Transfer risk
Transfer risks are posed by government or central bank currency legislation that prevents the importer from effecting the necessary payments. Though the importer has deposited the necessary payment in their local currency, the central bank refuses to supply the equivalent foreign exchange.
Transfer risk includes a rescheduling of debt according to international agreements as part of the Paris Club, in which case debt payments due from countries in financial predicaments can be postponed by several years.
Version: 07.08.2008