For instance recently Srilanka defaulted and i would like to understand how has their situation changed after the default announcement as compared to how it was lets say a month before the default?
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If you don’t pay back your debts, then *everyone knows you don’t pay back your debts*.
If your friend borrowed money from you, promised to pay it back, didn’t pay it back, and then asked to borrow more…would you give them more money? Probably not. Same situation here – once a country defaults, no one will lend them any more money – which probably means they’re screwed, because they’re already out of money to begin with.
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