word
Sovereign Debt
SOV-rin det
/ˈsɒvrɪn dɛt/Listen
Hear it in a clear American voice. Slow it down to catch each syllable.
Syllable breakdown
sovereigndebt
Dictionary meaning
The total financial obligations of a national government to creditors, including domestic bondholders and foreign lenders such as governments, multilateral institutions, and international capital markets
Examples
- Argentina's 2001 sovereign debt default, the largest in history at the time, triggered a severe financial and social crisis.
- Emerging market sovereign debt is often denominated in foreign currencies, exposing borrowing countries to exchange rate risk.
Synonyms: government debt, national debt, public debt
Pronunciation tips
Four syllables; stress the first: SOV-; 'sovereign' is three syllables in British English but often compressed to two in American English
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