Name: 如果一個國家破產了，會發生什麼？ (What Happens If A Country Goes Bankrupt?)
Uploaded: 2021-01-14T05:23:42.000Z
Duration: 2 min 55 s
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Greece, a country with huge financial problems, just elected Alexis Tsipras as their new prime

minister. He promised to renegotiate with the EU for further

bailouts, in an attempt to stabilize the economy and lessen the debt burden on the Greece’s

population. If he does not succeed there is a real chance that Greece could be on the

bankruptcy again. So, what happens when countries go bankrupt?

First of all, a country going bankrupt is much different from a corporation or a person

bankrupt. If a corporation or a person declares bankruptcy, there are laws in place which

both the defaulter and the creditor recoup losses. But if an entire nation take a nosedive

bankruptcy, it’s sometimes a free-for-all. Historically, creditor nations were known

assets by force, or blockade a country’s ports until debt payments resumed. Even in

an Argentinian navy vessel was impounded in a port in Ghana because of disputes over

Argentina’s sovereign debt. However, usually nowadays, long and complicated court battles

the norm. And in all cases, the outcomes are very unpredictable.

Many countries have been almost or completely bankrupt in recent history -- countries like

Greece, Ireland, Portugal, Pakistan, Spain, Argentina and Iceland. Although there are

unique circumstances that lead some countries to debt-crises, a weak government structure

That’s what happened to Argentina in the late 20th century. The government announced

2001 that it could not pay its foreign debt, and there was a cash flight from the banks

withdrew their savings. Protesters took to the streets as money problems grew, and a

forced the Argentinian president to flee in a helicopter. Later, in 2003, the country

itself by addressing the currency exchange rate problems, encouraging economic growth,

negotiating foreign debt. There are tons of factors that led to their recovery, but focusing

spending and getting help from the international community was paramount.

The financial crisis in Iceland was different. In 2008, the main Icelandic banks failed,

government refused to bail them out. This kept the government from over extending and

bankruptcy, but it also endangered the financial situation of their citizens. To correct this,

makers took bailouts from the International Monetary Fund, which allowed them to build

protect social support programs and forgive homeowner debt. Currently, Iceland is well

way to recovery with a low unemployment rate and growing economy.

As history shows there are many ways that countries have corrected bad financial situations.

We can’t say how Greece will move forward in the crises, but we can say that there are

To find out more about the EU, the International Monetary Fund and many other major

international organizations check out our video on the International Alphabet soup of