The risk of potential loss of interest and principal on international loans due to borrowers in a country refusing to make timely payments, as per the loan agreement is known as what type of risk?
A) International risk
B) Foreign risk
C) Continent risk
D) Country risk
E) Government risk

Question

Quizplus · Accepted Answer

Country risk refers to the risk of potential loss of interest and principal on international loans due to borrowers in a country refusing to make timely payments, as per the loan agreement. It can arise due to factors like economic instability, political instability, or changes in government policies. This risk can be mitigated by conducting thorough risk assessments and due diligence before granting loans to borrowers in a particular country.

The Risk of Potential Loss of Interest and Principal on International