Andina

Peru: Country risk at 167 basis points

17:27 | Lima, Jun. 7.

The EMBIG Peru spread registered 167 bps, while the EMBIG Latin America spread dropped 10 bps to 363 bps between May 26 and June 2, the Central Reserve Bank (BCR) has reported.

It means that the Peruvian indicator remained below the regional average.

According to the issuing entity, this result came amid optimism about the global economic recovery and a higher appetite for risk.

About 

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) NDP/RMB

Published: 6/7/2021
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