
Most sovereign governments can, in theory, ignore their debts and default. The repercussions will depend on who lent the government the money.
It is extremely likely that no private investor or enterprise will consider lending more money (in the short term). They might go so far as to cease or curtail lending to private enterprises in that country due to perceived instability and unreliability of the government.
It is also likely the currency will devalue and there will be little incoming investment.
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