From ancient Babylonia to 1930s Europe, debt jubilees have been far more common than discussions over Greece would suggest

A small southern eastern European country has announced a widescale programme of debt cancellation. No, it's not Greece, but Croatia.The Croatian government will be wiping off the liabilities of around 60,000 of its poorest citizens in a move to provide a "fresh start" for its indebted low-earners and get the economy moving again. Although much of the current debate among Europe's policymakers seems to regard debt relief as the ultimate taboo, the move for a government to cancel their citizens' liabilities, or for a sovereign to be forgiven by its creditors, is not nearly as unprecedented as we might think.


In their seminal work, 'This Time is Different: Eight Centuries of Financial Folly'economists Carmen Reinhart and Ken Rogoff chart the long and varied history of sovereign debt defaults, noting that restructurings and write-offs have been key part of every major period of financial crisis. With that in mind, here's a potted history of how creditors and debtors have managed to negotiate debt jubilees since the dawn of time. ....Read more here