Example collocations logo

Sovereign in sentence

1399 examples of Sovereign in a sentence

We must then break the perverse feedback loop between banking risk and sovereign risk that is at the heart of the euro crisis.
With regard to the first, emergency funds ought to be used to recapitalize the banking systems, as well as to provide loans to sovereign states.
Additional measures, such as “haircuts” for holders of sovereign debt, may be needed.
The country’s sovereign debt should have been restructured without delay.
This is the reality that the UN General Assembly acknowledged when it recognized a responsibility to protect endangered people in sovereign states.
Although eurozone sovereign-debt markets have stabilized, the share of sovereign bonds held by domestic banks has increased sharply in the last few months, accounting for more than half of the net increase in debt emissions in some countries.
In Spain and Italy, sovereign bonds now account for roughly 10% of banks’ total assets (see graphs below).
What accounts for banks’ growing bias toward their own country’s sovereign debt?
But, while Basel III favors sovereign debt in general by assigning it a zero risk-weight in calculating capital requirements, it does not favor home-country debt, at least not within the context of the eurozone.
In fact, eurozone banks’ preference for home-country sovereign bonds is rooted in a combination of factors, including fear of redenomination – a consequence of the crisis that leads banks to concentrate their risk domestically – and the expectation that bailout mechanisms will be national.
The first option would be to place upper limits on the sovereign debt held by banks – for example, by eliminating the current exemption of zero-risk sovereign bonds from regulators’ so-called large exposure regime.
A European debt agency would purchase eurozone countries’ sovereign bonds, weighted according to each country’s contribution to the eurozone’s GDP, and use them as collateral to issue two securities.
The third option would be to introduce a new rule conditioning sovereign bonds’ zero-risk weight on banks’ willingness to hold them in certain proportions – for example, relative to GDP.
Although a transitional regime would be needed to avoid hurting banks in weaker countries, such a rule would dramatically reduce banks’ exposure to home-country sovereign debt.
Not all democracies were as strict as France in their formal secularism but all were secular: the law is made by the sovereign people and not by some superhuman being or agency.
Thanks to European Central Bank President Mario Draghi’s “whatever it takes” speech, new financial facilities to stabilize distressed sovereign debtors, and the beginning of a banking union, the eurozone is no longer on the verge of collapse.
The immediate answer is that national banks will now use the scheme to borrow cheaply from the ECB and invest in short-term sovereign bonds, using the interest-rate spread to create a profitable “sovereign carry trade.”
And how often do we hear about sovereign restructurings of local-currency debt?
One route, a currency area without sovereign backstopping, will lead to debt, currency crises, and the eurozone’s dissolution.
The OMT program arose in August 2012, when months of relentlessly rising risk premiums on Spanish and Italian sovereign bonds were threatening the eurozone’s survival and endangering the world economy.
As a lender of last resort to sovereigns, a central bank must stand ready to purchase sovereign debt unconditionally, in order to neutralize the effects of temporary market disruptions.
With the lira eliminated, holding down yields on sovereign debt can be a fool’s errand.
Just as untenably high exchange rates must ultimately depreciate, default is necessary in cases of unsustainable sovereign debt.
Sovereign-debt attorneys Lee Buchheit and Mitu Gulati warn that markets could “mercilessly test the ECB’s willingness to persist in buying unlimited quantities of peripheral sovereign bonds.”
The eurozone must allow for selective default on sovereign debt, with the ECB acting as a lender of last resort for solvent governments.
We need to make the EU far more democratic, transparent, and effective – which is to say, more sovereign – than it is today.
Italy’s sovereign debt already totals more than 130% of its GDP – the second-highest ratio in the EU (after Greece).
Italy is not there yet, but since the end of May, yields on its ten-year sovereign bonds have increased by about 210 basis points, bringing the differential with the German bund to over 270 basis points.
But every variation has provoked others in the region, by signaling China’s willingness to encroach on perceived fishing rights (as with Indonesia), rights to exploit resources (as with Vietnam), or their own rights to the land-features in questionThe PCA’s decision punctures any notion that international law now recognizes “traditional” or “historic” maritime claims not directly associated with recognized sovereign ownership of relevant types of land.
China can and will continue to claim that, despite competing claims by Vietnam, the Philippines, and others to the land features in question, it is the sovereign owner of habitable islands and permanently protruding rocks or reefs in the Spratly and Paracel Island groups and elsewhere.
BackNext