An indebtedness crisis exists in a national budget if the incomes are not sufficient any more for the payment of the most necessary public expenditures with simultaneous covering of the interest load and repayment of the debts. The national indebtedness did not reach one no more extent which can be covered.

Such a situation is present with many countries of the third world. These do not have to pay a possibility back their debts during simultaneous maintenance of the national tasks. Here it can partly issue its owing for the creditor nations often meaningfully, so that at least a small part of the debts can be paid back. That it insists on the complete repayment of the debts can to the economy of the debtor country in such a manner damage cause that the demands can to be settled any longer and thus as total failure be booked would not be.

see also

Insolvency (for private households), national indebtedness, household balance, European Union convergence criteria 

Articles in category "Indebtedness crisis"

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