Cyprus-Forum.com

[Paphitis]

ffs mate...its a simple google search. Just search for the definition of external debt or foreign debt and quit guessing.

Correct me if I’m wrong monsieur but… the only difference I can think of is that foreign debt will fluctuate with currency fluctuations.

Not that it’s insignificant... but is there any other important difference?

For starters, debt owed to foreign govt's and or foreign institutions is money flowing out of the country as opposed to money owed to domestic lenders which gets recycled into the economy.

No it isn't because it includes debt owed to domestic institutions as well. It isn't all flowing out or in foreign currencies.

It includes all of my mortgage debts, and credit cards as well.

[Get Real!]

ffs mate...its a simple google search. Just search for the definition of external debt or foreign debt and quit guessing.

Correct me if I’m wrong monsieur but… the only difference I can think of is that foreign debt will fluctuate with currency fluctuations.

Not that it’s insignificant... but is there any other important difference?

For starters, debt owed to foreign govt's and or foreign institutions is money flowing out of the country as opposed to money owed to domestic lenders which gets recycled into the economy.

OK, but doesn’t most money eventually get cycled OUT of the economy?

Say you got €100 that you’ve spent at a local pub drinking local beer.

So far so good because you’re buying a local product but doesn’t the brewery have to pay for all the foreign imported machinery used?

It appears that everything or most of it, will eventually wing itself out the country sooner or later…

At least in CY it can’t stick around for too long…

[DT.]

ffs mate...its a simple google search. Just search for the definition of external debt or foreign debt and quit guessing.

Correct me if I’m wrong monsieur but… the only difference I can think of is that foreign debt will fluctuate with currency fluctuations.

Not that it’s insignificant... but is there any other important difference?

For starters, debt owed to foreign govt's and or foreign institutions is money flowing out of the country as opposed to money owed to domestic lenders which gets recycled into the economy.

No it isn't because it includes debt owed to domestic institutions as well. It isn't all flowing out or in foreign currencies.

It includes all of my mortgage debts, and credit cards as well.

Paphitis,

you're not understanding the definition. External debt does not include debt owed to domestic institutions.

[Paphitis]

ffs mate...its a simple google search. Just search for the definition of external debt or foreign debt and quit guessing.

Correct me if I’m wrong monsieur but… the only difference I can think of is that foreign debt will fluctuate with currency fluctuations.

Not that it’s insignificant... but is there any other important difference?

For starters, debt owed to foreign govt's and or foreign institutions is money flowing out of the country as opposed to money owed to domestic lenders which gets recycled into the economy.

No it isn't because it includes debt owed to domestic institutions as well. It isn't all flowing out or in foreign currencies.

It includes all of my mortgage debts, and credit cards as well.

Paphitis,

you're not understanding the definition. External debt does not include debt owed to domestic institutions.

Look at the definition again DT.

Not just that, but it includes a whole raft of personal debts - debts that have nothing at all to do with our Government or country.

External loan (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. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank.

Another definition says it includes corporate and private debts.

In any case, external debt has nothing at all to do with borrowings by the Government.

[Robin Hood]

Paphitis:

In any case, external debt has nothing at all to do with borrowings by the Government.

If the Australian Government sells Aus. Govt. Bonds to another Country, a foreign bank or institution ......... what else can it be other than an external debt and thus forms part of the National debt?

[DT.]

Here you go Paphiti,

As a rule stay away from wiki when trying to understand financial terms

What is External Debt
External debt is the portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. In order to earn the needed currency, the borrowing country may sell and export goods to the lender's country.

https://www.investopedia.com/terms/e/external-debt.asp

[Paphitis]

Once again, that's Sovereign Debt.

Sovereign Debt: Government debt (also known as public interest, public debt, national debt and sovereign debt)[1][2] is the debt owed by a government. By contrast, the annual "government deficit" refers to the difference between government receipts and spending in a single year.

Government debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders). Another common division of government debt is by duration until repayment is due. Short term debt is generally considered to be for one year or less, and long term debt is for more than ten years. Medium term debt falls between these two boundaries. A broader definition of government debt may consider all government liabilities, including future pension payments and payments for goods and services which the government has contracted but not yet paid.

Governments create debt by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.

External loan (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. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund (IMF) and World Bank.

[DT.]

And again

Here you go Paphiti,

As a rule stay away from wiki when trying to understand financial terms

What is External Debt
External debt is the portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. In order to earn the needed currency, the borrowing country may sell and export goods to the lender's country.

https://www.investopedia.com/terms/e/external-debt.asp

[Paphitis]

Here you go Paphiti,

As a rule stay away from wiki when trying to understand financial terms

What is External Debt
External debt is the portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. In order to earn the needed currency, the borrowing country may sell and export goods to the lender's country.

https://www.investopedia.com/terms/e/external-debt.asp

So here we go, changing the goalposts.

That definition is ambiguous. Not very clear as it speaks of a portion of debt. External debt only pertains to the portion that is owed overseas. And given that, if Australia's National Debt is 19% of GDP then External Debt is what is owed by the Government overseas. External Debt plus Foreign Debt is completely different. This includes ALL debts which includes the private sector.

What you linked was not just Government Debt. It was private sector debt as well.

Here are more definitions for you:

External Debt: The amount that a country owes to foreigners, including the debts of both the country's government and its private sector.

http://www.investorwords.com/17580/external_debt.html

Here is another definition:

External debt

External debt is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or citizens of that country. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund and World Bank. Note that the use of gross liability figures greatly distorts the ratio for countries which contain major money centers, e.g. United Kingdom, because of London's role as a major money centre. Contrast Net international investment position

https://www.definitions.net/definition/External%20debt

[DT.]

Here you go Paphiti,

As a rule stay away from wiki when trying to understand financial terms

What is External Debt
External debt is the portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made. In order to earn the needed currency, the borrowing country may sell and export goods to the lender's country.

https://www.investopedia.com/terms/e/external-debt.asp

So here we go, changing the goalposts.

That definition is ambiguous. Not very clear as it speaks of a portion of debt. External debt only pertains to the portion that is owed overseas. And given that, if Australia's National Debt is 19% of GDP then External Debt is what is owed by the Government overseas. External Debt plus Foreign Debt is completely different. This includes ALL debts which includes the private sector.

What you linked was not just Government Debt. It was private sector debt as well.

Here are more definitions for you:

External Debt: The amount that a country owes to foreigners, including the debts of both the country's government and its private sector.

http://www.investorwords.com/17580/external_debt.html

Here is another definition:

External debt

External debt is that part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or citizens of that country. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the International Monetary Fund and World Bank. Note that the use of gross liability figures greatly distorts the ratio for countries which contain major money centers, e.g. United Kingdom, because of London's role as a major money centre. Contrast Net international investment position

https://www.definitions.net/definition/External%20debt

There is nothing ambiguous about the definition of external debt..