In a sense, political risk indices reflect a country's willingness to repay its loans, whereas financial risk indices reflect a country's ability to repay its loans.

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Political risk indices assess factors like government stability, regulatory changes, and geopolitical tensions that could affect a country's willingness to honor its financial commitments. Financial risk indices, on the other hand, evaluate economic indicators and financial metrics to gauge a country's capacity to repay its debts.

In a Sense, Political Risk Indices Reflect a Country's Willingness