If debt is forgiven or defaulted upon, then it becomes harder to borrow in the future (i.e. they must do so at higher interest rates to account for the risk). I

If debt is forgiven or defaulted upon, then it becomes harder to borrow in the future (i.e. they must do so at higher interest rates to account for the risk). If countries never paid their debt then no one would loan to them or would loan only at astronomical interest rates.