Definition:
It is the part of governmental state debt which is lent by foreign loaners (otherwise: "external debt"). Foreign debt consists of loans from private commercial banks, other governments, international financial institutions as for example International Monetary Fund and World Bank. This debt may be in the form of loans or in the form of treasury securities or corporate bonds owned by foreign entities. This may be the national debt, that becomes part of the public debt, or the debt that is incurred by private entities.