9. Suppose the South Africa net foreign debt is 50 percent of its GDP and foreign assets and liabilities pay an interest rate of 6 percent per year. What would be the drain on SA GDP (as a percentage) from paying interest on the net foreign debt?

Do you think this is a large number? What if the net foreign debt were 100 percent of GDP? At what point do you think a country’s government should become worried about the size of its foreign debt?