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debt service
(redirected from Service Debt)

   Also found in: Legal, Encyclopedia 0.01 sec.
Debt service
Interest payment plus repayments of principal to creditors (retirement of debt).

Debt Service
The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.

debt service
Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.

debt service

The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.



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However, there is still great concern about the number of 'zombie' businesses within the Time To Pay scheme - firms that are only able to service debt but not fund expansion - and more importantly, the new figures do not show the number of businesses asking for 'repeat' or 'renegotiated' arrangements.
However, we are still concerned about the number of 'zombie' businesses within the Time to Pay scheme - businesses that are only able to service debt, but not fund expansion.
Lenihan stressed that Ireland's financial health was better than other peripheral eurozone economies, saying it had borrowing already lined up to service debts and cover public services until the middle of 2011.
 
 
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