We can say that a country is in lsquo Debt Trap rsquo if........

Economic Affairs Public Finance and Debt Management

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We can say that a country is in ‘Debt Trap’ if

The international creditors have refused lending to the country.

The IMF has imposed conditionalities on liberalization and privatization of the economy.

The country is borrowing in order to make interest payments on outstanding loans.

Its internal borrowing mechanism has collapsed and it has to borrow from external sources.

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Explanation:

3rd option is correct.
We can say that a country is in ‘Debt Trap’ if the country is borrowing in order to make interest payments on outstanding loans.
Debt Trap is a scenario in which a borrower is forced to re-borrow because they can't afford the scheduled payments on the principal of a loan.