The failure to find adequate funds to finance deficits caused the Spanish Crown to declare bankruptcy in 1557, 1560, 1575, 1596, 1607, 1627, 1647, 1652, 1660, and 1662.14 These bankruptcies were not full debt repudiations, but more like what today would be called debt reschedulings or workouts. The Crown would declare a moratorium on the payment of interest on short-term and floating debt on the grounds that it was usurious and then enter into a prolonged and rancorous negotiation with its creditors."
( Francis Fukuyama )
[ The Origins of Political ]
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