When a developing world country carries "private debt," to whom is that money owed?
A) its own citizens
B) transnational corporations who are not directly involved in banking
C) private banks
D) foreign governments
E) No money is actually owed, as no one expects the loans to ever be repaid.

Question

Quizplus · Accepted Answer

Private debt is owed to private banks, which could be local or international. These could be banks that have lent money to the government or to private companies within the country. It is different from public debt, which is owed to foreign governments or international financial institutions.

When a Developing World Country Carries "Private Debt," to Whom