external debt
Owed to outsiders
External debt is money owed by a country, its government, or its institutions to foreign creditors—other governments, international organizations, or foreign banks and investors.
Distinguished from domestic debt, which is owed to creditors within the country.
External debt creates obligations in foreign currencies, making repayment vulnerable to exchange rate fluctuations: The country's external debt exceeded 60% of GDP.
Preset standard option
- insolvencyInability to pay debts
- creditworthinessAbility to repay debts
- credit ratingAssigned measure of borrower reliability
- capital flightRapid outflow of investments
currency crisis · contagion · bailout · austerity · liquidity crisis · junk bonds · downgrade · risk premium
Global economic assistance organization
- World BankGlobal development finance institution
- creditorsThose owed payment
- bilateralInvolving two parties
- multilateralInvolving multiple parties
donors · conditionality · foreign assistance · aid · bondholders
Borrowed money repaid later
- creditorOne owed money
- borrowerOne who takes temporarily
- lendingTemporary provision of resources
- interestAttention, stake, or fee
principal · liability · obligation · indebtedness · financing · credit · leverage · collateral
Gradual debt reduction schedule
- installmentsPeriodic partial payments
- maturityFull growth achieved
- servicingPerforming routine maintenance
- arrearsOverdue financial obligations
disbursement · tranche · refinancing · rollover · prepayment · grace period · redemption · rescheduling
Bank account for regular transactions
- trade deficitImports exceed exports financially
- balance of paymentsNation's international transaction record
- foreign exchangeTrading between national currencies
- currency reservesStored foreign monetary assets
fiscal policy · exchange rate · inflation · capital markets · economic growth · foreign investment
default
Preset standard option
- insolvencyInability to pay debts
- creditworthinessAbility to repay debts
- credit ratingAssigned measure of borrower reliability
capital flight · currency crisis · contagion · bailout · austerity · liquidity crisis · junk bonds · downgrade · risk premium · spread
IMF
Global economic assistance organization
- World BankGlobal development finance institution
- creditorsThose owed payment
- bilateralInvolving two parties
multilateral · donors · conditionality · foreign assistance · aid · bondholders
loan
Borrowed money repaid later
interest · principal · liability · obligation · indebtedness · financing · credit · leverage · collateral · guarantor
amortization
Gradual debt reduction schedule
- installmentsPeriodic partial payments
- maturityFull growth achieved
- servicingPerforming routine maintenance
arrears · disbursement · tranche · refinancing · rollover · prepayment · grace period · redemption · rescheduling · restructuring
current account
Bank account for regular transactions
- trade deficitImports exceed exports financially
- balance of paymentsNation's international transaction record
- foreign exchangeTrading between national currencies
currency reserves · fiscal policy · exchange rate · inflation · capital markets · economic growth · foreign investment
- sovereign debtgovernment bonds, treasury notes, T-bills, treasury bonds, gilt
debt, external, indebted, debtor, debtors, externalize, externalized, externalization, externality