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In the government's economy and finance, the debt service ratio is the ratio of payment of a country's debt (principal) payments to the country's export earnings. International finance of a country is healthier when this ratio is low. The ratio is between 0 to 20% for most countries.

Unlike the debt service coverage ratio, which is calculated as revenue divided by debt, this ratio is reversed and is calculated as debt service divided by the country's income from international trade, that is, exports.

Video Debt service ratio



References

Source of the article : Wikipedia

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