Debt ceiling

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Debt ceiling

Debt Ceiling

The maximum amount that a government can borrow. The term especially applies to municipalities; rising above the debt ceiling may trigger a reduction it a municipality's credit rating. Cities and other local governments that are near the debt limit may issue participation certificates--a right to the receivables for a certain project--instead of direct debt. The United States also has a national debt ceiling, but Congress simply raises it every time the national debt approaches the ceiling.
References in periodicals archive ?
Exceeding the 10 percent debt limit guideline set by credit rating agencies including Standard & Poors could result in the city having its credit rating downgraded, which would cost the city more money to borrow in the future, Comrie warned the council.
The city of Los Angeles was warned Monday that it will exceed the city's debt limit of 10 percent of total revenues in two years unless the City Council and mayor curb their borrowing.
Global Banking News-April 6, 2015--RBI wants caution on foreign investor debt limits
Because of the room created by unifying categories, the current SEBI auction mechanism allocating debt limits for corporate bonds will be replaced by the 'on tap system' currently in place for infrastructure bonds.
The existing debt limits will be merged into following two broad categories: