What happens When A Country Declares Bankruptcy?

[Chibson]

That's what most low tier countries do. When they lack or have insufficient money, the next thing they do is to borrowed loan. These loan is beneficial but to some extent because it need to be re servicing every month.

I think the United States of America is the country with the highest amount of debt. Borrowing is not bad but whenever you borrow it should be channelled into and infrastructure that will yield income.

 

[Syldan]

I think there will be alot of causality in the economy in such situation which it will be very difficult to control so easily and alot of business will be affected both private and public owned ones, the cost of living will also be high for people.

 

[Gandiba]

When a country borrow money that cannot be repayable then it declares backrupt which there will be legal proceedings and authority to take up the property or estate of such companies.

Yes that's the fact, I believe the same incident happened in Sri Lanka just recently. The way out only is for the bank to work on it, so as to retain other customers as the case maybe.

 

[Kennysplash]

Has there ever been a situation whereby a country declares bankruptcy? I have never heard of such situation, beside what could have happened for a whole country to go bankrupt?

 

[Danny4cash]

I think the United States of America is the country with the highest amount of debt. Borrowing is not bad but whenever you borrow it should be channelled into and infrastructure that will yield income.

Yes, I agree that borrowing is not bad. It's how the money borrowed is use. And the essence of borrowing is still fast. When the country is unable to pay back the depth he sow.

 

[Chibson]

Yes, I agree that borrowing is not bad. It's how the money borrowed is use. And the essence of borrowing is still fast. When the country is unable to pay back the depth he sow.

countries should always borrow to invest in critical infrastructures that will develop the economy. But borrowing to consume is where a lot of countries make mistakes.

 

[Robert90]

The country defaults on loans rather than filing for bankruptcy when it cannot pay its obligations. The defaulter is the government, not the country. A nation's assets cannot be seized by its creditors, and the government cannot be forced to make payments with funds it lacks when it is in default.

 

[Syldan]

Actually alot of things happened, challenges and to some extent, high rate of inflation, insecurity and all sort of things that will threaten the peaceful existence of such countries.

No one will love to invest in such kind of country.