A corporation that borrows too much money might face bankruptcy or default during a business downturn, while a less-levered corporation might survive.

But at some point, the Treasury will face default unless the debt ceiling is raised.

Without PSI, Greece faces disorderly default.

An internal audit last year found that the program, which provides Government loan guarantees to housing developments that resemble nursing homes, has supported several inappropriate projects, many of which are facing default.

If this doesn't happen, Greece faces disorderly default in March.

Unable to sell their property at any price and facing default on back property taxes and mortgages, landlords began to burn their buildings for their insurance value.

In addition, the exporters have to face commercial risks of insolvency or protracted default of buyers.

If neither the long-term extension, with the new automatic mechanism for spending cuts, nor another short-term one is approved, the Government would face default.

Meanwhile, Greek prime minister Lucas Papademos said his country faced "uncontrolled default" in March unless competitiveness was boosted by a reduction in labour costs.

In the face of a rising home mortgage delinquency rate, banks increasingly are throwing safety lines to borrowers facing default.