It's a public-sector debt writedown. You no longer owe the debt to the creditor.

It still exists somewhere, someone has to pay for it - much like those people who had their student load debt forgiven. Someone is still on the hook for that money.

If done in the USA today it would look like this: - your debts are cancelled - you get to live in the home you formerly owned if you behave - free bus passes for life - plenty of vaccines for all - your new neighbors are from Somolia