Editing Debt of developing countries (section)

===The determinants of external debt crises in developing countries===
Some of the major risk factors which increase the probability of the external debt crises in developing countries include high level of inflation, relatively large share of short term debt in external debt, denomination of the debt in foreign currency, decrease of the terms of trade over time, unsustainable total debt service relative to GNI, high income inequality, and high share of agriculture in GDP. At the same time, holding foreign exchange reserves is a strong protective measure against an external debt crisis.<ref>[https://ssrn.com/abstract=3042887 "Determinants of External-Debt Crises.  A Probit Model.", Magomedova, Medeya, 2017.]
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