Definition and essence of the concept of «default» in scientific literature
| Autor: | I.M. |
|---|---|
| Jazyk: | English<br />Polish<br />Russian<br />Ukrainian |
| Rok vydání: | 2023 |
| Předmět: | |
| Zdroj: | Економіка, управління та адміністрування, Vol 2, Iss 104, Pp 163-167 (2023) |
| Druh dokumentu: | article |
| ISSN: | 2664-245X 2664-2468 |
| DOI: | 10.26642/ema-2023-2(104)-163-167 |
| Popis: | The author of the proposed article researches that today default is a situation when the debtor refuses to fulfill his obligations to service the debt in full. It is established that the risk of default is the most serious for both creditors and the state, since the scale of adverse consequences for both sides of the credit relationship is the greatest in case of default. It has been established that the cause of default can be both sovereign insolvency and write-off of foreign debt. It is noted that the cancellation of external debt is a situation when the borrowing state refuses to fully or partially fulfill its obligations, and also takes other legislative measures with an equivalent effect, that is, declares default as a strategic decision. It has been determined that default can be found in US law only at the state level. It was concluded that insolvency means the objective inability of the state or its government to service or repay its external debt obligations within the terms established by the agreements in connection with the increase in the indebtedness of the country's government to an unacceptable level for the economy, and thus, a certain reduction in debt is required loading or debt restructuring. |
| Databáze: | Directory of Open Access Journals |
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