Suspension of payments

支払停止 ／ suspension of payments　—　Institutions

A declaration of state treasury "bankruptcy." It was not an annihilation, but a restructuring of payment obligations.

A declaration that the state treasury is stopping payment on its debts. The first example was by Philip II in 1557, and Spain repeated it thereafter. It is not an annihilation of the treasury, but a forced restructuring of payment terms.

⚠ The world's greatest silver empire was also the world's first habitual bankrupt nation. High income and high creditworthiness are two different things.