Peru: Country risk down to 128 basis points

Photo: Courtesy

Photo: Courtesy

09:04 | Lima, Feb. 9.

The EMBIG Peru spread fell 4 bps to 128 bps, while the EMBIG Latin America spread rose 10 bps to 396 bps in January 2021, the Central Reserve Bank (BCR) has reported.

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

According to the issuing entity, the result came in a context marked by increased coronavirus infections, new mobility restrictions, and the approval for the use of the AstraZeneca vaccine in Europe.


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.


Published: 2/9/2021
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