The present reality of the situation is that the ability of other, larger sovereigns to roll over maturing debt on their own is increasingly in doubt, and in any event, will involve very high, economically penalizing, interest rates. Under these circumstances, one or more sovereigns may be unable to issue new debt to redeem old debt at par value in the future. If this happens, and the Rescue Fund does not provide taxpayer funds to meet the maturity at full value, the sovereign will be forced into default – that is, it will be forced to restructure with a unilateral offer of new debt for old
