Q. A country is said to be in a debt trap if: [IAS 2002] (Solved)
1. it has to abide by the conditionalities imposed by the International Monetary Fund
2. it has to borrow to make interest payments on outstanding loans
3. it has been refused loans or aid by creditors abroad
4. the World Bank charges a very high rate of interest on outstanding as well as new loans
- b. it has to borrow to make interest payments on outstanding loans