Foreign Debt

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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 ?
Economic managers say external debts are used to finance the projects in the country, which will in return increase the income of the people and correspondingly will increase the savings.
Due to this, external debt has become one of the major sources of capital formation and for the financing of the development projects in the country.
This study uses panel data for 29 Heavily Indebted Poor Countries (HIPCs) from 1984 to 2000 to examine the dynamic relationships between growth of external debts with other determinant variables (exchange rate, interest payment on debt, and non-interest current account balance) and control variables such as governance indicators.
Most of the public debt holdings of developing countries are external debts.
We will develop securities market and reduce external debts.
Deputy Minister of Finance Almazbek Azimov told about the plans of reducing external debt of Kyrgyzstan during the meeting of Parliament on January 24.
As part of this story of increasing external debts, there is an accompanying growth of external debt-service payments.
The growing external debts of developing nations persist to deter their socio-economic developments.
The countries have to hinge on internal or external debts to finance the sizeable defense expenditures.
He referred to the public external debts of the West European countries, which near 100% of GDP, in Japan this proportion makes 140%.
The theoretical literature has summarised the following channels namely debt overhang, liquidity constraint, fiscal effect, productivity suppression and reduction in human capital accumulation along which external debts affects negatively growth [see Krugman (1988) and Savvides (1992)].
The external debts of Nigeria and South Africa are analyzed in a new context utilizing traditional, but innovative, models and econometric techniques.