Sovereign default
A state refusing to service its obligations, or forcing a revision of their terms.
How to read the number
Unlike a corporate bankruptcy there is no court to divide the property and no enforcement procedure: the outcome is settled by negotiation and by the law of the place where the debt was issued.
When the metric lies
Default can be selective — on external debt while domestic debt is paid, or the reverse — so refusing to pay does not mean a country has stopped paying everything.
Also known as: state default