Bahasa Inggris II

Members of Infinity:

➢ Rena Sekaring Batari

➢ Afif Rezha Fernaldi
➢ Glagah Swara Supriyanto
➢ Almalia Putri Dirgantari

2
 https://www.gr
aphicmaps.co
m/countries-
with-the-most-
debt (May 18,
2019)

3
Country’s debt
Why the country
owes money?
 1. A country has a current account deficit.

What is current account

deficit?
state financial conditions
when imports are greater than
exports.

How come the transaction

deficit is the cause?

7
 <
spending income

The diference is from debt

8
 2. The government is investing

the investment in
question is an
investment that will
benefit the country in
the future such as
infrastructure and any
other.

9
How the country
owes money?
 1. Intragovernmental holdings

A country can borrow money from

its own governmental institutions
and subsidiaries. The US, for
instance, owes around $5.6 trillion
to a number of its own federal
agencies, which accounts for nearly
30% of the total federal debt.

11
 2. Foreign countries

As you can imagine, a sizable portion of a country’s national

debt is held by other countries. The US, for example, owes
US $1176.6 billion to Mainland China, US $1084.1 billion to
Japan, US $328.7 billion to Ireland and similar amounts on
the order of billions to many other foreign countries.
*So, how do these countries actually lend money to the
US?*
Debt is usually issued through US treasury notes/bonds.
What these foreign countries do is that they buy US treasury
bonds.

12
 3. Citizens

A lot of people want to loan money to governments,

because they know that they will get their money
back, along with handsome interest on the sum.
*Ever heard of a debt mutual fund?*
This kind of fund primarily invests in a mix of debt or
fixed income securities, such as government
securities, treasury bills, corporate bonds etc. This
fund generally has a fixed rate of interest and is
largely considered a ‘safe investment’ because, well,
it is an investment in the government.

13
The impact of debt
The impact of debt

GOOD BAD
IMPACT IMPACT
 GOOD IMPACT

➢ all of country who have debt have more speed to built

infrastructure
Example
 BAD IMPACT

➢ all of country who have debt if the debt is not suitable

with the government program it will be a super punch
for country because it will make their own value
money down and the interest of debt will make the
country bancrupt.
 Example

venezuela
Indonesia’s External
Debt Growht
 Billion Rupiahs
5000
4000
3000
2000
1000
0 Billion Rupiahs
Bahasa Inggris II