The phrase "a solvency problem" is correct and usable in written English.
It can be used in financial contexts to refer to a situation where an entity is unable to meet its long-term financial obligations.
Example: "The company is facing a solvency problem, which has raised concerns among its investors about its future viability."
Alternatives: "a liquidity issue" or "a financial distress".
"We don't face a solvency problem.
"It's a liquidity solution to a solvency problem," he added.
"A.I.G. had a liquidity problem, not a solvency problem," Greenberg said.
"A lot of what we are dealing with is a solvency problem.
When it comes down to it, the euro zone has two problems, which have been clear all along: a solvency problem and a liquidity problem.
"All the banks can borrow as much as they need, but at some point if it is a solvency problem, it is an issue for governments," said Dirk Schoenmaker, dean of the Duisenberg School of Finance in Amsterdam.
Carmen M. Reinhart: At first, the E.C.B. mistook a chronic solvency problem for a temporary liquidity challenge.
"Spain has a big debt problem, a big real-estate problem, a big solvency problem in some financial entities," he said.
By refusing to admit that Greece faces an obvious solvency problem, whereas Spain, Portugal and Ireland do not, Europe's policymakers have made it harder to draw a clear distinction between Greece and the rest.
Behind the liquidity meltdown resulting from the continuing CDS crisis is a serious solvency problem--a lot of borrowers can't meet their loan commitments and banks won't have the capital to absorb these losses.
However, unless the Eurozone acts quickly to stem the uncertainties surrounding the Eurocrisis, what has essentially been a liquidity problem for Italy thus far (having to rollover debt at gradually rising interest rates) may well turn into a self-fulfilling solvency problem leading inevitably to a need to restructure its debt.
