Earlier quoted context omitted.
Which will make the problems of the rich disappear and the problems of the poor and the state ... worse. (because the costs of the state are paying off loans for expensive generation, costs which they recover from the poor)
The state can default on the loans too. It sucks and it will make future financing more difficult. But it remains an option. No such thing as risk-free lending.
A lot of muslim and African states are in that boat. If the US, yes, the international monetary system is under US control, frankly because nobody else will pay for it. If the US ever decides not to cover Pakistan's debts starvation is exactly what will happen in Pakistan.