Debt & Reserves of Magna Taura
The national balance sheet — what Magna Taura owes or holds, and the credit rating that sets its borrowing cost.
National debt
Rating: AAACredit ratings
A country's credit rating is determined by its debt as a percentage of GDP. A better rating means cheaper borrowing; a worse rating drives up the annual interest cost on outstanding debt. Countries with a reserve (negative debt) earn 2% annual interest on that reserve.
At 200%+ debt / GDP the IMF may intervene: it imposes an austerity budget and locks policy under its conditions, but discounts debt to a fixed 5.0% a year until the country recovers.