These include confiscation, expropriation or nationalization of assets, contract termination, license termination and embargo, currency inconvertibility
or nontransfer of payments and wrongful calling of "on demand" guarantees.
OPIC insures against currency inconvertibility
, expropriation and civil strife, and can also provide corporate financing.
With political risks such as currency inconvertibility
or creeping expropriation added, some emerging markets present truly formidable barriers.
One can visualize the political risks, such as the expropriation of assets, currency inconvertibility
, war and acts of political violence, confronting deal-makers and the banks financing such mergers, acquisitions and joint ventures.
Second, it covers the broadest spectrum of politically related exposures, including confiscation, expropriation, naturalization, and deprivation, as well as currency inconvertibility
This can be endorsed to include currency inconvertibility
, forced divestiture, forced abandonment, political violence and failure to honor a sovereign guarantee.
Best practice in country risk and Basel II Theories of crises Stress-testing Measuring state stability and political risk Country risk and the private sector Country risk indicators and early warning systems Currency inconvertibility
Pricing of political risk
CEND options include political violence, currency inconvertibility
and cross-border war coverage.
The new product is designed to cover bond offerings by emerging market issuers against currency inconvertibility
and currency nontransfer risks in the issuer's country.
Leading practitioners, academics and economists discuss topics such as: - Best practice in country risk and Basel II - Theories of crises - Stress-testing - Measuring state stability and political risk - Country risk and the private sector - Country risk indicators and early warning systems - Currency inconvertibility
- Pricing of political risk Author contributions from the following organisations are included: - ABN Amro - Aon Political Risk - Duke University - Bank for International Settlements - Oxford Analytica - Fitch Ratings - The World Bank and many more
Under CEN, additional coverage can be obtained for instances when the insured's own government forces the company to abandon or divest its foreign operations or for currency inconvertibility
, civil war and insurrection.
Underdeveloped capital markets, capital controls, currency inconvertibility
and strict licensing requirements create a thorny wealth investment environment for HNWIs looking to invest and for wealth management providers aiding in the process.