Learn about Sovereign Debt with iMinds Money's insightful fast knowledge series. Sovereign debt is the debt of a country or government. This debt is usually comprised of bonds issued by the government. Sovereign debt can be contrasted with government debt. Government debt is when bonds are issued in a nation's own currency. Therefore, this debt is mostly created within a country's own economic boundaries. Sovereign debt, however, is created from bonds issued in foreign currencies or through loans from international financial institutions. The total of debts owed to both domestic and foreign le.
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