The Economist explains: What happens when a country goes bust
▻http://www.economist.com/blogs/economist-explains/2014/11/economist-explains-20?fsrc=scn/fb/wl/bl/ee/happenswhencountrybust
FROM the days when monarchs over-borrowed for their mercantile adventures, to Argentina’s recent failure to pay its creditors, countries have long run into trouble paying back what they have borrowed. Spain’s 16th-century king, Philip II, reigned over four of his country’s defaults. Greece and Argentina have reneged on their commitments to bondholders seven and eight times respectively over the past 200 years. And most countries have defaulted at least once in their history. But what precisely happens when countries stop paying what they owe?