Feminine noun. Also called insolvencia and suspención de pagos, it happens when a person, a company or a state cannot pay all the debts they have with their creditors due to lack of liquidity or cash. This situation unchains a procedure that aims to reach an agreement between the debtor and the creditors, under judicial supervision, on the way in which it will be paid. E.g.: A mediados de la semana bursátil, surgieron preocupaciones por una posible cesación de pagos, lo que detuvo a los operadores y arrastró el capital a las inversiones seguras: Default concerns hit the financial markets half way through the trading week, which put traders and their heels and pushed capital into safe haven investments. dc
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