What will happen to png if it can't repay its debts
If PNG (Papua New Guinea) is unable to repay its debts, it could face severe consequences. This might include:
1. Defaulting on its debt obligations: If PNG is unable to make its scheduled debt repayments, it would be considered in default. This could damage its reputation in the financial markets and make it more difficult and expensive to borrow money in the future.
2. Economic repercussions: A default on its debts could lead to a financial crisis in PNG, with potential consequences such as a currency devaluation, high inflation, unemployment, and a decrease in foreign investment.
3. International relations: Defaulting on its debts could strain PNG's relations with its creditors, potentially leading to diplomatic tensions and a loss of credibility on the international stage.
4. IMF involvement: In some cases, a country that is unable to repay its debts may seek assistance from the International Monetary Fund (IMF) to help restructure its debt and stabilize its economy. However, this could come with strict conditions and austerity measures that may be unpopular with the country's citizens.
Overall, the consequences of not repaying its debts could be severe for PNG, affecting its economy, international standing, and overall stability.