external debt

External debt is the money a country borrows from foreign lenders, such as governments, banks, or international organizations, to fund projects, infrastructure, or cover budget needs. It is usually borrowed in foreign currencies and must be repaid with interest over time. Managing external debt is important because excessive borrowing can lead to financial difficulties, affecting a country's economy, its ability to pay for essential services, or grow sustainably. Essentially, it's a country's credit with the rest of the world, reflecting its borrowing and repayment obligations across borders.