External debt refers to the portion of a country's total debt that is owed to foreign creditors. This can include loans from foreign governments, international financial institutions (like the International Monetary Fund or World Bank), private banks, or individual investors located outside the debtor country. External debt can be denominated in foreign currencies and generally includes both principal and interest payments. External debt can be an important aspect of a country's economy, as it can provide much-needed capital for development, infrastructure, and other projects.
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