The terms of mortgages need to be adjusted to the homeowners ability to pay.

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

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.

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

Mistaking a solvency problem for a liquidity shortfall, Europe has become hooked on the drip feed of bailouts.

The hospital continued treatment with their assurance that the family is capable and the dues will be paid.

Spain, Italy, and the eurozone periphery face unprecedentedly high real borrowing costs, which are preventing a recovery in investment and hence economic growth. Without a return to growth, they cannot quell investors doubts about their fiscal sustainability and their banks solvency.

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

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

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

The first and more desirable is for the ECB to assess realistically Greece s lack of solvency and so stop providing ELA funds to its banking system.

A zero interest rate environment is of course ideal for such borrowers, because there is nothing to provide an indication of solvency borrowers can just roll over their debt.

A Greek default would threaten to sink them, too, for it would raise immediate concerns about the solvency of Europe s systemically important banks and insurance companies.

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.

Level two Each country translates the global goals into specific targets and indicators which reflect their specific level of development, context, responsibility and capacity.

2. Decides also to continue consideration of the proposal for the re establishment of the Ad Hoc Intergovernmental Working Group on the Implementation of the Principle of Capacity to Pay during its resumed fifty fifth session.

Indeed, more often than not, the banks that failed or had to be rescued in the wake of the 2008 financial crisis had solvency ratios higher than those of banks that remained standing without assistance.

Many of the countries that are piling on massive quantities of debt to bail out their banks have only tepid medium term growth prospects, raising real questions of solvency and sustainability

The status quo allows banks instead to leverage taxpayer assistance by holding razor thin equity margins, relying on debt to a far greater extent than typical large non financial firms do.

Some of the other ideas that Hill has floated, such as relaxing the capital standards for long term investments, run counter to the EU solvency standards for insurers and pension funds that will be implemented next year.

The US remains the greatest economic and military power in the world, but questions about its solvency have in turn cast doubt on its ability to act and lead in the world.

From the standpoint of Greece s ability to pay, such units would be more relevant, since it doesn t have to pay off its debts fully in one year (unless the crisis makes it impossible to refinance current debt).