Can a country or government face bankruptcy?

[Starmix]

The answer is yes, a country or government can face bankruptcy, though it is usually referred to as sovereign default. This happens when a government is unable to meet its debt obligations- meaning it cannot pay back loans or interest. Unlike individuals or companies, countries don’t file for bankruptcy in court but may restructure debt, negotiate with creditors, or seek bailouts.

Sovereign defaults can lead to serious economic consequences like loss of investor confidence, higher borrowing costs, economic recession, and inflation or currency devaluation. However, it's relatively rare, and usually, governments try to avoid defaulting because of these facts.

 

[eLdavis]

Yes i believe it's possible for a country or government to face bankruptcy, this is why we have so many of them taking loans.

 

[King Belieal]

There are many countries that were bankrupt and other countries had to give them donations to recover. Example of such is Greece.

 

[Starmix]

Indeed, there are countries that faced souvereign defaults like Venezuela. Last year it's government declared bankruptcy, but some countries helped the Venezuelan government to rise back but this time it's sad Maduro is chased.

 

[Stardom22]

Of course yes. We have situations whereby governments or nations face financial downtimes and difficulties and fails to run it's services.

 

[Min George]

Countries always go bankrupt. But they always get loans from world Bank and IMF to stay afloat. I know that Greece was bankrupt at a time.

 

[Starmix]

The other year, Venezuela declared bankruptcy but the European Union helped Venezuela to sustain. Hoping the country leader will not promote drug trafficking just to raise billions.

 

[Suba]

That's right, there are several countries that have been declared bankrupt such as Argentina, Iceland, Sri Lanka, Zambia etc. There are many reasons why a country goes bankrupt such as very high levels of corruption, political conflict, sovereign default, very high inflation,