Sovereign debt penalties drive countries into vicious cycle of default.
The article discusses sovereign debt issues, focusing on a country's ability and willingness to pay back its debts. It explores the need for debt reduction when a country can't afford to pay, and the consequences of not repaying debts. The paper also looks at the challenges of debt restructuring and the cycle of debt accumulation and default. Overall, it highlights the complexities of sovereign debt and the importance of finding sustainable solutions to avoid financial crises.