Debts
in sentence
1153 examples of Debts in a sentence
But, given that the largest enterprises are either state-owned or local-government entities, their
debts
are essentially domestic sovereign obligations.
The key to success will be to manage the sequence of liquidity injections and interest-rate reforms so that the effort to address local subprime
debts
does not trigger asset-price deflation, while reducing financial repression that cuts off funding to more productive sectors and regions.
As a result, households want to spend less and pay down their
debts.
For the other creditors, the toughest choice is to admit – as the IMF knows – that their Greek
debts
must be restructured.
We know that the structure of the eurozone encourages divergence, not convergence: as capital and talented people leave crisis-hit economies, these countries become less able to repay their
debts.
Yet Western leaders must recognize that if these states fall apart, their
debts
will never be paid and, inevitably, creditor countries will face vast additional costs.
But it also caused serious problems – such as environmental damage, inequality, excessive debts, overcapacity, and corruption – to flourish.
Foreign investors were panicking over the prospect that Brazil would fail to roll over its foreign
debts.
Private and public
debts
in advanced economies are still high and rising – and are potentially unsustainable, especially in the eurozone and Japan.
Creating a common central bank without a common treasury means that government
debts
are denominated in a currency that no single member country controls, making them subject to the risk of default.
After the crash of 2008, Merkel insisted that each country should look after its own financial institutions and government
debts
should be paid in full.
The main reason for the lag is not simply low demand or large
debts.
Given that Europe’s overall
debts
and deficits are much lower than those of the US or Japan, the logic went, it should have been able to avoid polarization and paralysis.
Their approach has been to extend new loans so that Greece can service its existing debts, without restoring Greece’s banking system or promoting its export competitiveness.
Greece’s initial €110 billion bailout package, in 2010, went to pay government
debts
to German and French banks.
While Greece’s
debts
to private creditors have been partly cut, this was too little too late, because it cannot even service its
debts
to official creditors.
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.
In 1992, its stupid insistence on strict Russian debt servicing of Soviet-era
debts
sowed the seeds for today’s bitter relations.
Moreover, free labor mobility means that individuals can choose whether to pay their parents’ debts: young Irish can simply escape repaying the foolish bank-bailout obligations assumed by their government by leaving the country.
But that doesn’t address today’s problem: huge debts, whether a result of private or public miscalculations, must be managed within the euro framework.
When the cost of dollars doubled in terms of pesos or rupiah, otherwise-solvent local banks and manufacturers could no longer service their dollar
debts.
Europe has high public debts, taxes near 50% of national product, and years of high unemployment and mediocre growth.
There is the risk of overstimulation, with fiscal deficits fueling large current-account deficits and debts, which suddenly become unsustainable when money gets tight.
These private
debts
were passed along to the populace, which received nothing from the loans but is now expected to pay them back.
Stronger countries in the eurozone must allow these spreads to narrow by guaranteeing the new
debts
of countries from Greece to Italy, through the issuance of Eurobonds, for example.
Removing national governments’ ability to run large deficits and borrow at will is the necessary counterpart to a joint guarantee of sovereign
debts
and easy borrowing terms today.
And, if the Greek and Italian economies face difficult recoveries inside the eurozone, consider how hard it would be to repay euro-denominated
debts
with devalued drachmas or liras.
In 2005, the international community went further, agreeing on the Multilateral Debt Relief Initiative (MDRI), which will write off 100% of many poor countries’
debts
to the IMF, the World Bank, and the African Development Bank.
Interest rates will rise to compensate investors both for having to accept a larger share of government bonds in their portfolio and for an increasing risk that governments will be tempted to inflate away the value of their debts, or even default.
But, with
debts
in many countries rising to 80% or 90% of GDP, and with today’s low interest rates clearly a temporary phenomenon, trouble is brewing.
Back
Next
Related words
Their
Countries
Would
Public
Which
Government
Governments
Private
Financial
Could
Banks
Growth
Interest
Country
Large
Deficits
Crisis
Years
Repay
Rates