The main hypotheses in this study are that, everything else being equal, the countries with high foreign
debt ratios have (a) higher sensitivities of external finance premium in the lending rate affecting the GDP growth rate more negatively in the following periods, and (b) a stronger negative feedback on the lending rate upon an initial macroeconomic shock leading to an economic amplification in the following periods, compared to the countries with low foreign
debt ratios.
The more turbulent political environment created by September's general election does not alter our assumption that Sweden's fiscal position will gradually improve and
debt ratios fall.
Most lenders use two forms of
debt ratios: a "front end'' ratio that compares the monthly costs of the proposed new mortgage and other housing expenses with the applicant's monthly income; and a "back end'' ratio comparing all recurring monthly debt obligations, including housing expenses, student loans, credit cards and the like, with the applicant's monthly income.
Sixteen EU Member States had government
debt ratios higher than 60% of GDP, with the highest registered in Greece (175.1%), Italy (132.6%), Portugal (129.0 %), Ireland (123.7%), Cyprus (111.7%) and Belgium (101.5%).
The
debt ratios of the public institutions will decline from 237 percent in 2013 to under 200 percent in 2017.
Estimates of fiscal space for a sample of 23 high income countries vary by country, but when
debt ratios reach the neighborhood of 100 percent of GDP, it becomes increasingly difficult to generate primary budget surpluses to keep pace with higher interest payments on rising debt.
"Prudent fiscal management has combined with the solid performance of the balance of payments and economic growth to result in the steady improvement in key
debt ratios [including the debt-to-GDP ratio]," Christian de Guzman, vice president and senior analyst for the sovereign risk group at Moody's, said in a statement issued by Moody's yesterday.
This improvement in Lebanon's
debt ratios compares with a net deterioration worldwide in
debt ratios, as the average advanced countries debt-to-GDP ratio rose by more than 30 percent over the same period," according to the report.
And it is equally true that high public
debt ratios are indicative of something that has gone badly wrong.
The literature on corporate financial management of the firms listed on the stock markets begin to give special importance to the management of
debt ratios which is a very critical issue for the owners, top managers and investors.
The move has been prompted by the deterioration in the city's operating performance in 2010-2011 due to the increase in operating expenditure, which proved larger than originally expected, as well as the considerable rise in debt with weak
debt ratios, Fitch explained.
Some studies show that US MNCs have lower
debt ratios as compared to those of domestic corporations (DCs) (Burgman 1996; Chen et al.
