Sustainable Debt Law and Legal Definition

Sustainable debt is the level of external debt or foreign debt that allows a debtor country to meet up its current and future debt service obligations in full. The situation will be that the debtor country will not require any further debt relief or rescheduling to manage or bring under control its debts. A debtor country can avoid accumulation of arrears in addition to achieving economic growth of the country. When these factors exist, a debtor country may be said to be having sustainable debt.