Sovereign risk

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The risk that a country may be unable to meet its debt repayment obligations, including principal and interest, on the agreed terms. Sovereign risk is influenced by factors such as a country’s economic and political stability, inflation rate, currency exchange rate, and fiscal policies. Sovereign risk can have significant implications for international investors, as it can affect the value and returns of investments in the affected country. Sovereign risk is an important consideration for investors when evaluating international investments.

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