The phrase "a debt overhang" is correct and usable in written English.
It is typically used in economic contexts to describe a situation where existing debt prevents an entity from taking on new debt or making investments.
Example: "The company's growth has been stunted due to a debt overhang, making it difficult to secure additional funding for expansion."
Alternatives: "debt burden" or "debt constraint".
Due to a debt overhang problem highly levered banks resist new equity issuances and may forgo positive NPV projects because the cash flows will accrue to debtholders.
The government's lack of commitment induces a negative correlation between investment and the stock of government debt, a "debt overhang" effect.
Eventually, it was recognised that a debt overhang was inhibiting investment and growth in Latin America, to the detriment of debtors and creditors alike.
"Without growth, Europe is at risk of struggling permanently with debt sustainability and it is at the mercy of stagnation and a debt overhang," they said.
Whenever you have a debt overhang, whenever you have this big cloud of debt no new creditor will come in in a big way".
Whenever you have a debt overhang, whenever you have this big cloud of debt no new creditor will come in in a big way". The Irish Times this morning gives an equally unvarnished account of the bailout.
Second, the interest rate set by the European Central Bank (the ECB) a decade ago was too low for Greece, and it encouraged excess borrowing and a housing boom, and eventually a bust and a huge debt overhang by 2010.
M Drachet in attendance, plus admirers] M Drachet: Our diagnosis for this fellow is an excess of partying, too much of the punch-bowl, a surfeit of humours, grass corpulence and a palpable debt overhang.
That may be little comfort for many homeowners who owe more than their homes are now worth, but it does indicate that home prices have fallen far enough, at least in many areas, to make them affordable".You have a big debt overhang problem, but you don't have a house price problem anymore," said Robert J. Barbera, the chief economist of ITG, an advisory firm.
China changes its tune Over the past two weeks the Chinese government has made a concerted communications shift emphasizing its desire to deal with a massive debt overhang.
This process has left Spain with a massive debt overhang problem: as of 2014Q1 Spain's net international investment position is a negative trillion euros.
