«What We Know About Defaulting» - by Tom Coupe

Tom Coupe, member of the Editorial Board of VoxUkraine, Associate Professor at Kyiv School of Economics, gives his opinion on the risk of defaulting in  VoxUkraine blog.

Ukraine is considered to be at risk of defaulting on its debt obligations by rating agencies, Ukrainian government denies that this is realistic. But how bad is it for a government to default? – International experience suggests that defaulting can be part of the measures that are used to get an economy back on track.

Defaulting is not something one does for fun, but if really needed, defaulting can be done in an orderly way, does not have to imply the collapse of an economy and can be part of the measures that are used to get an economy back on track.

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