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According to Reuters, the agency expects to borrow sovereign debt equivalent to about $ 7.78 billion this year, up 3.2% from 2018.
"About 70%, or $ 5.5 trillion in total sovereign debt, will be used to refinance maturing long-term debt, which will result in a net borrowing requirement of $ 2.3 trillion, or 2.6% of the total, "said Karen Vartapitov, an analyst at Standard & Poor's. GDP of countries with classifications ".
The rise in sovereign debt to $ 50 trillion implies an increase of 6% over last year, partly because of exchange rate fluctuations.
Sovereign debt is the debt of sovereign governments, most of which take the form of bonds. When governments issue their bonds, they use only two methods: issuing bonds in their own currency, and often for domestic investors, in which case the debt is called public debt, ie issuing bonds to foreign investors in a currency other than their own currency. , Which are often in international currency such as the dollar or the euro.
Thus, sovereign debt is divided into two types: domestic public debt and external public debt, and some governments often use these two measures to deal with financial obligations whose financing is not available, and countries are obliged to to borrow to pay arrears.
(Reuters, the new Arabic)
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