Sovereign loan (debt)

Sovereign debt refers to the amount of money borrowed by a country’s central government. It is primarily achieved by selling government bonds and securities [WallStreetMojo].
A country's government issues sovereign debt to borrow money. Sovereign debt is also known as government, public, and national debt. Governments borrow for various reasons, from financing public investments to boosting employment. The level of sovereign debt and its interest rates will also reflect the saving preferences of a country's businesses and residents and the demand from foreign investors. Governments take on sovereign debt by issuing bonds, bills, or other debt securities or loans from other countries and multilateral organizations like the International Monetary Fund. Sovereign debt may be owed to foreigners or the country's citizens and can be denominated in domestic and foreign currency [Investopedia].

Sources:

What Is Sovereign Debt and What Are Its Unique Features? Investopedia. Retrieved from: https://www.investopedia.com/terms/s/sovereign-debt.asp

Sovereign debt. WallStreetMojo. Retrieved from: https://www.wallstreetmojo.com/sovereign-debt/