Gambling on country risk

Exporters look to export credit agencies (ECA) to underwrite the risk of default of payment from their counterparties. Which countries in Asia are most at risk? Jenny Plei, head of country risk for French ECA Coface, explains.

Q How is country risk measured

We assess the financial situation, political situation and the general environment that may impact on the payment ability of the corporate in the country. At Coface, we have developed our own rating where we estimate the average probability of default of the corporate situated in the country. This is important because at Coface we guarantee the payment of trade between two enterprises. It is a financial analysis.


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