No country with a stagnant economy and a big debt stock can do that for long.
The biggest boost to ratings would come from a large reduction of Greece's debt stock.
Inflation helps reduce the total debt stock over time, by reducing the real value of debt.
President Sarkozy said yesterday that the deal would lower the Greek debt stock by about 24% of GDP.
But its public-debt stock is approaching 200% of GDP, so Japan has scant room for more fiscal stimulus.
In the mid-1980s, America's current-account deficit was smaller, 3.5% of GDP in 1985 compared with 6.3% today, and its debt stock lower.
In any given period the debt stock grows by the existing debt stock (d) multiplied by r-g, less the primary budget balance (p).
Many would say that France, with its higher and younger debt stock, and uncertain deficit plans, probably has more to worry about right now.
Our calculator shows the evolution of a government's debt stock based directly on the values for inflation, growth, interest rates and the primary deficit that you determine.
Fears over its sovereign bonds may have eased, but France has a public-debt stock worth nearly 90% of GDP and is vulnerable to fallout from the euro crisis.
The simple r-g assumption is one of the most important in debt dynamics: an r-g of greater than zero (when interest rates are greater than GDP growth) means that the debt stock increases over time.
The current account deficit has likewise fallen, meaning now that almost all of the country's massive budget deficit is being financed by its own citizens (though of course a significant chunk of the accumulated debt stock is foreign held - notably by Asian central banks).
Because he thinks that by enabling growth, default plus devaluation might actually raise the present value of those bonds, compared with the current scenario, which he thinks will mean default happening when the debt stock has risen that much higher and the economy has been hammered that much harder.
As a result, the unsecured creditors of American Airlines instead of getting debt or a combination of debt and stock in the merged airlines, will receive preferred stock.
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Rather than providing companies with incentives to take on more debt through stock buybacks, acquisitions or leveraged buyouts, our tax policy should encourage healthy growth and a strong economy through equity investments that can provide income to investors.
If you hold any of the GM debt issues, you may have an optimal time to sell these after the stock value has been established since the debt holders will be getting stock once the bankruptcy has been confirmed.
If the independent forecasters are right, the OBR is almost certain to tell him that he will not be able to meet his debt target - that is, to have the stock of debt falling as a share of GDP in 2015 - without additional tax rises or spending cuts, before the election.
What about debt - that is, the stock of all the debt that has been run up in the past?
Part of that will be used to reduce debt, buyback stock, invest in growth initiatives and for general corporate purposes.
Last evening, after the close of another Greek debt crisis related stock market drubbing, Atmel Corporation ( ATML) reported quarterly results.
The Revenue Agent allowed the loss, concluding the loss would either be deductible as a bad debt or worthless stock loss. 1 The statute of limitations for assessment under I.
High dividend tax rates will cause tax conscious boards not to make that choice, opting instead for other uses of free cash flow such as debt-fueled stock buybacks and acquisitions.
Mrs Knight said in the light of the continuing eurozone debt crisis and stock market volatility, the focus for banks should be on the recovery, not on dealing with more regulation.
The creditor says McLaughlin tried to pay off a debt with common stock in his company, even recommending a Boca Raton, Fla. broker, since sanctioned for penny-stock scams, who could supposedly sell the shares on the open market.
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Although the proposal to write down the face value of privately held Greek-government debt by 50% would be substantial and welcome, Greece's stock of debt would, even on best assumptions, still add up to 120% of GDP by 2020.
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Using debt to buy another corporation's stock or merely changing equity to debt wouldn't qualify.
In addition to mergers-and-acquisitions advisory, investment banking includes raising capital through stock and debt.
Corporations are paring interest expense markedly through calling and refinancing debt and issuing preferred stock.
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Due to the European debt woes, the stock has slumped nearly 15% so far in 2012.
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