In the context of developing countries' external debt, the "debt service ratio" of a country Is the ratio of annual interest payments on the debt plus scheduled repayment of the debt (amortization) to the country's __________.

Question

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The debt service ratio is a measure of a country's ability to meet its external debt obligations. It is calculated by dividing the annual debt service (interest plus principal payments) by the country's exports of goods and services. This ratio indicates the economic burden that servicing the external debt places on a country's ability to generate foreign exchange. A higher debt service ratio means that the country is spending a larger share of its export earnings on debt servicing, which can limit its ability to invest in domestic development and growth.

In the Context of Developing Countries' External Debt, the "Debt