…a “leveraged loan” usually means there’s a contract to sell a natural resource for a very cheap price (far below the market rate) if the loan isn’t paid back. That’s the “leverage” that makes the loan (usually to an otherwise poor country) “good” in the eyes of the world bank.
So that’s what happens. If they refuse to give up the goods, they’ll get down graded, possibly refused global banking services, or put on an embargo list… And they’ll probably arrange ownership of the mine/refinery/wells and have them secured with private security forces anyways.