Country Risk Assessment: Risk Assessment of the Developing Countries‪.‬

INTRODUCTION International lending has become an integral part of the major U.S. Commercial banks. The recent surge in International lending and rescheduling has created both the opportunity for greater profit and exposed lenders to greater risk. The prime concern of the international bankers at this particular time, however, is the failure of the developing countries to repay their foreign debts on schedule. This failure was well publicized in August 1982, when billions of dollars in emergency credit was extended to Mexico. Since 1975, the number of countries in arrears on international repayments had risen from 15 to 68 by the end of 2003.