> Should they not be able to repay it your company has earned the same money and your bank is sitting on some pretty low risk long term loans which will pay ou

> Should they not be able to repay it your company has earned the same money and your bank is sitting on some pretty low risk long term loans which will pay out multiple times in interest. You make even more money. Or, the country defaults (like Poland in the eighties), and negotiates a partial cancellation of the debt, in exchange for adopting some of the recommended economic policies (in case of Poland, these were the Chicago-school liberal policies).