bring about a meaningful rebound in output, employment, and exports.
Nor did Greece’s
creditors
do anything to help Samaras’s government out of its political bind, even though it was a government they liked.
While the debtor loses the most, the
creditors
also lose, as they are not repaid.
And the
creditors
have failed to propose a realistic approach to Greece’s debts, perhaps out of Germany’s fear that Italy, Portugal, and Spain might ask for relief down the line.
Creditors
are sometimes wise and sometimes incredibly stupid.
Moreover, the post-program surveillance procedure does not give the “troika” of official
creditors
– the European Commission, the ECB, and the International Monetary Fund – the leverage over Greece that they desire.
What the revelers failed to note, however, was that, to borrow that €3 billion on behalf of its creditors, the Greek state added €816 million in interest payments to its debt repayments for 2025.
According to the authorities’ propaganda, Greece’s
creditors
are linking debt repayments to growth.
For example, last year, the Seychelles announced a first-of-its-kind “debt for nature” swap with its Paris Club
creditors
and The Nature Conservancy.
With countries unwilling to cede sovereignty, Europe’s only option is to dump the pretense of centralized coordination, leaving countries and banks to deal with – and be disciplined by – their
creditors.
Europeans, both debtors and creditors, must address the banking problem forthrightly, and simultaneously with the euro, sovereign-debt, and fiscal-adjustment issues.
But the IMF’s own policies can exacerbate the crisis, by bailing out the creditors, by encouraging them to act irresponsibly again in the future, and by linking the loans to ineffective policy recommendations.
Similarly, if the eurozone had not stepped in – with the help of the International Monetary Fund – to protect Greece and its
creditors
in recent months, we would have faced further financial distress in Europe and perhaps more broadly.
Creditors
were protected and financial sectors’ losses were transferred to the domestic government (as in Ireland) or to the European Central Bank (as in Greece).
As a result, all financial institutions gain a powerful incentive to bulk up (and borrow more) in hope of also becoming bigger and therefore “safer” (from creditors’ point of view, not from a social perspective.)
If a homeowner defaults,
creditors
can take the house, but they cannot take other property or income to make up any unpaid balance.
Even in those states where mortgages are not “no recourse” loans,
creditors
generally do not pursue the assets or income of individuals who default.
Supported by other northern European creditors, Germany enforced its fiscal principles relentlessly, despite the systemic consequences for those it was pressuring (Greece and Spain, for example, now have different governments).
Whether or not the reforms sought by the eurozone members raise the chances that their loans will be repaid, these
creditors
have a political and economic interest in the monetary union’s survival and development.
The reason is straightforward: whereas equity can absorb a business downturn – profits fall, but the firm does not immediately fail – debt is less forgiving, because
creditors
do not wait around to be paid.
Short-term
creditors
cash out or refuse to roll over their loans, denying credit to financially weakened firms.
Long-term
creditors
demand to be “made whole” and sue.
Financial firms in the United States pay about 34% of their profits in taxes, and, while they can deduct interest payments to
creditors
from taxable income, equity is not taxed as favorably.
Most important, while reliance on debt made financial institutions riskier,
creditors
knew that, in a crisis, the government would probably bail out the largest, if not all of them.
China’s largest corporate debtors are state-owned firms, and their
creditors
are state-owned banks.
The Germans, responding to the understandable public backlash against taxpayer-financed bailouts for banks and indebted countries, are sensibly calling for mechanisms to permit “wider burden sharing” – meaning losses for
creditors.
How long does default last before the country can reach an agreement with its
creditors?
Bond-market participants naturally turn now to calculating “recovery values” – what
creditors
will get if countries default today.
Total haircuts don’t happen historically – except in the wake of communist takeovers – but it is hard to imagine that private
creditors
won’t suffer huge losses in net present value.
If a country is bankrupt, it must let its
creditors
know that it cannot repay its debts.
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