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The other nations might halt any further "loans".
That would probably work out better for all concerned.
Certainly better for those looking to default, don't you think?

What's more fun than dealing with global warming? Doing so without any credit/money.

The problem for the would-be defaulters is the same as it has always been --- they are relatively insignificant in the overall scheme of things. Their primary bargaining chip is their own credibility --- which they now threaten to destroy.

And I assume Greenland and Canada will start over paying interest payments.
Then I guess they don't need to borrow any more loans?
Well, any nation at any point might choose to halt debt payments.