Most long term external debt of developing countries is:
A)private debt owed by individual citizens.
B)rescheduled debt.
C)debt overhang.
D)sovereign debt.

Question

Quizplus · Accepted Answer

Most long term external debt of developing countries is sovereign debt, which is debt owed by the government of the country. This debt is often taken on to finance infrastructure projects, social programs, or to cover budget deficits. Private debt owed by individual citizens is typically short-term and not considered significant in the context of external debt. Rescheduled debt occurs when a creditor extends the repayment schedule for an existing debt, usually due to financial hardship on the part of the debtor country. Debt overhang occurs when a country has accumulated so much debt that it becomes difficult for it to borrow in the future, and creditors are hesitant to lend them more money.

Most Long Term External Debt of Developing Countries Is