What is Redemption of Public Debt?

Redemption of Public Debt is defined as a process of repayment of public debt. The government needs to redeem its debts regularly to increase the confidence of lenders and save the government from bankruptcy. Many times government needs to take extreme steps that can violate the contracts, such as repudiation of debts.

What is Public Debt?

Public debt is defined as an amount consisting of liabilities that are borrowed by the government from the public for various development-related schemes for the public. The public debt is being borrowed by the government from various sources such as banks, financial institutions, or foreign countries. This borrowed public debt can be long-term, short term or medium-term debt.