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Insolvency in sentence

166 examples of Insolvency in a sentence

Only if the guarantees are called in does a full insolvency occur, with the entire public debt being rescheduled.
Under this scheme, investors would face a potential insolvency risk, but the maximum loss they could expect is limited to 60% of their investment.
The proposed crisis mechanism would effectively insure government bond purchasers against the risk of insolvency, but it would entail deductibles that compel bondholders to assume some of the investment risk.
The eurozone urgently needs a crisis mechanism with automatic haircuts for cases of impending insolvency.
The most reasonable explanation for Germany’s response is that many Germans harbor a deep mistrust of other European governments, and thus believe that they cannot be counted on to avoid insolvency.
Internal devaluation in southern countries failed to rebalance their economies for the simple reason that, while wages and prices fell in, say, Greece and Spain, debt did not, thus trapping whole populations in insolvency.
Gold rose above $1,000 again in February-March 2009, when it looked like most of the financial system in the United States and Europe might be near insolvency, and that many governments could not guarantee deposits and backstop the financial system, because banks that were too big to fail were also too big to be saved.
The same logic applies here: A judge can remove any doubt that actual insolvency exists, while also ensuring that credit remains available during a restructuring.
The crisis was always about much more than Greece: a disorderly insolvency there would threaten to pull other economies on the EU’s southern periphery, including some very big ones, into the fiscal abyss, along with major European banks and insurers.
It can be combined with a system of measured, limited help in the sense of partial coverage of investors against a country’s insolvency.
Indeed, the Fed, unlike the ECB, does not buy any bonds from individual states; investors must bear the costs of any state insolvency.
Many also have sounder banking systems, while their public and private debt ratios, though rising, are still low, with little risk of insolvency.
But, judging by the experience of the US and other non-European countries, they may have to choose between insolvency and inequality.
The eurozone also needs an insolvency code, which would restore credibility to the Lisbon Treaty’s no-bailout clause.
As shareholders’ equity is the only real buffer against losses in these corporations, this means that a 4% decline in their assets’ value would completely wipe out their shareholders – taking the companies to the brink of insolvency.
The latest package to cope with Greece’s insolvency offers a bond buyback to lighten the country’s debt burden.
Insolvency in the financial sector spills into other sectors in the form of a credit crunch, because Japanese banks are unwilling to lend money.
The borrower is cut off from international markets, and essential imports can no longer be purchased, while large-scale defaults threaten to plunge creditors into insolvency.
The problem of bank insolvency, endemic in Greece, where nonperforming loans account for more than one-third of bank assets, is not as generalized in Italy.
Greece’s continuing insolvency reflects the deep disagreements within the Franco-German axis concerning eurozone redesign.
As less competitive industries were driven into loss and insolvency, economic activity would become even more concentrated and specialized.Learn
As less competitive industries were driven into loss and insolvency, economic activity would become even more concentrated and specialized.
In a more indirect way, a general regulatory push that increased the availability of projects suitable for long-term-investment and harmonized local insolvency regimes could also have a positive effect.
The bigger problem remains uncertainty about who is on the hook if a bank’s losses imply potential insolvency.
Second, while monetary policy has limited impact when the problems are excessive debt and insolvency rather than illiquidity, credit easing, rather than just quantitative easing, can be helpful.
Fourth, large-scale liquidity provision for solvent governments is necessary to avoid a spike in spreads and loss of market access that would turn illiquidity into insolvency.
Unions, too, are resisting the necessary wage reductions, and public and private debtors fear the prospect of insolvency if their assets and revenues are assessed at a lower value, while their debts remain unchanged.
Prior to their collapse in 2013, banks in Cyprus had to pay interest of 4% or more on deposits to compensate for savers’ fears of insolvency.
In such a system, a recession would create a self-reinforcing spiral of deteriorating public finances, rising fears of bank insolvency, and declining credit extension.
As foreigners and Germans alike withdrew deposits, banks were driven into insolvency and forced to liquidate their assets at very fire-sale prices.
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