This assignment is prepared on public debt. Public debt sustainability is a sensitive issue and depends on a host of factors, such as the current level of debt, primary balance, volatility in inflation rate, movement in interest and exchange rates, export growth, current account balance, and the GDP growth rate. Debt sustainability is usually defined as a situation in which a borrower is expected to be able to continue servicing its debt without an unrealistically large correction to the balance of income and expenditure.
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