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Debt service ratio

In economics and government finance, a country’s debt service ratio is the ratio of its debt service payments (principal + interest) to its export earnings.[1] A country's international finances are healthier when this ratio is low. For most countries the ratio is between 0 and 20%.

In contrast to the debt service coverage ratio, which is calculated as income divided by debt, this ratio is inverse and calculated as debt service divided by country's income from international trade, i.e., exports.

References edit

  1. ^ Glossary of Statistical Terms, Debt service ratio, OECD, Sep 25, 2001.

debt, service, ratio, economics, government, finance, country, debt, service, ratio, ratio, debt, service, payments, principal, interest, export, earnings, country, international, finances, healthier, when, this, ratio, most, countries, ratio, between, contras. In economics and government finance a country s debt service ratio is the ratio of its debt service payments principal interest to its export earnings 1 A country s international finances are healthier when this ratio is low For most countries the ratio is between 0 and 20 In contrast to the debt service coverage ratio which is calculated as income divided by debt this ratio is inverse and calculated as debt service divided by country s income from international trade i e exports References edit Glossary of Statistical Terms Debt service ratio OECD Sep 25 2001 nbsp This article related to macroeconomics is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Debt service ratio amp oldid 1100631683, wikipedia, wiki, book, books, library,

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