This is what led to the downgrade, not whether the U.S. had the ability to service its debt today.

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And the slump has undermined Argentina's ability to service its debt.

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When asked for his thoughts on Falkirk manager Steven Pressley's comments that clubs who tried to keep their accounts in the black were at an unfair advantage, Smith was keen to point out that it is all relative to a club's ability to service the debt that they accumulate.

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Yet mitigating the risk of default is the fact that Ecuador's ability to service its debt has improved in recent months, as high energy prices, increased taxation of the oil sector and the state's take-over of Block 15 previously run by a US company, Occidental Petroleum (Oxy), are boosting the fiscal surplus and foreign reserves.

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Left untackled, the budget deficit, which at 11.2% of GDP in 2009-10 was larger than those of almost all other rich countries, would soon have undermined confidence in the government's ability to service its public debt.

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Dame Carol recommended that the new service offer advice on issues which might be affecting a person's ability to do their job, such as debt or difficulty with their line manager.

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