Uruguay has, for months, held the lowest country risk in Latin America with 120 points and its EMBI spread prepared by JP Morgan is the smallest, reaching 1.21.
The value, which arises from the difference between the interest rates of the bonds in Uruguayan dollars and those of the United States Treasury, is, however, the highest in the last month, according to the historical series prepared by the international bank. Riskier bonds pay higher interest, therefore the spread is higher.
Compared to other Latin American countries, the spread of the Emerging Markets Bond Index (EMBI) of Uruguay is almost 24 times lower than that of Argentina (25.01) and 369 times less than Venezuela (370.72), the nation with the highest country risk in the region, above 37,000 points.
In the case of Brazilthe spread is 2.68, while Chiliwith historically low and stable indicators, is the closest to Uruguay with a level of 1.60.
The national measurement of country risk in Uruguay, carried out by the Uruguay Bond Index (UBI) that elaborates AFAP Republic, rose 1 unit on Friday and closed at 107 basis points. The increase occurred with an increase in the price of Uruguayan bonds in dollars, as well as US Treasury bonds.
That indicator already up 24 basis points so far in March and 37 units so far this year.
Last December, the Uruguayan country risk reached its minimum in 23 years, reaching 75 basis points, a drop driven mainly by the fiscal sustainability that the public accounts showed. Since República AFAP began measuring its UBI index in 1999, the country had never reached such low levels.
Source: Ambito
