International Aspects of Debt Crisis

Every country requires enormous funds for the needs of its economic sustainability and development. External debt may be chosen as a source of financing. Unfortunately, not all external debt borrowed managed to reach the goals of the country. Debt crises always appear in every decade. These studies will focus on looking for the major cause of the crisis that hit each country between 2000 until 2020 by selecting nine countries; Greece, Ireland, Italy, Portugal, and Spain which experienced the debt crisis in the Eurozone. Then Ghana and Kenya from the sub-Saharan Africa, also Turkey and Venezuela. The results of the study show the movement in the balance of payment that become the indicator of crisis; current account deficit, primary income balance, and net international investment position. Currency depreciation, commodities’ prices, and inflation also affect debt sustainability, which can exacerbate the crisis.Every country requires enormous funds for the needs of its economic sustainability and development. External debt may be chosen as a source of financing. Unfortunately, not all external debt borrowed managed to reach the goals of the country. Debt crises always appear in every decade. These studies will focus on looking for the major cause of the crisis that hit each country between 2000 until 2020 by selecting nine countries; Greece, Ireland, Italy, Portugal, and Spain which experienced the debt crisis in the Eurozone. Then Ghana and Kenya from the sub-Saharan Africa, also Turkey and Venezuela. The results of the study show the movement in the balance of payment that become the indicator of crisis; current account deficit, primary income balance, and net international investment position. Currency depreciation, commodities’ prices, and inflation also affect debt sustainability, which can exacerbate the crisis