1.   Interest cover is the number of times earnings covers debt interest obligations.

2.   Its cash flow is barely meeting interest obligations.

3.   Philip Morris and RJR Nabisco have strong enough cash flow to indicate they have plenty of cushion to pay interest obligations on time, investors said.

4.   Still, it also raises concerns because the county is acknowledging that it does not have enough money in its current account to meet its near-term interest payment obligations.

5.   The most immediate need would be an inviolate tax-financed sinking fund adequate to meet annual interest obligations while also reducing the principal.

6.   To avoid that, the bank enters into an agreement with a second bank to exchange interest obligations.

7.   To meet their interest obligations and reduce their outstanding debt, Latin American countries had to earn more foreign exchange by increasing their exports or decreasing their imports.

8.   When bonds are sold, reserve funds are usually set aside to cover the possibility that the bond issuer might not be able to meets interest obligations.

9.   However, it will allow the bank to repay certain high interest debt obligations before their due date, thus reducing interest costs.