Common Contracts
1 similar Country Bankruptcy contracts
ContractCountry Bankruptcy • March 3rd, 2012
Country bankruptcy: With country bankruptcy, the state disposes of its financial obligations and debts towards its creditors. It always damages the reputation and trust of a state by the creditors. In this case, very often there are international negotiations, which end in a partial debt cancellation or debt restructuring. This kind of agreement assures the partial repayment when the creditor accepts a renunciation of a big part of the debt. On the other hand, country bankruptcy often means for the private citizen a dramatic devaluation of his monetary wealth, because the private saver is often an important creditor of the state. The citizen feels the impact indirectly through high unemployment and the decrease of state services and benefits. More severe is the impact on the national economy: a banking crisis, an economic crisis, as the interior demand will fall and investors withdraw their money, a currency crisis as foreign investors avoid this national economy.
