0 a reduction in the value of an asset in a company's accounts, when it is calculated to be worth less than previously shown:
Schemes a-b are unconditional transfers to the borrower, in periods one and two respectively, while scheme c is an unconditional debt write-down in period one.
As an illustration, consider first a non-contingent debt write-down, which clearly must increase the utility of an honest borrower.
When the amount of the resource is small, a (small) unconditional transfer or debt write-down generally has no effect, while the other schemes potentially have effects.
Moreover, those mechanisms that also reduce the interest rates on new borrowing often have more force than those that work only via a pure debt write-down.
We are now left with an appalling vista of insolvency, bankruptcies, nationalisations, the massive destruction of wealth, and stock market write-down.
There was no floor to the amount of write-down.
Again, in paragraph 2 we are told about a total write-down of assets of over £1,100 million.
He then went on to talk about the possible write-down of assets, and at some stage we shall talk about the possible write-up of assets.
