18:07 | Lima, Apr. 15 (ANDINA).
Peru ranks 18th in a new analysis by one of the world’s biggest fund managers of the risk to investors who buy government bonds.
With such position, Peru is the second country in Latin America with the lowest sovereign risk only behind Chile (10th) among other Latin American countries.
Thus, Peru has moved-up one spot in the ranking and its location is based on the ongoing economic growth, in addition to prudent macro economic management, sound fiscal accounts and appropriate capital flows.
The index aims to provide investors with a framework for tracking sovereign credit risk by assessing the government debt of 48 countries.
Norway, Singapore, Switzerland, Sweden and Finland are the least risky bond issuers and at the other end of the scale, also in descending order, Italy, Venezuela, Egypt, Portugal and Greece are reckoned to be the most risky.
The index breaks down the data into four main categories that each count toward a country’s final BSRI score and ranking: Fiscal Space (40%), Willingness to Pay (30%), External Finance Position (20%) and Financial Sector Health (10%).
(END) AQR/AQR/LOG
Published: 4/15/2013