If the households' propensity to deleverage
is 100 (every dollar used to deleverage
--no demand pull), all of this will be channelled into reduced debt exposure, possibly in the form of lower mortgages.
But, as Schindler warned, if all sectors try to deleverage
at the same time, as it is happening today, problems could arise.
He added: "We continue to believe that Smithfield Foods' efforts to improve its pork operations, restructure its hog business, and deleverage
its balance sheet are the right courses of action.
The need to deleverage
means that these countries have become much more open to foreign capital.
They were also encouraged to deleverage
their balance sheets by the wider spread between consumer loan rates and retail deposit rates, which was accentuated on an after-tax basis by the phaseout of the tax deductibility of interest payments on consumer loans.
The transaction matches the current deleverage
of UK loans from the wider UK portfolio transferred from Laiki.
However, the group's inability to execute its asset/divestment plan to further deleverage
would have a negative impact on the rating.
But, in the second half of 2011, the eurozone-based parent banks that dominate emerging Europe's banking sector came under renewed pressure to deleverage
The landmark agreement would aid Airtel deleverage
via debt reduction and reduced ongoing capital expenditure.
This equity investment is necessary in order to properly deleverage
the company following its reorganization.
The transaction continues to deleverage
, with approximately 60% of the original class A-2 balance outstanding.
However, in order to maximize shareholder value, we believe a transaction in which we can deleverage
our balance sheet and create more liquidity to invest in our leading Chinese PCB assets will optimize our business model and best serve our customers.