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 ?
However, placing a debt cap would not limit the government from securing loans to finance infrastructure projects.
There is no reason to believe that the US will default, but there is every reason to think that the debt cap will be removed only when the US government comes up with certain economic measures that are far away from the much-touted free market ideology and close to the prudent mix of free market and centrally planned systems.
The relatively benign interest deduction regime will be restricted somewhat for accounting periods beginning on or after 1 January 2010 with the introduction of a worldwide debt cap regime.
BANKING AND CREDIT NEWS-21 May 2010-BMO Capital Markets adds 2 execs to Canadian debt cap mkt team(C)1994-2010 M2 COMMUNICATIONS http://www.m2.com
"We have adopted an approach of a salary cap, being used in conjunction with a debt cap and draft picks in order to even the competition and to prevent one owner's spending harming the integrity of the competition," he explained.
Overdrafts related to securities transfers were monitored separately because they were afforded special treatment under the net debt cap policy (as discussed below).
Senate President Pro Tempore Ralph Recto on Friday bared that he was again pushing for a "debt cap", which would set the country's indebtedness at an amount not more than 50 percent of its national Gross Domestic Product (GDP).
Using 2018 debt and GDP figures, Recto explained that government was 'P1.4 trillion away' from his proposed debt cap that is equivalent to half of the GDP.
He emphasised that raising the general debt cap and approving the state's budget for 2015-2016 will be achieved through coordination between the executive and legislative branches.
Avoiding a breach of the debt cap, by pulling back government spending to ensure the Treasury Department can meet its interest payments, would still force the world's largest economy into a recession, according to economists at Goldman Sachs Group Inc.
The so-called six pack' on economic governance introduces swifter and more automatic sanctions for countries that breach the EU's 3% of GDP deficit limit and 60% debt cap. It also introduces a new imbalances procedure with sanctions for countries that fail to address ballooning house prices or trade deficits.
The debt cap must rise by an estimated $2 trillion to shield the nation from defaulting on its loans, and Republicans are seeking an equal level of spending cuts to balance out that figure.