debt service

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Debt service

Interest payment plus repayments of principal to creditors (retirement of debt).

Debt Service

The amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds, or the principal of maturing bonds. An individual or company unable to make such payments is said to be "unable to service one's debt." An example of debt service is a monthly student loan payment. See also: Debt service coverage ratio.

debt service

Funds required to meet interest expenses, principal payments, and sinking fund requirements during a specific time period. A firm's ability to service its debt is estimated by comparing cash flow with debt service.

debt service

The amount necessary to make principal and interest payments on a loan.It does not include amounts collected each month as a reserve for insurance or real estate taxes and does not include payments for private mortgage insurance.

References in periodicals archive ?
Specific government policies, general economic conditions in a borrower's country, or changes in the international environment may prevent that borrower from obtaining the foreign currencies needed to service its debt. Whatever the cause, foreign currency may not be sufficiently available to permit the government and other entities of the country to service all their foreign debt.
The institute had difficulties to service its debts on time which was the main reason for the downgrade, the agency said.
The company failed to service its debts several times which combined with its "high gearing levels, low debt and interest servicing coverage ratio" prompted the downward action, CARE said in a statement.
The "stable" outlook assumes the city will keep stable net revenues to service its debts and maintain adequate infrastructure without incurring additional debt that could hurt its customer base and operations.

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