The money network:

The money network:

Why crowdfunding threatens traditional bank lending

China’s $1.7 trillion hangover

China’s $1.7 trillion hangover

Up to 40% of China’s $1.7 trillion LGFV loans are at high risk of default. What’s a panicking Beijing to do?

May 1996

Country risk May 1996: three years of growth


Euromoney took a good look at the past three years' country risk rankings to see how the world has changed. Lebanon is the most improved country and transition Europe is rising fast. Charles Piggott and Felix Salmon report.


The world is doing well. Euromoney's rankings show that the risk score of the average country has climbed rapidily: from 43.56 in March 1993 to 50.72 in March 1996. Of all our subdivisions, only North America (which excludes Mexico) has gone down. The big winner is transition Europe ; its average has jumped from 25.27to 41.48 in the past three years. Much of this can be put down to increased reporting to the IMF and World Bank, but the developing world also looks like it's having an extremely good run. As the charts on page 116 show, there is a close correlation between Euromoney's ratings and capital flows. The IMF recently concluded that "country credit ratings... have influenced both the flow of capital to developing countries and the risk premiums associated with the flows". As private lending and investment to developing countries increase, country credit worthiness will play a larger...


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