Sovereign Environmental Risk

The rest was due to an 18 decline in deposits, with the loss of confidence mainly hitting state owned banks.

Traditionally, sovereign risk has been concentrated in emerging market economies.

Eurozone sovereign debt turned out not to be homogenous with respect to risk.

The country s sovereign rating is AA , not AAA, as it was 16 years ago.

The financial and economic crisis is morphing into a sovereign debt crisis in advanced countries.

This, I believe, is why America is so opposed to a quick transfer of sovereignty to Iraqis. A truly sovereign Iraq might well tell the US to withdraw from the country.

A truly sovereign Iraq might well tell the US to withdraw from the country.

Sovereign debt has been a major feature of the international financial system for centuries.

A Moscow city councilman is trying to resuscitate a government push to expand Russia s digital sovereignty.

With more than 40 trillion of sovereign debt in global markets at any given time, that is a very high risk game.

But when private creditors hold sovereign debt, organizing them creates a new challenge with each episode.

In the eurozone, the problem is member countries sovereign debt in China, the problem is borrowing linked to local governments.

As a result, sovereign risk today is a greater problem in advanced economies than in most emerging market economies.

But that begs the question why should an involuntary restructuring lead to worse contagion than a voluntary restructuring of comparable depth? If the banking system were well regulated, with banks holding sovereign debt having purchased insurance, an involuntary restructuring should perturb financial markets less.

If the banking system were well regulated, with banks holding sovereign debt having purchased insurance, an involuntary restructuring should perturb financial markets less.

So ill, in fact, that Standard Poor s recently cut its sovereign credit rating the country s second downgrade in less than two years.

If the EU wants a monetary union in which sovereign debt is relatively homogenous with respect to risk, fiscal discipline must be similarly homogenous.

Financial markets have reacted so strongly because investors now comprehend that sovereign debt is the debt of a sovereign that can simply decide not to pay.

WASHINGTON, DC Sovereign debt has been back in the news recently, this time because of a United States Supreme Court ruling concerning Argentine debt.

Because many banks hold a large volume of eurozone government debt, the results will depend very much on how the ECB assesses sovereign risk.

Once Japan s sovereign debt market becomes unstable, refinancing difficulties will hit domestic financial institutions, which hold a massive volume of public debt on their balance sheets.

Finally, sovereign risk is rising consider the troubles faced by investors in Dubai, Greece, and other emerging markets and advanced economies.

It would be unfortunate if governments requiring financial institutions to be more prudent in managing risk were at the same time asked to turn a blind eye to sovereign risk.

The European Commission s claim that this slowdown reflects high sovereign default risk, rather than fiscal consolidation, is belied by the UK, where the sovereign risk is deemed by markets to be virtually nonexistent.

Another organization that doubts the possibility of enacting the reforms required for such assistance is the international rating agency S P, which on Friday lowered Ukraine's sovereign credit rating by one level, from B to B .

Even if this sounds unfair, it is logical to expect rating agencies, which had been lax in evaluating credit risk, now to be rigorous in assessing all forms of risk, including sovereign risk.

Absent external assistance and a credible plan for restoring fiscal order, Greek sovereign debt could not be rolled over, forcing a default, probably in the form of a restructuring of Greek debt.

Moreover, financial crises triggered by excessive debt and leverage in the private sector are followed after a few years by sovereign defaults and or high inflation to wipe out the real value of public debts.

The result will be chain reactions similar to those seen in Europe s sovereign debt crisis, with a vicious circle of sovereign and bank debt leading to credit rating downgrades and a sharp increase in bond yields.