After recently experiencing massive food and fuel shortages, the government declared a state of emergency on 1 April due to surging public protests, only to later rescind the order as they swelled further. As foreign exchange reserves dwindled, the government ultimately decided to suspend all payments to foreign debtors until a formal restructuring could be negotiated, thereby averting a potential humanitarian crisis. We believe that sovereign defaults do not occur in a vacuum, but are the product of a country’s economic structure, policy decisions, and external macro shocks that accrue over time.