A debtor country is one that has a cumulative balance of payments deficit as well as a negative net international investment position. After accounting for all of its financial transactions worldwide, a debtor country has a negative net investment. As a result, a debtor country is a net importer.

A debtor nation refers to a country that has accumulated more external debt than it has in foreign exchange reserves. This situation arises when a nation borrows extensively from foreign creditors to fund its expenditures, investments, or trade deficits. Being a debtor nation implies a potential economic vulnerability as it must meet debt obligations and interest payments, often subjecting it to financial pressures. Monitoring a nation's debtor status is crucial for assessing economic stability and understanding its ability to manage debt without compromising overall financial health.