This is the amount of interest paid on all loans in this period. Interest is paid because loans are outstanding. Reducing the loans will reduce these payments. Loans are not a bad thing for a country if the money is used to build up industry, upgrade corporations, education, health and transport. If the economy can grow fast, it will be able to increase income and both interest and the loans can be paid. Taking large loans to build an army might be necessary sometimes but long term, spending loaned money on weapons will increase the cost with no additional income and the country can bankrupt.
Simcountry Dictionary
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This is the amount of interest paid on all loans in this period. Interest is paid because loans are outstanding. Reducing the loans will reduce these payments. Loans are not a bad thing for a country if the money is used to build up industry, upgrade corporations, education, health and transport. If the economy can grow fast, it will be able to increase income and both interest and the loans can be paid. Taking large loans to build an army might be necessary sometimes but long term, spending loaned money on weapons will increase the cost with no additional income and the country can bankrupt.
