Debt is a liability or burden that you own to anyone in the form of currency or asset. In the current scenario, it has become a term where lender lends a certain sum of money to a borrower, and it is an obligation of the borrower to return the original amount of money or the value to the lender. It is commonly used in the trade and commerce that helps businesses to meet their day to day expenses of the business and capital. Country having largest external debt have the strong foreign policy and relations. Banks, financial institutions, and some credit card companies are offering a variety of loans to their customers for different purposes. For any loan, creditor charges a certain amount of interest for the use of his money from the debtor. There are different types of borrowers including individual, businesses and government. Banks give the loan to people and government as well for a specified period. The rate of interest varies in the terms and conditions mutually agreed between the parties. Banks have different policies, and the central bank governs it in every country. List of largest external debt country is established in this article.
External debt classification
- Publically assured debt
- Private un-assured credits
- Role of Central Bank
- Role of IMF
According to the David Graeber, the term debt was first discovered around 5000 years ago, liability created when goods were already handed over for the use and payment or return was to be paid later. It provided the basis for to the government as a form of trade and ultimately created a value system for the investment of money. List of countries with highest debt are mainly the most developed and powerful. Interest, repayment, and collateral are the words originated from the era. Debtor pays interest to the credit which is generally calculated in the percentage. Different borrowers have different needs, so they get loans according to their purchasing power. There are different debt markets including financial markets, credit markets, and bonds as the primary debt markets.
Top 10 largest External Debt Country in the World
|Rank||Country Name||External Debt (USD)|
Q: Which country has the most external debt in the world?
United States of America is the largest external debt country in the world. Mostly US government take loans due to problems of social security. Citizens suffers the most due to loans which badly effect their incomes and business. Mainland China has the highest part in the US debt. These external debts tells the story of powerful foreign policy. Foreign Polices established the good relation among the different nations to get the liabilities. China is the biggest creditor to the US treasury. China holds the most Treasury Bonds, but many of them sold back in last years.