Foreign Loans Research Articles

The Causal Relationship Between Foreign Debt and Economic Growth: Evidence from Commonwealth Independent States

This study investigates the relationship between external borrowing and economic growth in the Commonwealth Independent States during the period 1995–2018. Autoregressive distributed lag (ARDL) model is employed to determine the co-integration relationship among the series and then vector error correction model (VECM) is used to analyse the causality between external debt and income. The obtained results suggest that there is a negative long-term unidirectional causal relationship running from external debt to GDP presenting a strong evidence of existence of debt overhang hypothesis. The possible reasons for this unidirectional causal relationship can be explained by poor management of provided financial resources and incomplete governance in economic transition process along with structural rigidities and immature institutions in these countries which, in the long term, resulted in insufficient capital charged to service external debt. The policymakers in these post-Soviet countries should not use foreign loans to capitalise the deficits in the economies; instead, they should be more determined in employing these funds in the areas that will create national value-added production and, thus, future income. JEL Classification: C10, F34, H63

The Accessing Foreign Aid’s Long Run Contribution to Economic Growth of Pakistan: An Evidence from Time Series Data

Purpose: This research examines the effectiveness of foreign aid on Pakistan’s economic growth. The foreign aid efficiency is still under question. Some researches show positive affiliation of foreign aid with economic growth while some show negative affiliation. If foreign aid is not replacing or used as a substitute for domestic savings then foreign aid is useful for growth. To fill the two gaps of the economy the Two-Gap theory suggest that poor nations have to depend on overseas funds. Those two gaps are the Savings-Investment Gap and Import-Export Gap. There’re many kinds of international funds. Like foreign loans, development and non-development aid, FDI, and technological help. But underdeveloped nations like Pakistan have not a favorable speculation policy. Therefore, these nations are dependent on international aid and balance quite than foreign direct investment.
 Design/Methodology/Approach: For the analysis of this study the time era used is 1974 to 2016. The GDP is the dependent variable. Independent variables are population growth, foreign aid, inflation, foreign direct investment (FDI), and domestic savings. The annual data is collected from different sources. The technique for analysis is OLS and ARDL bound testing.
 Findings: Concluding remarks show that in Pakistan foreign aid affects economic growth negatively.
 Implications/Originality/Value: The current study was based on the least considered variables and the pioneer in testing the complex relationship through OLS and ARDL estimation.

Sukuk, Infrastructural Development and Economic Growth: A Theoretical Lens for Abandoned Projects in Nigeria

The purpose of this paper is to provide an alternative way for abandoned projects in Nigeria through Sukuk. Sukuk have been attracting the attention of investors and become most popular in many global markets. Further, Sukuk have been used for funding many infrastructure developments as an alternative for conventional bonds. The study adopts a descriptive approach to highlight the significance of Sukuk as an investment tool to improve the infrastructural development and economic growth via abandoned projects in Nigeria because this experience is still at the infancy stage in the country. This study attempts to give the financial solution by depending on internal foreign loans which comprise the interest rate. The outcome indicates that Sukuk is the better alternative and reliable in financing abandoned projects and the new one for the development of the country. Also, study shows that Sukuk is the most significant financial instrument in the market because it has no interest rate. Many Muslim countries and non-Muslim countries have applied Sukuk for their infrastructure development and economic growth. The study will be a primary reference for different governments at the state and federal level who intend to adopt similar instruments for abandoned projects in their respective nations. As an individual is qualified to purchase Sukuk, this might lead to a better wealth distribution amongst people. The study has implication for the policymaker and government in terms of fully adopting Sukuk to address the issues of abandoned projects, thereby enhancing the social wellbeing of the people and the development of the economy. The study is among the studies that thoroughly and critically appraise Sukuk as an alternative for the government to tackle issues of abandoned projects in the country. It contributes to the literature in the field of Islamic finance according to the philosophy of profit and loss sharing among investors to solve different challenges in society.

Relative Importance of Risks in Hydropower Projects and Project Finance in Nepal

Hydropower is the sole internal source of electricity in Nepal. Since the government policy of private participation in hydropower sector launched, Independent Power Producers (IPPs) have gained significant presence under Public-Private Partnership (PPP) model of infrastructure development. Risk management is crucial in PPP projects as mishandling of any risk threatens sustainability and may result in project failure. This study analyses four major risks including Hydropower Sector Specific Risks, Project Finance Specific Risks, Hydropower Project Financing Risks and Country Specific Political and Legal Risks. Self-administrative survey utilizing questionnaire was conducted among the IPPs and domestic Banking and Financial Institutions (BFIs). Relative Importance Indices have been used to determine the importance of each risk item. Exchange rate changes, currency mismatch between local revenue and foreign loan, cost and time overrun, inflation, political turmoil and highly volatile political environment are few of the most critical risks found. For Project Finance proper allocation of risks among the stakeholders is crucial to make the projects bankable. Findings from this study indicate no risk should be neglected and relative importance of risks is critical in allocating risks among stakeholders. This study highlights assessment and the use of RII in the process of allocation and management of risks in infrastructure projects in general and hydropower in particular.

Exchange Rate Exposure and Firm Dynamics

Abstract This article develops a heterogeneous firm-dynamics model to jointly study firms’ currency debt composition and investment choices. In our model, foreign currency borrowing arises from a dynamic trade-off between exposure to currency risk and growth. The model endogenously generates selection of productive firms into foreign currency borrowing. Among them, firms with high marginal product of capital use foreign loans more intensively. We assess econometrically the model’s predicted pattern of foreign currency borrowing using firm-level census data from the deregulation of these loans in Hungary, calibrate the model, and quantify the aggregate impact of this financing. Our counterfactual exercises show that understanding the characteristics of firms borrowing in foreign currency is critical to assess the aggregate consequences of this financing.

External debt management as macroprudential policy in a small open economy

This paper examines the role of macroprudential policy and foreign exchange rate intervention in stabilizing the economy facing foreign shocks. To this end, we build a small open economy dynamic stochastic general equilibrium (DSGE) model with a banking sector. We add foreign loans by entrepreneurs regulated by a macroprudential policy via a foreign to domestic loan ratio requirement. The exchange rate intervention is undertaken via a modified Taylor rule. From the analysis, two important results emerge. First, the responses of aggregate output, consumption, investment, and inflation vary widely for different types of foreign shock and policy combinations. Second, the stabilization gain seems to depend on the type of foreign shock hitting the economy. When the economy is hit by a foreign interest rate shock, tightening the macroprudential measure reduces the volatility of output, consumption, and investment-more than if the stabilization effort is carried out through an exchange rate intervention. However, under a risk premium shock, this gain diminishes substantially.

Improving Ways to Increase the Attitude of the Investment Environment

This article addresses the issue of improving ways to increase the attractiveness of the investment climate in the regions. There are also scientific works of foreign and local scientists who have studied the attractiveness of the investment climate in the regions. In addition, a model for assessing the impact of investment on the region's economy has been proposed. In addition, McKinsey & Co. the level of indicators is suggested. Foreign loans and investments are guaranteed by the government, the state of direct investment is assessed by the effect obtained by fully loading the risk on the recipient. In addition, conclusions and recommendations were made to improve ways to increase the attractiveness of the investment climate in the regions.

Problems of the Growth of the External Public Debt of the Kyrgyz Republic

The problems of the growth of public debt affect an increasing number of states in the modern world. Most countries record a significant shortage of their resources when making domestic investments and cover the state budget deficit and carry out socio-economic transformations. This lack of funds led to the formation of an economic debt system. At the same time, with the liberalization and globalization of financial markets, there will be an increase in the dependence of national economies on external replenishment. When carrying out economic transformations, most of the modern world countries resort to using external and internal sources of financing.The Kyrgyz Republic is no exception to this rule and today is largely dependent on external funding from foreign donors. At the same time, the lack of a consistent policy in attracting and using external and internal financial resources has led to the formation of significant external debt, which does not allow for economic transformations to ensure the country’s economic security. As a result of this study, recommendations were formed for the Ministry of Finance of the Kyrgyz Republic, which proposes a balanced policy of attracting expensive foreign loans to reduce the debt burden. In this study, the principles of dialectical logic, the unity of the logical and the historical, and generally scientific methods of cognition were used. Analysis, synthesis, consistency, special comparisons, groupings, classifications, generalization can be distinguished.

Foreign Aid Movements in Nepal

Purpose: Development needs fund and foreign aid is one of the majour source of fund for developing countries. The Paper aims to analyse the trends and composition of foreign aids with case reference to the Swiss aid. Design/Methodology/Approach: The study is based on secondary data from 2001/02 to 2014/15.Descriptive statistics has been applied to develop the trends and compositions. Findings/Result: In FY 2014/15, the total foreign aid commitment increased by totaling to Rs.1195.5 million as compared to Rs.2125.9 million in FY 2014/15. Of the total commitment in FY 2014/15 the contribution of bilateral aid was totaling and multilateral aid contributed. While categorizing the total foreign aid the share of grant assistance constituted and loan assistance million. In FY 2014/15 the foreign grant assistant subsequently increased by whereas foreign loan assistance decreased. The bilateral aid disbursement was out of total bilateral aid commitment. Multilateral aid disbursement was 56 percent. The amount of loan is increasing in the economy. This condition also indicates that in future debt burden in budgetary system is directly reducing the development expenditure which decreases the flow of budget in poverty reduction sectors. In amount Swiss aid is much less but is efficiency is widespread in increasing people's living standard. Due to 100% grant Swiss aid doesn't create fiscal burden in the economy. Originality/Value: it is an empirical research to signify the urgency of increasing Swiss aid and Swiss project in Nepal for sustained and broad-based economic development. Paper Type: Analytical Policy Research

Foreign Aid Movements in Nepal

Purpose: Development needs funds and foreign aid is one of the major source of fund for developing countries. The paper aims to analyze the trends and composition of foreign aids with case reference to the Swiss aid. Design/Methodology/Approach: The study is based on secondary data from 2001/02 to 2014/15. Descriptive statistics has been applied to develop the trends and compositions. Findings/Result: In FY 2014/15, the total foreign aid commitment increased by totaling to Rs.1195.5million as compared to Rs.2125.9million in FY 2014/15. Of the total commitment in FY 2014/15 the contribution of bilateral aid was totaling and multilateral aid contributed. While categorizing the total foreign aid the share of grant assistance constituted and loan assistance million. In FY 2014/15 the foreign grant assistant subsequently increased by whereas foreign loan assistance decreased. The bilateral aid disbursement was out of total bilateral aid commitment. Multilateral aid disbursement was 56 percent. The amount of loan is increasing in the economy. This condition also indicates that in future debt burden in budgetary system is directly reducing the development expenditure which decreases the flow of budget in poverty reduction sectors. In amount Swiss aid is much less but is efficiency is widespread in increasing people's living standard. Due to 100% grant, Swiss aid doesn't create fiscal burden in the economy. Originality/Value: it is an empirical research to signify the urgency of increasing Swiss aid and Swiss project in Nepal for sustained and broad based economic development.

СТАНОВИЩЕ ЄВРЕЙСЬКОЇ МЕНШИНИ ПІД ЧАС РОСІЙСЬКОЇ ОКУПАЦІЇ СХІДНОЇ ГАЛИЧИНИ В 1914 – 1915 рр.

Анотація. Мета роботи – проаналізувати становище єврейського населення Східної Галичини в період Першої світової війни з серпня 1914 по червень 1915 рр. Методологія дослідження: дотримання принципів об’єктивності та історизму сприяло розкриттю передумов, сутності та наслідків діяльності російської адміністрації протягом усього окупаційного періоду щодо єврейської спільноти Східної Галичини. Наукова новизна полягає у комплексному висвітленні проблеми ставлення цивільної адміністрації та військового командування до місцевого населення та національних меншин аналізі суспільно-політичних та економічних процесів напередодні та в роки російської окупаційної адміністрації, що донині не було предметом спеціального історичного дослідження. Зроблено спробу відтворити картину політичних змін у структурі галицького багатонаціонального суспільства, де з’явилася соціальна категорія – біженці. Введено до наукового обігу нові архівні матеріали, що дозволили узагальнити становище єврейської спільноти Галичини у роки Першої світової війни. Висновки. Захоплення галицького краю російськими військами супроводжувалося насильницькою політикою до місцевого населення й національних меншин краю. Бездіяльність влади призводила до масових грабунків та проявів насильства з боку військових щодо євреїв. Антиєврейська політика Росії на Південно-Західному фронті негативно позначилася на міжнародному іміджі держави, що створювало додаткові перешкоди для отримання країною зовнішніх кредитів. Політика переслідування юдейського населення з боку держави призвела до конфронтації в суспільстві, породження стереотипів які закріпилися в суспільній свідомості, де євреї виступають як вороги, зрадники, лихварі, спекулянти, яких звинувачували у всіх внутрішньодержавних та військових прорахунках імперії. 
 Ключові слова: єврейська меншина, окупація, Східна Галичина, Російська імперія, Перша Світова війна.

KEMAMPUAN MAHASISWA MEMBACA TEKS ILMIAH PADA PROGRAM STUDI PENDIDIKAN BAHASA INDONESUA FKIP UNTAN PONTIANAK

This study was aimed at obtaining a deep understanding of the students' ability to read scientific texts, the obstacles they face, and how to overcome students’ difficulties of the second semester of the Indonesian Language and Literature Education Study Program in 2020 of FKIP Untan Pontianak. The results of the students' ability to read scientific texts are used as teaching policies in an effort to motivate and increase students in reading scientific texts to make thembetter. The method used in this research was descriptive, a form of quantitative research. The data of this research ere the test results of the ability to read scientific texts regarding literal understanding, interpretation, evaluation, and understanding of appreciation. Sources of data in this study were students of the Indonesian Language and Literature Education Study Program, semester II of 2020, FKIP Untan Pontinak. Data collection tools were objective test questions on reading comprehension and content interpretation. The data analysis usedquantitative descriptive techniques. The validity of the data was done by checking the validity of the data and it was proven by the triangulation proposed by Robin and Meleong. The reliability of the ability to read scientific texts was determined by the reliability of the rating results. Based on the research results, it can be concluded that the students' ability to read scientific texts hadan average value of 74.46. This study covered 30 students. There were 22 students with good grades above 70. There are 8 students whose grades were below 70 or not good. The obstacles faced by students in reading scientific texts were students who were not accurate in answering questions 26.6%, who did not master the vocabulary of absorption elements 27%, who did not understand the meaning of words based on the context of written sentences 30%. Students who did not master the meaning of foreign loan words, 23%, were less able to interpret meanings and read evaluatively 27%. The solutions and suggestions given to overcome these obstacles were as follows: Students are trained to read comprehension critically, to look for difficult vocabulary elements of foreign language absorption, to explain their meaning and use them in the context of other sentences, to assess evaluative reading both in groups and individually.Students also need to take the initiative to learn on their own even though they are not assigned /supervised by lecturers.

The impact of public external debt on private investment. Evidence from Zimbabwe under the multi-currency system.

The levels of public debt have grown significantly in both emerging and developed countries even during times of peace. The rising levels of debt pose substantial debt sustainability issues to developing countries including Zimbabwe. A defaulting country usually has limited access to new international credit lines or tends to borrow at a higher cost, due to high perceived country risk premium, making the country a less attractive investment destination. Zimbabwe is currently suffering debt distress and has since the year 2000 struggled to service her external debt from international multilateral financial institutions. Zimbabwe’s external debt continues to pile up due to penalties on defaults. This paper examines the impact of public external debt on private investment in Zimbabwe, using quarterly time-series data for the period 2009 and 2017. The period of study was a period of relative stability when Zimbabwe operated under a multicurrency system. Interest rates, political risk, trade openness and household consumption are control variables of this study. Using the Vector Error Correction Model (VECM), we find that external debt and external debt squared have a negative impact on private investment in the long run. Results suggest that Zimbabwe’s external debt is crowding out private investment. In the short-term, we urge the government of Zimbabwe to apply for debt rescheduling to avoid penalties that have so far contributed to the ballooning of Zimbabwe’s external debt obligations. In the medium term, we urge the government of Zimbabwe to design comprehensive debt and arrears reduction strategies, to reduce Zimbabwe’s external debt to sustainable levels. In the long term, after regaining borrowing rights, we urge the government of Zimbabwe to invest external borrowings in productive ventures, to facilitate debt amortisation. Secondly, we recommend that external debt be invested in education, health and infrastructure, which can potentially stimulate private investment, and thus create a multiplier effect on economic growth. Lastly, we recommend the government to invest foreign loans in sectors where Zimbabwe enjoys a comparative advantage, to ensure reliable export revenue for debt servicing.

The standing of foreign lenders in cost-benefit analysis: some implications for environmental appraisals

ABSTRACT International loans often finance projects with environmental benefits and costs. Cost–benefit analysis (CBA) is the default tool to determine the societal economic value of investment projects or policies producing environmental externalities. Standing in CBA concerns whose benefits and costs count in the calculation of societal value. Common practice is to grant standing only to nationals of the country hosting the policy or investment project under appraisal. Foreign lenders therefore do not stand. The social opportunity cost (SOC) approach to the social discount rate (SDR) addresses foreign loans. In the SOC approach, the SDR incorporates the opportunity cost of foreign loans associated to a marginal change in government borrowing, while foreign lenders implicitly do not stand. However, the literature has not addressed the treatment of foreign loans in appraisals following the social time preference (STP) method of discounting. This paper argues that CBA appraisals following the STP approach to the SDR would need to model loan cash flows explicitly as the loan itself may be a source of societal gain or loss. It then discusses implications for projects with long-term benefits or costs and with cross-border externalities, epitomising environmental appraisals. A case study of a forest harvesting project is also included.

Public sector accounting and fiscal policy in Brazil (1906–1931): foreign credit negotiation and political use

ABSTRACT During the First Republic (1889–1930), also known as the Old Republic, and the Provisional Government of Getúlio Vargas (1930–1934), Brazilian public sector accounting institutions underwent a phase of accelerated reforms. This study examines how budgetary imbalances, political interference in the ways of calculating the budget results, and foreign loan negotiations affected these reforms. We analyse primary and secondary sources to establish the link between the reforms of accounting institutions, budgetary policy, and foreign loan negotiations. The analysis is qualitative and instrumentally employs the concepts of institutions and public accountability. We utilise quantitative data to provide a picture of the Brazilian fiscal context. The collected evidence indicates that the financing of coffee stocks gave rise to the reinforcement of the double-entry bookkeeping method in the State of São Paulo in 1906. It also shows that the federal fiscal imbalances required foreign financing and that the loan negotiations induced changes in the Treasury’s accounting in 1914, in the regulation of the Central Accounting Office in 1924, and in the Accounting Code in 1931. We argue that the search for calculative legitimacy for political programmes led to interference in the Central Accounting Office in 1927 and 1931, which affected the comparability of budgetary results.

Tax revenue collection or foreign borrowing: what fiscal tools enhance the educational development in Nigeria?

Nigeria’s educational system does not receive sufficient finances and nearly every new administration proposes greater levels of borrowing on the belief that they would enhance the economy, particularly human capital. The most important fiscal tools utilized in the Nigerian political arena to support education are tax revenue collection, foreign borrowing, and its interest component. This study aims to examine the impact of these fiscal tools on educational development in Nigeria. We use the multiple regression analysis of the data obtained from the Central Bank of Nigeria, Federal Inland Revenue Service, and World Bank Economic Development Indicators. The statistics ranging from 1990 to 2019 were analyzed using the Statistical Package for Social Sciences (SPSS). The correlation data shows that education has a substantial positive association with foreign liabilities and taxation income at the 1% level, but the relationship with debt servicing (interest rate) is negatively significant at the 1% level. Foreign debt, on the other hand, shows a substantial positive association with education and tax income at the 1% level but has an insignificant negative correlation with interest rate. Tax income has a substantial negative association with interest rates, but it also has a positive relationship with education and foreign loans. The findings of this study show that foreign debt and interest rates have had little impact on Nigeria’s educational system. The study result met the a priori expectation that tax revenue should impact positively on the development of education in Nigeria. As a result, the research recommends the prudent use of tax revenues while opposing foreign borrowing for political campaigns.

Macro & Micro Economics and Financial Impact of COVID-19 in Sri Lanka

Sri Lanka had early success in battling COVID-19, only 3000 cases and 11 deaths by the end of September 2020. This helped to revive economic activities, but a second and more severe wave of infections has seen those numbers spike sharply to over 43,000 infections and 204 deaths as the drew to end.Dealing with Sri Lanka’s foreign debt settlements remains the most critical priority for now. Despite sovereign credit rating downgrades, the government remains confident of meeting all repayments without resorting to a conditional arrangement with international monetary fund. This is in keeping with the government’s stated intentions of moving away from foreign loans to foreign investment, with the latter already earmarked to raise an estimated us$2.3 billion in 2021. For Sri Lanka’s debt burdened economy, the strategy makes good sense. Yet it will also pose fresh challenges in dealing with rivalries closer to home, such as that between china and India.While the Chinese debt trap narrative can be disabused, china does remain Sri Lanka’s largest bilateral creditor, owing 9.6 per cent of cent of total outstanding foreign debt at the end of 2019. India’s share is much smaller 2.4 per cent. Sri Lanka made an early appeal to both countries to provide debt relief and hard currency to shore up its foreign exchange reserves. China and India responded swiftly and positively-China granted a us$500 million loan top up and India provided a us $400 million swap arrangement. Sri Lanka is reportedly seeking an additional us$2.5 billion swap funding from both.This time around, Sri Lanka is emphasizing an Asia-centric outlook in its political, economic and strategy positioning. Tellingly, it also assures an India first strategic and security policy within this realignment. How it will work in the harsh light of Sri Lanka’s economic reality is yet to be determined.For now, Chinese investments into Sri Lanka are speeding ahead. The china harbor engineering company that built the Colombo port city signed its first us$1 billion agreement in December 2020. This was on the back of approval to set up a us$300 million Chinese tire factory in close proximity to the Hambantota port. At the same time, a decision on whether India will be allowed to operate a terminal at the port of Colombo that the previous government had agreed to is still pending, despite a recent high level visit by the external affairs minister.Fresh hostilities between china and India on renewed border conflicts, India’s decision to withdraw from the regional comprehensive economic partnership negotiations – which china played a leading role in and rising battles over technology all point to a hardening geopolitical stand off. In this environment of escalating big power rivalries and unrelenting pressure on the economy from the COVID-19, 2021 promises to be yet another testing year for Sri Lanka.

Challenges to the Moroccan economy during the pandemic

The article examines the impact of the COVID-19 pandemic on the Moroccan economy, as well as the measures that have been taken by the kingdom's authorities to counter the negative consequences. It is noted that initially, all forecasts shortly before the health crisis concerning Rabat were not objective, since they could not take into account future changes in the world. Thus, Morocco counted on dynamic development in 2020. However, the sudden wave of the pandemic has made a dramatic difference. Important sectors of the economy have been disrupted as global trade chains have been affected. Moreover, Morocco's dependence on foreign capital also demonstrated the fragility of the domestic market. In particular, the kingdom faced an investment freeze and a reduction in foreign exchange remittances by representatives of the Moroccan diaspora abroad. The tourism sector suffered the most, negative shifts were noted in the automotive production, as well as fluctuations affected the country's banking sector, which is dependent on French partners. To neutralize such a strong blow to the Moroccan economy, the government took the path of increasing foreign loans, which led to an increase in debt to 80% of GDP in 2021. To mitigate challenges in the domestic market, Rabat began to develop a number of programs to help the private sector. They affected micro, small and medium businesses. By introducing them, the government expects that by issuing concessional loans, it will be able to achieve a quick revival of small enterprises. In turn, this will reduce unemployment and, possibly, resume the previous volume of tax deductions.

AN ANALYTICAL STUDY ON PUBLIC DEBT AND ITS IMPACT ON NEPALESE ECONOMY

This study aims to find out the pattern and composition of public debt, and its impact on Gross Domestic Product (GDP) growth of Nepal. This study is based on secondary sources of infor-mation and the data are collected from relevant archives. The collected data and information have been analyzed through descriptive as well as analytical research methods. Public borrowing has become a common practice for developing and even developed countries in order to meet the inter-nal resource crisis and development budget. Nepal had formally started borrowing from 1960s and government owed more from the external sources in the beginning, but the foreign assistance has been decreasing in recent periods. Public debt can not be so fruitful in terms of GDP growth, and this statement is supported by the fact that the average growth rate remains almost constant at 4.5 percent, but the average inflation rate is at 5.9 percent in the 40 years of study period. The amount of public debt has been increasing due to poor mobilization of internal resources and growth in unproductive recurrent expenses, especially due to the implementation of federalism of Nepal. The interest and principal of public debt especially in context of foreign debt, has been grow-ing year over year, so the burden of public debt has also been growing. In Nepalese context, the public debt to GDP ratio is 30.02 percent, so judging from that, public debt does not seem to be a serious problem as of now, because the alarming threshold specified by World Bank is at 77 per-cent. But, the growing trend of public borrowing may be a challenging problem for any nation in a long run, so the heavy dependence of national economy upon public debt, especially on foreign loan, ought to be minimized.

تأثير جائحة كورونا على التوسع في الاقتراض الخارجي في مصر

External borrowing is one of the alternatives to help countries, especially developing ones, to overcome capital scarcity, and in light of the spread of the Corona pandemic that threatens both developed and developing economies. Most developing countries have turned to external borrowing to deal with the repercussions of the Coruna epidemic. Egypt, like other countries affected by the Corona pandemic, therefore this study aimed to study the impact of the Corona pandemic on the expansion of external borrowing in Egypt, where the researcher focused on the size of external loans before and after the pandemic. To achieve this object, the researcher relied in his methodology on the descriptive analytical approach through dealing with information and studies on the subject of the research, with the use of the quantitative approach in presenting data and analyzing it. The study concluded that the Corona pandemic had negatively affected government revenues from foreign exchange in Egypt, which led to a decline in the Egyptian foreign reserve, which leads to expansion in external borrowing and more foreign loans.