Here are some major countries that went bankrupt in recent times:
- Argentina defaulted on its debt in 2001, becoming the largest sovereign default in history.
- Greece defaulted on its debt in 2012, and again in 2015.
- Lebanon defaulted on its debt in 2020.
- Sovereign debt default occurs when a government or other public entity is unable to repay its debt obligations. This can happen for a variety of reasons, such as economic recession, political instability, or natural disasters. When a country defaults on its debt, it can have a number of negative consequences, including:
- A decline in the value of the country’s currency
- A rise in interest rates
- A decrease in foreign investment
- A loss of confidence in the government
- Social unrest
In some cases, a sovereign debt default can lead to the collapse of the government and the country’s economy.