.Public debt servicing below 30% of a countryâ€™s GDP , is generally viewed to be within the bounds of sustainability and Foreign Exchange Earnings (FEE ) generated from a countryâ€™s exports are important in facilitating regular payments for external debts. The following details are available in 2018 to two developing countries : Country A External debt = $ 60 million Domestic debt = $ 20 million GDP = $ 40 million FEE = $ 30 million Country B External debt= $ 30 million Domestic debt= $ 7.5 million GDP= $ 190 million FEE = $ 28 million REQUIRED: In each of the above , calculate i. Total debt and external debt burden for each country ii. EDL / FEE ratio ( 6 marks ) iii. Make appropriate Comment regarding debt sustainability ad EDL / FEE ratio for each country.
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