Kasz216 on 08 March 2009
| SamuelRSmith said: ^Would you care to explain the differences between the two? |
What your link is to is the Goverments deficit and debt.
Aka what your government is responsible for.
External debt is what your entire country owes.
In otherwords if you were to go to France and take out a loan for a million Francs....
that million francs would be shown up in your External Debt.
The biggest problem the UK has is it's External Debt is in a foreign currency... which means it's external debt ratio increases as it's currency drops vs the currency of it's debtors.
Though for comparison
Icelands banks pushed it's External Debt vs GDP to 600%....
In comparison it's governments debt was only 28%... with a budget surplus no less.
