This refers to the subtraction of debt-servicing (yearly payments - interest Interest An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set. + capital sum - to the industrialised countries) from the year’s gross payments (donations and new loans) made by the creditors.
The net transfer on debt is said to be positive when the country or continent concerned receives more (in loans) than it repays. It is negative if the sums repaid are greater than the sums lent to the country or continent concerned.