Question

Which is the riskiest and least risky country to lend to?

Answer 1

Riskiest country to lend to is Venezuela because it is having a high amount of inflationary cycle in its economy and the overall value of the currency has hugely depreciated and civil wars in the country so there are not any possibility of recovery of the loans from Venezuela because of its destroyed economic structure and failed economic activities.

Least risky country to lend to United States of America because United States of America is having a very adequate and efficient system of recovery of tax and the government is also highly solvent and it is also having a very prosperous visibility of the future and there is a potential of the economy to outperform the current market as well and it has a higher amount of significant strength in the dollar so it can even devalue the dollar in order to pay the debt, so it is having a very high credit repayment ability.