There was a Nation - What will happen when countries goes bankrupt

You know, a lot of people have only heard about bankruptcy in the terms of businesses and individuals but haven't heard about bankrupt countries. You see, just the same way an individual or a business can go bankrupt, so can a country go bankrupt. When a country has sovereign default, it is categorically telling his creditors that it cannot pay the debts it owes. These debts include; domestic debts, and foreign debts.

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You see, a lot of countries borrow a lot of money, so they can be able to survive, create jobs by doing infrastructure projects, and so on. They have to pay this debt with interest within a specific period of time, but when the Gross Domestic Product (GDP) of the countries drops below the expected rate, then paying the interest of the debt could become a problem not to talk of paying the loan itself, they declare bankruptcy.

You see, several countries are in no doubt in the list of bankrupt countries, but there are going to be a lot of countries that will be joining this list soon. The first problem of a country is poor management of its financial sector, creating policies that are bad to the country's finance, making poor investments, and going as far as lending money to nations other nations that might not pay back. One major reason a lot of countries could also go bankrupt, is when their major resources for wealth which they rely on falls or is destroyed. Imagine that oil becomes really useless, a lot of countries will go bankrupt in less than 3 years.

Inflation is another reason why a lot of countries go bankrupt, and if I must be sincere, the year 2022 looks like a year of inflation. The covid actually shut down the world, and countries wanted to get on their feet very fast after the pandemic, so printing more money was an option, but it is telling now on a lot of countries, especially those with low GDP.

Do you think your country will go bankrupt anytime soon?