The public debt or sovereign debt is a set of payment obligations that maintains a state or public sector against individuals or other countries at a certain date, which is set in a way to obtain financial resources from the state or power public that is carried out through the issuers of securities that are also called a security that is a necessary document to exercise the literal and autonomous right expressed in it, which can be in local or international markets through direct loans from entities as organismosa multilateral, government, etc.
The public debt can be acquired by the municipal, provincial or national administration, by announcing the securities titles and locating them in the national or foreign states, the state promises a future payment with interest according to the contractual terms for the bond, which is a tool that may have fixed or variable income that allow the issuer to obtain funds directly from the market.
The public debt and the invention of money and the taxes that refer to the tax that is established and requested according to the financial capacity of those who are not exempt from paying it, public debt are means that the state has to be able to finance activities, but it can also be used as an instrument of economic policy according to the strategy chosen by the authorities.
In this area there are three types of public debt: short term, medium term and long term.
Short-term public debt, is the floating debt that can be given to face the temporary mismatch between payments and collections in order to satisfy the liquidity needs of the public treasury in the short term.
Public debt in the medium term are the exponents that can be used to face what would be ordinary expenses.
Long-term public debt is the one that has a long duration and can become perpetual and can be used to meet extraordinary expenses or for special situations.
