The EMBIG Peru spread increased 23 basis points to 214 bps between March 8 and 15, the
Central Reserve Bank (BCR) has reported.
According to the BCR, the interest rate on 10-year Peruvian sovereign bonds, which increased by 39 bps between March 8 and 15, remains one of the lowest in the region.
The country risk measures the ability of a country to meet its financial obligations and the implicit political risk and, based on that, receives an international credit rating.
The main consequences of a high country risk are a drop in foreign investment and lower economic growth, which could lead to unemployment and low wages.
This is an orientation index for investors, because it indicates the risk of doing business in a country is more or less high.
It should be noted that the higher the risk, the less likely projects obtain a return in accordance with funds; and the lower this index is, the more attractive the country will be to investors.
The index is measured based on the difference between the spread of Peru sovereign bonds over yield of U.S. Treasury bonds.
(END) RMB
Publicado: 19/3/2023