Business Environment in Ecuador is unsafe

According to the Country Risk indicator, analyzed by the rating agencies Fitch, Standard & Poor’s, Moody’s and JP Morgan, the motivation of investors to fulfill businesses is determined by the ability of a State to meet its obligations and repay their loans.

According to the study published this year by Coface, an international network that provides credit insurance services, Ecuador has C rating, which means that the country’s economic environment is very insecure and of high risk.

Patrick Dykmans, senior consultant at PricewaterhouseCoopers (PwC) Business Advisors, says that the perception of insecurity directly affects loans and investments that could reach a country. “The rating reduces the universe of funders. And those who are willing to invest are based on the qualification in order to apply for a higher rate of their credit” says Dykmans.

The alternative posed by the industrial sector in order to overcome the low rating is that government policies must be aimed at establishing trade agreements “clear and convincing” with tariff facilities, long-term, allowing the buying and selling of products and services with strategic countries.

According the evaluation, made by Coface, Ecuador shares the category C with other South American countries such as Venezuela, Bolivia, Argentina and Paraguay, while the states of the region best placed are: Chile, Brazil, Colombia, Peru and Uruguay.