Sri Lanka late in paying its debts
(MENAFN) As the nation grapples with its greatest financial crisis in over 70 years, Sri Lanka has foreclosed on its debt for the first time in its history.
It comes after a 30-day grace period to refund delinquent debt interest payments of USD78 million (pound 63 million) ended on Wednesday.
Sri Lanka's central bank governor declared the nation to be in "pre-emptive default".
When administrations are unable to satisfy some or all of their debt obligations to creditors, defaults occur.
It can undermine a nation’s reputation, making it more difficult to borrow money on foreign markets, further eroding trust in its currency and economy.
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