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Schuldenschnitt

debt haircut

noun SHOOL-den-shnit Rare
People & Society Money

Also means

debt restructuring

Usage Note

Schuldenschnitt is the partial cancellation of a debtor's outstanding obligations, agreed between the debtor and creditors. Greece's 2012 PSI restructuring was the largest Schuldenschnitt in history; the term is politically sensitive in Germany where creditor protection is highly valued.

Examples

"Ohne einen Schuldenschnitt war das Land nicht in der Lage, seine Verbindlichkeiten zu bedienen."

Natural Translation

Without a debt haircut, the country was unable to service its liabilities.

Literal Translation

Without a debt-haircut was the country not in the position, its liabilities to service.

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