Jump to content

Debt service ratio

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by Btyner (talk | contribs) at 20:48, 17 May 2009 (+cat). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

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] A country's international finances are healthier when this ratio is low. 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 country's income from international trade, i.e. export.

References