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When interest payments are near zero, how do you know if a borrower can service a debt?
What is a bail-in?A bail-out is when outside investors rescue a borrower by injecting money to help service a debt.
Currently, the onus is on the borrower to adjudge his or her capacity to service a debt, but under the new rule "a lender must reasonably determine that the consumer has the ability to repay the loan".
The idea – put forward by creditors – that a primary surplus could service a debt load of such scale, was he said, "an enormous austerity trap that deprives society of valuable resources".
Without the need to service a debt load comparable to those of its competitors, the new WorldCom could afford to cut prices -- particularly in lucrative business markets -- far below those of other carriers, the Bells say.
After all, the problem facing Greece is that when its €110 billion, or $150 billion, emergency loan program expires in 2013, it may not be able to service a debt mountain that by then is forecast to reach 149 percent of gross domestic product.
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The current annual budget is $13.1 billion, of which $2.3 billion is needed to service a $32 billion debt.
Then again, Johnston - unlike Northcliffe - has to service a large debt.
Dell will still have to swing the axe carefully in its PC business because it will need the cash this produces to help service a large debt.
Even if its accounting woes and those federal investigations could magically be made to vanish, this would remain a troubled firm in a troubled sector, trying to service a huge debt load with shrinking revenue.
The company filed for bankruptcy in August 2002, because of its inability to service a $1.5 billion debt load.
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