Internal debt is understood as the total amount of the public debt of a nation or territory, in which its citizens are called creditors or guarantors. Other sources may define the term as the sum of the equivalent ratified credits from both the private and private sectors, which are produced in a given country; that is to say, it speaks of the obligation or debt that is reached with applicants that make up a nation generated with national currency. The domestic debt differs from the debt because the first is canceled within the national territory and the official or national currency, while the second corresponds to the obligations that a given country has aboutentities coming from abroad and that must be paid, generally, with foreign currency.
The external debt can be solved and make a great production of money if the national government proposes to make loans in order to obtain cash instead of issuing more notes or coins; In this way, the capital generated in this way could be used as an exchange with other economic agents, however, it can rarely be spent on goods and services.
Terms such as "public debt", "external debt", "floating debt" and "internal debt" are widely used in economic contexts and environments; here they expose the concept of internal debt as all those obligations that the federal government acquires through loans or credits that are granted with the national currency. This series of loans are provided by private institutions through the acquisition of government bonds.
