"You have got an overflowing bath which represents debt, and the taps and gushing water represents the deficit," he told the BBC.
Last year it made history as the first country to default on its Brady bonds bonds representing debts rescheduled under the 1989 Brady plan.
"Lawyers representing debt buyers should have the evidence that support their claims.
Corporations create two kinds of securities: bonds, representing debt, and stocks, representing ownership or equity interest in their operations.
The notes, which purported to represent debt issued by a Manhattan real estate developer, were sold at a steep discount.
It is not yet clear, he said, whether the loans are mainly those taken out by the clients themselves, or whether they represent debt incurred on behalf of the borrowers' children.
But while these bonds represent debt, they can be converted into equity.
The fictitious notes represented debt issued by governments for off-balance-sheet activities.
"If you can't collect debt there will be no extension of credit, so you're going to harm those that pay their bills, and you're going to harm those that don't anyway," said Jan Stieger of Executive director of DBA International, an (admittedly biased) association representing debt buyers.
Particularly, when investing in government debt or loans, country (or government) credit should be considered a primary risk factor, namely, country risk represents the debt paying capability of the government.
