Debt service refers to the cash required to keep a borrowing arrangement current, including interest charges and any principal due. It may describe amounts actually paid during a completed reporting period or obligations expected under the repayment schedule. A one-year forward view is often used when evaluating upcoming funding requirements. Lenders and analysts use the measure to judge whether a borrower has sufficient cash flow or other resources to meet its financing commitments.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.