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Loans in sentence

1648 examples of Loans in a sentence

Countries like Russia, or Indonesia, Korea, and Thailand in East Asia, or Brazil and Peru in Latin America, were able to borrow on easy conditions in the mid-1990s, but then faced a panicked withdrawal of loans in the past two years.
According to recent data prepared by the investment bank J. P. Morgan, international banks lent the 25 main emerging markets a total of $100 billion in net loans (that is, loans minus repayments) in 1995, $121 billion in 1996, and $46 billion in 1997, only to demand net repayments of $95 billion in 1998.
In emerging Asia, the swing was the worst: from $81 billion in loans 1996 to $84 billion in net repayments in 1998.
Around two-thirds of the loans that went into Asia, for example, were for a period of less than one year, often for less than one month.
Since the loans that had been offered were so short term, they could be pulled out nearly all at once.
Why, then, were the bank loans so short term -- and therefore so prone to panic?
In particular, bank assets (mainly the loans by banks) can not be more than 12.5 times the bank capital.
In the way that bank assets are counted, however, accounting regulations allow for banks to lend four times as much in short-term loans to other banks as in long-term loans.
Short-term inter-bank loans are seemingly less risky than long-term lending.
They said that the borrowers had behaved badly, when the real problem was that the international system had created a veritable "house of cards," in which a mountain of short-term inter-bank loans could suddenly be reversed, causing economic collapse in debtor countries.
Countries should limit their exposure to short-term international bank loans so that they are less vulnerable to wild swings of international lending.
In the last decade, sub-Saharan Africa recorded a "net transfer" (new borrowing minus debt service on past loans) of negative $11 billion.
America's authorities argued that Cuba's debt had not been incurred for the benefit of the Cuban people, nor with their consent, and that foreign loans helped to finance their oppression.
Given the evidence of widespread capital flight fueled by external borrowing, African governments can rightly insist that creditors have the responsibility of establishing that their loans were used for bona fide purposes.
Backed by $3.8 trillion in currency reserves, China has provided infrastructure investment in exchange for commodities, thereby becoming the world’s largest provider of financing for developing countries, with the China Development Bank already offering more loans than the World Bank.
Given that outstanding loans already amount to nearly double China’s GDP – a result of the country’s massive stimulus since 2008 – new loans are largely being used to pay off old debts, rather than for investment in the real economy.
Thus, the more relevant concern is that the balance of outstanding loans has not risen.
Consumer credit began in China only in the late 1990’s, with regulations allowing banks to offer mortgage loans, which now amount to about 10% of total loans.
Loans for education and car purchases are now also possible, and 2% of households have credit cards, which is obviously still low compared to 75% in the United States, but there were no such households just five years ago.
First, banks still have few reliable means of checking borrowers’ creditworthiness, including previous loans from other banks.
Educational loans should be booming in urban and rural China, but banks do not know to whom to lend, so they are not.
The difficulty of repossession (where did the borrower park the car?) and sale (the used-car market is still in its infancy) meant that most of these bad loans had to be written off.
Ms. Park once pledged to provide loans for working-class families from elementary school to college years, while contending that local universities should be empowered to have more autonomy.
Germany’s formula for the euro crisis has been to insist on fiscal belt-tightening and structural reforms to reduce future public spending on pensions and wages, make labor markets more flexible, and boost productivity, all in return for emergency loans.
And if defaults on loans to corporations are widespread, as these organizations predict, the implications for the banks could be dire.
According to Bernanke’s “debt deflation” theory, the collapse in consumer prices was one of the causes of the Great Depression, since deflation raised the real value of debts, making it difficult to repay loans.
Joining the IMF would give it access to information, advice, and hard-currency loans; but it would also require the government to divulge data on the Cuban economy.
The government can do that – and it can make sure that either the bank will repay the loans (by getting good collateral) or that the financial sector overall will cover the repayment (as Dodd-Frank authorized and required).
Moreover, governments should guarantee insolvent banks’ loans to non-financial companies, as well as private customers’ current, fixed-term, and savings deposits, by reforming insolvency laws.
Of course, the deliberate restriction of the effects of bankruptcy to accounts other than private current, savings, and fixed-term deposits means that the insolvency of bank A could lead to the insolvency of bank B. For bank B, too, the same liquidation scenario would apply: savings deposits would be safe, payments could be made from its customers’ current deposits, and loans that it granted to non-financial companies would not be revoked.
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