And that means that the financial institutions that own them cannot have confidence in the liquidity or solvency of potential counterparties or even in the value of their own capital.

Meanwhile, global investors are questioning local governments solvency.

Finally, solvency rules should be complemented by an obligation that banks issue a substantial amount of non collateralized debt on the order of 100 of their capital that is convertible into equity.

More fully integrated capital markets, to provide project capital and investment funds, are required in order to improve the whole infrastructure of the region.

They will also be required to maintain stronger capital and liquidity positions in the US.

And then they collapsed, causing enormous damage to the government s own solvency.

It is anticipated that at the end of 2005 the required working capital reserve will be approximately US 868,000.

Our latest proposal on nuclear disarmament was not objected to, although one delegation required further discussion with its capital.

Otherwise, a liquidity run would create solvency problems for all the big eurozone debtors.

Easier monetary policy may boost liquidity, but it will not resolve the solvency crisis.

The same crisis looks like a solvency crisis for those who are geographically distant.

For Smith and his successors over the first 175 years, any episode of sustained economic growth overwhelmingly required investment capital.

But the liquidity crunch was not the only problem there was also a solvency problem.

When a sovereign borrower s solvency has deteriorated sufficiently, its survival becomes dependent on market expectations.

If this lending approach to southern countries continues, their solvency and economic recovery will suffer.

An additional 4 million is also required for the rehabilitation of police infrastructure and for capital improvements to the Police Academy.

To protect commercial banks from risking their own solvency (and the whole country s solvency besides) once again, Richard Robb suggested that a small tax on banks short term debts be imposed in order to deter banks from over borrowing.

And if a European agency is to guarantee banks solvency, that agency must also oversee them.

Today, markets seem to think that large fiscal deficits are the greatest threat to government solvency.

New financial regulations Basel 3 for banks and Solvency 2 for insurers are reinforcing these advantages.

Only a government that is sufficiently powerful, in terms of legal authority and solvency, can do so.

1 The amount required to bring the working capital reserve up to 8.3 per cent of the total annual programmes cost plus overhead.

Spanish banks are required to increase their deposits in proportion to their lending and set aside capital against assets in their off balance sheets.

For countries with solvency problems, an adjustment program like those for Greece, Ireland, or Portugal would be appropriate.

The stunning opacity of solvency ratios encouraged regulators to turn a blind eye to banks excessive risk taking.

Without a return to growth, they cannot quell investors doubts about their fiscal sustainability and their banks solvency.

Greece is likely to find itself insolvent, and questions surround the solvency of Ireland and Portugal as well.

The government may pretend that it has not experienced a capital loss, because, unlike banks, it is not required to use mark to market accounting.

It has not, even as the European Union continues to respond inadequately to its own slow moving solvency crises.

Converting some portion of debt to equity under predetermined solvency threatening conditions would provide an extra layer of protection.

This obvious externality required policy responses in the emerging countries limits on capital inflows, reserve accumulation, and measures to restrict credit and restrain asset price inflation.

And, if Spain is at serious risk of default, government solvency is at risk throughout the eurozone except in Germany.

Nor is it alone in ignoring the terrible solvency threat they pose and their damaging consequences to saving and investment.

Time and again, banks woes have affected governments borrowing costs, and concerns over governments solvency have affected banks balance sheets.

The ECB s task is to provide liquidity to banks, while the EFSF and ESM are designed to absorb solvency risk.

The poorer an economy s growth prospects, the larger the fiscal correction and deleveraging needed to convince markets of underlying solvency.

But haircuts in the case of a solvency crisis are indispensable for the stability of the European financial system itself.

This form of financing is often used by private equity investors to reduce the amount of equity capital required to finance a leveraged buyout or major expansion.

Legally, of course, this guarantee is only worth the solvency of the guarantor in this case the near bankrupt Cypriot state.

European growth is constrained by debt problems and continued concerns about the solvency of Greece and other highly indebted EU members.

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital.

All realized and unrealized gains or losses on contributions receivable are accounted for under the Annual Programme Fund, unless required to maintain the Working Capital and Guarantee Fund.

For example, audit, entry and annual fees, tax on business profit, prudential requirements such as minimum capital, bank guarantee and minimum managerial experience as required in some States.

The level of uncertainty about asset values, solvency, and the connectedness of balance sheets that prevailed at the time was extraordinarily high.

Doubts about the Irish government s solvency would then disappear quickly, and its guarantee of bank deposits would no longer look so shaky.