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Preferred term

external debt  

Definition

  • External debt, in its most general sense, denotes a payment obligation in which the debtor (entity that obtained resources) and the creditor (entity that supplied the resources) are separate and in essence distinct units. The offshoot of this perspective is that creating or terminating the debt generates a corresponding change in aggregate wealth or resources on the part of both units involved in the transaction. [Source: Encyclopedia of Business in Today's World; External Debt]

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URI

https://concepts.sagepub.com/social-science/concept/external_debt

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