Välisvõlg

Välisvõlg refers to the total amount of money that a country owes to foreign entities. These entities can include foreign governments, international financial institutions, private banks, and other foreign creditors. It encompasses both public debt, which is debt incurred by the government, and private debt, which is debt owed by domestic individuals and corporations to foreign creditors.

The level of a country's välisvõlg is a significant indicator of its economic health and stability. A high välisvõlg can strain a country's finances, potentially leading to difficulties in meeting its repayment obligations. This can, in turn, affect its credit rating, increase borrowing costs, and even trigger a financial crisis. Conversely, a manageable välisvõlg, especially if used for productive investments, can contribute to economic growth and development.

Countries typically incur välisvõlg to finance budget deficits, fund infrastructure projects, or manage balance of payments shortfalls. The terms of these loans, including interest rates and repayment schedules, are crucial. Countries with substantial välisvõlg often rely on foreign exchange reserves to service their debt, making exchange rate fluctuations a critical factor. International organizations like the International Monetary Fund (IMF) and the World Bank often provide financial assistance and policy advice to countries facing challenges with their external debt. Managing välisvõlg effectively is a key aspect of national economic policy.