What's the difference between debt and solvency?

Debt


Definition:

  • (n.) That which is due from one person to another, whether money, goods, or services; that which one person is bound to pay to another, or to perform for his benefit; thing owed; obligation; liability.
  • (n.) A duty neglected or violated; a fault; a sin; a trespass.
  • (n.) An action at law to recover a certain specified sum of money alleged to be due.

Example Sentences:

  • (1) In the bars of Antwerp and the cafes of Bruges, the talk is less of Christmas markets and hot chocolate than of the rising cost of financing a national debt which stands at 100% of annual national income.
  • (2) Madrid now hopes that a growing clamour for future rescues of Europe's banks to be done directly, without money going via governments, may still allow it to avoid accepting loans that would add to an already fast-growing national debt.
  • (3) Profit for the second quarter was £27.8m before tax but the club’s astronomical debt under the Glazers’ ownership stands at £322.1m, a 6.2% decrease on the 2014 level of £343.4m.
  • (4) The government did not spell out the need for private holders of bank debt to take any losses – known as haircuts – under its plans but many analysts believe that this position is untenable.
  • (5) However, civil society groups have raised concerns about the ethics of providing ‘climate loans’ which increase the country’s debt burden.
  • (6) The pump function of the heart (oxygen debt dynamics), the anaerobic threshold (complex of gas analytical indices), and the efficacy of blood flow in lesser circulation (O2 consumption plateau) were appraised.
  • (7) In the UK, George Osborne used this to his advantage, claiming "Britain faces the disaster of having its international credit rating downgraded" even after Moody's ranked UK debt as "resilient".
  • (8) Thus, the decreased hyperemic response after arrest suggests a reduced energetic debt with CSC compared with ARC and may indicate superior myocardial protection with CSC.
  • (9) It was the ease with which minor debt could slide into a tangle of hunger and despair.
  • (10) Most (86 percent) had educational debt (mean = $20,500), and more than half of those with debt were making loan payments.
  • (11) Silvio Berlusconi's government is battling to stay in the eurozone against mounting odds – not least the country's mountain of state debt, which is the largest in the single currency area.
  • (12) However in a repeat of the current standoff over the federal budget, the conservative wing of the Republican party is threatening to exploit its leverage over raising the debt ceiling to unpick Obama's healthcare reforms.
  • (13) It would cost their own businesses hundreds of millions of pounds in transaction costs, it would blow a massive hole in their balance of payments, it would leave them having to pick up the entirety of UK debt.
  • (14) Nevertheless we know that there will remain a large number of borrowers with payday loans who are struggling to cope with their debts, and it is essential that these customers are signposted to free debt advice.
  • (15) Finally, there is that pesky matter of public debt, which is still 90% of eurozone GDP.
  • (16) The ONS said it was possible that these one-off items and a rise in tax receipts in January could bring the overall debt figure within the OBR's £80.5bn forecast.
  • (17) This causes a time lag, with money continuing to be taken until the SLC is made aware that the debt has been settled.
  • (18) Unsecured lending rose slightly during the month, with outstanding debt increasing by £331m, after contracting by £114m in April.
  • (19) He said: "Advanced economies are still confronted with high levels of public and private debt, which act as brakes on the recovery.
  • (20) Portugal's slide towards a Greek-style second bailout accelerated after its principal private lenders indicated that they were growing weary of assurances from Lisbon that it could get on top of the country's debts.

Solvency


Definition:

  • (n.) The quality or state of being solvent.

Example Sentences:

  • (1) The FSA was fretting about solvency when liquidity was the problem.
  • (2) Without Solvency II we wouldn't be having this debate."
  • (3) They recognise there is a risk now that needs to be properly managed.” Asked if countries or companies could have their credit ratings downgraded because they were not properly managing the risk of extreme weather to their economies or solvency, Douglas said: “Absolutely yes.” Prof Andrew Watkinson, at the University of East Anglia and not part of the research team, said: “This timely report reminds us that extreme weather events affect us all, that we are not as resilient to current extreme events as we could be, and that the nature of extreme events is likely to change in the future.
  • (4) The effects on the agencies include attempting to maintain financial solvency while providing quality health care services; maintaining staff morale and productivity; making hi-tech services available at an increased cost on a 24-hour basis by qualified staff to remain competitive; and guaranteeing safe, sound policies and procedures for patients and staff.
  • (5) He said film studios and music labels had done everything they could to keep HMV alive, agreeing a year ago to take some of the company's solvency risk to allow it to keep trading.
  • (6) • The Bank fully supported the increase in national debt sanctioned by the then Labour government to rescue the banks and considered the action to be no threat to the solvency of the UK.
  • (7) We’ve therefore cut the amount of teaching we have to give to our students to the bone,” says Thomson, but it is a plan that will secure the future solvency of the college, rated outstanding by Ofsted in 2012.
  • (8) In his letter to the Guardian, Hayes continued: “The only time Libor rates were dishonest and inaccurate was during what became known as the ‘lowballing’ period, when senior bankers and central bankers conspired to mislead investors about the banks’ solvency [by suggesting that they could borrow money cheaper than they really could in order to camouflage fears banks’ finances were under strain].” Facebook Twitter Pinterest Tom Hayes with his wife, Sarah.
  • (9) Bank runs, if they occur, will likely arise because of existential risks about the euro, rather than solvency or liquidity risks about banking systems," the UBS economists warned.
  • (10) After months of drama in the eurozone and its own solvency hanging by a thread, Greece reacted with euphoria on Tuesday at the news that international creditors had decided to not only revitalise its rescue programme, releasing long-overdue aid, but cut €40bn (£32bn) from its debt mountain.
  • (11) King again stressed that he did not regard the crisis as one of liquidity but as one about solvency and "the buildup of very large amounts of debt where concerns crept in on the ability of the borrowers to repay that debt".
  • (12) interactive The Charity Commission’s guidance to all charities on reserves states: “Deciding the level of reserves that a charity needs to hold is an important part of financial management and forward financial planning … if reserves are too low then the charity’s solvency and its future activities can be put at risk.” The senior source who spoke to the Guardian said Kids Company had an ethos that the money which came in should be spent on the children in need.
  • (13) In this report, we describe the result of an extensive investigation of the effects of the conformations of proteins on the solvency of the bulk-phase water in which the proteins are dissolved.
  • (14) And yes, it is the madness of the right: if not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.
  • (15) The European Central Bank has warned that if other ratings agencies echo S&P's judgment, it could be forced to stop accepting Greek bonds as collateral, jeopardising the solvency of parts of the European banking sector.
  • (16) The insurer, which generates nearly half of its sales in Asia, reiterated that it would consider moving its headquarters abroad depending on the outcome of the new rules being debated in Brussels, known as Solvency II, which are due to come into force in 2014.
  • (17) Speaking at Camp David, Hollande said European leaders were trying to balance the competing aims of reining in their budgets while stimulating their economies: "As President Obama noted, we need to pursue these two goals simultaneously: budgetary solvency and maximum growth."
  • (18) As the memorandum says, “all measures, legislative or otherwise, taken during the programme period, which may have an impact on banks’ operations, solvency, liquidity, asset quality etc should be taken in close consultation” with the troika.
  • (19) Requirements for insurance companies to support their solvency by owning a large proportion of gilts and bonds, and the Bank of England's rounds of quantitative easing, have both had a negative effect on annuity rates, and there seems to be little prospect of these improving in the short to medium term.
  • (20) Britain's biggest insurer warned in March that the Solvency II rules under discussion in Brussels risked destroying its American business and could force it out of the UK, with Hong Kong seen as the most likely new domicile.

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