According to Standard &Poor's, one of the three most influential rating agencies, owns 40% of the world's sovereign debt by monarchies. At the same time, the agency focuses on the difference between absolute monarchs, which exert a significant influence on politics in their countries, and constitutional monarchs playing the symbolic role of the head of state.
All absolute monarchies are concentrated in the Arab world, and their national debt is less than 1% of the total. However, constitutional monarchies tend to have higher credit ratings based on greater stability and predictability of their policies.
The public debt consists of the debts that are available to the central government, regional and local authorities, state enterprises and organizations.
This is how looks for the rating of the countries with the largest state debt .
- 5. Absolute monarchies
- 4. Constitutional monarchies
- 3. Nations belonging to the British Commonwealth of Nations
- 2. Japan
- 1. Non-monarchical states
5. Absolute monarchies
They account for 0.4% of the world debt. This reflects the high budgetary performance of countries. They do not need to make large borrowings from outside. Of the absolute monarchies, the best rating( "AA") is Qatar and the emirate of Abu Dhabi .
4. Constitutional monarchies
Norway , Spain , , Luxembourg , Liechtenstein and Denmark make up the majority of the debtor kingdoms( 5.9% of the state debt). Spain has a satisfactory credit rating( "BBB"), all other countries - the highest( "AAA").
3. The states included in the British Commonwealth of Nations
The three leaders in the world debt of 2015 include countries under the protectorate of Queen Elizabeth II.It is the head of more than a dozen countries within the Commonwealth - including UK , Canada , Bahamas and Papua New Guinea .The total national debt of these countries was 8.2%.In this case UK , Canada and Australia have a long-term credit rating "AAA", in accordance with Standard &Poor's.
Tokyo's public debt is 11 trillion dollars, which is 25.4% of the total debt or 246.14% of GDP.Since the early 1990s Japan has been experiencing continuous stagnation. The policy pursued by the Japanese government to overcome the crisis only increases the level of debt. At present, government of Japan spends almost half of total tax revenue on repayment of huge debt. Despite this, the yield on 10-year Japanese bonds remains at an amazingly low level, up to 1%.
1. Non-monarchical states
These countries account for 60.2% of the world debt. The largest debtor is Greece .Its debt as a percentage of GDP is 172.73%.In July 2015, the IMF issued a report on the debt sustainability of Greece. It says that due to the weakening of the policy over the past year and the recent deterioration of the domestic macroeconomic and financial environment, Greece's public debt has become very volatile. The has a slightly lower public debt - 133.7% of GDP. Russia in the top 20 countries with the largest national debt is not included, at the beginning of 2015 the state's external debt was 41 billion dollars, without taking into account the debts of state companies, the Central Bank of Russia and banks.