A key indicator and one which is widely quoted in the media is Australia's level of foreign debt .
Foreign debt is referred to also as external debt .
Foreign debt is distinguished from other kinds of foreign investment capital inflow such as foreign ownership, because it carries with it the obligation to pay interest or to repay principal. It should be noted that foreign debt does not equal national debt . The latter is the total government debt and comprises government borrowings from Australian residents and government borrowings from overseas residents-it therefore excludes overseas borrowings by the private sector. There are two ways of looking at debt. One is simply to add up all non-equity liabilities.