List of sovereign debt crises

The list of sovereign debt crises involves the inability of independent countries to meet its liabilities as they become due. These include:

• A sovereign default, where a government suspends debt repayments
• A debt restructuring plan, where the government agrees with other countries, or unilaterally reduces its debt repayments
• Requiring assistance from the International Monetary Fund or another international source

Debts could be owed either to private parties within a country, to foreign investors, or to other countries.

The following table includes actual sovereign defaults and debt restructuring of independent countries since 1557. ^[1]

Africa

Country	Date	Type, causes, consequences, and references
Angola	1976	[2]
	1992–2002	[2]
Cameroon	2004	[2]
Egypt	1876	The crisis caused the ʻUrabi revolt and the subsequent British invasion of Egypt in 1882.
Gabon	1999–2005	[2]
Ghana	1982	[2]
	2022	[3]
Liberia	1989–2006	[2]
Madagascar	2002	[2]
Mozambique	1980	[2]
Rwanda	1995	[2]
Sierra Leone	1997–98	[2]
Sudan	1991	[2]
Tunisia	1986	[4]
Zaire	1979	[2]
Zambia	2020	Default due to high debt levels following the COVID-19 pandemic and commodity price drops. Followed by the IMF bailout in 2022. [5]
Zimbabwe	2006	See Hyperinflation in Zimbabwe [2]

Asia

Country	Date	Type, causes, consequences, and references
China	1921	[2]
	1932	[2]
	1939	[2]
Indonesia	1966	[6]
Japan	1946–52	Due to an over-issued national bond amounting to more than twice as GDP, bank accounts were blocked. (bank blockade  [ ja ]) [2]
Kuwait	1990–91	[2]
Lebanon	2020	Lebanon defaulted on US$1.2 billion in Eurobonds. [7]
Myanmar	1984	[2]
	1987	[2]
Mongolia	1997–2000	[2]
North Korea	1975–1990	[8]
Sri Lanka	2022	2019–present Sri Lankan economic crisis [9] [10]
Thailand	1997–2007	1997 Asian financial crisis
Vietnam	1975	[2]

Europe

Country	Date	Type, causes, consequences, and references
Austria	1811	[11]
	1816	Caused by the War of the Sixth Coalition. Ended by the establishment of Austria's central bank Oesterreichische Nationalbank. [11]
	1945	[2]
Croatia	1993–96	[2]
Cyprus	2012-2013	2012–2013 Cypriot financial crisis
Denmark	1813	Danish state bankruptcy of 1813 [2]
France	1788	On 17 August 1788, the royal treasury began paying creditors in IOUs rather than money after service on debt (mainly from the Seven Years' War and American War of Independence) had depleted the royal treasury to just 400,000 livres (one day's worth of state expenses). To restore state credit, the royal ministry called the Estates General of 1789 to make structural reforms to state revenue. [12]
	1797	Deflation after the withdrawal of the assignat and mandat territorial led Finance Minister Dominique-Vincent Ramel-Nogaret to repudiate of 2/3 of French state debt. [13]
Germany	1812	State spending during the Napoleonic Wars was extremely high due in large manner to the high level of military expenditures.
	1932	Under the Versailles Treaty ending the First World War, Germany was forced to make war reparations. The Young Plan of 1929 was meant to settle the structure, but in the Great Depression repayments became impossible. In the Lausanne Conference of 1932, the UK and France agreed to a suspension of payments. The US Congress rejected it, but payments ceased until the implementation of the London Agreement on German External Debts in 1953.
	1948	See London Agreement on German External Debts [2]
Greece	2012	[14]
	2015	Due to the Greek government-debt crisis, Greece failed to make a €1.6 billion payment to the IMF on time (payment was made with a 20-day delay [15] [16] ).
Russia	1918	Repudiation of Tsarist debts by Bolshevik revolutionaries. [17]
	1998	After world commodity prices dropped on major Russian exports (particularly metals and oil) the 1998 Russian financial crisis ensued. Mounting debts led to the government declaring a moratorium on payments to international creditors.
	2022	2022 Russian debt default [18]
Spain	1936–39	[2]
Sweden	1812	Military expenditures as a consequence of the Napoleonic Wars.[ citation needed ]
Ukraine	1998–2000	[2]
Yugoslavia	1983	Avoided default through a multinational emergency loan.[ citation needed ]

North America

Country	Date	Type, causes, consequences, and references
Antigua and Barbuda	1998–2005	[2]
Barbados	2018	Defaulted on its Eurobonds after the uncovering of its high sovereign debt in terms of debt-to-GDP ratio. [19]
Dominica	2003–05	[2]
Dominican Republic	1975–2001	Latin American debt crisis [2]
El Salvador	1981–96	[2]
Grenada	2004–05	[2]
Mexico	1850	[2]
	1982	Latin American debt crisis
Panama	1988–89	[2]
United States	1790	Crisis began in 1782. Ended by the Compromise of 1790 and the Funding Act of 1790. [20] [21] [ better source needed ] 1814, US defaulted on its debt 1875, US devalued the USD (Specie Act)
	1933	Suspension of federal payments in gold amid a bank crisis and international run on gold reserves. [22] [2]
	1953	Congress refuses to raise the United States debt ceiling, forcing the federal government to reduce spending, monetize gold, and use cash balances with banks until the ceiling was eventually raised.
	1995-96	Congress fails to reach agreement with President Clinton on the budget, resulting in the United States federal government shutdowns of 1995–1996; Republicans also threaten not to raise the debt ceiling.
	2011	2011 United States debt-ceiling crisis
	2013	2013 United States debt-ceiling crisis
	2023	2023 United States debt-ceiling crisis

South America

Country	Date	Type, causes, consequences, and references
Argentina	1827	Default [23]
	1890	Baring crisis [23]
	1982	Latin American debt crisis [23]
	1988–89	Latin American debt crisis [23]
	2001	Following years of instability, the Argentine economic crisis (1999–2002) came to a head, and a new government announced it could not meet its public debt obligations. [23]
	2005–16	Argentine debt restructuring.
	2014	[24] [25]
	2020	[26]
Bolivia	1927	[2]
Brazil	1986–87	[2]
	1990	[2]
Ecuador	2020	[27] [28]
Paraguay	1874	The payment of loans taken in the English market between 1871-72 was stopped due to bad economic conditions. [29]
	1920	The payment of foreign loans was once again suspended due to adverse economic and political conditions. [30]
Peru	1850	[2]
Suriname	2020	[31]
Suriname	2001–02
Uruguay	1937	[2]
Venezuela	1995–97	[2]
	1998	[2]
	2017	Venezuela defaulted on US$65 billion in external debt in November 2017 after years of unsustainable borrowing and a crash in global oil prices. [32]

Oceania

Country	Date	Type, causes, consequences, and references
Australia	1931	Australia defaulted on its entire stock of domestic debt owed to bond and note holders. See Great Depression in Australia.
Solomon Islands	1995–2004	Default only on domestic debt, not external debt. [2]

See also

• List of corporate collapses and scandals
• List of stock market crashes and bear markets
• List of largest U.S. bank failures
• Currency crisis
• Government debt
• War reparations
• Global settlement
• London Club
• Paris Club

References

1. Reinhart, Carmen M.; Rogoff, Kenneth S. (2009). This Time is Different: Eight Centuries of Financial Folly. Princeton University Press. pp.  23, 87, 91, 95, 96. ISBN   978-0-691-14216-6.
2. Reinhart, Carmen M.; Rogoff, Kenneth S. (2011). "The Forgotten History of Domestic Debt" (PDF). Economic Journal . 121 (552): 319–350 [pp. 343ff]. doi:10.1111/j.1468-0297.2011.02426.x. JSTOR   41236982. S2CID   154398807.
3. Akorlie, Christian; Inveen, Cooper (20 December 2022). "Ghana to default on most external debt as economic crisis worsens". Reuters. Reuters.
4. MZ Bechri. "The Political Economy of Development Policy in Tunisia" (PDF). The University of Tunisia. Archived from the original (PDF) on 16 July 2012. Retrieved 1 May 2014.
5. "Zambia to default on foreign debt, finance minister says". www.aljazeera.com. Retrieved 2022-11-17.
6. Arndt1, H. W; Panglaykim, J (1966). "Indonesian economic problems in 1966" (PDF). Intereconomics . 01 (9): 22. doi:10.1007/BF02922773. hdl:10419/137641. Archived (PDF) from the original on 2022-03-20 – via EconStor.
7. Azhari, Timour. "Lebanon will default on its debt for the first time ever". www.aljazeera.com. Retrieved 2020-03-09.
8. Marcus, Noland (2000). Avoiding the Apocalypse: The Future of the Two Koreas. p. 95.
9. "Sri Lanka Announces Defaulting On All Its External Debt". NDTV.
10. "Sri Lanka economic crisis live updates: Sri Lanka defaults on entire $51 billion external debt". Times of India. 20 July 2022.
11. Kann, Robert A. (1980). A History of the Habsburg Empire, 1526-1918. Campus of the University of California: University of California Press (published November 26, 1980). p. 241. ISBN   0520042069.
12. Duncan, Mike (7 September 2014). "3.8 The Day of the Tiles". Revolutions (Podcast). Retrieved 2 May 2022.
13. Duncan, Mike (16 August 2015). "3.47 The Directorial Terror". Revolutions (Podcast). Retrieved 16 May 2022.
14. Zettelmeyer, Jeromin; Trebesch, Christoph; Gulati, Mitu (July 2013). The Greek Debt Restructuring - An Autopsy.
15. "IMF: Greece makes overdue payments, no longer in default". eKathimerini. 20 July 2015. Retrieved 10 September 2018.
16. "IMF: Greece makes overdue payments, no longer in default". EUBusiness. 20 July 2015. Retrieved 10 September 2018.
17. Kim Oosterlinck. Hope Springs Eternal: French Bondholders and the Repudiation of Russian Sovereign debt Yale University Press. 2016
18. Силуанов: Запад заморозил примерно половину золотовалютных резервов России. Business Gazetta (in Russian). 2022-03-13.
19. "Barbados announced a technical default on coupon of Eurobonds with maturity in 2035". www.cbonds.com. Retrieved 2018-06-10.
20. Chamberlain, John S. (2011-07-14). "A Short History of US Credit Defaults". Mises Institute. Retrieved 2018-06-27.
21. Kratz, Jessie (2015-05-31). "The Compromise of 1790". Pieces of History. Retrieved 2018-06-27.
22. Edwards, Sebastian (2018). American Default.
23. Boggiano, Miguel Ángel. "Historia del Default en Argentina". Carta Financiera. Archived from the original on 2016-12-20. Retrieved 2017-11-11.
24. Russo, Camila (2014-07-31). "Argentina Declared in Default by S&P as Talks Fail". Bloomberg.
25. D&Apos, Andres (2014-07-31). "Argentina defaults on international debt, blames U.S". Los Angeles Times.
26. "Argentina strikes deal with major creditors to restructure $65 billion in debt". CNN. 2020-08-04.
27. Vizcaino, Maria (2 August 2021). "Ecuador Defaulted Last Year. Now Its Bonds Are World's Bes". Bloomberg.
28. Rapoza, Kenneth (Apr 21, 2020). "The Pandemic Blues: Ecuador Second Latin American Nation To Default In 4 Weeks". Forbes.
29. Prado, Mario L. F. (2022), O Processo de Recuperação Econômica do Paraguai após a Guerra da Tríplice Aliança (1870-1890), University of São Paulo, São Paulo, p. 86
30. Ashwell, Washington (1989). Historia Económica del Paraguay. p. 357-382.
31. "Fitch downgrades Suriname reflecting default".
32. "Venezuela Defaults, What Now?". Forbes. 2017-11-14.

Further reading

• Reinhart, Carmen M.; Rogoff, Kenneth S. (2009). This Time is Different: Eight Centuries of Financial Folly. Princeton University Press. pp.  23, 87, 91, 95, 96. ISBN   978-0-691-14216-6.