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When governments borrow they must meet interest obligations, and these are usually paid out of taxes.
Finally, large interest obligations lessen the ability of the government to finance other governmental activities.
"They're still having to borrow to pay their interest obligations," Mr. Samuelson said.
As a firm, we take our public interest obligations seriously in everything we do.
In the 1960s the Federal Communications Commission established regulations governing the content and public interest obligations of broadcast networks.
We then generate a bank failure by assuming that firms cannot service their debt if their interest obligations rise above their anticipated return on capital.
Similar(23)
A surplus note, of course, carries an interest obligation.
Practically speaking, the state appropriates funds to the schools in an amount that equals the principal and interest obligation.
The preferred stock, which got watered down, carried a cumulative interest, meaning we taxpayers would have recaptured some money if the company ever got going again, but that interest obligation was waived in the new deal.
"But there is also this public interest obligation and the issue of the rights of consumers in this evolving world, and we're just not going to go stick our head in the sand on that," he said.
Coppola adversaries have styled the Roos debt a "sham". They claim that the director devised it as a tax shelter and has relied on its fast-accruing but largely unpaid interest obligation to avoid paying any income tax on more than $13 million in movie income in the past three years.
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