With these cuts, the government would have less need to borrow, so debt-service costs would be reduced by nearly $170 billion over 10 years, he added.
And it raised concerns about a proposal to change the way the State University of New York financed dormitories so that its debt service would not be counted against the state's debt cap.
The two authors continued: "The current environment of low interest rates, which has so far kept debt service payments under control in G-7 economies despite surging deficits and debt levels, provides a window of opportunity to set the adjustment process in motion".
AMR is not in great shape, with debt of $20 billion, $2 billion or so in annual debt service and negative equity of $1.3 billion.
But it's hardly in great shape, what with debt of $20 billion, $2 billion or so in annual debt service and negative equity of $1.3 billion.
Note that over five years this is equivalent to £20bn per annum, far more than the £8bn or so in annual government debt service paid abroad.
One idea, floated last week by the authority's chief financial officer, Stephen Kessler, is the possibility of issuing bonds but having the state cover the resulting debt service, so it would not add to the authority's existing burden.
Over here, our negative numbers are manageable because the debt service is so low.
Annual debt service totals $70 million or so.
So while services have to depend on revenues, debt service waits for no man.
Now, Italy is not a shadow bank; its debt has on average a roughly 7-year maturity, so high interest rates take time to filter into higher debt service.
