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
See All Related Terms »
U.S. Dollar Index (USDX)
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):