REUTERS
Venezuela, Greece and Ukraine have topped the ranking of the countries with the world's riskiest sovereign debt, according to Business Insider.
Sovereign credit-default swaps have been used as a type of insurance against sovereign governments not paying back the money they owe. As with any insurance product, the more expensive it is, the more likely the event you're insuring against will happen soon, according to the report.
Bank of America's map uses the prices of credit-default swaps, which are derivatives that pay out if a borrower defaults.
Venezuelan debt is by far the most risky, costing twice as much as Greek or Ukrainian debt to insure. They are followed by Pakistan and Egypt. Cyprus has been ranked the sixth, followed by Russia (ranked the seventh), Brazil (ranked the eighth) and Kazakhstan (ranked the ninth). Turkey rounds out the top ten riskiest countries.
While Germany, Switzerland, Sweden, USA, UK, France, New Zealand, Australia, Japan and South Korea are ranked among the most stable and creditworthy countries.
As UNIAN reported earlier, a Ukrainian delegation led by Ukrainian Finance Minister Natalie Jaresko and the ad hoc creditors' committee held detailed discussions while meeting in San Mateo, California, the United States on August 11-12, and their talks on the terms of Ukraine's debt restructuring were still underway.