America With A Global Tab Running?

By Author: Nicole Anderson
Total Articles: 50
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The term 'owed money' refers to the money, which a person, nation or an organization owes to one another. Lending and borrowing money is a part of the vicious cycle of financial transactions that take place globally. Whenever a country is in need of money America helps them out by offering huge money as debt. Here we are talking about owed money of millions of dollars which several countries through out the world owe to America.

America is owed money by several nations; that is what the national financial reports say.
Being a super power America offers financial aid and debts to several organizations and countries throughout the world. This money should be paid back by those countries with the assigned interest rate. Due to economic crisis in their own nation, some countries have failed to pay back the owed money and this has led to a financial crisis every where.

Eastern Europe, Africa and Latin America are some of the countries that owed billions of dollars to America; they were supposed to pay back huge amount of money ...
... to banks and other financial institutions. Due to high interest rates, all these countries are unable to return the owed money. Such failure to return the owed money can lead to a financial disaster. It is the banks that will be affected most, because of the non-returning of owed money.

Several third world countries were given huge financial aid for various reasons- developmental activities, to carry on major construction projects and sustaining their economy.

As per the agreement, these countries are supposed to return the owed money after a certain period of time. Reports say that owed money of the third world countries is running into trillions and there is not much hope about how and when these countries will pay back the owed money.

When countries like Mexico have failed to return the owed money, banks were in a crisis and they were compelled to increase the interest rates on a large scale and the brunt of this drastic step will be borne by all the people in the country.