political credit risk

The credit risk that arises as a result of actions by a foreign government, which may affect the management of a foreign business, control of its assets, and its ability to make payments to its creditors.

Accounting dictionary. 2014.

Look at other dictionaries:

  • political credit risk — sovereign risk The credit risk arising from the fact that a foreign government may decide not to honour its financial obligations or other business commitments. Compare transfer credit risk See also country risk …   Big dictionary of business and management

  • credit risk — The risk that a counterparty will default or delay payment on an obligation or that the value of a flow of payments will decline due to an adverse movement in the counterparty s credit rating See also political credit risk; transfer credit risk …   Big dictionary of business and management

  • credit risk — The risk taken when a loan is made that the borrower will default on or delay repayment of the principal or payments of interest. See also: political credit risk, transfer credit risk …   Accounting dictionary

  • Credit risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk …   Wikipedia

  • transfer credit risk — The credit risk that arises, especially on long term contracts, as a result of a foreign debtor s inability to obtain foreign currency from the central bank at the appropriate time. This may occur even when the debtor is able and willing to pay.… …   Accounting dictionary

  • transfer credit risk — The credit risk that arises, especially on long term contracts, as a result of a foreign debtor s inability to obtain foreign currency from the central bank at the appropriate time. This may occur even when the debtor is able and willing to pay.… …   Big dictionary of business and management

  • Credit rating — of governments around the world by Standard Poor s:   AAA …   Wikipedia

  • Credit insurance — is a term used to describe both business credit insurance (a.k.a. trade credit insurance) and consumer credit insurance, e.g., credit life insurance, credit disability insurance (a.k.a. credit accident and health insurance), and credit… …   Wikipedia

  • Risk — takers redirects here. For the Canadian television program, see Risk Takers. For other uses, see Risk (disambiguation). Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable… …   Wikipedia

  • Risk — Typically defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. The New York Times Financial Glossary * * * ▪ I. risk risk 1 [rɪsk] noun 1. [countable, uncountable] the possibility that… …   Financial and business terms

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