http://194.242.113.59/index.php?id=1103&L=0&print=1
Definition of Sovereign risk:
SOVEREIGN RISK: financing made with the national government as contracting party. This is normally less risky than dealing with sub-sovereign bodies or local private companies (depending on the creditworthiness of these bodies). However, lenders are exposed to such acts of government as expropriation, transfer restriction, contractual and regulatory interference, breach of contract, devaluation and sovereign default, as well as political instability and civil commotion. Some of these risks can be insured, e.g. through the Multilateral Investment Guarantee Agency of the World Bank.
ps. ATI will be forming a jv with the National Body.
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