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.
Use 'external debt' in a Sentence
We had a lot of external debt and I regretted getting money from outside of our country and my manager agreed with me.
The external debt was increasing and the country who held the most debt was kind enough not to demand its payment today.
You should always know how much external debt you have and be ready to pay it back when the time comes.
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