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Debtors in sentence

238 examples of Debtors in a sentence

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.
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.
Germans insist that debtors have a moral obligation to pay what they owe and atone for their sinful profligacy.
As Markus K. Brunnermeier, Harold James, and Jean-Pierre Landau explain, Germany has become the champion of a rules-based system that emphasizes keeping deficits low and generally prohibits bailing out debtors.
More likely than not, sovereign debtors will have to interact with the same creditors and international actors again.
Big debtors include some of those countries whose currencies have come under downward pressure recently: China ($1 trillion), Brazil (more than $300 billion), India ($125 billion), plus Malaysia, South Africa, Turkey, and Latin America’s financially open economies: Colombia, Chile, Peru, and Mexico.
As a result, fear could become a self-fulfilling prophecy: following a run by investors on all other sovereign debtors in the union, fiscal transfers would become inevitable in order to rescue overextended – for example, German – banks that have highly risky loan portfolios.
Thus, if reform on the eurozone’s periphery succeeds, both these economies and core countries will suffer from decreasing aggregate demand; if reform fails, either the deficits will continue to be financed, leading to further accumulation of external debt, or the entire eurozone will fall into depression, with sovereign debtors eventually defaulting on their liabilities.
First, France is an indispensable link between southern and northern Europe at a time of growing economic and financial division between creditors and debtors (a fissure that has begun to assume a cultural dimension).
The problem is that, instead of working together to build a shared future, Europe’s debtors and creditors have turned on one another.
Rather than continuing to advance their own preferred scenarios, EU members – creditors and debtors alike – should seize the opportunity afforded by the Greek crisis to assess whether the integration process is on the right track.
Just as inflation helps debtors by eroding the real value of their debts, deflation hurts them by increasing the real value of what they owe.
What can be done to achieve a more symmetric adjustment between Europe’s creditors and debtors?
The US is gradually transferring resources from creditors to debtors through financial repression.
Inevitably, this crisis – manifested, under a fixed exchange-rate system, through bond spreads – threatens to take down debtors indiscriminately, be they governments, banks, or households.
Meaningful debt renegotiations are seldom swift: creditors want repayment, and debtors want a write-down.
But even if prices and wages were to fall by 30% over the next few years (which would most likely be socially and politically unsustainable), the real value of debt would increase sharply, worsening the insolvency of governments and private debtors.
After all, such debts are contracts – that is, voluntary agreements – so creditors are just as responsible for them as debtors.
The debtors’ prisons of the nineteenth century were a failure – inhumane and not exactly helping to ensure repayment.
The idea of bringing back debtors’ prisons may seem far-fetched, but it resonates with current talk of moral hazard and accountability.
The failure to impose market discipline via the no-bailout clause was predictable: in a systemic crisis, the immediate concern to preserve the stability of markets almost always trumps the desire to prevent the moral hazard that arises when imprudent debtors are saved.
Thus, it seeks to protect the lawful rights of both creditors and debtors.
After all, low interest rates benefit debtors and hurt creditors, as does the inflation that can be spurred by monetary easing.
So creditor countries, led by Germany, have sought to do the minimum necessary to keep the euro alive, while debtors have grumbled impotently about Germany’s insistence on fiscal austerity.
As a result, it is becoming possible, in political terms, to say that the debtors have taken their punishment and have made their economies more competitive.
But ratings agencies and analysts who misjudged the repayment ability of debtors – including governments – have gotten off too lightly.
Think about the different effects of interest rates on debtors versus creditors.
But, if financing were to become easier, it would be unclear how both creditors and debtors would perceive the risk of excessive imbalances.
If Italy – one of the world’s largest public debtors – decided to go it alone, the entire European project could be dealt a mortal blow.
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