When a country borrows in another currency, does that mean that their debt is owed to the other country? No. It means that the government that borrowed money owes this money to whoever had lent ;· There are basically three avenues for the government to borrow money: 1) From its own citizen 2) From other countries 3) From governmental institutions or Central Bank We hear about the mounting national debts of countries all the time on the news, …You must give every document that the lender have to ask in order to make it serious. No matter what happens, you have to regard everything as trust. When borrowing money from another country, of course, you have to contact the bank online. They have an online conversation and then you will have to send them all the information about happens is that the “borrowing” company issues sovereign bonds into the market, and one of the investors who happens to buy them is another country. The “lender” country pays the cash for the bonds, and the “borrower” country pays the coupon (interest) and redemption price (capital repayment).29/07/2011 · It has no need to borrow anything, it issues its own currency. It used to be different 4 decades ago, on the gold standard, so in general people still think currency issuers need to borrow (or earn) to spend. Just a relic in thinking. But when the country does not issue its own currency, then it does need to earn or borrow in order to ACT OF BORROWING MONEY FROM ANOTHER COUNTRY – Tips o…Countries in Debt: Where Do Countries Borrow Money From?Should Developing Countries Borrow Internationally to Where do countries national governments borrow money from?28/04/2008 · So the basic reason why US borrow so much money from other country is that US runs budget deficits every year and they have to issue bond to cover for it. The more bond US government issue, the more foreigner will get a hold of it.
