Present value of external debt (current US$)

This financial metric represents the total worth of a nation's external financial obligations in today's dollars, factoring in various types of debt. It encompasses short-term external liabilities along with the discounted future payments of public and private long-term loans guaranteed by the government, effectively illustrating the economic burden these debts impose. This valuation leverages the concept of time value of money, where future cash flows are adjusted to reflect their present value, particularly for loans that do not carry a grant element, which are treated at face value. By assessing these obligations in current U.S. dollars, stakeholders gain critical insights into the sustainability of a country's debt load and its potential impact on economic stability, investment attractiveness, and fiscal health. Source: