Humanities

What is private debt? »Its definition and meaning

Anonim

The private debt is with any natural person who is exercising rights and fulfill the obligations of personal capacity or legal person is when the company is in charge with the obligations and rights of that company. When an individual asks for a loan, a credit and when a company issues bonds, promissory notes, among others. It will be considered as a private debt, but to be acquired by national private companies it can be with the general public through the securities markets.

On the other hand, the private debt of a country are those that all companies, family members and financial entities maintain , which consists of obtaining funds from clients and granting financing to others, generating with them benefits that are complemented by the commissions charged by a series of financial intermediation services that live in the country with national or international investors, national or international financial entities or any other person.

The private debt helps pay for the people who ask for but the opposite of the public debt is that the majority of these debts come from credits and loans. But they can also be found in companies that issue debt securities so that it can pay for the spread of a country's debt.

The interest rates are those used to measure the profitability of savings or in this case the cost of a loan where the issues will depend on the confidence that the markets have, it can be the company or financial entity that can be banks, savings banks or credit unions that offer loans or financing facilities in cash.