Abbreviations
The total monetary value of all final goods and services produced within a country during a period of time.
What is GDP (Gross Domestic Product)?
This is a financial obligation that one entity owes to another.
What is debt?
Involves improving public sector efficiency, enhancing market competitiveness, and encouraging private investment.
What is Economic Growth and Structural Reforms?
Net Operating Income divided by Total Debt Service is used to find this.
What is the Debt Service Coverage Ratio (DSCR)?
These include the September 11 attacks, the Great Recession, and the COVID-19 pandemic that caused governments to borrow money.
What are major events?
This is the income generated from operations before accounting for interest, taxes, depreciation, and amortization.
What is the NOI (Net Operating Income)?
This is money borrowed by the government to pay for its expenses.
What is public debt?
Involves extending repayment periods, lowering interest rates, or even reducing the principal.
What is debt restructuring?
This indicates that the entity generates more income than is needed to cover its debt payments.
What is DSCR>1?
This is when the government spends more than it receives in revenue and must borrow money to cover the difference.
What are budget deficits?
This measures how much of a country’s export earnings is used to pay off external debt obligations
What is the DSR (Debt Service Ratio)?
This is the sum of a nation’s annual budget deficits, offset by any surpluses.
What is national debt?
This is a government policy that aims to reduce debt and deficits by cutting spending and increasing revenue.
What is Fiscal Consolidation?
This suggests that the entity does not generate enough income to cover its debt payments.
What is DSCR<1?
This can be used to influence inflation, employment, and the level of economic growth through taxation and expenditure.
What is fiscal policy?
This is a financial metric used to assess an entity's ability to service its debt obligations.
What is the DSCR (Debt Service Coverage Ratio)?
This is the liabilities that are owed to nonresidents by residents.
What is external debt?
Involves raising capital from the sale of state-owned enterprises or assets that can be used to reduce the debt stock and lower future interest payments.
What is Privatisation of State-Owned Assets?
This means the entity has just enough income to cover its debt obligations, without any cushion.
What is DSCR=1?
This leads to unsustainable debt, higher interest rates and reduced revenues and expenditure.
What is fiscal indiscipline?
This is is a global organization that works to achieve sustainable growth and prosperity for all of its 191 member countries.
What is the IMF (International Monetary Fund)?
This refers to an unusually high debt ratio which persists for many years and which requires the government to commit revenue, usually reserved for management of the economy, to servicing the debt.
What is a debt trap?
This is relevant for developing countries seeking to reduce external debt and improve their balance of payments.
What is Increasing Exports and Foreign Currency Earnings?
These people use the DSCR to assess a company’s financial health and its ability to sustain long-term debt.
What are Investors?
This Caribbean country owed France a large debt from claims over property lost in the revolution for the country's independence.
What is Haiti?