Peru’s country risk indicator, measured by the EMBIG Peru spread, fell from 146 to 144 basis points in September 2-9 this year, reported Monday the Central Reserve Bank (BCR).
Thus, Peru’s country risk has remained below the Latin America’s average that closed at 388 basis points at September 9.
The EMBIG Latin America spread rose 15 basis points amid concerns about the results of the Scottish independence referendum and about the possibility that the European Union will impose new sanctions to Russia.
Peru’s country risk has fallen 17 basis points so far this year since the 2013 closing of 161 basis points.
The country risk measures the ability of a country to meet its financial obligations and the implicit political risk, and based on that, the country 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 that the risk of doing business in a country is more or less high.
The JP Morgan's EMBI (Emerging Markets Bond Index) is used to assess the stability and perceived risk in emerging economies.