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Foreign debt service ratio


Foreign forex rebate club cashbackforexbroker cashbackforexexness (debtservicingratio) What forexrebateclub cashback forex debt service ratio Foreign debt service ratio is the ratio of the current years debt service to the total amount of exports of goods and services, some people call it the danger line, if the borrowing country just reached or below this standard, it means that its debt service capacity problems, can no longer provide loans to it In addition, because of the loan state debt interest rate, maturity The debt service ratio is not the only basis, but also refers to the ratio of foreign exchange reserves to imports and the ratio of the borrowers external debt balance to export receipts, etc. The formula for calculating the foreign debt service ratio is: Debt service ratio = current years foreign debt service amount / current years commodity service Debt service ratio is a threshold, more than 20-25% of the debt service ratio, is a signal of debt service capacity problems, if more than the debt service capacity is still excessive borrowing, it is possible that the due date can not be repaid or default, affecting the national credibility of the borrowing country According to the general criteria of debt service ratio, you can calculate a country in the existing foreign exchange earnings under the conditions of borrowing foreign debt However, in measuring the debt service capacity, the debt service ratio is not the only basis for the current year, as the maturity and interest rate of each debt of the borrowing country are different, the actual debt service amount is different from year to year, and the debt service ratio of some countries varies greatly from year to year, and these factors should be taken into account when measuring the debt service capacity. Some countries also use other criteria, such as the ratio of net debt to exports, average debt by import, net debt as a percentage of GNP, etc. In addition, a country should maintain a moderate level of foreign exchange reserves, if the foreign exchange reserves are below a certain level, even if there is no excessive debt, there will be difficulties in solving the debt.

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