FOREIGN DEBTS

What is Debt?
Something owed to another
 State of owing something
 Usually refers to assets owed
 In the case of assets, it is a
means of using future
purchasing power in the
present before a summation is
earned.
 THE KEY PLAYERS
INVOLVED IN A DEBT

Debtor
- the person or organization who owes
money to someone or a certain organization
for providing goods and services to them
Creditor
- someone who lends the money to the
debtor
Types of Government
Debts
Internal
-owed to lenders within the
country
External
-owed to foreign lenders
Short Term
-one year or less
Long Term
-more than ten years
overspendin
g
 Overspending in what????
-hiring private businesses in doing
government projects
-too much money paid in social security
-Subsidies
-grants
-disaster relief
-political campaigns
-government bonds sold in high interests
-transportation of weapons and products
-expensive construction products
 Jubilee 2000
- “the more the
developing countries stay in
debt, the more they feel that
they need to milk the earth’s
resources just to get the hard
cash they can bring in.”
• Brazil's IMF debt and financial
problems have severely affected a
project to save the Amazon
rainforest.
• In the Philippines, several
international agencies worked
together with the Philippine
government to arrange a "debt-for-
nature swap," in which old unpaid
loans to the Philippine government
- Haribon initiated a small
program in 1990 in the communities
surrounding Mount Isarog to help
 Reduction of trade barriers

 International Monetary
Funds(IMF) Assistance Reforms

 Debt Restructuring

 Debt Forgiveness