Argentina has refused to pay loans made to it by foreign institutions three times. This is an example of

Question

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Argentina's refusal to pay loans made to it by foreign institutions is an example of sovereign risk. Sovereign risk is the risk that a national government will default on its sovereign debt obligations, which includes loans made to the country by foreign institutions. This can occur due to political instability, economic turmoil, or other factors that make it difficult for the government to repay its debts.

Argentina Has Refused to Pay Loans Made to It by Foreign