This is a tricky one. Your model looks superficially ok, but there are non-standard features that are hard to evaluate without knowing the details. I would first try to find out whether it is a matter of parameterization, i.e. whether for some parameter values the BK conditions are satisfied. But I doubt that this is the problem.
You should probably rather focus on the debt allocation between foreign and domestic. This is the place where timing is often tricky, see e.g. [Timing of capital in two sector economy) for a similar issue with respect to capital stocks.