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Debt overhang is the condition of an organization (for example, a business, government, or family) that has existing debt so great that it cannot easily borrow more money, even when that new borrowing is actually a good investment that would more than pay for itself.
Net interest spread is similar to net interest margin; net interest spread expresses the nominal average difference between borrowing and lending rates, without compensating for the fact that the amount of earning assets and borrowed funds may be different.
The interbank lending market refers to the subset of bank-to-bank transactions that take place in the money market. The money market is a subsection of the financial market in which funds are lent and borrowed for periods of one year or less.
NI is the firm's net income; D&A is the depreciation and amortisation; b is the debt ratio; Capex is the capital expenditure; ΔWC is the change in working capital; Net Borrowing is the difference between debt principals paid and raised; In this case, it is important not to include interest expense, as this is already figured into net income. [4]
Net interest margin is similar in concept to net interest spread, but the net interest spread is the nominal average difference between the borrowing and the lending rates, without compensating for the fact that the earning assets and the borrowed funds may be different instruments and differ in volume.
A surplus balance represents a net savings or net financial asset building position (i.e., more money is flowing into the sector than is flowing out), while a deficit balance represents a net borrowing or net financial asset reducing position (i.e., more money is flowing out of the sector than is flowing into it).
It is defined as the sum of the balance of trade (goods and services exports minus imports), net income from abroad, and net current transfers. A positive current account balance indicates the nation is a net lender to the rest of the world, while a negative current account balance indicates that it is a net borrower from the rest of the world.
[12]: 111 Deductions are not typically available when an outlay serves to create a new or different asset. [12]: 111 The amount paid to satisfy the loan obligation is not deductible (from own gross income) by the borrower. [12]: 111 Repayment of the loan is not gross income to the lender.