External debt (or foreign debt) is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or private households. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank. Note that the use of gross liability figures greatly distorts the ratio for countries which contain major money centers, e.g. United Kingdom, because of London's role as a major money centre. Contrast Net international investment position
Read more about External Debt: Definition, External Debt Sustainability, Indicators of External Debt Sustainability
Famous quotes containing the words external and/or debt:
“The law is only one of several imperfect and more or less external ways of defending what is better in life against what is worse. By itself, the law can never create anything better.... Establishing respect for the law does not automatically ensure a better life for that, after all, is a job for people and not for laws and institutions.”
—Václav Havel (b. 1936)
“However patriarchal the world, at home the child knows that his mother is the source of all power. The hand that rocks the cradle rules his world. . . . The son never forgets that he owes his life to his mother, not just the creation of it but the maintenance of it, and that he owes her a debt he cannot conceivably repay, but which she may call in at any time.”
—Frank Pittman (20th century)