- Repudiation: Refusal to repay debt (used only in extreme situations).
- Refunding: Taking new loans to repay old ones.
- Debt Conversion: Converting high-interest debt into low-interest debt.
- Budgetary Surplus: Using surplus revenue to repay debt.
- Terminal Annuities: Repayment in equal annual instalments (principal + interest).
- Sinking Fund: Creating a special fund for gradual debt repayment.
- Statutory Reduction of Interest: Legally reducing interest rates on debt.
- Capital Levy: One-time heavy tax on wealth to repay debt (usually during war).
- Export Surplus: Using excess exports to repay external debt.
Topics
CISCE: Class 12
