What is the country s domestic debt and what is the country s external debt?

1. Foreign debt. 1. External debt refers to a country's debt to foreign countries. According to the definition of the International Monetary Organization** and the World Bank, external debt is "all liabilities that are liable to non-resident residents in foreign or local currencies".

2. Net external debt is equal to the total external debt of a country, minus all claims of residents of that country against non-residents (i.e. foreign assets). Both total and net external debt reflect the external debt accumulated over the past years, i.e., the stock of external debt. The balance of payments capital account reflects the annual increase or decrease in external debt, i.e., the flow of external debt.

2. Domestic debt. 1. Domestic debt refers to the debt formed by each debtor to domestic investors through the issuance of bond certificates denominated in domestic currency or the conclusion of specific contracts, also known as "domestic debt". Broadly speaking, it usually refers to the debts formed by financial institutions such as public bodies, enterprises and companies and banks in the form of bonds or loans, leases, deferred payments, etc.

2. In a narrow sense, it only refers to the debts formed by the above-mentioned financing entities in the form of issuing bonds. The main purpose of domestic debt is to cover the fiscal deficit or the temporary shortfall in treasury funds, and it is increasingly becoming an important means of regulating the economy.

Domestic debt and external debt are two symmetrical concepts. Bonds denominated in the national currency issued to domestic creditors in the domestic market are generally referred to as domestic debt. Foreign debts refer to all debts with contractual repayment obligations in foreign currency borne by institutions, organizations, enterprises, institutions, financial institutions or other institutions within China to international financial organizations, foreign countries, financial institutions, enterprises or other institutions outside China, including loans from international financial organizations, foreign loans, loans from foreign banks and financial institutions, buyer's credit, loans from foreign enterprises, issuance of foreign currency bonds, international financial leases, deferred payments, and compensation Other forms of external debt.

External debt refers to a country's indebtedness to foreign countries. Domestic debt is a debt formed by each debtor to domestic investors through the issuance of bond certificates denominated in domestic currency or the conclusion of specific contracts, also known as "domestic debt".

At the initial stage, the lenders were all foreign banks in China from Shanghai, Guangzhou, Fuzhou, Xiamen and other commercial ports; Short-term loans of a loan shark in nature, with interest rates ranging from 6% to 1/2% per month and 5% to 1.5% per annum, with a maturity ranging from four months to one year; Foreign banks in China rarely participate.

Since August 1874, when HSBC began to take on foreign debts alone, its total loans amounted to more than 28,990,000 taels of silver, accounting for the total amount of foreign debts that were cleared before the First Day of the First Dynasty.

Outbreak of the Sino-Japanese War:

By the time of the outbreak of the Sino-Japanese War, most of the above-mentioned foreign debts had been repaid, except for a few loans. In the forty-one years from 1853 to 1893, forty-five foreign debts amounted to more than 46,260,000 taels of silver, the largest of which (1885) accounted for the total annual income of the year.

The expenditure of principal and interest averaged only 6 per cent of the total expenditure, and the prescribing of foreign debt was mainly customs duties, and only a small part was the centime and other income.

In the customs revenue, the payment of principal and interest on foreign debt accounted for about the average of the largest year (1892). At this time, the foreign powers could not use borrowing to control China's financial and economic lifelines, but they had firmly grasped the prerogatives of customs taxation and administration.

The links between external and domestic debt are as follows:

1. The concept is different.

Domestic debt is a debt formed by each debtor to domestic investors through the issuance of bond certificates denominated in domestic currency or the conclusion of specific contracts, also known as "domestic debt".

External debt refers to a country's indebtedness to foreign countries. According to the definition of the International Monetary Organization** and the World Bank, external debt is "all liabilities that are liable to non-resident residents in foreign or local currencies".

2. The target is different.

Domestic debt is targeted at domestic investors by various debtors. Broadly speaking, it usually refers to financial institutions such as public bodies, enterprises and companies, and banks.

Foreign debts refer to all debts with contractual repayment obligations in foreign currency undertaken by institutions, organizations, enterprises, institutions, financial institutions or other institutions within the territory of China to international financial organizations, foreign countries, financial institutions, enterprises or other institutions outside China.

3. The influencing factors are different.

The issuance of domestic debt mainly depends on the domestic capital supply conditions and the ability to repay debts, and the use of debt income is mainly determined by **.

The issuance of foreign debt is affected by the country's ability to earn foreign exchange through exports, its position in international relations, its reputation, and in the case of loans, the use of debt funds is often influenced by foreign creditors.

Is your domestic and external debt relative to a company, or relative to a country?

External debt refers to a country's debt to foreign countries. By definition, external debt is "all debts that are subject to repayment obligations in non-local currencies or in local currencies". Domestic debt refers to the debt generated by the main body of each debt to the investors of the country, through the issuance of bond certificates denominated in the currency of the country, or by the conclusion of specific contracts, also known as "domestic debt".

The main purpose of issuing domestic debt is to cover the fiscal deficit <>

1. The concept is different: the bonds issued to the debtor of the country in the currency of the country are generally called domestic debts, and the external debts are all debts that are not in foreign currency or local goods;

2. Different influencing factors: The issuance of domestic bonds mainly depends on the supply of domestic assets, the issuance conditions and solvency of bonds. How the proceeds of the debt are used is determined by **. In the case of bumper borrowing, the use of debt assets is usually influenced by the foreign debtor.

Domestic debt refers to the treasury bonds issued domestically, and its creditors are mostly citizens, legal persons or other organizations of the country where the debt is closed, and the repayment of principal and interest is paid in the national currency.

National foreign debt refers to the debt borrowed by the state abroad, including treasury bonds issued in the international market and loans from foreign countries, international organizations and other non-governmental organizations. The external debt of a State may be raised and repaid in the currency of the creditor country, the debtor country or a third country by agreement of both parties.