How serious will it be if the country doesn't pay back the money it owes?

There is no example of a country not paying its debts. The most typical example is Russia. After the disintegration of the Soviet Union, there was really no money. Therefore, in the year of 1998 announcement, the debt of1300 million was deferred, not unpaid, but postponed.

After this incident came out, Russia's credibility was immediately questioned. All foreign capital in Russia is evacuated from Russia because of avoiding risks. For a time, Russia was almost hollowed out, which reduced the GDP of the whole country by half, and suffered heavy losses under the shock therapy in Russia at that time. This is still the result of delay. If Russia directly says it won't pay back, the economy may collapse.

Second, domestic turmoil continues.

In modern history, a country failed to pay its debts, and as a result, it directly regressed into a developing country. This country is Argentina. Argentina is the country with the best conditions in South America, so it has developed rapidly since independence, with a large number of European immigrants and rapid economic development. By the19th century, it was basically one of the most developed countries in the world, even more developed than the United States.

However, in the 1970s from 65438 to 2009, Argentina's international reputation was destroyed because it borrowed a lot of money, but it was unable to repay its debts. Not only did foreign capital flow out, but the whole world stopped lending money to Argentina, which led to its financial bankruptcy. Moreover, the world also prohibits Argentina's currency outflow, inflation, increased unemployment, national unrest and people's poverty. After decades of turmoil, the whole country has retreated to poor developing countries. It has not recovered so far. What a painful lesson.

Third, the danger of national subjugation.

A person who doesn't pay his debts may lose a friend. However, if a country cannot repay its debts, it may be besieged. The most typical one is Saddam. The Iran-Iraq war borrowed $654.38+000 billion in debt, but after the war, they didn't want to pay back the money, including Kuwait and Saudi Arabia. Not only did he not pay back, but he also destroyed Kuwait, the creditor country.