The different indicators that measure the risk country of Uruguay are at historical lows, which could be translated as the confidence of the market in the direction of the economy, which will bring good news for public coffers.
For example, him UBI (Uruguayan Bond Index) that elaborates AFAP Republic It is at 67 basis points, below the 68 registered yesterday, which had equaled the record it had held since December 27, 2022, according to the economist. Aldo Lema.
At the same time, the Uruguay Risk Index that elaborates the Electronic Stock Exchange of Uruguay (Irubevsa) It is at 80 basis points, after the 7 basis point decline of today’s session.
In turn, the EMBI of JP Morgan is at 83 basis points and the CDS (Credit Default Swap) at 10 years is at 100 basis points, observed Motto, by highlighting the Uruguayan situation internationally.
The positive effects for the Uruguayan economy
the economist Amparo Merchant, partner of the prestigious consultancy PwC, also highlighted the situation and noted that “the risk country of Uruguay It’s at a record low.” At the same time, he considered that the situation will bring “hundreds of millions of dollars of interest savings to the State per year”, to which the “appreciation of outstanding bonds” will be added.
When investigating the reasons for the fall of the country risk, Merchant considered through his X account (formerly Twitter) that “one of the reasons is the very high ESG rating (Environmental, Social and corporate Governance, which means environmental, social and corporate governance)”, which implies “a great international demand for its debt”, he analyzed.
Along the same lines, he appreciated that in the recent summary of the Debt Office the country appears first in the ranking on the IS G rating of emerging countries. “With the investment in hydrogen, Uruguay it will continue to lead the table”, predicted the economist.
How was the behavior of Irubevsa during the month of July?
According to Bevsa’s monthly bulletin, the Irubevsa, which measures the yield spread of the debt of Uruguay in dollars with respect to the debt of USA July ended at 82 basis points, so its decline was maintained during August, closing at 80, in 2023, which went from stable to downward.
When analyzing what happened in July, from the Uruguayan stock market stated that the slight decrease was the result of increases in the spreads from 6 months to 8 years of the curve cud relative to the curve UST and of reductions in the spreads from year 9 to year 30 (with the exception of the 15-year node, which remained stable).
At the same time, they highlighted the significant drop compared to last year’s values, since in July 2022 the Irubevsa reached 143 basis points.
Source: Ambito
