10 countries with external debt

Mexico's current external debt balance is nearly $ 250 billion. Many developing countries around the world have huge external debts that amount to trillions of dollars.

10. Romania

The country's total external debt is $ 44,160,992,830. The bulk of these loans were directed towards the development of the industry. The government invested in the technology and materials needed to build the infrastructure, and Romania's economy was hit by the same oil crisis in the late 70s that affected the Latin American market.

Only the Romanian government decided not to borrow from the IMF in order to avoid structural reorganization programs. Ultimately, this austerity policy affected the livelihoods of its citizens, and subsequently the country was forced to borrow from both the IMF and the EU.

9.South Africa

South Africa owes $ 50,491,400,473 in external debt. But even with this amount of debt, South Africa has the richest economy of any other African country. Debt has increased by 250% over the past decade, and some economists expect South Africa's current economic bubble to burst.

8. Philippines

The external debt of the Philippines is $ 54,205,804,325. This country suffered both in the Asian crisis of 1997 and when the central bank raised interest rates and the currency fell. This amounts to 45.8% of GDP. The risk for this country is that its debts may soon become more costly to refinance.

7. Colombia

Colombia was hit by the 1982 economic crisis, as were Mexico and Brazil. Its current external debt is $ 58,532,724,039. Although the country is lower on the list than other Latin American countries, its external debt has recently grown at a rate that has exceeded Colombia's GDP growth. Debt consists of 60% government and 40% private loans.

6. China

China has also been hit hard by the 1997 Asian financial crisis mentioned earlier. Today, the country's external debt has reached $ 84,295,676,947. China weathered the crisis somewhat better than Indonesia because it was not forced to devalue its currency to maintain export levels.

The country also took on more debt during the 2009 Global Financial Crisis to motivate construction projects across the country, which helped bolster other emerging markets that export raw materials to China.

5. India

India's external debt reached $ 107,994,984,566. These loans were used to build the country's existing infrastructure. However, this development led to the emergence of a ghost town with empty houses and streets.

These companies are awaiting government assistance. Although India is in such a situation and has to pay huge amounts to pay off, it has recently seen an increase in long-term debt and a reduction in short-term debt, which is a good sign for the country's economy.

4. Turkey

Turkey's external debt is $ 121,615,828,315. In the early 2000s, Turkey's economy faced high inflation and the IMF offered to support the exchange rate. The move did nothing to curb inflation, but instead increased imports and national deficits, and alienated foreign investors. The 2001 economic crisis began.

The IMF again came up with a loan offer and helped the country clean up the banking system, which led to economic growth. Foreign investors returned, and private and public sector companies began to take out loans. This borrowing has recently declined, and the IMF loans are almost paid off.

3. Indonesia

Indonesia also hoped to borrow from foreign lenders to develop the industry in an effort to increase production capacity to meet international export needs. Most of these exports went to China and Indonesia's economy grew for several years. However, export requirements fell sharply during the 1997 Asian financial crisis as equity markets and currencies were devalued across the region. In Indonesia, the IMF reappeared to lend a helping hand and offered a bailout package to stabilize the currency. Today the country has an external debt of $ 133 855 370 52.

2. Brazil

Brazil's external debt is $ 151,608,751,222. The story of how this country got caught in debt is similar to that of Mexico. Brazil borrowed money to build infrastructure during the 60s and 70s and was just as hard hit during the global recession.

After Mexico declared its inability to repay the debt, Brazil followed suit. However, Brazil once owed significantly more money than Mexico. Its economy has grown rapidly over the past several decades, enabling the country to pay off most of its debt.

1. Mexico

Mexico's external debt is $ 235,990,148,633. This situation began to develop in the 60s and 70s, when the country borrowed funds from international lenders to finance its domestic industry. The global economy began to decline in the late 1970s when oil prices rose, prompting the country to borrow more, nearly quadrupling its debt.

As interest rates increased around the world, monthly payments increased to the point where Mexico could not pay them. This factor was the cause of the 1982 debt crisis. Unable to pay, Mexico turned to the International Monetary Fund (IMF) for help.

The IMF provided loans to cover outstanding debts, but demanded a structural reorganization before issuing money. These restructuring programs pushed Mexico towards neoliberal market practices in an attempt to bring the country's economy to healthier in order to pay off IMF loans.