Lawyers for WorldCom's and MCI's bondholders both objected to the nature of certain borrowing and payments WorldCom said it must make to continue operating its businesses.
With typical chutzpah, Keating wanted to deliver a higher-than-expected budget surplus, while at the same time cutting public-sector spending, global borrowing and payments to the states.
Thanks to school construction and other projects requiring substantial borrowing, debt payments are projected to increase by more than $2 billion by 2012, according to the New York State Financial Control Board, an agency created by the state after the 1975 fiscal crisis to monitor the city's finances.
Mayor Michael R. Bloomberg said yesterday that his administration would not use the $1.4 billion that the city planned to borrow against payments from the national lawsuit settlement with tobacco companies to help balance its budget.
The database provides in-depth information on how individuals save, borrow, make payments, and manage risks.
But that involves only internal borrowing and payment deferrals.
Debt is also valuable to private-equity firms because the government subsidizes their borrowing — corporate interest payments on debt are tax-deductible, while dividend payments (which you can think of as payments on equity) are not.
Borrowing, mainly mortgage payments, drains £7,700.
Companies also responded by delaying tax payments, borrowing from suppliers and sometimes disguising loans as direct investment, giving rise to a cat-and-mouse game with officials.
The legislation, which passed 221 to 207, would allow limited borrowing to make payments to federal bondholders, then Social Security recipients, even if the Treasury is prohibited from borrowing to finance the rest of the government.
