 The sovereign default slash SVRN slash N1 is the failure or refusal of the government of a sovereign state to pay back its debt in full. Cessation of due payments or receivables may either be accompanied by formal declaration repudiation of a government not to pay or only partially pay its debts, or it may be unannounced. A credit rating agency will take into account in its ratings capital, interest, extraneous and procedural defaults, failures to abide by the terms of bonds or other debt instruments. Countries have at times escaped the real burden of sum of their debt through inflation. This is not default in the usual sense because the debt is honored, albeit with currency of lesser real value. Governments devalue their currency. This can be done by printing more money to apply toward their own debts, or by ending or altering the convertibility of their currencies into precious metals or foreign currency at fixed rates. Harder to quantify than an interest or capital default, this often is defined as an extraneous or procedural default breach of terms of the contracts or other instruments. If potential lenders or bond purchasers begin to suspect that a government may fail to pay back its debt, they may demand a high interest rate in compensation for the risk of default. The dramatic rise in the interest rate faced by a government did to fear that it will fail to honor its debt is sometimes called a sovereign debt crisis. Governments may be especially vulnerable to a sovereign debt crisis when they rely on financing through short-term bonds, since this creates a situation of maturity in the smatches between their short-term bond financing and the long-term asset value of their tax base. They may also be vulnerable to a sovereign debt crisis due to currency mismatches, if few bonds in their own currency are accepted abroad, and so the country issues mainly foreign-denominated bonds, decreasing the value of their own currency can make it prohibitively expensive to pay back their foreign-denominated bonds. See original SENT DOT 2. Since a sovereign government, by definition, controls its own affairs, it cannot be obliged to pay back its debt.3 Nonetheless, governments may face severe pressure from lending countries. In a few extreme cases, a major creditation, before the establishment of the Uncharted article 2.4 prohibiting use of force by states, made threats of war or waged war against a detonation for failing to pay back debt to seize assets to enforce its creditor's rights. For example, Britain invaded Egypt in 1882. Other examples include the United States gunboat diplomacy in Venezuela in the mid-1890s and the United States occupation of Haiti beginning in 1115.4. Today the government which defaults may be widely excluded from further credit, some of its overseas assets may be seized for and it may face political pressure from its own domestic bond holders to pay back its debt. Therefore, governments rarely default on the entire value of their debt. Instead, they often enter into negotiations with their bond holders to agree on a delay debt restructuring or partial reduction of their debt to haircut or write-off. Some economists have argued that, in the case of acute insolvency crises, it can be advisable for regulators and supernational lenders to preemptively engineer the orderly restructuring of a nation's public debt, also called orderly default or controlled default.56 In the case of Greece, these experts generally believe that a delay in organizing an orderly default would hurt the rest of Europe even more.7. The International Monetary Fund often lends for sovereign debt restructuring. To ensure that funds will be available to pay the remaining part of the sovereign debt, it has made such loans conditional on X such as reducing corruption, imposing austerity measures such as reducing non-profitable public sector services, raising the tax-take revenue or more rarely suggesting other forms of revenue raising such as nationalization of the narrow-door corrupt but lucrative economic sectors. The recent example is the Greek Vela Agreement of May 2010.