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I don't understand the fascination with 3rd world debt, either the countries keep paying at the detriment to domestic spending or they default and end up with h

I don't understand the fascination with 3rd world debt, either the countries keep paying at the detriment to domestic spending or they default and end up with higher interest rates. That is it. These are non-recourse loans, the IMF or World Bank or whoever is not going to invade to get paid back. Debt forgiveness is still default, just more socially accepted. But just like default it will still end with less trust and higher interest.

Tycho 14y ago
Do existing national debt payments and potential higher interest rates for future borrowing have an equilibrium? I mean obviously the former helps keep the latter at bay, but can you really say they are in balance and that it wouldn't be better to simply default on the debt and then borrow less in future? I suppose if more countries got serious about cancelling the debt, there would also start to be talk from charities/activists of guaranteeing future rates.