Term:
Guaranteed external debt
Definition:

The provision by one institutional unit of a guarantee to make future debt-service payments to a nonresident creditor if certain conditions are met, such as a default by the debtor, does not negate the claim the creditor has on the debtor. Thus, the debtor on whom the non-resident creditor has a claim, and not the guarantor, should record an external debt liability, unless and until the guarantor assumes the external debt.

Domain:
Finance
Source:
IMF, 2003, External Debt Statistics: Guide for Compilers and Users – Appendix 1. Special financial instruments and transactions: classifications, IMF, Washington DC
arrow-up icon
Feedback