International investors feel more confident. For analysts, the change in the political situation of the country is viewed favorably and has been reflected in a lower country risk.
This indicator closed yesterday at 569 points, the lowest figure of the year. When Moreno came to the Presidency, the indicator stood at 700 points.
Country risk is an indicator that reflects a country’s ability to meet, on agreed terms, the payment of its external debt. The more a nation’s country risk level grows, the more likely it is to go into default
Thus, the price of Ecuadorean bonds has risen and, therefore, their interests have fallen from 0.5 to 1 point. When the uncertainty of the issuing country is less, the paper rises in price and its interest low, so borrowing at that time is usually more convenient.
In the case of Ecuador, according to economic analysts, multilateral organizations and financial institutions, there is a lower risk that Moreno´s government falls into default.
Ending with indefinite re-election or fighting corruption has been well received in the market and now international investors are returning to look favorably on Ecuador, says Ramiro Crespo, president of Analytica Securities, who participated in the annual meetings of the World Bank and the International Monetary Fund (IMF) last week. (I)