Government Debt

[Rody]

Okay, just one more silly question, then I'll be quiet

What happens to government debt when a country splits into more than
one nation? E.g. Czech Republic and Slovakia, ex-Soviet states etc.

Cheers,

Rody

 

[Aztech]

Okay, just one more silly question, then I'll be quiet

What happens to government debt when a country splits into more than
one nation? E.g. Czech Republic and Slovakia, ex-Soviet states etc.

http://www.hnb.hr/dub-konf/7-konferencija-radovi/ricardo lago-debt-in-transition .pdf

They debts were small and assumed by Russia in exchange for Czech claims on
domestic assets. In the case of Yugoslavia there was war, lots of it,
generally when things go in this direction debts are the least of their
worries.