Peru: Country risk fell to 148 basis points

COP20 Centro Financiero Lima San Isidro Surco

COP20 Centro Financiero Lima San Isidro Surco

09:00 | Lima, Sep. 15.

The EMBIG Peru spread fell 2 bps to 148 bps, while the EMBIG Latin America spread increased 14 bps to 477 bps on September 2-9, the Central Reserve Bank 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 economic stimulus measures in several countries, as well as tensions between China and the United States.


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: 9/14/2020
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