Governments borrow money from Banks. Banks are private institutions of rich people that make sure that governments are not allowed to print or establish money on their own. For the government to borrow the money, the banks charge interest. The interest has to be paid back by the end of the year on top of the loan. The bank, of course, is not interested that the loan gets paid back as otherwise, the interest payments vanish. As the banks create the loan out of thin air, they make a fortune on the interest payments!
