Loans
in sentence
1648 examples of Loans in a sentence
Central and local government borrowing in China has soared: bank and shadow-bank credit has grown rapidly: and the People’s Bank of China (PBOC) has increasingly issued direct
loans
to state-owned banks in a maneuver closely resembling monetary finance of government spending.
Alternatively, the banks could perpetually roll over existing debt, forever extending new
loans
to repay old debts.
According to this oft-repeated fallacy, governments can raise money by issuing bonds, but, because bonds are loans, they will eventually have to be repaid, which can be done only by raising taxes.
The longer the bonds’ maturities, the less frequently governments have to come to the market for new
loans.
There are risks even for banks that make the effort to match their dollar borrowing from abroad with dollar
loans
extended at home.
The fund is expected to leverage this to acquire roughly €63 billion in loans, with private investors subsequently contributing some €5 for every euro lent – bringing total investment to the €315 billion target.
But higher inflation would help to accelerate desperately needed adjustment in Europe’s commercial banks, where many
loans
remain on the books at far above market value.
To succeed, the Bank must broaden its toolkit beyond country-specific
loans
– the key instrument on which it has relied for seven decades.
Banks’ balance sheets still have a relatively low volume of non-performing
loans
(and high provisioning).
The costs of potential losses on corporate
loans
– estimated at 7% of GDP in the IMF’s latest Global Financial Stability Report – are manageable.
Third, the funding to fight AIDS took the form of outright grants, not Wall Street
loans.
Poor countries need grants, not loans, for basic needs like health and education.
For example, we had no financial crises when central banks instructed commercial banks to limit their lending to particular economic sectors that they believed were overheating, such as real estate or consumer
loans.
The development model that China is facilitating, which combines productive investment and trade with concessional
loans
and aid, is helping to break the cycle of under-development in Africa – a goal that Western-led development strategies have failed to achieve.
Meanwhile, French banks charge at least 5-6% interest on the
loans
that they grant to African governments to finance their budget deficits.
Donors soon helped launch other microfinance institutions in Mexico, India, Peru, Indonesia, and many African countries, where they could offer
loans
at 25-30% interest rates – well below traditional moneylender rates of 60-100% – and still generate strong profit margins.
For example, the Andhra Pradesh state government passed a restrictive ordinance making it difficult for microfinance institutions to recover their
loans
from their clients.
With the government lacking fiscal room, and Greek banks burdened by non-performing loans, it is important to mobilize the state’s remaining assets and unclog the flow of bank credit to healthy parts of the private sector.
Imagine further that the “bad bank” helps the financial sector, which was recapitalized generously by strained Greek taxpayers in the midst of the crisis, to shed their legacy of non-performing
loans
and unclog their financial plumbing.
When the public sector takes key risks along the innovation chain – such as providing guaranteed
loans
to companies like Tesla – we should think more creatively about the kinds of contracts that enable the public to share not only the risks, but also some of the rewards.
If European politicians are serious about preventing a schism between population groups, affirmative action is essential – not only at the workplace, but also for small business loans, home loans, public procurement, and school admissions.
Through its $1 trillion “one belt, one road” initiative, China is supporting infrastructure projects in strategically located developing countries, often by extending huge
loans
to their governments.
Of course, extending
loans
for infrastructure projects is not inherently bad.
Some developing economies are regretting their decision to accept Chinese
loans.
But the decision by many developing countries to accept Chinese
loans
was, in many ways, understandable.
Sirisena, in need of more time to repay old loans, as well as fresh credit, acquiesced to a series of Chinese demands, restarting suspended initiatives, like the $1.4 billion Colombo Port City, and awarding China new projects.
The European Union dithered for years before acknowledging that private
loans
to Greece should be written down.
Then it negotiated an insufficient haircut and ended up dithering again – resorting to accounting tricks to avoid writing down European public-sector
loans.
In 2005, Argentina and Brazil were the first of the countries that previously denounced the IMF’s neo-liberal agenda to begin repaying their
loans.
The World Bank, too, has recently been resurrected in places like Ecuador, Bolivia, and Peru, with
loans
to that region of Latin America up four-fold year on year since last September, reaching nearly $3 billion.
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