External borrowing plays a crucial role in supplementing domestic savings to finance desirable development investments (including essential infrastructure), accelerating economic growth and smoothing macroeconomic cycles. Yet, for many reasons, both external and domestic, and which also include economic and natural disasters, many developing countries have at one time or another accumulated mounting debt burdens and onerous debt-servicing obligations. Prudent macroeconomic policies and public debt management are necessary conditions for maintaining sustainable debt burdens, but despite such efforts, debt sustainability can be derailed by global economic and financial instability and unexpected shocks.

Related Subject(s): Economic and Social Development
Sustainable Development Goals:
-contentType:Journal -contentType:Contributor -contentType:Concept -contentType:Institution
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error