Abstract:

The manner in which a state’s financial resources are used, as well as the extent of the incurred expenses, establish the level of external debt which, one way or another, affects all inhabitants no matter if we refer to the increase of certain taxes and contributions or the decrease of funding for certain important fields, such as the increase of the standard of living. The external debt is a very important economic-financial indicator and, when it is analyzed and quantified as a percentage of an economy’s GNI, it constitutes a major macroeconomic result. The occurrence of economic debt determined by the need for external financial assistance is a natural step on the road economies travel from underdevelopment to prosperity. There already are complex studies and research regarding the way external debt influences sustainable economic growth.