External Debt . #ExternalDebt #ForeignDebt

External debt (or foreign debt) is the total debt a country owes to foreign creditors, complemented by internal debt owed to domestic lenders. The debtors can be the government, corporations or citizens of that country.

  After the BoP crisis of 1991, India’s prudent external debt policies and management with a focus on sustainability, solvency, and liquidity have helped to limit the size of external debt to a moderate level

  The rise in total external debt in recent years is due to long-term commercial borrowings and NRI deposits.

  Important features of India’s external debt:

  Major portion long-term debt than short-term debt.

  Most part of debt is hold by non-governmental debt.

  Non-concessional debt (commercial loans borrowed by the non-governmental body) accounts 91.3% while concessional is just 8.7%

 

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