Sovereign risk can occur when the Government requires a flexible debt, debt, debt restructuring island or worse is the repudiation the repayment, causing great loss to the Bank for the loan.So, can clearly see the source and the subject of two types of risk is different: Country risk generated from the change in economy, politics, society of foreign countries. Still sovereign risk is created from the the Government of repudiation or not complete repayment obligations to the Bank.
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