Glossary entry (derived from question below)
English term or phrase:
to borrow against
English answer:
to use future income from the budget as collateral for a current loan
Added to glossary by
Jilt
Mar 25, 2015 08:11
9 yrs ago
20 viewers *
English term
to borrow against
English
Law/Patents
Government / Politics
European Union
Dear forum,
What does this mean?
Context:
This article forbids the EU to borrow against the EU budget.
Jilt
What does this mean?
Context:
This article forbids the EU to borrow against the EU budget.
Jilt
Responses
+5
29 mins
Martin Riordan
Brazil
Brazil
Native in English
&
English
Brazil
Brazilian lawyer - 40+ years in Brazil
Native in: English (Variants: Scottish, British, UK, Irish, US, Australian, Canadian, New Zealand) 
, Portuguese (Variants: Brazilian, Mozambican, Angolan, European/Portugal) 
Works in: Portuguese to English, English to Portuguese, English, and 1 more.
Related KudoZ points
:
16
Selected
to use future income from the budget as collateral for a current loan
I understand this to mean that the EU cannot use future revenues foreseen in the budget as collateral for raising a current loan. In other words, it cannot pledge future income.
Normally the term "to borrow against (something)" means to use that something as a guarantee of payment of the loan.
Normally the term "to borrow against (something)" means to use that something as a guarantee of payment of the loan.
Example sentence:
to borrow money and agree to give valuable property to the organization who has lent it to you if you fail to pay it back.
Peer comment(s):
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Yorkshireman
: Yes, "borrowing without appropriate guarantees"
44 mins
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Thanks! But it is quite common to borrow against future income. Companies do it too. And the income foreseen in the EU budget is probably a very secure guarantee.
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| agree |
Veronika McLaren
3 hrs
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Thanks, Veronika!
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| agree |
Tina Vonhof (X)
6 hrs
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Thanks, Tina!
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| agree |
Björn Vrooman
: Nicely explained.
4 days
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Thanks, Björn!
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| agree |
Phong Le
6 days
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Thanks, Phong Le!
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4 KudoZ points awarded for this answer.
Discussion
You have to prove that you have something of value that may be taken in lieu of credits that are not repaid
I guess this does mean 'to borrow'. What does 'against the EU budget' mean? Is interest paid from the budget? Or does it mean: On top of the budget?
Providing a guarantee is a form of borrowing [shouldn't that be 'lending'?]. So without this deletion the EU guarantee will be violating current EU law.
I'm thinking now that it means "to lend money from the EU budget".