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Debtors in sentence

238 examples of Debtors in a sentence

Either way, future voluntary debt-workout agreements have just become more difficult to reach, which will leave debtors and creditors alike worse off.
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.
Of course, inflation is an unfair and arbitrary transfer of income from savers to debtors.
If that does not come debtors will try and escape the burdens of dollar debt by staging a run on the central bank's reserves.
If it is too easy to default and reduce one’s debt burden, the result is moral hazard, because debtors gain an incentive to indulge in bad behavior.
Holdouts must not be permitted to block orderly restructurings that benefit debtors and creditors.
Member countries are now divided into two classes – creditors and debtors – with the creditors in charge.
But it is no longer accurate to view the economies of the periphery as weak debtors.
For starters, the conflicts of interests within such a eurozone might be much less acute than those that emerged during the crisis a decade ago, when creditor countries were obliged to bail out the debtors, which in turn felt squeezed by forced austerity.
The concerns expressed by some observers, such as George Soros, that the eurozone will remain a two-tier club, in which the creditors impose their conditions on the debtors, thus seem exaggerated.
If former debtors, facing diminished pressure from major creditors or risk premia, adopted less prudent fiscal policies, their public debt would continue to accumulate.
Haircuts would contain this risk by encouraging closer alignment of each country’s interest-rate spread with its creditworthiness – the essential tool by which markets impose discipline on debtors.
Philosophically, the debt-forgiveness approach rests on the belief that creditors share culpability for defaults with debtors, since they made the bad loans in the first place.
Like outright default or the restructuring of debts to official creditors, such arrears are often swept under the rug, possibly because they tend to involve low-income debtors and relatively small dollar amounts.
The MIP’s second flaw is that it lacks the omit protections for debtors that are afforded by the scarce-currency clause.
Without the ability to devalue their currencies, the only recourse the eurozone’s persistent debtors have is to threaten to leave the single currency.
The result is that imbalances between creditors and debtors have been locked into place.
Risk-averse investors may now demand higher risk premia for buying bonds from countries seen as weak debtors.
The main idea is to reduce the risk premia paid by debtors with lower fiscal credibility.
As Christoph Trebesch and I document, a common pattern in the often-hostile back and forth between sovereign debtors and their creditors is the protracted nature of the resolution process.
Abandoning the distorted and imbalanced incentive structure, and ensuring that both creditors and debtors share and manage risks, would help break the cycle.
The US and the UK have been running current-account deficits for decades, and are thus debtors, while the eurozone and Japan have been running external surpluses, making them creditors.
Because negative rates benefit debtors and harm creditors, introducing them after the global economic crisis spurred a recovery in the US and the UK, but had little effect in the eurozone and Japan.
In a closed economy, there is a debtor for every creditor, so whatever creditors lose from ultra-low interest rates, debtors should gain.
But in an economy with a large net-foreign-asset position, there are naturally more creditors than debtors.
The crisis has turned it into something that is radically different: a relationship between creditors and debtors.
All major sovereign-debt crises of the past – including in Mexico and Greece – have generated changes in the rules, jurisprudence, or strategies adopted by debtors, creditors, and international financial institutions.
Since the banks are large net international debtors, who have borrowed from abroad in dollars (and yen) to re-lend domestically in local currency, the balance sheets of the banks worsen every time the Asian currencies fall further.
As long as the debtors co-determine the rules, more capital will flow under such an arrangement than markets would permit.
Private debtors will continue to have difficulties finding capital, so the state will expand relative to the private sector.
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