external debt
Definition
Money borrowed by a country from foreign (usually European, North American, or Japanese) lenders. Interest on this debt must be paid in the currency in which the loan was made. Thus the borrowing country may have to export its goods to the lender's country to earn that currency. The infamous 'debt crisis' occurs when some weak economy is unable to do so, or can only do it at unacceptably high social and environmental costs.
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