Deleverage

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Deleverage

To repay a company's debts in order to make it more attractive to investors. Companies acquire leverage (or debt) to expand operations in the most efficient way possible. However, acquiring too much debt may increase the company's risk so that it may be in danger of default or bankruptcy. Deleveraging reduces these risks.
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A Chinese central bank official has said that the apex bank would ensure smooth deleveraging by commercial banks.
Management reiterates its strategy for 2015 with its underlining factors being the mitigation of financial risk by significantly deleveraging at the holding and platform company levels, and limiting operational risk through the divestment of non-core and non-essential assets while focusing resources on core business and ensuring they have the funding needed to deliver on growth plans.
The post Bank deposits rise in June as deleveraging continues, central bank says appeared first on Cyprus Mail .
reveals that that deleveraging has not happened; rather debt has continued to accumulate to ever-high levels, in both absolute and relative-to-GDP terms.
Addressing the Arab Economic Forum in Dubai on Sunday, Krugman said, the risk of deleveraging is far from over and many economies around the world are facing the threat of slow growth or recession as a result of excessive slowdown in spending.
This was the deliberately chosen policy response to deleveraging in advanced economies.
The higher the share of the money pumped out that goes to debt deleveraging, the less the impact on the real economy will be.
The better policymakers understand what normally determines household leverage, the more adept they can be at anticipating or preventing disruptive deleveraging events.
Still, the report also marked the first 12-mont increase in household debt since the crisis, perhaps indicating that the deleveraging cycle has ended.
That is why he underlined that "getting the sequence of deleveraging right is key".
The primary driver for today's rating action is the material deleveraging of the balance sheet of Investcorp, a licensed wholesale bank in Bahrain that provides access to (and manages) global alternative investments.
In particular, the impact of deleveraging in the corporate sector as well as the continuous adjustment of external positions, competitiveness and labour markets deserve continued attention.