Every Country Has Debts, Who Owes Whom?

National debt, also known as national debt, is the debt of a country’s government. to different individuals and local or international organizations is the total amount of money owed. However, national debt is often confused with a country’s external debt.

The national debt is completely belongs to the government of a country, external debt is the debt of the government, businesses, people and other institutions in a country. This is a country’s credit card bill You can think of it as, but its scale is much larger.

Who are the lenders to countries and what do they get in return?

Country governments to go into debt assets such as bonds takes it out. Individuals, financial businesses, other governments, central banks and other institutions can purchase them.

People who buy these assets lender becomes a side. The idea behind purchasing these is that they provide returns to investors in certain periods and trust in the country’s governments.

Turkey’s national debt 245 billion dollars and foreign debt $475 billion is around.

The world’s total debt continues to break records.

When the national debt, foreign debt, domestic debt, private enterprises and individuals’ debt of all countries are added together, the global total debt is world debt is available. Global debt has continued to rise for the last 3 years.

The world’s total debt in 2021 was $303 trillion, and in 2020 it was $226 trillion. This year, global debt It broke a new record by reaching 307 trillion dollars.

According to the IMF, the governments of at least 100 countries around the world have to pay their debts in order to make their debt payments. health, education and security will have to cut spending. Türkiye is not among these 100 countries.

All this confusion is solved by answering the question of who owes whom.

Who owes whom? The answer to the question varies from country to country.

Usually a large portion of a country’s national debt to local organizations and the rest to foreign organizations.

The amount of this debt is financial policies and global economic conditions is affected by. Some countries have been able to maintain very low levels of debt or become debt-free, while others have accumulated too much debt over time.

Only two countries in the world stand out as being debt-free.

Not every country has to have a national debt. However, if a country has no debt exceptional is a situation.

Among the countries with the lowest national debt are Norway, Kazakhstan, Sweden, Denmark, Estonia, Bulgaria and Luxembourg. Among these Norway and Kazakhstan Its debt is in negative, that is, these two countries have no debt.

Among the countries with the five highest national debts are 30 trillion dollar debt comes the USA. After that; China has a debt of $14 trillion, Japan $10.17 trillion, France $3.14 trillion and Italy $2.70 trillion.

In summary; not to confuse the national debt with foreign debt and Understanding who owes whom It is very important. In fact, whether the national debt is low or high should not be considered good or bad. Just one country’s government how much you owe shows.