preferred creditor

preferred creditor

A creditor having priority to payment over one or more other classes of creditors. For example, holders of first mortgage bonds must be paid by the borrower before payments are made to holders of second mortgage bonds on the same collateral. First mortgage bondholders are the preferred creditors.
References in periodicals archive ?
In its press release, JCR stated that NDB's 'AAA' rating is based on its appraisal of the strong support for the Bank's operations by the member countries, the NDB's solid capital base and conservative risk management framework to ensure financial soundness, and the preferred creditor status enjoyed by the Bank.
A pristine track record of Preferred Creditor Treatment (PCT)
Preferred Creditor Status of IDB to Costa Rica: Historically, sovereigns have prioritized certain obligations, such as obligations from multilateral development banks (MDBs), when the government cannot service all of the country's external debt.
Moreover, it is not just any old debt; it is debt collateralized by the future stream of exports, which makes it super-senior debt -- more senior than debt from entities with so-called preferred creditor status such as the World Bank and the International Monetary Fund.
* The outlook remains stable, reflecting our expectation that, over the next two years, the Bank will continue fulfilling its development mandate, benefiting from preferred creditor treatment, and that the amount and willingness of extraordinary shareholder support to the Bank will remain unchanged.
Section 133 of the FRIA also requires in no uncertain terms that the '[l]iquidation Plan and its implementation shall ensure that the concurrence and preference of credits as enumerated in the Civil Code of the Philippines and other relevant laws shall be observed, unless a preferred creditor voluntarily waives his preferred right.'
Gabon's membership enables AFC to receive preferred creditor status within the country, reducing AFC's investment risk, enabling it to provide more competitive financing solutions.
In their claim, LFL say they have acquired rights over that debt from Wavetower which makes them a preferred creditor.
preferred creditor status are among its other credit strengths.
As a logical matter, if the IMF or some other multilateral lender such as the World Bank, was an unsecured creditor without any de jure preferred creditor status, payments to it in all future cases were now open to attack under the same theory that NML had used against other creditors.
For Guntram Wolff, director of Bruegel think tank, the ruling suggests that the ECB is a preferred creditor, since the bonds acquired through the OMT would not take losses in case of a haircut.
The negative element of ESM involvement comes as its 'preferred creditor status' would subordinate existing debt holders.