Creditors
in sentence
1217 examples of Creditors in a sentence
The value of inherited government debts remains intact, and, aside from a handful of obligations to so-called junior creditors, bank debts also remain untouched.
Many firms are able to renegotiate financing terms with their
creditors
– typically extending the maturity of their liabilities, which enables them to borrow more to finance new, better projects.
First, banks were the primary creditors, and the large losses that they would face in any restructuring was bound to trigger a domino effect, with waves of pessimism driving up interest rates and ruining other borrowers’ prospects.
When Bear Stearns’
creditors
were bailed out to the tune of $30 billion in March, the rally in equity, money, and credit markets lasted eight weeks.
LONDON – The good news is that a Greek default, which has become more likely after Prime Minister Alexis Tsipras’ provocative rejection of what he described as the “absurd” bailout offer by Greece’s creditors, no longer poses a serious threat to the rest of Europe.
Second, debtors rarely look upon their
creditors
with sympathy.
Creditors
offer debt relief to get more value back and to extend as little new finance to the insolvent entity as possible.
Remarkably, Greece’s
creditors
seem unable to appreciate this sound financial principle.
In 2012, as the debt-to-GDP ratio skyrocketed, Greece’s private
creditors
were given a significant 34% haircut.
In 2015, however, with the primary surplus achieved, Greece’s
creditors
refused even to discuss debt relief.
During the negotiations to which I was a party, from January 25 to July 5, I repeatedly suggested to our
creditors
a series of smart debt swaps.
Once again, Greece’s
creditors
put the cart before the horse, by insisting that the new loan be agreed before any discussion of debt relief.
Why do Greece’s
creditors
refuse to move on debt restructuring before any new loans are negotiated?
America’s foreign
creditors
would not accept a sharp reduction in their dollar assets’ real value that debasement of the dollar via inflation and devaluation would entail.
The broader message of the Greek move is that “coordination” has so far been a code word for almost total control by
creditors
(sometimes together with the ECB).
The attempt to impose a benevolent creditors’ dictatorship is now being met by a debtors’ revolt.
Thus,
creditors
– mainly German and French banks – are not expected to suffer losses on their existing loans, while borrowers gain more time to “put their houses in order.”
In the Greek case,
creditors
have yet to accept the need for write-offs, and European governments have provided them with no incentives to do so.
Having more time, they are using the less visible, and much more gradual, path of “financial repression,” under which interest rates are forced down so that creditors, including those on modest fixed incomes, subsidize debtors.
For example, China’s bankruptcy law, enacted in 2006, required 12 years to negotiate, as factions within the Congress, the CCP, and the executive branch struggled to balance the interests of workers and
creditors.
Trump recently suggested that the US should negotiate with its
creditors
to buy back much of its debt at a discount – in effect, a partial default on trillions of dollars of liabilities, intended to reduce the burden of debt service for taxpayers.
For
creditors
around the world, the greenback remains the “indispensable currency.”
When Germany faced comparable conditions in the early 1930s, its
creditors
shrugged, and the resulting instability allowed for the rise of Adolf Hitler.
On July 5, the Greek people backed their young, charismatic leader with a decisive “No” vote on the unreasonable demands of their country’s
creditors.
Fischer appears to prefer to rely on the resolution powers of the Federal Deposit Insurance Corporation, which is empowered to takeover failing financial institutions, with the expectation that it will impose losses on
creditors
in such a way that will not cause global panic.
People who did not pay their
creditors
were sent – with their families – to debtors’ prisons, as John Dickens, Charles’ father, was for owing 40 pounds.
The euro crisis has transformed an ever-closer union of equal sovereign states, willingly sacrificing a share of their independence for the common good, into an association of creditor and debtor countries, with the debtors struggling to meet the creditors’ terms.
Initially, the most appealing argument for his plan was that it would provide greater security to creditors, and thus reduce interest rates, from the 6% at which the states financed their debt to 4%.
As international capital markets developed in the early nineteenth century, state governments borrowed on a large scale, quickly turning them from
creditors
into debtors.
A banking crisis that could have been resolved through a fair and decisive restructuring of unsustainable debts has ballooned into a much greater economic and political crisis that pits
creditors
against debtors, both within and among countries.
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