Foreign Debt

Foreign debt is a subset of the financial obligations that comprise a country’s international investment position. It includes all the non-equity components of the net international investment position, that is, all recorded assets and liabilities other that equity securities and direct investment equity capital, including reinvested earnings. The level of foreign debt in Australia continues to, and always will be of major concern to leading economists and politicians in our country; this level of foreign debt will be used to make political and economic decisions in the future to benefit our economy.

Net Foreign Debt
Net foreign debt, the net sum of debt liabilities and debt assets, consists of 2 sectors, the public sector, such as government, public financial and non financial corporations, and the private sector, such as private financial and non financial corporations.

At the end of the 2000 financial year, the net foreign debt totalled $277804bn, the Public sector, contr...