Historically, global financial crisis tends to lead sharp economic downturns, low government revenues, widening government deficits, high levels of debt, pushing many governments into defaults. This is called as SOVEREIGN DEBT CRISIS.
GREECE is currently facing this, it accumulated high levels of debt during the decade before the crisis, when capital market highly liquid. As the crisis has unfolded and there was liquidity crunch in world economy, Greece may no longer be able to rol over its maturing debt obligations.
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