Foreign Debt


Also found in: Encyclopedia, Wikipedia.

Foreign Debt

The debt one government owes to a foreign government or corporation. Foreign debt may occur when one buys the debts securities issued by another government. While foreign debt can be advantageous because it may allow a country to finance its development or other government functions, a government owing too much foreign debt (or too much debt generally) may find itself beholden to another country. It is also called external debt or international debt. See also: Debt crisis.
References in periodicals archive ?
In 1997 Honduras and Nicaragua spent 30 percent and 52 percent, respectively, of their government revenue to service their foreign debt (almost $5 billion for Honduras and more than $6 billion for Nicaragua).
According to Mario Alonso, president of Banco Central de Nicaragua, "thanks to the implementation of sound policies, Nicaragua reached the relief of over 80 percent of its foreign debt under the HIPC initiative.
A presidential commission last month recommended that Ecuador default on almost 40 per cent of foreign debt, accusing former officials and bankers of profiting irresponsibly from bond deals.
ANKARA, Apr 3, 2011 (TUR) -- Turkey's foreign debt in the last five years increased by 120.
According to official figures, the foreign debt of the east African nation is standing at about $35.
9 billion in foreign debt since the start of 2013 according to Central Bank's weekly data.
Taipei, June 20, 2011 (CENS) -- The Shanghai branch of Cathay United Bank appears to be the most profitable among the branches of six Taiwanese banks in China this year, as it expects to rake in over US$2 million of profit, thanks to the quota of foreign debt granted by the Chinese regulator which is the highest among the six domestic-bank branches in China.
The central bank of Argentina is to use reserves to pay back foreign debt.
Echoing that opinion, economic expert Karim Helal said: "the internal debt is considered much more dangerous than foreign debt.
The foreign debt of the Republic of Macedonia is not alarming because two large components of it are the commercial credits and the credits between connected entities which are very positive for our economy and are, in fact, foreign direct investments, says National Bank Governor Dimitar Bogov.
Fitch forecasts that public external debt will fall below 10% of GDP by the end of 2006, the lowest for more than a decade, while foreign currency denominated and indexed debt has fallen from 38% of GDP in 2002 to around 10% currently, as the authorities have engaged in buybacks of foreign debt and deepened domestic capital markets, significantly reducing the public sector vulnerability to exchange rate shocks.
While Taiwan has been free of foreign debt, the government, however, is still mired in internal debt.

Full browser ?