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Public Debt
(redirected from Sovereign debt)

   Also found in: Dictionary/thesaurus, Legal, Wikipedia 0.01 sec.
Public debt
Issues of debt by governments to compensate for a lack of tax revenues.

Public Debt
The total of all bonds and other debt owed by a government. Most of the time, the national debt comes from bonds and other debt securities, but some countries in the developing world borrow directly from international institutions (such as the World Bank). The national debt may be internal, that is, owed to bondholders and banks within the country, or external, that is, owed to foreign governments, institutions, and/or individuals. In the United States, paying the interest on the national debt is a major part of the federal budget. See also: Deficit.


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In addition, investors are increasingly concerned about sovereign debt.
It is the first time the nation's AAA-rating has come under threat since S& P began assessing the UK's sovereign debt in 1978.
21 Kyodo Fitch Ratings on Thursday downgraded its rating of long-term, yen-denominated Japanese government bonds to ''AA-minus'' from ''AA,'' joining other major rating agencies in lowering Japan's sovereign debt rating to the lowest among the seven major industrial powers.
 
 
 
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