Lender is the problem after the fact that fraud was discovered.
Right response? Write it down as "money lost to fraud".
Wrong response? "Those money your old government (which you already voted out) got by cheating? You have to pay them back, in full, right now, and we'll be the ones deciding how it will be paid and which cuts you'll have to do to make payments."
...and that plan leads to misery of population and debt actually growing rather then shrinking. Debt slavery on country level. At some point you might even wonder if banks had that idea right from the start... but probably not. That would be giving too much credit to their foresight.