Defaults on international loans

Other Names:
Debt repudiation
Arrears in international debt payments

Defaults on international loans may take several forms: repudiation of old loans by new governments swept into power during economic crises; failure to earn or unwillingness to expend foreign exchange to effect the transfer despite the fact the revenues are available in the domestic currency; and failure to collect sufficient revenues to cover debt service even when current expenditures have been drastically reduced (namely bankruptcy of the borrower).


It is estimated that by the end of 1990 15 developing countries will owe about $524 billion to banks and governments, with nearly another $50 billion in interest payments falling due.

Problem Type:
D: Detailed problems
Date of last update
04.10.2020 – 22:48 CEST