If we are at war with a country do we still need to pay foreign debts owed to that country?
what happens if we refuse? Would it not be a good war tactic to tell the countries we are at wwar with, we will not make a single more payment until the war is over. This would force them to surrender in order to get payment, right?
Answers
Bertsta
If a country reneges on its financial agreements it loses its credit rating, which would make it harder to get more credit in future. Would you lend money to someone who never pays back loans? If there were a war, the payments would obviously be suspended - otherwise they would obviously be used for war production.
Anonymous
You mean the same as the US is claiming what Cuba did? Does a trade war count? How about Russian interference with our election? Most of the assets are private.
StephenWeinstein
We are still required to pay. I'm not sure we truly "have to" pay, but it's a really bad idea to refuse because we'll end up owing a lot more. Refusing wouldn't force them to surrender.
pearlmar
Of course not.
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