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.