Thread: ELI5: If multiple countries are in debt to each other, why do they not write off the same value debt

ELI5: If multiple countries are in debt to each other, why do they not write off the same value debt (by Sparky)

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(29 / M-F / Massachusetts)
7-Apr-20 10:20 pm

ELI5: If multiple countries are in debt to each other, why do they not write off the same value debts they have to each other?

I saw an article saying that world debt is 300% or so of global GDP, if country A is in debt to Country B by 100 Billion, and country B to country A by 50 billion. Why does country A not write their debt off against what country B owes?

Source.

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