QUOTE(shereen82 @ Jul 8 2015, 02:59 PM)
Can someone explain it in a layman term? As Im have not financial background
I found out that before Greece has collapse, Iceland (if im not mistaken) was collapsed few years ago and the amount of debt is double or triple of Greece
So what will happen if Msia (touchwood) have gone bankrupt?
There is no such thing a country "bankrupt", only got defaulting their borrowing commitment.
Consequence of defaulting by a country
1. Currency plunge
2. Economy recession due to FDI not dare to come
3. Short of liquidity in banking system
4. Bond yield rise, hence borrowing cost expensive, that could lead to economy problem.
5. Due to economy recession and liquidity problem and rise in borrowing cost, bank NPL may rise which may stress the banking system.