[narvval]

> ... or uphold our end of the deal to mutually cancel debt?

What do you mean "mutually"? the government is the debtor and the banks/funds/citizens the creditors. There's no mutuality.

> Send in military, seize all assets, wipe the records.

No need for such drama. If a government says they won't pay back, that's pretty much the end of it. Maybe check out UN Charter Article 2 (4). Of course such unilateralism is quite stupid so governments tend to avoid it