Potential Default

Potential Default

A condition where a default may occur in time.

Potential Default

A situation that may cause a default on a loan. Alternatively, potential default may refer to a person, especially a loan applicant, who is in such a situation. An obvious example of potential default is a situation in which a borrower loses his/her job. Lenders attempt to identify potential defaults before they make a loan.
References in periodicals archive ?
ATHENS, Greece, Rajab 19, 1436, May 8, 2015, SPA -- Greece's prime minister said he is optimistic his cash-strapped country will soon reach an agreement with its international creditors, averting a potential default, AP reported.
But the system is far better placed to deal with a potential default than in 2011.
Greek five-year borrowing costs pushed through 19% on Monday as potential default continues to loom.
XL Group's risk engineers also look at how contractors make decisions, mitigate potential default risks, use technology to their advantage and how well their prequalification process is implemented in the company.
Below are some facts regarding a potential default by Argentina:
The Fidelity Yield Investigator includes advanced settings that enable users to modify the currency translation effect, as well as potential default and recovery rates.
The decision is likely to avert the potential default that had threatened not only the bank but also the country's shadow banking industry.
The move following a bipartisan deal reached in the divided Congress ends the partial government shutdown and allays concerns among global investors about a potential default of the world's largest economy.
The last minute accord on Wednesday staved off the threat of potential default, but only funds the government until January 15 and raises the debt ceiling until February 7, so Americans face the possibility of another bitter budget fight early next year.
Critical functions of government went on as usual, but the closure and potential default weighed on the economy and spooked the financial markets.
However, the ongoing government shutdown and potential default could derail progress and is already impacting business travel sentiment.
NATIONAL Sport Exchange Ltd ( NSEL) promoter Financial Technologies' chairman and managing director Jignesh Shah, who is in a fix over the potential default of ` 5,600 crore, on Monday said that a special committee comprising " eminent persons" had been formed to oversee the payout.
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