Which Country Has Most Debt

After a comprehensive research from authentic sources. The report we are generating here at . first we will try to understand what is a debt or an external debt?we will elaborate this topic by taking example of some country under debt for instance we take Mexico, it is when we say “external debt” refers to money a country owes to other countries or foreign creditors in a foreign currency. It is called “external” because it is a form that comes from outside, from a country. Loans can come from a national government, one international financial institution like the IMF is, or a private bank. For example, if Mexico borrows the Dutch government, then that is a debt to Mexico.

curse of debt

Also, if Mexico receives a loan from a private Dutch bank, then it is external debt too. The country’s external debt is the sum of all the money, plus interest, that this country owes to foreign creditors. Legal systems protect individuals with the legal concept of bankruptcy. When an individual or a company indebted, when they cannot pay the loan back or when it is impossible to pay their debts, a court examines the case for them for this situation. If the judge decides that truly cannot pay all the amount, the person or company has to pay what you can and go bankrupt. Thus, individuals and businesses are protected by law from being trapped in a cycle of inescapable debt.

debt on different countries

But in international law, there is no bankruptcy for countries. This means that no matter how large the debt, nor does it matter if the economy is unable to generate enough funds to pay for it-the country is said to be in debt. A judge cannot determine that a country is unable to repay and cancel part or all of your debt. In the early 1980s, a debt crisis hit Mexico, Latin America, and most of the world. The combination of much economic, political, and historical debt caused to fire poor nations in those years. Indebted countries, starting with Mexico in 1982, found themselves unable to pay their debts.

heavy debt

Among creditor governments and organizations, this was a “crisis” because they were in danger of not recovering their investment-but for the countries and people of the South, was a true social crisis, political, and economic too. Debt service means all the money the government pays all of your creditors, payments of interest and principal. When a government is forced to devote its resources to pay the debt, then it cannot be allocated those resources to social needs such as health and education. For example, in Mexico, the cost of debt service representing 6.8% of gross domestic product and 23.2% of total annual exports. But public spending on health Mexico only represents 2.7% of GDP. According to the Development Program of the United Nations, an increase of 1% of GDP in the amount of funds devoted to health reduces natal mortality rate by 24%.

debt of different countries of the world

That was a brief story , now the question is Which Country Has Most debt. Almost all countries of world are under debt whether it is on larger or smaller scale, following is the list of countries top ten in debt:

List of Top Ten Countries in Debt

RankCountryExternal Debt US Dollars
1.European Union16,080,000,000,000
2.United States16,734,344,500,000
3.United Kingdom9,836,000,000,000

Q:Which country has most debt?

European Union region isĀ  under the most debt in world, then comes USA . They have to pay a sum of US dollars 16,080,000,000,000 and 16,734,344,500,000 respectively.

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