{"id":1484239,"date":"2024-08-17T11:35:00","date_gmt":"2024-08-17T15:35:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1484239"},"modified":"2024-08-17T11:35:00","modified_gmt":"2024-08-17T15:35:00","slug":"these-were-the-largest-sovereign-debt-defaults-in-modern-history","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/these-were-the-largest-sovereign-debt-defaults-in-modern-history\/1484239\/","title":{"rendered":"These Were The Largest Sovereign Debt Defaults In Modern History"},"content":{"rendered":"

These Were The Largest Sovereign Debt Defaults In Modern History<\/span><\/p>\n

\n

In July, Ukraine avoided defaulting on $20 billion in loans by reaching a preliminary agreement with private creditors.<\/strong><\/p>\n

Given the financial burden of war, the country suspended interest payments on international debt over the last two years, which was set to expire on August 1, 2024.<\/p>\n

Without this new debt restructuring, this default would have ranked among the 10 largest in recent history. <\/strong>The last time Ukraine defaulted on its debt was in 2015, after Russia\u2019s invasion of Crimea.<\/p>\n

This graphic, via Visual Capitalist’s Dorothy Neufeld, <\/a>shows the largest sovereign debt defaults since 1983, based on data from Moody\u2019s via\u00a0Aswath Damodaran<\/a>.<\/p>\n

<\/a><\/p>\n

The Top 10 Sovereign Debt Defaults<\/h2>\n

Below, we show the biggest sovereign debt defaults between 1983 and 2022:<\/p>\n

<\/a><\/p>\n

Greece\u2019s\u00a0$264.2 billion<\/strong>\u00a0default in 2012 stands as the largest overall, unfolding when the country was mired in recession for the fifth consecutive year.<\/p>\n

The country defaulted again just nine months later, making it the fourth-largest ever. Leading up to the crash, Greece ran significant deficits despite being one of the fastest-growing countries in Europe. Furthermore, in 2009, the newly elected prime minister revealed that the country was $410 billion in debt\u2014substantially more than previous estimates.<\/p>\n

With the second-highest default recorded, Argentina failed to repay interest on\u00a0$82.3 billion<\/strong>\u00a0in foreign debt in 2001. Like Greece, it is a repeat offender, defaulting numerous times since independence in 1816. Today, Argentina is the largest debtor to the International Monetary Fund, despite being Latin America\u2019s third-largest economy.<\/p>\n

Following next in line is Russia\u2019s 1998 default on\u00a0$72.7 billion<\/strong>\u00a0in loans, coinciding with a currency crisis that erased more than two-thirds of the ruble\u2019s value in a matter of weeks. That year, several other countries including Venezuela, Pakistan, and Ukraine defaulted on their debts after the Asian Financial Crisis of 1997 spurred instability in global financial markets.<\/p>\n

Just as 1998 saw a wave of defaults, 2020 was a year marked by major debt upheavals. Due to the pandemic and collapsing oil prices, it was a\u00a0record year<\/a>\u00a0for sovereign defaults, reaching seven in total. Among these, Lebanon, Ecuador, and Argentina saw the largest defaults amid deepening fiscal pressures.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSat, 08\/17\/2024 – 07:35<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/geopolitical\/these-were-largest-sovereign-debt-defaults-modern-history<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

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