The issue lies in the fact that most countries with huge debt ratios have less than substantial stores of gold and other hedges. And while investing in the hydropower sector has increased Bhutan’s debt, the country expects economic growth from these projects. The default in Greece came after two years of economic hardship, influenced by the global recession in 2008 and high debt-to-GPD levels. Argentina just defaulted on its debt for the ninth time in its history. Turns out, Greece was the very first country to default on its debt since 377BC. They also have a means to raise liquid capital rather quickly. Countries with plenty of sovereign gold to their name will have a much easier time borrowing money and supporting sovereign debt. World War II reparations: Who owes what? 20. In 2009, Iceland defaulted on the debt incurred by banks it had nationalized. Hydropower also accounts to 74.43% of the external debt. Most countries' money is governed by the World Bank Group. Other countries that have recently defaulted on sovereign debt include Pakistan, Ukraine, Ivory Coast, Moldova, Uruguay, Nicaragua, Grenada, the Dominican Republic, the Seychelles and Cyprus. Norway – Total debt: $623,223,000,000.   As a result of the banks' collapse, foreign investors fled Iceland. And IMF report analyzing the national debt of countries has assessed that Bhutan has a moderate risk of debt distress. Zambia has just issued a stark warning that it is about to default on debt to Chinese creditors, with China accounting for roughly a quarter of the country's $12 billion of external debt. Three countries have already defaulted on their debt this year: Argentina, Ecuador and Lebanon. Norway is the country that has the twentieth largest debt in the world. That prompted the value of its currency, the krona, to drop 50% in one week. Moreover, since its independence in 1829, Greece has spent around half its time in default on its sovereign debt. The World Bank was formed in July 1944 to provide loans to developing countries for capital programs. National Debt … Other Countries That Have Defaulted on Their Debt . By 2012 the country was knee-deep in the biggest sovereign debt-restructure in history – Argentina previously held the record for their $94bn debt crisis in 2001. As of 2015, according to CNBC, Finland is the only country to have repaid its World War II Reparation Debt. Ideally, countries will have the ability to pay back debt without incurring further debt to meet obligations. Of 54 emerging markets Mr Sterne has examined, only 11 have foreign-currency bonds worth more than 20% of their GDP (see chart). This group is owned by the governments of member countries, they have the power to make financial and policy decisions as well as any issues members may have. What countries have the largest debt in the world? It created massive inflation and … Other countries are tabulated in the article below. 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