Creditors
in sentence
1217 examples of Creditors in a sentence
First, existing debts needs to be disarmed: their maturity must be lengthened, the rescheduled debt must carry only moderate interest and the amount outstanding needs to be cut;
creditors
have been prepaid over recent years with record interest rates so it is now time for a "hair cut".
The ECB’s ongoing acquiescence in the extend-and-pretend charade demanded by Greece’s
creditors
has demolished its claim to be independent.
To illustrate the ECB’s conundrum, it is worthwhile revisiting the creditors’ treatment of the Greek government elected in January 2015.
Meanwhile, Germany and other
creditors
began to push Greece to accept new austerity measures as the price of reversing the “ECB’s” decision.
Almost a year later, Greece’s
creditors
were pushing for even greater austerity in exchange for more loan tranches.
The bully was blaming the victim, and the ECB was openly embracing its role as enforcer for its political masters: the
creditors.
Yet Greece's
creditors
have continued to ignore these developments.
Yet, for some reason, Greece's
creditors
refuse to negotiate with the new government (which enjoys strong domestic support) to develop a new program that incorporates debt relief, a lower fiscal surplus, and structural reforms that support growth and promote social cohesion.
Second, the European Union has taken the least legally difficult route to debt-crisis resolution: the so-called “contractual approach,” which aims at facilitating agreement with private
creditors.
Politicians across the political spectrum know that such a situation would unsettle an already fragile US economy, severely weaken the dollar, and raise serious concerns about the country's ability to meet its debt-service obligations, including to the many foreign
creditors
that the US will need in the future.
Creditors
would then ask many more questions before adding to their already-considerable holdings of US government debt, generating still more headwinds in a US economy that already faces an unemployment crisis and uneven growth.
Sovereign Debt at Square OneCAMBRIDGE – Argentina and its bankers have been barred from making payments to fulfill debt-restructuring agreements reached with the country’s creditors, unless the 7% of
creditors
who rejected the agreements are paid in full – a judgment that is likely to stick, now that the US Supreme Court has upheld it.
For starters, in 2001, Argentina unilaterally defaulted on its entire $100 billion debt, an unusual step, rather than negotiating new terms with its
creditors.
Many are called “vulture funds” because they bought the debt at a steep discount from the original creditors, hoping to profit subsequently through court decisions.
A good legal system permits employment and production to continue in cases where the economic activity is still viable; divides up the remaining assets in an orderly and generally accepted way; and makes these determinations as efficiently and speedily as possible, while discouraging future carelessness by imposing costs on managers, shareholders, and – if necessary –
creditors.
Eventually, it was recognized that a debt overhang was inhibiting investment and growth in Latin America, to the detriment of debtors and
creditors
alike.
If the borrower runs into trouble, CACs make it possible to restructure debt with the agreement of a substantial majority of
creditors
(usually around 70%).
The more likely outcome is that it will manage to come to some accommodation that the holdouts find more attractive than the deal accepted by the other
creditors.
Either way, future voluntary debt-workout agreements have just become more difficult to reach, which will leave debtors and
creditors
alike worse off.
Germany and the other countries of the eurozone core are signaling that debt mutualization within the monetary union is out of the question, and that bailouts of countries or financial institutions will be balanced by “bail-ins” of their
creditors.
“Bailing in”
creditors
will exacerbate these trends.
Further exacerbating the Bank’s financial woes, its powerful
creditors
have opted to “pull back” its lending in order to protect its resources.
Analysts and bondholders have also lobbied the government and the opposition not to seek financial support from the International Monetary Fund, for fear that the international community will demand that you accept a significant “haircut” on your investment, as has been required of Greece’s
creditors.
Seeking to avoid losses, many
creditors
would rush to cash out, putting pressure on the entire banking system and potentially triggering a run.
In such a scenario, a damaged bank could absorb more losses and remain in operation, diminishing creditors’ incentive to run.
Under the current plan, certain
creditors
are designated in advance to absorb a failed bank’s losses once the equity is wiped out.
Those creditors’ debts are thus riskier, and should be more expensive to the bank than the debt that is not designated to be turned into equity.
Another more neutral possibility is that markets aren’t pricing the different types of debt differently because they do not understand that the plan involves hitting some
creditors
hard and keeping others safe.
Maybe knowledgeable investors assume that, ultimately, banks and the government will not treat the designated loss-absorbing
creditors
any differently than others.
But the real problem is that the global economy is badly overleveraged, and there is no quick escape without a scheme to transfer wealth from
creditors
to debtors, either through defaults, financial repression, or inflation.
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