Banks with large international credits
limit their concentrations of loans in any one country according to the
perceived "country risk". Country risk generally refers to economic and
political conditions existing in a country. In any case, a loan to the foreign
nation’s government or its agencies is generally safer than a loan to a
private-sector borrower. Even loans to governments may be unsafe, however,
because of what is called "sovereign risk". When foreign governments experience
economic or political pressures, there is a risk that they will divert resources
to the correction of their domestic problems at the expense of servicing their
debts to external lenders. In the 1980s, several less-developed nations
requested the rescheduling of bank loans at considerable sacrifice in interest
income to the banks involved. At the
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[单项选择]{{B}}Passage Three{{/B}}
Banks with large international credits
limit their concentrations of loans in any one country according to the
perceived "country risk". Country risk generally refers to economic and
political conditions existing in a country. In any case, a loan to the foreign
nation’s government or its agencies is generally safer than a loan to a
private-sector borrower. Even loans to governments may be unsafe, however,
because of what is called "sovereign risk". When foreign governments experience
economic or political pressures, there is a risk that they will divert resources
to the correction of their domestic problems at the expense of servicing their
debts to external lenders. In the 1980s, several less-developed nations
requested the rescheduling of bank loans at considerable sacrifice in interest
income to the banks involved. At the
[单项选择]Passage Three A. She is becoming older and older. B. Something is wrong with her eyes. C. The peace of the forest has been destroyed. D. Her living supplies are getting shorter and shorter.
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