Circular Debt
Nounवृत्तीय ऋण
Definition
A financial situation where a government or entity owes money to another entity (e.g., power distributors to generators), creating a cycle of unpaid debts.
Contextual Sentence: "The circular debt in Pakistan’s power sector has crippled economic growth, forcing repeated bailouts from international lenders."
💡 Memory Hook (Mnemonic): Imagine a circle of debt where money keeps circulating without resolution—like a 'debt loop'.
Synonyms
debt trap
financial deadlock
inter-sectoral debt
Antonyms
profit
surplus
liquid assets