What are the different types of external debt?
The common types of external debt are public and publicly guaranteed debt, non-guaranteed public sector external debt, and loans offered by the IMF. Excessive foreign debt can obstruct economic growth over the long term. External debt meaning implies a portion of a nation’s debt borrowed from foreign institutions.
What is external debt in public finance?
In public finance, external debt (or foreign debt) is the component of the total government debt which is owed to foreign creditors; its complement is internal debt, which is owed to domestic lenders. The debtors can be the government, corporations or citizens of that country.
Is external debt irrelevant to the underlying currency?
The external debt is irrelevant to the underlying currency. The state debt is split between debt denominated in the national currency and debt denominated in any foreign currency. :?55
Is external debt a liability?
However, the definition of external debt does not distinguish between principal payments or interest payments, or payments for both. Also, the definition does not specify that the timing of the future payments of principal and/or interest need be known for a liability to be classified as debt.
2. The Measurement of External Debt: Definition and Core