debt overhang

Definition

Country's debt stock exceeds its ability to repay. The economy is in bad shape and will continue to decline, because a debt overhang results in less money spent on education, infrastructure and health.

Use debt overhang in a sentence

You should always try to make sure that you are doing your best to get rid of any debt overhang you may have.

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Because of the country's debt overhang, they felt like they were in a vicious cycle that would be difficult to get out of.

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There is a limit to how much debt overhang a country or an organization can truly shoulder - because debt costs money to carry, which leaves less money for other things, and too much debt can obliterate any other spending.

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