It is generally believed internationally that the external debt repayment rate should not exceed 20%. If it exceeds this limit, it is considered that the country's external debt repayment capacity is insufficient. Because the practice of contemporary countries around the world has proved that if more than 20% of a country's export receipts are used to repay debts, in the event of an economic crisis or a situation unfavorable to the country, the export will decline and the foreign exchange income will decrease, and it will be unable to pay for imports and repay foreign debts. Of course, this boundary is not absolute. In addition to the debt repayment rate, foreign banks should also consider political, economic and other factors when lending. [1]
