He country riskcollapsed in a few days after the non-approval at the polls of the PIT-CNT plebiscite about social security, consolidating Uruguay as the country with the lowest sovereign spread in the region.
The drop in the indicator coincides with the fact that last Sunday the white ballot, which generated concern among investors and whose negative effects on the economy were warned by political leaders, economists and business leaders.
One of the sharpest setbacks occurred in the Risk Index that makes the Uruguayan Electronic Stock Exchange (Irubevsa), which closed the week at 73 basis points, which represents a decline of 17.05% compared to the 88 points on the Friday before the general elections.
Furthermore, the indicator that measures the debt yield spread of Uruguay in dollars regarding the debt of United States (US Treasuries), it fell 24.74% in the last few days and 35.96% from its August 2 high.
In parallel, the Uruguay Bond Index (UBI) of AFAP Republic showed a similar level and is located at 73 basis points, touching minimum values since the end of August and far from the 85 with which it had closed last Friday.
Uruguay’s country risk is the lowest in the region
In turn, the Emerging Markets Bonds Index (EMBI), from JP Morgan, which compares the indicators of the entire region, was located at 0.85, so that, although it marks a level higher than previous levels, it remains far from the 1.06 at the beginning of August and even reached 0.81 on Wednesday.
This way, Uruguay consolidates itself as the country in the region with the lowest level of country risk, followed by Chili, with 1.16, and a little further by Paraguay (1.53) and Peru (1.56), as measured by JP Morgan.
From behind they appear Guatemala (1.99), Dominican Republic (2.04), Costa Rica (2.08), Panama (2.69), Mexico (3.07), Honduras (3.35), Colombia (3.37) and El Salvador (5.23). The worst in the class continue to be Argentina (9.84, despite a sustained reduction in recent weeks), Ecuador (12.54), Bolivia (18.53) and Venezuela (196.81).
Source: Ambito
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