The presentation gives an outline about international debt problem and solutions for it.

1. International Debt Problem
Sreenath B
IVth sem
DCMS, University of Calicut.

2. International Debt
External debt (or foreign debt) is the total debt
a country owes to foreign creditors,
complemented by internal debt owed to
domestic lenders. The debtors can be the
government, corporations or citizens of that
country.

3. The debt includes money owed to private
commercial banks, other governments, or
international financial institutions such as the
International Monetary Fund (IMF) and World
Bank.

5. Major Crisis
80% world population only control 20% wealth.
Debt Crisis 1950’s OPEC Oil Crisis.
Before 1991 in India : due to irregularities and
imbalances in economic planning.
2008 Crisis American banking sector/Housing
sector.
Economic slow down in the present scenario.

6. Impact Of International Debt
 Majorly on Developing Countries.
 They had to pay high price to service their debts.
 Cost is born by people with high poverty.
 According to Oxfam International's April 1997 report, Poor
Country Debt Relief, "Debt repayments have meant health
centers without drugs and trained staff, schools without basic
teaching equipment, and the collapse of agricultural
extension services."
 Repayment made in Hard Currencies.

7. Solutions for Debt Crisis
when the debtor countries have normal access to the
international capital markets.
The resource inflows would finance investment to
raise the growth rate.
The debt crisis is moving towards a solution if the net
outflow of resources from the developing debtor
countries is significantly reduced, enabling most of
them to run their own.
IMF and World Bank should take up Big role.

8. Thank you