Generally speaking, the main purposes of countries using international bonds to raise funds are as follows:
1. It is used to make up for the fiscal deficit of the issuing country's government. For a country's government, in addition to domestic bonds to cover its fiscal deficit, it can also raise funds through the issuance of international bonds as a supplement to domestic bonds.
2. To make up for the deficit in the international balance of payments of the issuing country's government. The funds raised by the issuance of international bonds appear as capital inflows on the balance of payments and are capital income, thus helping to reduce the balance of payments deficit. During the oil crisis from 1973 to 1975, many Western industrial countries adopted the method of issuing international bonds to make up for the balance of payments deficit caused by rising oil prices.
3. Used to raise construction funds for large or extra-large projects. This is mainly issued by investment institutions composed of some international financial bonds or corporate groups.
4. It is used to increase operating capital to raise funds for some large industrial and commercial enterprises or multinational companies, thereby enhancing their strength. In order to enhance their strength, large enterprises need the support of a large amount of funds
5. Used to raise funds for some major international financial organizations. For example, the World Bank has issued foreign bonds many times to raise huge amounts of funds to implement its development plans.
