America Is Threatened With Defaults, These 6 Countries First Bankrupt Due To Debts That Fail To Be Paid

Illustration (Photo: Geralt-Pixabay)

The United States (US) has the potential to experience an economic and financial disaster if debt failure (default) is 31.45 trillion US dollars, or equivalent to Rp462,000 trillion as of March 31, 2023. The problem experienced by America as a country is not the first. Previously, there had been several countries that went bankrupt due to outstanding debts.

So, which countries went bankrupt for failing to pay their debts? Summarized from various sources, along with the full information.

In 2022, Sri Lanka plunged into the brink of the deepest economic crisis for failing to pay off its foreign debt of 51 billion US dollars. If converted, the figure is equivalent to Rp729 trillion. Sri Lanka's foreign debt includes loans from foreign governments as well as IMF bailout funds.

On June 30, 2015, Greece was declared a bankrupt country. They fell because they failed to pay their debt (default), which totaled 360 billion euros (Rp5,000 trillion).

Venezuela's economic crisis in 2017 was also caused by their inability to pay for foreign utags.

Venezuela, known as an oil-producing country, lost revenue when prices fell. As a result, the country was unable to pay the debt amounting to 150 billion US dollars or around Rp. 2,025 trillion.

Ecuador's government once managed to cover the fiscal deficit in 2014 ago. This happened because world oil prices fell and caused state revenues to decrease.

To overcome this, the Ecuadorian government withdrew foreign debt at a very high cost. In 2014-2017, Ecuador's debt rose significantly to exceed the 40 percent safe limit of total Gross Domestic Products (GDP).

Argentina has been into the brink of an economic crisis twice for defaulting on debt. Namely in 2001 and 2014.

In 2001, Argentina defaulted on foreign debt amounting to 100 billion US dollars or around Rp 2,025 trillion.

Then in 2014, creditors rejected the Argentine government's debt restructuring offer. The debt rating agency Standard & Poor's (S&P) immediately positioned Argentina in the 'Selective default' status.

At that time, the amount of debt that Argentina had to pay creditors was USD 1.3 billion.

In June 2008, Zimbawe experienced a crisis and hyperinflation because it bears a debt of US$4.5 billion or around Rp. 64.8 trillion. At that time, Zimbawe was faced with the fact that the inflation rate was 11,250 million percent.

To overcome this, Zimbawe cut the value of money in order to survive the economic malapetaka.

That's information about a country that went bankrupt due to debt. To get other interesting news, keep reading VOI.ID.