Debts
in sentence
1153 examples of Debts in a sentence
China’s real-estate, credit, and stock-market bubbles – which produced ghost towns, bad local debts, and stock-price volatility – attest to that.
One is financial: how to deal with the unsustainable
debts
of many local governments and state-owned enterprises (SOEs).
Local-government
debts
can be shifted to the central government, or bank loans can be written off and banks recapitalized.
This means two things: allowing companies to deduct all investments in equipment and structures immediately, instead of spreading the cost over time; and eliminating the deduction for interest costs on newly incurred
debts.
After independence from Britain in 1783, America’s states refused to repay their Revolutionary War
debts.
The Constitution would create a new national government that could coin stable money, borrow, and repay debts, including the states’ defaulted Revolutionary War borrowings.
And Hamilton needed Congress to approve the federal government’s assumption of the states’ debts, which at first seemed unlikely.
They, in turn, would secure the votes for the federal government to assume and repay the states’ defaulted
debts.
But emerging economies may also be experiencing another common symptom of an impending crisis, one that is much tougher to detect and measure: hidden
debts.
Sometimes connected with graft, hidden
debts
do not usually appear on balance sheets or in standard databases.
So the great question today is where emerging-economy
debts
are hiding.
But actual disbursements may have fallen short of the original plans, meaning that these countries’
debts
to China are lower than estimated.
Alternatively – and more likely – the data may not include some projects, lenders, or borrowers, meaning that the
debts
could be much higher.
In short, though emerging economies’
debts
seem largely moderate by historic standards, it seems likely that they are being underestimated, perhaps by a large margin.
Growth would restore confidence that Greece could repay its debts, causing interest rates to fall and leaving more fiscal room for further growth-enhancing investments.
As such, domestic bond markets are better insulated, which in turn allows governments to make use of counter-cyclical fiscal policies to stabilize growth and service
debts.
Their loans were designed to perpetuate Africa’s role as a supplier of raw materials, while entangling the continent in an inextricable web of
debts
and dependency on the “aid industry.”
Many of these highly indebted governments have large stocks of gold, which they may decide to dump to reduce their
debts.
Seventh, in countries where private and public debt levels are unsustainable – household debt in countries where the housing boom has gone bust and
debts
of governments, like Greece’s, that suffer from insolvency rather than just illiquidity – liabilities should be restructured and reduced to prevent a severe debt deflation and contraction of spending.
Expedited debtor-friendly bankruptcy procedures could ensure quick restructuring and provide a framework for renegotiating
debts.
Developing-country governments should also encourage the conversion of such
debts
to GDP-linked or other types of indexed bonds.
In fact, because they hurt economic growth, further reducing countries’ ability to service external debts, higher interest rates can be counterproductive.
This temporary collapse has shaken public confidence and endangered the balance sheets of Ukrainian banks and companies that have hard-currency
debts.
These include deeper financial-market integration; an easier process for writing down bank and government debts; greater fiscal flexibility; and more balanced economic-adjustment mechanisms.
To succeed, they must address the fallout of the previous approach, which, by providing more money and preferential policies to the lagging track, ended up fueling overcapacity and unsustainable local
debts.
Meanwhile, the slow-growing sectors risk falling into a “balance-sheet recession," with highly indebted SOEs and local governments becoming so focused on paying down their
debts
that they stop investing in needed infrastructure, even when interest rates fall.
Institutional reforms aimed at combating corruption, reducing overcapacity, and dealing with unsustainable local
debts
will generate long-term dividends and sustainable payoffs.
Going to the IMF imposes a political cost, but it had to be done: only with sufficient firepower can Argentina convince investors that
debts
will be paid and the currency will not keep plunging.
In 1790, when Alexander Hamilton argued that the new federal government should assume the states’
debts
from the War of Independence, he encountered fierce hostility.
A tradition of conservative banking regulation and a tough-minded Governor of the Reserve Bank (India’s central bank) ensured that Indian banks did not acquire the toxic
debts
flowing from sub-prime loans, credit-default swaps, and over-inflated housing prices that assailed Western banks.
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