solvency
Ability of a borrower to make required payments on debt. For a person or firm, lack of solvency, or insolvency, usually leads to bankruptcy. For a government, no facility for bankruptcy exists, so insolvency leads either to default and consequent loss of the ability to borrow, or to Bailout by another government or international financial institution.
Browse by Subjects
A rating
B rating
AAA rating
BB rating
Undermargined Account
See All Related Terms »

junk bond
operating activities
GNP
support price
imputation system