Examples of using Private borrowers in English and their translations into Russian
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Official
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Colloquial
Private borrowers percentage.
In 1996, only 20 per cent of long-term external debt was owed by private borrowers.
However, long-term financing for private borrowers in domestic markets remains subdued in many developing countries.
As a consequence, the share of total external long-term debt owed by private borrowers reached 50 per cent by 2008.
For private borrowers, the definition of solvency is straightforward: an entity is insolvent when its liabilities are larger than its assets.
Over the same period, the share of total long-term external debt issued by private borrowers grew from 30 per cent to 50 per cent.
Debt owed by private borrowers is particularly important in countries with access to international capital markets and upper middle-income countries.
Of long-term debt($743 billion), 89 per cent was owed to private creditors and63 per cent was held by private borrowers.
During 2002- 2006, private borrowers contracted 60 per cent of developing countries' external long-term bank loans and issued 75 per cent of developing countries' external bonds.
Loan-to-value(LTV) ratio has to be considered a basic prudential criterion for providing financing to private borrowers.
Therefore, the fact that a country has a large share of its external debt owed by private borrowers should not be interpreted as an indication of lower vulnerabilities.
Most long-term debt is owed by sovereign debtors to official lenders andonly 10 per cent of total long-term external debt is owed by private borrowers.
Surprisingly, the share of debt owed by private borrowers is the lowest in the Middle East and North Africa region(7.5 per cent), which includes several middle- and high-income countries.
In the current environment, about half of the long-term debt of developing countries is issued by private borrowers and more than 50 per cent of public debt is issued domestically.
Debt issued by private borrowers is particularly important in the transition economies of Eastern Europe and Central Asia, where it amounts to 72 per cent of total external long-term debt.
This is also the way they are perceived by financial markets, where it is well understood that,in the event of a crisis, Russia's biggest private borrowers will be able to rely on the support from the federal budget.
Private borrowers may decide to minimize borrowing costs and accumulate currency and maturity mismatches if they think that they will be bailed out in the event of a currency or liquidity crisis.
For instance, there is no mechanism for handling the large-scale restructuring of debt owed to foreign lenders by many private borrowers in the banking and corporate sector in developing countries.
This increase in borrowing cost may endanger the solvency of private borrowers based in emerging markets as a large share of their external debt contracted during the period 2003-2007 is now coming due.
Eastern Europe and Central Asia is the region with the largest share of long-term external debt owed to private creditors(92 per cent),as well as debt owed by private borrowers 71 per cent.
No mechanism is available to handle large-scale restructuring of the debt owed by many private borrowers in the banking or corporate sector to a multitude of foreign lenders, including bond holders.
Over the previous 15 years, private firms and banks had been drawing increasing amounts of finance from international markets,resulting in a steep rise in the share of external long-term debt owed by private borrowers.
In addition to halting capital flight,this would provide a breathing space during which domestic official and private borrowers could be brought together with foreign lenders to reschedule foreign debt.
They are used in a variety of situations, for example: to secure performance of contractual obligations including construction, supply and commercial payment obligations; to secure repayment of an advance payment in the event that such repayment is required; to secure a winning bidder's obligation to enter into a procurement contract; to ensure reimbursement of payment under another undertaking; to support issuance of commercial letters of credit and insurance coverage; andto enhance creditworthiness of public and private borrowers.
Those crises could be distinguished from the debt crises of the 1980s in that debt had been incurred mostly by private borrowers vis-à-vis private creditors which, in the case of Mexico, had included a diversified group of bond-holders.
This volatility of borrowing costs may endanger the solvency of private borrowers based in emerging markets as a large share of their external debt contracted during the period 2003-2007 is now coming due.
The financial crises of the 1990s, particularly those of Mexico and some Latin American countries in 1995, and several East Asian countries in 1997/1998,can be distinguished from the debt crisis of the 1980s in that debt was incurred mostly by private borrowers vis-à-vis private creditors which, in the case of Mexico include a diversified group of bond holders.
For instance, in a country with no public debt but a large external private debt,the inability of private borrowers to service this debt can lead to a currency and banking crisis, which can then have negative implications on fiscal sustainability.
While in the 1980s the main problem had been the externaldebt owed by Governments to commercial banks, either directly or indirectly through guarantees extended to private borrowers, in the mid-1990s the external financial obligations of developing countries became increasingly private in character.
The share of private debt is instead particularly low in Sub-Saharan Africa(32 per cent of long-term external debt is owed to private lenders and 10 per cent is owed by private borrowers) and in the Middle East and North Africa 36 per cent of long-term external debt is owed to private lenders and less than 6 per cent is owed by private borrowers. .