Definition of sovereign risk in English English dictionary
(1) Risk of default on a sovereign loan; (2) Risk of appropriation of assets held in a foreign country
The risk that a host government may unilaterally repudiate its foreign obligations or may prevent local firms from honoring their foreign obligations Sovereign risk is often regarded as a subset of political risk
The special risks, if any, that attach to a security because the country of issuance is different than the country of the investor
Risk that a government or sovereign power will default on its payment obligations
The risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of FX contracts Also refers to the risk of government default on a loan made to it or guaranteed by it