Dettes

Dettes, in finance, refer to obligations to repay sums of money borrowed, typically with interest, under agreed terms. They can be personal debt, corporate debt, or public/national debt. Personal debt includes loans, credit card balances, mortgages. Corporate debt includes bonds, bank loans, mezzanine financing. Public debt arises when a government borrows to finance deficits, usually issued as government bonds. Interest rates, repayment schedules, and covenants define debt agreements. Debtors are obligated to service debt—making regular interest payments and repaying principal at maturity—though restructuring can occur under distress.

Debt serves as a mechanism to allocate capital, enabling consumption and investment beyond current income. It can boost growth when used productively but can become harmful if borrowers over-leverage or if interest rates rise sharply. Lenders assess credit risk, using creditworthiness, collateral, and covenant terms. Leverage ratios, debt service coverage, and liquidity are standard metrics.

Managing debt involves budgeting, refinancing, or debt relief strategies. Public debt sustainability depends on economic growth, inflation, inflation expectations, and fiscal policy. When debt becomes unsustainable, it can trigger austerity, default, or debt relief initiatives. In economies, debt markets—bonds, notes, and other instruments—facilitate liquidity and price discovery. The term dettes also appears in Francophone contexts, where it denotes the same concept of obligations to repay borrowed funds.