The threat of default can often win a Third World country concessions from its lenders?

The threat of default can compel lenders to negotiate more favorable terms for a Third World country, as the potential for non-repayment poses a risk to their investments. In such situations, lenders may agree to lower interest rates, extend repayment periods, or provide additional financial support to avoid the negative consequences of default. This leverage allows the borrowing country to secure concessions that can help stabilize its economy and improve its financial situation. Ultimately, the threat of default can serve as a strategic tool in negotiations with creditors.