Default
in sentence
1154 examples of Default in a sentence
As Chinese President Xi Jinping – now the
default
champion of globalization – pointed out at Davos this year, “Whether you like it or not, the global economy is the big ocean from which you cannot escape.”
On August 17, 1998, Russian Prime Minister Sergei Kiriyenko announced that his country would simultaneously
default
and devalue.
Vacation logic was also used to maximize bargaining power in recent cases of
default
or threatened
default.
Moreover, Russia’s
default
and devaluation in 1998 undermined the progress that was accomplished – starting in 1996 – in the banking sector and the capital markets in general.
In particular, since the European Central Bank has clearly rejected quantitative easing, investors will want to buy euro bonds issued by Germany and other European countries that are not in danger of
default.
The trouble began a dozen years ago, when Argentina had no choice but to devalue its currency and
default
on its debt.
The risk of
default
or debt restructuring induces creditors to be more careful in their lending decisions.
Simply put, these institutions’ primary objective was to minimize the repercussions that a Greek
default
would have on the international financial system.
More importantly, a
default
in 2010 would have left some room for adjustments.
Yet ten years later, the same Signor Cavallo is trying to fend off recession and government
default.
Fears of a
default
abound.
The government, unable to print money to bail out the banks or increase export competitiveness through currency devaluation, is left with only two options:
default
or deflation (austerity).
They partly restored Argentina’s social and political fabric, which had been weakened by the brutal adjustments made during that crisis, which triggered a president’s fall from power,
default
on the country’s debts, and a dramatic decline in living standards that left more than half of the population below the poverty line.
In this difficult international context, Cristina Kirchner will need to rebuild relations with the United States and Europe, which have been impaired since the
default
in 2001.
As for Europe, the Kirchner’s have not yet paid off Argentina’s debt – pending since the
default
– to the Paris Club of sovereign creditors.
Its history has seen many coups, tens of thousands of people missing, a war with Great Britain, bouts of hyperinflation, a brutal economic crisis,
default
on foreign debt, and its most vulnerable citizens going hungry.
After all, what the eurozone needs now is not to save its weaker economies from
default
or even to boost long-term growth; rather, it needs to recover lost output and employment, particularly in the southern countries – goals that neither fiscal austerity nor structural reforms can achieve on its own.
Second, banks would also suffer because they had sold insurance against
default
– in the form of credit-default swaps.
This was deemed a “credit event,” so credit-default swaps were exercised: anyone who insured against
default
had to pay out.
The Greek
default
has turned out to be the proverbial dog that didn’t bark.
But just when they were supposed to be reaping the benefits of their hard work, the East Asian crisis of July 1997 caused commodity prices to collapse, which forced Russia into
default
in August 1998 and shut down all emerging markets through financial contagion.
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.
Now Tsipras thinks he holds another trump card: Europe’s fear of a Greek
default.
On January 22, the ECB took decisive action to protect the eurozone from a possible Greek
default.
If holders of Portuguese bonds are alarmed by a future Greek default, the ECB will simply increase its bond buying; with no limit to its buying power, it will easily overwhelm any selling pressure.
The ECB’s new policy was designed to protect the euro from the consequences of a Greek exit or
default.
No “aggressive” or unfriendly effort by China will be needed;Russia will be subdued by
default.
Otherwise, our future will be decided by
default
circumstances instead of our own collective judgment.
After all, in the last decade or so, Russia, Argentina, and Ecuador defaulted on their public debts, while Pakistan, Ukraine, and Uruguay coercively restructured their public debt under the threat of
default.
So the question is whether these euro-zone members will be willing to undergo painful fiscal consolidation and internal real depreciation through deflation and structural reforms in order to increase productivity growth and prevent an Argentine-style outcome: exit from the monetary union, devaluation, and
default.
Back
Next
Related words
Would
Their
Government
Countries
Which
Sovereign
Country
Financial
Could
Other
Bonds
Crisis
Creditors
There
Rates
Banks
Interest
After
Markets
Should
