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Teaching PowerPoints

4.3.3 Debt Relief (Edexcel A-Level Economics Teaching PowerPoint)


Last updated 19 Oct 2023

This teaching powerpoint covers (external) debt relief in the context of low income countries.

External debt is the money that a country owes to other countries, international institutions, or private entities outside of its own borders. This can include things like loans, bonds, or other financial instruments that are denominated in a foreign currency. External debt can be a useful tool for countries to finance economic growth and development, but it can also be risky if the country is unable to repay the debt. If a low-income country borrows too much money and can't repay it, it can fall into a debt crisis, which can have serious economic and social consequences.

An external debt crisis occurs when a country is unable to repay its external debt, either because it doesn't have the money or because the terms of the debt are too onerous. This can happen for a variety of reasons, including economic downturns that reduce a country's ability to generate foreign currency and unsustainable borrowing practices, such as borrowing too much or borrowing at high interest rates.

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