In economy, the foreign debt indicates the whole of the Dette S which are due by a country, State, companies and private individuals included/understood, with foreign lenders.

A too high level of debt testifies to a high Risk-country: in the event of fluctations of the national currency, the amounts of the interests and the main thing of the foreign debt, if it is made out in foreign currency, can become unbearable.

Clear debt and rough debt

One should not confuse rough foreign debt (all the financial amounts due) and foreign debt clear (together of the amounts financial due less together of the credits which the country with respect to the foreigner has).

Risk financial crisis

A crisis of foreign debt can be started by a Financial crisis, when such a crisis leads to a strong devaluation of the local currency.

Non-payment

When a country refuses to pay its external debt, it is in Non-payment. This decision generally involves a fall of confidence of the public and deprived creditors, who will be thus discouraged from to grant to him to the country very new loan and to invest in the country. Perhaps the defect on the debt makes it possible to improve the short-term situation (by stopping flows of refunding), but it can worsen the economic situation of the country on the long run.

Examples of non-payments:

• 1796 : France (Assignat S)
• 1861: Mexico; it leads to the French forwarding
• 1920: Russia
• 1982: Mexico
• 2002: Argentinian

Assistance

The countries knowing a low register Economic crisis can receive the assistance of the Fonds international currency (the IMF).

Nevertheless, the IMF generally conditions obtaining loans to Structural reforms, when they are necessary, and which will facilitate according to him the economic revival and the confidence of the foreign investors (suppression of the public monopolies by privatization,…) ; to privilege the priority expenditure (education, purchase of drugs), it encourages sometimes with a temporary gel of the wages of the civils servant.

List country by foreign debt

This list is that of the classified countries by foreign debt rough , in dollars.

Some nonsovereign entities appear in this list for information and comparison. The blackjacks country are represented whose foreign debt is largest. It will be noted that the sum of all the foreign debts is not null: it rises to 44.610 billion dollars; they are indeed the rough amounts of debt.

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