OPIC insures against currency inconvertibility
, expropriation and civil strife, and can also provide corporate financing.
Specific risks identified by respondent firms are related primarily to monetary factors such as high inflation rates, currency devaluation, and currency inconvertibility
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.
private investment in less developed countries by reducing risks, especially political risks (including currency inconvertibility
, expropriation, political violence, and terrorism), for U.
With cross-border M&As becoming more common, companies involved with transactions in emerging markets--and their financiers--face risks such as the expropriation of assets, currency inconvertibility
and acts of violence.
International policies generally cover losses due to political instability, currency inconvertibility
, embargoes, acts of war and natural disasters.
investors against losses that might arise from currency inconvertibility
Export credit insurance covers both political losses resulting from conditions such as war, expropriation and currency inconvertibility
and commercial losses resulting from insolvency or default.
However, a separate political risk policy had to be added to protect against the risks of expropriation, nationalization or currency inconvertibility
Widespread sovereign debt defaults on bank loans (principally in Latin America) produced a wave of currency inconvertibility
claims as well.
Asked about their companies' loss experiences, more than one-third had experienced transfer-risk losses, such as currency inconvertibility
or repatriation restrictions; 24% had suffered losses from trade risks, such as embargoes; 19% from political violence; and 18% from expropriation risks.