This work aims at explaining the causes of the Brazilian default, decrelared on February 20 th 1987, analyzing it through the existing theoretical contribution in the field of international political economy. This work concludes that the causes of default lay in both international and domestic areas. Considering the international area, the conventional framework for external debt restructuring of developing countries was devised by creditor countries, in their behalf, to avoid an international financial crisis. Contemplating the domestic area, the Sarneys administration did not agree to bear the costs of the solution imposed bycreditors, especially during the time Dilson Funaro was a minister. Dilson stood up for Brazils economic growth, which would have to be reduced if the creditors solution were carried out. Default was the only alternative in face of creditors intransigence. Realism is the perspective in international political economy that explains better the focused outcome. However, the rational unified actors premise must be put aside in order to consider properly the importance of domestic politics.