What stops governments from defaulting on loans or bonds held by foreigners?

What will be an ideal response?

Sovereign defaults are different from a company going bankrupt because it is very difficult to take a country to court, and there are no formal bankruptcy proceedings in place for sovereigns. Nonetheless, sovereigns still must worry about the consequences of defaulting because of the following issues:
? The assets of the country located in the jurisdiction of a creditor may be seized.
? The country will not be able to borrow as readily in the future, which can have grave economic consequences.
? The country could find its ability to engage in international trade severely curtailed.
? Default may make economic crises worse, e.g. by causing a run on banks or exacerbating capital flight.

These costs of defaulting must be weighed against the benefit that the debt must no longer be serviced. Governments have defaulted on bonds periodically throughout history, one example being Argentina in 2001.