Odious debt is a term applied to the debt of a predecessor government that the successor government wishes to relinquish on ostensibly moral grounds.
Odious debt is not an established principle of international law, but is often cited by the victors in a civil or international conflict as a rationale for repudiating the debts of their defeated opponents.
Successful implementation of the odious debt concept poses a significant risk to sovereign debt investors and could increase borrowing costs for countries at risk of regime change.
Economic efficiency is when every scarce resource in the economy is used and distributed between producers and consumers in such a way as to provide the greatest economic return and benefit to consumers.
The “golden rule” of public spending is fiscal policy, which says that the government should increase borrowing only in order to invest in projects that will pay off in the future.
A member of the World Bank Group, the International Finance Corporation (IFC) provides financing for investment by private enterprises in developing countries.
Overlapping debt is when the debt issued to finance the activities of the government falls on several political jurisdictions, while the joint debt is distributed among them.