Debt service ratio

From Wikipedia, the free encyclopedia

In economics and government finance, debt service ratio is the ratio of debt service payments of a country to that country’s export earnings.[1] The lower this ratio is, the healthy is country's international finance. The ratio is between 0 and 20% for most countries.

In contrast to the debt service coverage ratio, which is calculated as income divided by debt, this ratio is inverse and is calculated as debt service divided by contry's income from international trade, i.e. export.

[edit] References

  1. ^ Debt service ratio, OECD
 This article related to macroeconomics is a stub. You can help Wikipedia by expanding it.