Sri Lanka, a country in South Asia, made its first financial default in May 2022.
The country's government was allowed a 30-day grace period to pay the overdue interest of $78 million but ultimately did not do so.
A comprehensive assessment of a nation's default risk is provided by Bloomberg's Sovereign Debt Vulnerability Ranking.
Because to its ongoing confrontation with Russia, Ukraine faces a substantial default risk. Consider a situation in which Russia were to take over the nation to see why.
El Salvador is ranked higher than Ukraine despite having lower values for the two categories mentioned above due to its higher interest costs and overall public debt.
The aforementioned information indicates that El Salvador pays an annual interest rate that is equivalent to 4.9 percent of its GDP, which is a considerable amount.
In 2020, America's federal interest costs accounted for 1.6 percent of GDP in comparison to the U.S.
El Salvador's total unpaid debts are equal to 82.6 percent of its GDP. Although it is high by modern standards, this is considered high by historical standards.