Can't Pay, Won't Pay
Our Southern neighbour Sri Lanka has officially stopped payments on all foreign debt owed by the country - $51 billion in total.
They've announced this step as forex reserves are running out and they want to keep what they have to pay for the import of important things like food and medicines.
There have been massive protests across the island country, asking for resignations from President Gotabaya Rajapaksa and his brother, Prime Minister Mahinda Rajapaksa. They're still sticking on though, while people are bearing the brunt of their policies with 20% inflation and 13-hour power cuts.
The governor of their central bank though has said that this is a temporary measure and was being done in good faith, adding that Sri Lanka had never before defaulted on any external debt.
They're now trying to strike a deal with creditors with the help of the IMF to work out a way to repay the $8billion+ debt that they owe by the end of 2022.
Another source for Sri Lanka seems to be China, as their Ambassador has said that he's been reassured by Beijing of $2.5 billion in financial support. Of this, $1 billion is likely to go towards repaying another Chinese loan that comes due in July.