foreign debt
Overseas financial obligation
Foreign debt is money owed by a country's government, businesses, or citizens to lenders in other countries.
Also called external debt, it includes bonds, loans, and other obligations denominated in foreign currencies.
A nation's foreign debt affects its credit rating and exchange rates: The country struggled to service its foreign debt after the currency collapsed.
Heavy foreign debt can constrain domestic policy and leave economies vulnerable to external shocks.
Nation's international transaction record
- current accountBank account for regular transactions
- trade deficitImports exceed exports financially
- fiscal deficitSpending exceeds revenue
- currency reservesStored foreign monetary assets
devaluation · capital flight · credit rating · creditworthiness · austerity · conditionality · inflation · currency crisis
Gradual debt reduction schedule
- installmentsPeriodic partial payments
- maturityFull growth achieved
- interest paymentFee for borrowed funds
- grace periodAllowed delay before consequences
refinancing · rollover · rescheduling · haircut · write-off · forgiveness · moratorium · buyback
Legal or financial obligation
- principalChief school administrator
- arrearsOverdue financial obligations
- defaultPreset standard option
- fiscal responsibilityPrudent management of funds
State-issued debt certificate
- treasury bondUS debt certificate
- variable rateAmount that fluctuates
- fixed rateUnchanging interest percentage
- couponCertificate for reduced price
yield · spread · risk premium · credit default swap · bond market · secondary market · tranche
balance of payments
Nation's international transaction record
- current accountBank account for regular transactions
- trade deficitImports exceed exports financially
- fiscal deficitSpending exceeds revenue
currency reserves · devaluation · capital flight · credit rating · creditworthiness · austerity · conditionality · inflation · currency crisis
amortization
Gradual debt reduction schedule
- installmentsPeriodic partial payments
- maturityFull growth achieved
- interest paymentFee for borrowed funds
grace period · refinancing · rollover · rescheduling · haircut · write-off · forgiveness · moratorium · buyback
liability
Legal or financial obligation
government bond
State-issued debt certificate
- treasury bondUS debt certificate
- variable rateAmount that fluctuates
- fixed rateUnchanging interest percentage
coupon · yield · spread · risk premium · credit default swap · bond market · secondary market · tranche
- debtscar loan, student loan, loans, bank loan, personal loan
- PortugalLisbon, Porto, Algarve, Oporto, Madeira
- Global Povertymalnutrition, starvation, food security, clean water, dirty water
- public debtgovernment bonds, treasury notes, treasury bonds, treasury securities, government borrowing
- Latin American Economicsimport substitution, hyperinflation, export economy, currency devaluation, dollarization
- neocolonialismneocolonialism, resource extraction, economic exploitation, client state, puppet state
debt, foreign, foreigner, indebted, debtor, foreigners, indebtedness, debtors, foreignness