Debt rescheduling is the least common form of sovereign risk event.

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Debt rescheduling, also known as debt restructuring, is a common form of sovereign risk event. It involves the renegotiation of payment terms, such as extending the maturity of debt or lowering interest rates, in order to make them more manageable for the borrowing country. This can be done through negotiations with creditors or through the assistance of international financial institutions like the IMF.

Debt Rescheduling Is the Least Common Form of Sovereign Risk