Explained: What is a default?

These bonds are under the assumption they will get their money back with higher interest rates. Repayments are scheduled to be made in a timely manner.

This sovereign debt is usually owned in foreign currencies, which means a struggling government cannot simply print more money of its national currency to have fast access to liquidity and appease its creditors.

When an economic crisis becomes particularly challenging, an indebted country might find itself unable to repay some or even all of its accumulated debts.

If the government fails to honour a payment, the country officially enters into default.

Watch the video explainer to learn more about what default means.

#EuropeDecoded

[spbplus]

It's enough for us (Russians) to supply American and European weapons through Poland. The weapon is of very low quality - it shoots every other time. And, if you supply, add instructions in Russian!

[TheHealthConscounist]

Who are the investors of countries? Wth? Are they trillionares or something?

[pastuh]

So.. nothing special..
Restart and repeat..

[stealthy]

Dollar should not be the world currency

[JaBoss]

😂😂😂😂😂😂 They think America is going to let the payment through while Russia still fighting in Ukraine