Country risk

It is the credit risk of an investment, which does not depend on the solvency of the issuer but that of its country of origin. For example, there is country risk if there is the possibility that a State decides to suspend the transfer of capital abroad, blocking payments, or withdraw the public guarantee to an entity; some countries have even suspended interest and/or capital payments of public debt at one time or another. Country risk is practically non-existent in western states with stable currencies.