An example of this credit risk was shown by Russia, which defaulted on its domestic debt in 1998.

By the weekend, Russia appeared headed for a default on its foreign and domestic debt.

The nation's huge domestic debt has long fueled inflation.

Its domestic and foreign debt becomes more costly to service.

Some 25 percent of Brazil's $300 billion in domestic debt, for example, is held by foreign investors.

The government, by closing the financial account, would force the private sector to buy domestic debt in the lack of other alternative.

The upgrade is the first since Russia defaulted on its domestic debt two years ago.

Various plans had been considered to pay down the domestic debt under the new federal government.

These funds are insignificant for a country with a domestic debt of $260 billion.

It essentially proposed "a loan to the full amount of the said domestic debt."