How Countries Default on Debt
The gist
A country defaults on its debt when it fails to pay back its borrowed money on time or in full.
Explain like I'm 5
Imagine you borrow toys from a friend and promise to return them by Friday, but you can't give them back then—that's like a country not paying its debts on time.
Big picture
When a country defaults, it can harm its reputation and make borrowing money harder or more expensive in the future, affecting its economy and citizens.