What are the different types of external debt in international economics?

Official external debt refers to liabilities usually government owe foreign governments or international organisations, such as the world bank and international monetary fund. Nations may take on this debt for various purposes, such as meeting additional expenses, building infrastructure, or balance of paymet support. Official debt includes principle and interest, but usually it is low interest rates. The borrower guarantees to repay the outstanding borrowings to the lender and full fill the obligations. However, debt can also create dependency, conditionality and moral hazard.

Bilateral Debt: Involves loans extended by one country directly to another. These agreements are typically made between governments and can include terms such as interest rates and repayment schedules. Multilateral Debt: Arises from loans provided by international financial institutions like the International Monetary Fund (IMF), World Bank, or regional development banks. Multiple countries contribute to these institutions, and loans are disbursed to member countries based on specific criteria. Commercial Debt: Comprises loans obtained from private financial institutions such as commercial banks and private bondholders. Commercial debt often involves higher interest rates due to the associated risks.

In international economics, external debt refers to the total amount of money that a country owes to foreign creditors. Official debt is a type of external debt that is owed to governments, government agencies, or international organizations. This type of debt includes loans extended by foreign governments or financial institutions, as well as credit lines provided by international organizations such as the International Monetary Fund (IMF) or the World Bank. Official debt typically involves longer repayment terms and lower interest rates compared to commercial debt, and it may be used by countries to finance development projects, infrastructure investments, or budget deficits.

Official Debt is much better because of the time to pay and interest rates are low, However it is the conditions that comes with these loans that are very un favourable....eg. Removing of subsides for certain products that affects the production of Goods effecting price increments and this affects the Citizens of that particular country

Private debt in international economics refers to the total amount of money that a country's private sector (such as businesses, households, and financial institutions) owes to foreign creditors. Unlike official debt, which is owed to governments or official entities, private debt is owed to private sector entities such as foreign banks, investors, or corporations. Private debt can include corporate bonds, bank loans, trade credit, or any other form of debt incurred by private entities from foreign sources. Private debt is important in assessing a country's overall external debt burden and financial stability, as excessive private sector debt levels can pose risks to economic growth and financial stability.

loans to companies which are not provided by banks or public markets and instead are provided by private markets .as private credit is not traded or issued on open public markets investment and not always readily realisable

Multilateral debt is a significant component of a country's external debt, and repayment obligations to these institutions can have implications for the country's fiscal health and financial stability. Managing multilateral debt effectively, along with overall external debt, is crucial for countries to ensure sustainable economic development and avoid debt distress.

Bilateral debt refers to debt that is owed by a country to another specific country. This type of debt arises when one country extends loans or credit lines to another country for various purposes, such as infrastructure development, economic assistance, or trade financing. Bilateral debt typically involves agreements between the two countries regarding the terms of the loans, including interest rates, repayment schedules, and any conditions attached to the borrowing. Managing bilateral debt is essential for both the borrowing and lending countries to ensure that the debt remains sustainable and does not pose a significant financial burden.

Bilateral loan is made between a borrower and a single lender. debt from official creditors includes loans from international org[multilateral loans] and loans from governments [bilateral loans]

Sovereign debt, also known as government debt or public debt, refers to the total amount of money that a national government owes to domestic or foreign creditors. This debt is incurred by a government through issuing bonds, treasury bills, and other securities to finance its operations, budget deficits, infrastructure projects, or other expenditures. Sovereign debt is typically considered low-risk because governments have the authority to levy taxes and control monetary policy to repay their debt obligations. However, high levels of sovereign debt relative to a country's GDP can raise concerns about fiscal sustainability and the government's ability to service its debt, leading to credit rating downgrades or increased borrowing costs.

Non-sovereign debt refers to debt incurred by entities other than national governments, such as corporations, financial institutions, or individuals. This type of debt is issued by private entities in order to fund their operations, investments, or capital expenditures. Non-sovereign debt can take various forms, including corporate bonds, bank loans, commercial paper, and other credit instruments. Unlike sovereign debt, which is backed by the full faith and credit of a government, non-sovereign debt relies on the creditworthiness and financial strength of the issuing entity for repayment.