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Words in Business News
By Jon Fernquest

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[Thai Economics Library | Archives (for history)]
September 01, 2008

Principal

principal (noun) - the amount of money lent or invested to earn interest

the principal of the loan

interest and principal payments on the loan
interest and principal repayments

required interest and principal payments
reduction in principal payments
facilitate interest and principal payments

paying off the principal
paying 10,000 baht off the principal of loan

a delay in principal payments
a three-month delay in principal payments of its debts to banks

accrued interest and principal
principal outstanding
meet interest and principal repayments
meet interest and principal repayments on outstanding loans

principal payments
principal payments on debt
halt principal payments on debt

an announcement on Dec. 31, 1988, of the decision to halt principal payments on $21,700 million of public-sector foreign debt from Jan. 17, 1989

a 70 per cent reduction in principal payments on its $11,100 million foreign debt

index-linked coupon and principal payments

the borrower makes interest payments and principal repayments according to an agreed timetable

service payments on the loans increasingly fall short of the amounts required to meet the interest and principal on these debts

payments of interest and principal due on bonds maturing in May and June


Example sentences:

* Mr Ryan says GPA now intends to meet all its financial obligations, including payments of interest and principal due on bonds maturing in May and June.

* By the early 1980s problems for some Central and South American countries in meeting interest and principal repayments on outstanding loans gave rise to fears of an international debt crisis.

* The most desirable situation is to ensure, if possible, that the export or project's receipts are in the currency of a loan as this facilitates interest and principal payments.

* Interest and principal payments simply stopped coming one day without notice.

* Borja announced on Jan. 18, 1990, that in order to concentrate on domestic economic and social problems Ecuador would seek to negotiate a 70 per cent reduction in principal payments on its $11,100 million foreign debt in line with the" Brady plan" for voluntary debt reduction.

* Following Lusinchi's announcement on Dec. 31, 1988, of the decision to halt principal payments on $21,700 million of public-sector foreign debt from Jan. 17, 1989 [see p. 36424], the new P?rez administration on Feb. 23, 1989, also suspended principal payments on about $5,000 million of private-sector foreign debt with effect from Feb. 28, pending renegotiation of new terms for the repayment of both private- and public-sector foreign debt.

* Talks with creditor Western commercial banks, co-ordinated by Deutsche Bank AG, reached an agreement on Dec. 17 to allow the Soviet Union a three-month delay on principal payments of its debts to banks.

* Debt financing occurs where a sum of money (the principal) is borrowed for a period of time and the borrower makes interest payments and principal repayments according to an agreed timetable.

* Similarly, when the government discovers that a large part of the loans raised from abroad has been used to make dinar loans to Yugoslav enterprises, and that the dinar service payments on the latter loans increasingly fall short of the amounts required to meet the interest and principal on these foreign debts, it instructs the National Bank to cover the difference by issuing new money.

* Loan service : Apart from interest and principal repayments, the agent bank is responsible for ensuring that current information on the financial position of the borrower is available to the participant banks in the loan.

* The agreement provided for the repayment over 10 years (with an initial five-year grace period) of (i) all interest and principal falling due between July 1, 1988, and Dec. 31, 1989, amounting to USdollars 685,000,000; and (ii) 80 per cent of principal outstanding from the 1983-88 period, amounting to dollars 255,000,000.

* It is possible to decompose the current market price P into accrued interest and principal using the formula .



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