Top 20 Countries that Owe the US Money (2024)

In this article, we will be analyzing the foreign-owned US debt during prevailing global conditions, while covering the top 20 countries that owe the US money. If you wish to skip our detailed analysis, you can move directly to the Top 5 Countries that Owe the US Money.

Foreign-Owned US Debt: An Overview

The US government owes money to governments, central banks, companies, and individual investors around the world. As reported by the US Department of the Treasury, the US owes a total of $7.4 trillion in Treasury securities to foreign countries. Foreign countries buy US Treasury securities since they are considered as one of the most secure assets. Among other countries, Japan and China have continued to be the top owners of US debt during the last two decades. Since the dollar is a strong currency that is accepted globally, holding a substantial amount of US debt can be beneficial. Furthermore, these securities also give a higher rate of return relative to other government bonds.

During the pandemic, the US foreign-owned debt declined as both official and private sector foreign investors contributed $417 billion of net sales in the U.S. Treasury securities in March 2020. Since the pandemic created a demand for more liquid capital assets, private investors ended up selling longer-term US Treasury notes and bonds. The crisis also made Saudi Arabia, China, and Brazil sell their shares of US Treasurys for short-term capital. You can also take a look at some of the countries with the most debt.

Global Scenario Amidst Rising Interest Rates

On October 10, the IMF reported that central banks around the world are keeping interest rates high in an attempt to tame inflation. This tight monetary policy is making debt expensive for borrowers which could even lead to defaults. Low-income economies are facing trouble with borrowing in hard currencies like the euro, yen, US dollar, and UK pound. Government bonds in emerging economies are also being issued at higher interest rates. This is impacting the corporate side of the world as well. Companies in both advanced and emerging market economies are struggling to pay their interest expenses. The situation is even grim for financially weaker firms who borrow from the leveraged loan market since defaults have been increasing. Countries with the most external debt have also been previously covered.

On the contrary, sectors that generally benefit from rising interest rates include financial and brokerage firms since their profit margins tend to expand in this case. Some of these include The Bank of America Corporation (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), and Goldman Sachs Group, Inc. (NYSE:GS). Let’s look at what these firms have been up to.

The Bank of America Corporation (NYSE:BAC) is a multinational investment bank and financial services holding company. It is one of the largest banking institutions in the world. On October 17, the Bank of America Corporation (NYSE:BAC) reported earnings for the fiscal third quarter of 2023. The company reported earnings per share of $0.90, beating EPS estimates by $0.08. Revenue for the quarter amounted to $25.17 billion, up 2.71% year-over-year and ahead of revenue consensus by $93.31 million.

JPMorgan Chase & Co. (NYSE:JPM) is a leading American multinational financial services company that serves worldwide. The company has recently forecasted positive growth prospects for its payments business. On November 15, Bloomberg reported that the digital token JPM Coin has been expected to make $10 billion in daily transactions in the coming year. JPMorgan Chase & Co.'s (NYSE:JPM)Global Head of Financial Institution Payments is hopeful regarding a substantial growth in daily transactions over time.

Goldman Sachs Group, Inc. (NYSE:GS) offers services related to investment banking, prime brokerage, asset management, and wealth management. On November 15, the company announced the latest fund launched through the Goldman Sachs ETF Accelerator with the listing of the first exchange-traded fund by GMO, a global investment manager. Leveraging the potential of the rapidly growing ETF industry, the Goldman Sachs ETF Accelerator business enables clients to launch, list, and manage their ETFs. On October 17, Goldman Sachs Group, Inc. (NYSE:GS) reported its financial results for the fiscal third quarter of 2023 that exceeded analysts’ estimates on stronger-than-expected trading revenue. The decline in trading of currencies, commodities, and credit was balanced out by strength in interest rate products and mortgages. The group reported earnings per share of $5.47 and generated a revenue of $11.82 billion, outperforming revenue consensus by $685.36 million.

Similarly, you can also consider several other best investments during high interest rates. Without further ado, let’s move to the top 20 countries that owe the US money.

Top 20 Countries that Owe the US Money

Our Methodology:

In order to compile a list of the top 20 countries that owe the US money, we acquired data from the US Department of Treasury which issues information related to the major foreign holders of US treasury securities. The most recent data is available from January 2023. Hence, we used the total debt held by each of the countries as our metric and ranked the countries in ascending order of the money they owe to the United States.

Top 20 Countries that Owe the US Money

20. Bermuda

Total Debt Held: $77.4 Billion

As of January, Bermuda owes a total of $77.4 billion to the United States. Hence, the country ranks as one of those that owe the US money. The government of Bermuda is trying to move towards an overall budget surplus and a reduction in the national debt.

19. Germany

Total Debt Held: $91.3 Billion

Germany is another country in Europe that owes money to the US. The United States has been a major creditor to the country in the past as well. As of January, the amount owed by Germany to the US is $91.3 billion.

18. Norway

Total Debt Held: $104.4 Billion

Norway is another major US debt holder from Europe. As of January, Norway owes $104.4 billion to the United States. Thus, Norway ranks as one of the countries that owe the US money.

17. Korea

Total Debt Held: $105.8 Billion

The 20 countries that owe the US money include Korea as well. As of January, the country owes a total of $105.8 billion to the United States. Korea’s external debt has also been increasing in recent years.

16. Saudi Arabia

Total Debt Held: $111 Billion

Saudi Arabia owed $111 billion to the United States thereby qualifying as one of the top 20 countries that owe the US money. However, the country sold over $3 billion of US government debt in June since it is investing more in riskier assets.

15. France

Total Debt Held: $183.9 Billion

France is another nation that borrows money from the US. As of January, France owes $183.9 billion to the US. This makes it another top nation that owes the US money. The French history of taking debt is old and can be traced back to the French Revolution and the Napoleonic era.

14. Singapore

Total Debt Held: $187.6 Billion

The total amount owed by Singapore to the US is $187.6 billion. This ranks the country among those who owe money to the United States. The sovereign debt per capita is also high in Singapore.

13. Brazil

Total Debt Held: $214 Billion

Following the United States, Brazil is one of the largest economies in the Western Hemisphere. As of January, Brazil owes a total of $214 billion to the United States thereby making it to the top 20 countries that owe the US money.

12. Hong Kong

Total Debt Held: $226.8 Billion

Hong Kong ranks as another top nation that has borrowed money from the US. As of January, the nation owed $226.8 billion to the US. Hong Kong has pegged its currency to the US dollar which is supported by this debt.

11. India

Total Debt Held: $232 Billion

India owes $232 billion to the United States, as of January. This makes the country qualify as one of the top 20 countries that owe the US money. The US treasury securities are deemed as a safe investment for the country.

10. Taiwan

Total Debt Held: $234.6 Billion

Taiwan has a large trade surplus with the US. It is also a major US debt holder since it owes $234.6 billion to the country, as of January. This ranks Taiwan as one of the top 20 countries that owe the US money.

9. Ireland

Total Debt Held: $253.4 Billion

Ireland is another European country that owes money to the US. As of January, the country owes $253.4 billion to the US. Ireland is also a known destination for investment by US companies due to its favorable business environment.

8. Canada

Total Debt Held: $254.1 Billion

Based on shared geography and economic ties, Canada is one of the closest allies to the US. The country owes $254.1 billion to the United States, as of January. This makes it another major US debt holder.

7. Cayman Islands

Total Debt Held: $285.3 Billion

The Cayman Islands is a relatively smaller country that owes $285.3 billion to the United States, as of January. This ranks the country among other nations that owe the US money. Furthermore, there are numerous domiciled investment firms in the Cayman Islands that invest in US debt.

6. Switzerland

Total Debt Held: $290.5 Billion

With a debt of $290.5 billion, Switzerland ranks as one of the top countries that owe the US money. Investors in Switzerland have also increased their holdings of US debt. The country’s other main creditors include countries such as Germany and France.

Click to continue reading and see Top 5 Countries that Owe the US Money.

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Disclosure: None. Top 20 Countries that Owe the US Money is originally published on Insider Monkey.

Top 20 Countries that Owe the US Money (2024)

FAQs

Top 20 Countries that Owe the US Money? ›

All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).

What countries owe the US the most money? ›

All values are adjusted to 2023 dollars. As of January 2023, the five countries owning the most US debt are Japan ($1.1 trillion), China ($859 billion), the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).

Which foreign countries own the U.S. debt? ›

Top Foreign Owners of US National Debt
  • Japan. $1,153.1. 14.37%
  • China. $797.7. 9.94%
  • United Kingdom. $753.5. 9.39%
  • Luxembourg. $376.5. 4.69%
  • Canada. $339.8. 4.23%

Why does the US owe China? ›

U.S. debt offers the safest haven for Chinese forex reserves, which effectively means that China offers loans to the U.S. so that the U.S. can keep buying the goods China produces.

What happens if China dumps US bonds? ›

The sale of a lot of bonds theoretically could have driven down their price and hurt other existing bondholders, but China would suffer, too, in such a situation, having to sell its holdings at ever lower prices.

Who owes the U.S. debt? ›

The public owes 74 percent of the current federal debt. Intragovernmental debt accounts for 26 percent or $5.9 trillion. The public includes foreign investors and foreign governments. These two groups account for 30 percent of the debt.

Does Russia own U.S. debt? ›

According to the US Treasury, Russian ownership of US Treasuries was $2.1 Billion in Nov 2022.

Can the US ever pay its debt? ›

Thus, debt is continually paid down and new debt incurred, to be paid down by creation of new debt, ad infinitum. If total indebtedness as a percentage of the national economy does not grow, this can continue forever.

How much of US land does China own? ›

China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.

Does France owe the US money? ›

France. France is another nation that borrows money from the US. As of January, France owes $183.9 billion to the US. This makes it another top nation that owes the US money.

What would happen if China called in our debt? ›

If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive.

Why does the US keep borrowing money? ›

The federal government needs to borrow money to pay its bills when its ongoing spending activities and investments cannot be funded by federal revenues alone. Decreases in federal revenue are largely due to either a decrease in tax rates or individuals or corporations making less money.

What would happen if the US stopped trading with China? ›

It's very likely that goods prices in the US will go high. China is still an important trade partner for the United States. In the first five months of the year, China exported goods worth over 1.3 trillion yuan, over 182 billion dollars and China's imports from the US were more than 500 billion yuan.

Who is dumping US bonds? ›

China ramps up de-dollarization efforts by dumping a record amount of US bonds. China sold a record $53.3 billion worth of Treasurys and agency bonds in the first-quarter, Bloomberg reported. It previously unloaded US debt to prop up its yuan, which has again grown weak against a rallying dollar.

Why is China buying gold? ›

Beijing is buying up gold to diversify its reserve funds and reduce its dependence on the U.S. dollar, long considered the most important currency to hold in reserve. China has been reducing its U.S. Treasury holdings for more than a decade.

Who is buying US debt now? ›

The international buying appetite has been falling over the past 10 years (dropping from 40% to the current 30%). The major international owners of US debt include Japan ($1.1T), China, UK, Belgium, Switzerland, Cayman Islands and smaller amounts from the rest of the world.

How is the US the richest country with so much debt? ›

How can the US be a rich country if it has such a large trade deficit? The U.S. became a rich country largely because of its trade deficit. Trade deficits exist because there is a capital surplus: more money is flowing in as investment than is flowing out as investment.

Is the US still owed money for WWII? ›

The case of debts arising from World War II is somewhat less complicated. At this time only four countries, discussed below, owe the U.S. government debts of any size arising from World War II programs to aid our allies. Other countries have paid their debts in full.

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