The economic term for a situation in which a country is borrowing money just to pay interest on its existing debt is known as "debt servicing" or "debt rollover." This often occurs in the context of a "debt trap” where a country finds it increasingly difficult to manage its debt load, leading to a cycle where new borrowing is needed to cover interest payments on past borrowing. In more extreme cases, this situation can be part of a broader "financial crisis" or "sovereign debt crisis."
economic term when a country is borrowing money just to pay interest
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