What do you understand by international indebtedness??? explain.?

What do you mean by your question? explain.

If a nation takes a loan from any other nation or from the international financing agencies like the World Bank (WB) and the International Monetary Fund (IMF) etc and agrees to pay an interest amount, which is also agreed upon mutually, then the nation is notified as indebted internationally!

Just as individuals like you and me borrow money to fulfill our needs, VCountries too borrow money from World Bank, and various other International financial Institutions to tide over their financial problems, or to finance their imports.

Once the debt increases beyond critical levels, you are treated as an indebted nation and the ratings go down.

The International investors and financers always go by the ratings of S&P and dother such rating agencies.

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