Wikipedia

Stefanbcn

Joined 11 September 2007
This user prefers warm weather.


I live in Barcelona.


hallo more about me can be found on : http://de.wikipedia.org/wiki/Benutzer:Stefanbcn or http://es.wikipedia.org/wiki/Usuario:Stefanbcn


i am working as a freelance information researcher in environmental technology, sustainability, sustainable mobility, bikesharing, carsharing.

Contact: http://infobroker.barcelona.googlepages.com/home2



National bankruptcy

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The national bankruptcy (or national insolvency) is the formal declaration of a government to not (repudiation) or only partially pay/meet its debts (due receivables) or the de facto cessation of due payments.

Reasons

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The national bankruptcy historically was caused by three reasons:

  • insolvency /over-indebtedness of the state
  • political motivated refusal to take over the debt of the old administration after a change of government
  • ruin /decline of the state

Insolvency /over-indebtedness of the state

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If a state for economic reasons defaults on its treasury obligations/is not anymore able to handle its debt/liabilities or to pay the interest on this debt it faces national bankruptcy. To declare insolvency it is sufficient if this state is only able to pay part of its due interest or to clear off only part of the debt.

Reasons for this were mostly:

The national bankruptcy caused by insolvency historically always appeared at the end of long years o decades of budget emergency, in which the state has spent more money than it received. This budget balance/margin was covered through new indebtedness with national and foreign citizens, banks and states.

Change of government

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While normally the change of government does not change the responsibility of the state to handle treasury obligations created by earlier governments, nevertheless it can be observed that in revolutionary situations and after a regime change the new government questions the legitimacy of the earlier one and thus defaults on this treasury obligations considered Odious debt.

Important examples are:

Decline of the state

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With the decline of the state its obligations are turned over to one or several successor states.

Lost wars significantly accelerate national bankruptcies. Nevertheless especially after the Second World War the Government debt has increased significantly in many countries even during long lasting times of peace. While in the beginning debt was quite small the increase due to the Compound interest effect increased it substantially.

Consequences

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Creditors of the state as well the economy and the citizens of the state are affected by the national bankruptcy.

Betroffen von Staatsbankrotten sind in erster Linie die Gläubiger des Staates, aber auch die Wirtschaft und die Bürger des Staates selbst.

Consequences for creditors

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The most visible effects of national bankruptcy are the complete or partial loss of lent money and/or interests upon.

In this case very often there are international negotiations which end in a partial debt cancellation (London Agreement on German External Debts 1953) or debt restructuring (e.g. Brady Bonds in the 1980ies). This kind of agreements assures the partial repayment when a renunciation / surrender of a big part of the debt is accepted by the creditor. In the case of the Argentine economic crisis (1999–2002) the creditors had to accept the renunciation of up to 75% of the outstanding debts.

For the purpose of debts regulation debts can be distinguished by nationality of creditor (national or international), or by the currency of the debts (own currency or foreign currency) as well as whether the foreign creditors are private or state owned.


Consequences for state

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Folgen für den Staat

With national bankruptcy the state disposes of its financial obligations/debts towards its creditors. This naturally leads to lower public spending/ a reduction in spending from the public budget to the amount of interest and repayment/redemption.

On the other hand a national bankruptcy always damages the reputation and trust of a state towards the creditors. Hence a state is at least temporarily unable to get new credits from the capital market.

Mit dem Staatsbankrott entledigt sich der Staat seiner finanziellen Verbindlichkeiten gegenüber seinen verschiedenen Gläubigern. Dies führt naturgemäß zu einer Entlastung des Staatshaushalts um die Höhe der Zinsen und Tilgungen.

Auf der anderen Seite ist mit dem Staatsbankrott immer auch ein Image- und Vertrauensverlust verbunden. Hierdurch ist der Staat zeitweise nicht mehr in der Lage, Kreditaufnahmen am Kapitalmarkt vorzunehmen.

Consequences for the citizen

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Folgen für den Bürger

National bankruptcy always means for the private citizen a dramatic devaluation of his monetary wealth, because the private individual/saver is often an important creditor of the state (e.g. government bonds).

More severe is the impact on the national economy. These comprise typically

  • a banking crisis, as banks have to make write downs on credits given to the state.
  • an economical crisis, as the interior demand will fall and investors withdraw their money
  • a currency crisis as foreign investors avoid this national economy

The citizen feels the impact indirectly through high unemployment and the decrease of state services and benefits.

Praktisch bedeutet ein Staatsbankrott für den einzelnen Privatbürger immer eine drastische Abwertung seiner Geldvermögen, da die einheimischen Sparer meist ein bedeutender Gläubiger des Staates sind.

Gravierender aber sind die Folgen auf die Volkswirtschaft. Diese sind typischerweise 

   * eine Bankenkrise, da die Banken hohe Abschreibungen auf ihre Staatskredite vornehmen müssen
   * eine Wirtschaftskrise, da die inländische Nachfrage reduziert wird und Investoren Gelder zurückziehen
   * eine Währungskrise, da ausländische Anleger die betroffene Volkswirtschaft meiden.

Die Bürger werden dadurch mittelbar getroffen, meist durch hohe Arbeitslosigkeit und das Entfallen staatlicher Leistungen.

Preventive measures

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Examples of national bankruptcy

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source from german wikipedia: http://de.wikipedia.org/wiki/Staatsbankrott

http://en.wikipedia.org/wiki/Prediction_of_the_United_States_collapse_in_2010#Signs_of_preparation_by_U.S._authorities_for_a_civil_war


strange: http://en.wikipedia.org/wiki/Insolvency#Government_debt 

   * "Default" essentially means a debtor has not paid a debt which he/she/it is required to have paid.
   * "Insolvency" is a legal term meaning that a debtor is unable to pay his debts.
   * "Bankruptcy" is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default.

So hat die Stadt New York schon 1975 Zahlungsunfähigkeit erlebt.

Kreditwürdigkeit <--> Abwertung der währung

http://de.wikipedia.org/w/index.php?title=Staatsbankrott&oldid=18774871

discussion: http://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Archives/Humanities/2008_November_7#national_bankruptcy_-_article_in_wikipedia_missing

all english-german dictinarries have the same translation although the official EU dictiinar diea not

[[[Category:Bankruptcy]] [Category:Financial crises| ]] [Category:Economic problems]] Kategorie:Finanzwissenschaft in deutsch

Failed state Crisis_state Financial crisis

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