How to handle international debt
(1) It can be divided according to the source of repayment It is: cash exchange repayment, local currency exchange repayment and property top-up repayment
(2) According to the repayment method, it can be divided into: equal principal amount, fixed amount annuity , lump sum repayment and other methods
(3) According to the repayment responsibility, it can be divided into: national repayment, local department repayment and project unit self-repayment.
What is international debt
International debt, also known as foreign debt, is At any given time, all debts borne by residents of a country to non-residents that have been disbursed and have outstanding contractual repayment obligations, including the principal that needs to be repaid and the interest that needs to be paid. Foreign debt (commercial debt collection) is called "International Debt Collection" in English, which is translated as "international commercial debt collection" or "overseas commercial debt collection". International commercial debt collection cannot simply be understood as debt collection. International commercial debt collection refers to the legal conduct of commercial debt collection services through contact and cooperation with overseas commercial debt collection organizations, law firms, detective companies and other institutions, reducing corporate risk rates and bad debt rates, and preventing and circumventing corporate risks due to the use of credit sales. credit risk posed by the method.
Debt crisis refers to a country’s inability to repay its foreign debt on time. Debt, including sovereign debt and private debt, is manifested in the inability of a large number of public or private sectors to repay maturing external debt, and a country is forced to request debt rescheduling and international assistance. The international debt crisis is the result of domestic and international cooperation. The debt crisis is caused by internal factors, which are specifically manifested in the expansion of the scale of foreign debt, the unreasonable structure of foreign debt, the improper use of foreign debt, the deterioration of the foreign trade situation, the sharp decline in export revenue, and the financial environment. deterioration, etc. These reasons often have a lot of impact at home and abroad. Debt firstFor a foreign country, not only has the scale of investment shrunk, inflation has increased, economic growth has slowed or even stagnated, social life has not been guaranteed, violent and illegal incidents are prone to occur, and international credibility problems have arisen. For creditor countries, exports will decrease and receivables may become bad debts, delaying economic recovery. Finally, it is the impact on international finance.
In the same financial system, creditors and debtors are connected. If one party is in crisis, the other party will also implicated. If it is a huge debt, it may cause the system to shake. For solving the international debt crisis, I think the policies implemented by central banks of various countries are also relevant. The central bank should firm its monetary policy when currency inflation occurs and cannot arbitrarily shake the policy due to changes in the market. Of course, slightly appropriate scheduling is also needed. The system or policy should adapt to the development situation at that time. Whether it is the market or the government, they should always pay attention to the economic trend and constantly improve and optimize their constitution or policies. It is impossible to fix it once and for all. For example, the Greek government's loose fiscal policy at that time Although the economy has been in relatively good shape for some years, it has maintained a loose fiscal policy and developed a serious fiscal deficit because it did not improve its fiscal situation.
Inconsistent economic levels and uncoordinated active policies also lead to different fiscal policies in Euro countries, and monetary policies are also constrained. The contradiction between fiscal policy and monetary policy leads to Internal conflicts in the economy broke out. A country is not obligated to assist another country, but aiding a country in need will, to a certain extent, maintain economic development and alleviate the deterioration caused by the debt crisis. This also means that a country must dare to do so. Make decisions, dare to change the model, and dare to reform the system. As for the recipient countries, they have to rely on themselves to solve the problem in the end and cannot rely too much on foreign investment and fiscal policies. Once the donor's policies or simply put, the interest rate changes, it may make the debtor country even worse. Therefore, it is necessary to start from the beginning. Solve the problem fundamentally, adjust the domestic economic structure, and adapt to the current development as soon as possible.
For foreign capital, we should not borrow blindly. After borrowing, we should use it reasonably and manage it properly to avoid waste. In addition, after borrowing foreign capital, you must always pay attention to changes in international currency interest rates, understand the development of the international economy, and make adjustments to foreign capital at any time. It is also necessary to increase domestic savings. Foreign capital can only be said to be auxiliary, but it will not get much help when the global economic crisis occurs. The country should increase the savings rate appropriately and consume rationally. When a crisis occurs, it can also protect itself and avoid "black Friday". Finally, a country itself still needs to maintain production and continuously improve its overall national strength. In an era of rapid change, it is necessary to maintain advanced technological levels, otherwise it will eventually evolve into a backward country and fail to protect its own rights and interests.means of resistance.
The above is the editor’s answer to some of the questions about international debt. If foreign capital has insufficient liquidity to pay its maturing foreign debt, a crisis will erupt. The danger may have a more or less negative impact on the country, so we must analyze the international debt in advance and prepare countermeasures. If you have any questions, please consult the professional lawyers of the Legal Savior Network, who will provide you with You answer.
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