Country risk: Difference between revisions

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The risk that a country or an entity within a country will not be able to honour its financial obligations.  
The risk that a country or an entity within a country will not be able to honour its financial obligations.  


Exposures can arise from - for example - interruption of business at the country level (political sovereign risk), currencies being blocked from cross-border repatriation (transfer risk) and central bank liquidity shortages preventing conversion (convertibility risk).
Exposures can arise from - for example:
 
*Interruption of business at the country level (political sovereign risk)
*Currencies being blocked from cross-border repatriation (transfer risk) and  
*Central bank liquidity shortages preventing conversion (convertibility risk).




== See also ==
== See also ==
* [[Exposure]]
* [[Exposure]]
* [[Political risk]]

Revision as of 09:24, 21 April 2016

The risk that a country or an entity within a country will not be able to honour its financial obligations.

Exposures can arise from - for example:

  • Interruption of business at the country level (political sovereign risk)
  • Currencies being blocked from cross-border repatriation (transfer risk) and
  • Central bank liquidity shortages preventing conversion (convertibility risk).


See also