Related to Sovereign default

Default (finance)Financial failure to meet legal conditions of a loan Part of a series onFinance Markets Assets Asset (economics) Bond Asset growth Capital asset Commodity Derivatives Domains Equity Foreign exchange Money Over-the-counter Private equity Real estate Spot Stock Participants Angel investor Bull (stock market speculator) Financial planner Investor institutional Retail Speculator Locations Financial centres Offshore financial centres Conduit and sink OFCs Instruments Bond Cash Collateralized debt obligation Credit default swap Time deposit (certificate of deposit) Credit line Deposit Derivative Futures contract Indemnity Insurance Letter of credit Loan Mortgage Option (callexoticput) Performance bonds Repurchase agreement Stock Security Syndicated loan Synthetic CDO Corporate General Accounting Audit Capital budgeting Capital structure Corporate finance Credit rating agency Enterprise risk management Enterprise value Risk management Financial statements Transactions Leveraged buyout Mergers and acquisitions Structured finance Venture capital Taxation Base erosion and profit shifting (BEPS) Corporate tax haven Tax inversion Tax haven Transfer pricing Personal Credit / Debt Employment contract Financial planning RetirementStudent loan Public Government spending Final consumption expenditure OperationsRedistribution Transfer payment Government revenue TaxationDeficit spending Budget (balance)Debt Non-tax revenue Warrant of payment Banking Central bank Deposit account Fractional-reserve Full-reserve Investment banking Loan Money supply Lists of banks Bank regulation Banking license Basel Committee on Banking Supervision Bank for International Settlements Financial Stability Board Deposit insurance Separation of investment and retail banking Regulation · Financial law International Financial Reporting Standards ISO 31000 Professional certification Fund governance Economic history Private equity and venture capital Recession Stock market bubble Stock market crash Accounting scandals Outline Business and Economics portal Money portalvte Part of a series onInsolvency Core concepts Insolvency Financial distress Default Sovereign default Bankruptcy alternatives History of bankruptcy law Insolvency processes Liquidation Provisional liquidation Receivership Administration Restructuring Scheme of arrangement Pre-packaged insolvency Dissolution Bankruptcy Officials & tribunals Insolvency practitioner Liquidator Trustee in bankruptcy Referee in Bankruptcy Tribunal Regulatory agency Claimants & rights Creditor Secured creditor Preferential creditor Unsecured creditor Creditors' rights Debtor Pari passu Subordination Anti-deprivation rule Avoidance regimes & offences Fraudulent conveyance Undervalue transaction Unfair preference Voidable floating charge Trading while insolvent Wrongful trading Fraudulent trading Misfeasance Security interests Security interest Floating charge Lien Mortgage Second lien loan International & cross-border Cross-border insolvency UNCITRAL Model Law EU Insolvency Regulation By country & region Anguilla Australia BVI Canada Cayman China Hong Kong India Ireland Examinership Russia South Africa Switzerland United Kingdom CVA IVA Administration United States Chapter 7 Chapter 9 Chapter 11 Chapter 15 Conservatorship Cram down Law portal Outline Lists Index Categoryvte In finance, default is failure to meet the legal obligations (or conditions) of a loan, for example when a home buyer fails to make a mortgage payment, or when a corporation or government fails to pay a bond which has reached maturity.

Government debtA country's gross government debt (also called public debt or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit occurs when a government's expenditures exceed revenues. Government debt may be owed to domestic residents, as well as to foreign residents. If owed to foreign residents, that quantity is included in the country's external debt.

Debt crisisA debt crisis is a situation in which a government (nation, state/province, county, or city etc.) loses the ability of paying back its governmental debt. When the expenditures of a government are more than its tax revenues for a prolonged period, the government may enter into a debt crisis. Various forms of governments finance their expenditures primarily by raising money through taxation.

Sovereign stateA sovereign state is a state that has sovereignty, that is, the highest authority over a territory. It is commonly understood that a sovereign state is independent. When referring to a specific polity, the term "country" may also refer to a constituent country, or a dependent territory. A sovereign state is required to have a permanent population, defined territory, a government not under the control of another, and the capacity to interact with other sovereign states.

Credit rating agencyCompany that assigns credit ratingsA credit rating agency (CRA, also called a ratings service) is a company that assigns , which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of debt instruments, and in some cases, of the servicers of the underlying debt, but not of individual consumers.

DevaluationIn macroeconomics and modern monetary policy, a devaluation is an official lowering of the value of a country's currency within a fixed exchange rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket. The opposite of devaluation, a change in the exchange rate making the domestic currency more expensive, is called a revaluation.

Interest rateAn interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed. Interest rate periods are ordinarily a year and are often annualized when not. Alongside interest rates, three other variables determine total interest: principal sum, compounding frequency, and length of time. Interest rates reflect a borrower's willingness to pay for money now over money in the future.

Asset–liability mismatchIn finance, an asset–liability mismatch occurs when the financial terms of an institution's assets and liabilities do not correspond. Several types of mismatches are possible. An asset-liability mismatch presents a material risk at institutions with significant debt exposure, such as banks or sovereign governments. A significant mismatch may lead to insolvency or illiquidity, which can cause financial failure.

Risk premiumA risk premium is a measure of excess return that is required by an individual to compensate being subjected to an increased level of risk. It is used widely in finance and economics, the general definition being the expected risky return less the risk-free return, as demonstrated by the formula below.

InflationDevaluation of money's purchasing powerGlobal rates of inflation in April 2026 among International Monetary Fund membersUK and US monthly inflation rates from January 1989In economics, inflation is an increase in the average price of goods and services in terms of money, though it originally referred to the increase of the money supply (monetary inflation) that can cause such a universal shift.

Precious metalPrecious metals are rare, naturally occurring metallicminerals of high economic value. Precious metals, particularly the noble metals, are more corrosion resistant and less chemically reactive than most elements. They are usually ductile and have a high lustre. Historically, precious metals were important as currency but they are now regarded mainly as investment and industrial raw materials. Gold, silver, platinum, and palladium each have an ISO 4217 currency code.