The Hindu Editorial (Guarantor beware) – May 24, 2021

Editorial Words

4 years ago

The Hindu Editorial (Guarantor beware) – May 24, 2021

The Supreme Court judgment upholding creditors’ right to proceed against personal guarantors to loans provided by them to a corporate borrower helps lift the uncertainty over the extent to which banks… For further reading, visit “The Hindu”. Below is today’s word list-1 for The Hindu Editorial (Guarantor beware) – May 24, 2021.

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The Hindu Editorial (Guarantor beware) – May 24, 2021:

guarantor (noun) – warrantor, surety; a person who provides a guarantee.
beware (verb) – be wary, be careful, look out, be on the alert.
entrepreneur (noun) – businessman, businesswoman, business person.
flounder (verb) – struggle financially, have difficulty, face financial ruin, be in difficulties, be in dire straits.
uphold (verb) – confirm, endorse/approve, vindicate/validate.
creditor (noun) – lender; an entity (person or institution) to whom money is owed by a debtor (borrower).
proceed (against) (verb) – begin/start an action against, start proceedings against, sue, take to court.
lift (verb) – remove.
uncertainty (noun) – unpredictability, unreliability, riskiness/precariousness.
lender (noun) – financial institution (bank) which lends money.
pursue (verb) – go after, run after, follow, chase; engage in, conduct, take part in (an activity).
furnish (verb) – provide, give, present, grant.
enable (verb) – allow, facilitate, permit, authorize.
credit flow (noun) – availability of credit.
stand for (phrasal verb) – support, recommend, be in favour of.
surety (noun) – guarantor.
stand surety (phrase) – become a guarantor/surety.
ought to (modal verb) – must, should.
consequence (noun) – outcome, ramification, repercussion.
a mountain of (noun) – a lot, a large amount/quantity of something.
sour/bad loans (noun) – non-performing assets (NPAs), stressed assets/loans; an account where the principal and/or interest remains overdue for a period of time.
expedite (verb) – accelerate, speed up, quicken.
resolution (noun) – a plan with detailed steps to be followed by banks in case they face any difficulty; solution/answer.
stressed assets (noun) – bad loans, sour loans, non-performing assets (NPAs).
bench (noun) – a court of law with a number of judges.
clutch (noun) – quantity, group, collection (of people/things).
Insolvency and Bankruptcy Code (IBC) (noun) – Insolvency and Bankruptcy Code 2016 was implemented through an act of Parliament. It got Presidential assent in May 2016. The law was necessitated due to the huge accumulation of bad (non-performing) loans of banks and the delay in debt resolution. Insolvency resolution in India took 4.3 years on an average against other countries such as the United Kingdom (1 year) and the United States of America (1.5 years), which is sought to be reduced besides facilitating the resolution of big-ticket loan accounts.
insolvency (noun) – a condition in which the financial difficulties of an individual or organisation are such it is unable to pay its debts.
bankruptcy (noun) – legal state of insolvency. An individual or organisation is declared bankrupt if a court judges that the party involved can no longer meet debt payments to creditors. It is defined as the outcome of a legal procedure.
proceedings (noun) – action, legal action/proceedings, lawsuit.
default (verb) – fail to pay, not pay (banks/lenders’ debt on time for various reasons).
entity (noun) – organization, institution, establishment, outfit.
dismiss (verb) – refuse, reject, deny.
make clear (phrase) – explain, clarify, elucidate.
carve out (phrasal verb) – establish, develop, create something (by taking something from a larger whole) with effort.
species (noun) – type, kind, sort.
given (preposition) – considering, taking into account, bearing in mind.
intimate (adjective) – close, familiar.
stand a chance (phrase) – the only possibility for success.
substantially (adverb) – considerably, significantly, largely.
relatively (adverb) – comparatively, proportionately, somewhat, to a certain extent/degree.
affluent (adjective) – wealthy, well off, rich.
avail (verb) – use, utilize, take advantage of (an opportunity/resources).
run (verb) – manage, administer, direct, control, govern.
serve a notice (phrase) – to officially give legal notice to.
aggregate (verb) – combine, total, mix, collect.
credit (noun) – loan.
clear the air (phrase) – reduce the tense situation; restore harmony, make peace, reconcile differences.
bound to (adjective) – certain, sure, very likely, guaranteed.
ongoing (adjective) – current, existing, continuing.
extinguish (verb) – eradicate, eliminate, wipe out, remove, put an end to.
liability (noun) – financial obligation, debt, indebtedness.
arise out (verb) – result, occur, accrue, stem, ensue.
haircut (noun) – a reduction in the mentioned value of an asset.
negotiate (verb) – get over, get past, cross, pass over (a difficulty).
wrinkle (noun) – difficulty, snag, obstacle/drawback.
binding (adjective) – compulsory, obligatory, imperative, mandatory, required, necessary, essential.
recourse (noun) – an action that can be taken to attempt to remedy a legal difficulty; option, possibility, alternative, possible course of action, resort, way out.
remedy (verb) – rectify, solve, fix, sort out.
remedy (noun) – solution.
invoke (verb) – resort to, have recourse to, call into use, use, put into effect, put into use.