This indicator reflects the net financial assistance provided by private entities, including manufacturers, exporters, and suppliers of goods, alongside bank loans backed by export credit agency guarantees. It captures the net flows within a given year, calculated as the total disbursements received by the borrower minus any principal repayments made. By focusing on current U.S. dollars, this measurement allows for an analysis of the dynamic landscape of
private credit involvement in international trade and development financing. Moreover, it highlights the role of private creditors in funding capital projects and stimulating economic growth, offering insights into the broader economic dependency on private financing mechanisms, particularly in lower-income nations.
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