In evaluating each scenario, the Bank examines how changes in interest rates and unemployment affect consumer credit and the distribution of debt-service ratios (for more details, see Dey, Djoudad, and Terajima 2008).
There does not seem to be a strong case for restrictive regulation of consumer credit products, such as tight caps on interest rates or limits on borrowers' debt-service ratios.
Though limited, the data indicate that the rise in household debt prior to the recent recession did not affect the distribution of the debt-service ratio across Canadian households over the period from 1999 to 2007--indeed, Faruqui (2008) finds that both the mean and the distribution of the debt-service ratio of Canadian households varied little over the period.
Increasing reliance on BLT projects, which are viewed as off-balance-sheet debt financings, as well as insufficient tariffs, will erode CFE's debt-service ratios
over the next five years.
The terms of trade are expected to be inversely related to changes in the debt-service ratios.
Terms of borrowings and growth rate of GDP do not appear to have any significant impact on the variations in the debt-service ratios.
debt-GNP and debt-service ratio, reflect the inter-play of several economic as well as non-economic factors.
Leverage and debt-service ratios
have improved since 2007, when GPB300m of debt was raised to finance a capital return.
Debt and debt-service ratios
for Colombia are comparable to other low investment- grade emerging countries.
To ensure that the ceilings on debt-service ratios
are observed, a comprehensive credit registry is needed.
Debt Markets: Average loan-to-value ratios have declined and debt-service ratios
have increased since the third quarter of 2002, reversing a troubling trend.
This final step in setting up the credit bureau will bring transparency, making sure that borrowers stay within their means, living within proper debt-service ratios