Loans taken out abroad by countries with non-democratically elected governments which the successor government refuses to service (servicing: interest and repayment). For investors, therefore, securities from dictatorial states (even those with favorable terms) are extremely risky. – Foreign debt contracted by democratic states which a subsequent dictatorial government (such as the National Socialist government in Germany from 1933 onward) refuses to service. – See bond, distressed, banking crisis, Dawes bond, debt-equity swap, capital foreclosure, risk capital, transfer risks, securities, riskless, Young bond, tremor premium.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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