Foreign debt, otherwise known as external debt, is the part of total debt held by creditors of foreign countries, i.e. non-residents of the debtor's country.
According to BUSINESS DICTIONARY, Foreign Debt is an amount a country owes to other countries either directly as a result of government –to-government loans or indirectly because of negative balance of trade
Foreign debt is placed within four broad categories:
A generally applied benchmark for an acceptable level of external debt is that the net present value (NPV) of a country's external public debt should be less than 150% of its exports or 250% of its revenues.
Ukwa, A. (2018). NIGERIA FOREIGN DEBT AND THEIR CHALLENGES IN ECONOMY RECOVERY. Afribary. Retrieved from https://afribary.com/works/nigeria-foreign-debt-and-their-challenges-in-economy-recovery
Ukwa, Ana "NIGERIA FOREIGN DEBT AND THEIR CHALLENGES IN ECONOMY RECOVERY" Afribary. Afribary, 26 Mar. 2018, https://afribary.com/works/nigeria-foreign-debt-and-their-challenges-in-economy-recovery. Accessed 22 Nov. 2024.
Ukwa, Ana . "NIGERIA FOREIGN DEBT AND THEIR CHALLENGES IN ECONOMY RECOVERY". Afribary, Afribary, 26 Mar. 2018. Web. 22 Nov. 2024. < https://afribary.com/works/nigeria-foreign-debt-and-their-challenges-in-economy-recovery >.
Ukwa, Ana . "NIGERIA FOREIGN DEBT AND THEIR CHALLENGES IN ECONOMY RECOVERY" Afribary (2018). Accessed November 22, 2024. https://afribary.com/works/nigeria-foreign-debt-and-their-challenges-in-economy-recovery