RIZIK ZEMLJE I KRIZA DRŽAVNOG DUGA ZEMLJE U TRANZICIJI/ COUNTRY RISK AND SOVEREIGN DEBT CRISES OF THE TRANSITIONAL ECONOMY

Abstract

Noticeable imbalance and disorder powerful flow of financial flows between the institutional sector and the flow of real flows, and focus on the financial market to a very large extent provides opportunities for seeing the sovereign debt crisis and the impact on country risk, especially in countries in transition. The global financial crisis, in their nature, and the recession that accompanied it spillover it was transformed into a sovereign debt crisis, emphasized in the transition countries. With the analytical approach was intended to shed light on the major imbalances that threaten others, which emphasizes general danger with changes in circumstances. Through the research process pointed to the problems posed by too rapid globalization, internationalization and new financial products, but also a permanent decline in demand and a reduction of interest of foreign investors in the undeveloped capital markets, especially in the transition countries. Precisely, the internationalization of business increases the significance of country risk as a synthetic expression that includes political and economic risks. The result of research is reflected in the efforts of the regulatory authorities that in the circumstances of the sovereign debt crisis to ensure stability of the overall financial system of the transitional economy.