Sovereign debt refers to the bonds issued by national governments to

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Sovereign debt is issued by national governments to finance expenditure, usually for infrastructure projects, public services, and social welfare programs. Governments borrow money from investors by issuing bonds with the promise of paying back the principal amount with interest over time. This allows governments to raise funds without having to significantly increase taxes or cut spending elsewhere.

Sovereign Debt Refers to the Bonds Issued by National Governments