One of the important themes in the ongoing discussions on international financial architecture is the need to find ways to more effectively involve the private sector in international debt default resolution processes. This is a very important issue and one that warrants careful attention, as M. Trichet’s address made clear.
Some of the external reasons could be economic recession, nonpayment in other countries, inputs / power shortage, price escalation, accidents / natural calamities, and changes in government policies in excise / import duties, pollution control norms, delay in disbursal of loans by lenders, etc.