He risk country of Ecuador began today, Monday, February 26, 2024 below of the 1500 points. This had not happened for more than a year, since in December at 2,141 units, its maximum peak since 2020.
The country risk index, which measures the overprice what the State pays to finance itself in markets international Regarding the 10-year term United States sovereign bond, it is in 1 497 points. That it didn’t happen since February 8, 2023, when it was at 1,499.
This value has diminished at 644 points in just over two months. This through economic reforms undertaken by the president Daniel Noboawho took office on November 23.
When he is about to complete his first hundred days in office, Noboa has characterized himself by declaring the internal armed conflict to organized crime. A strategy to contain a wave of violence and unsafety without precedents. Likewise for taking steps towards achieving a fiscal stabilityafter registering last year a deficit of about 4.8 billion dollars, equivalent to about 5% of the gross domestic product (GDP).
The Ecuadorian president managed to push through a measure to move up the value added tax (IVA). It will go from 12% to 15% starting in April, with which it hopes to raise some 1.3 billion dollars annual.
In turn, Noboa has announced the launch in the coming months of a reduction focused of the subsidies to fuels. Last year they represented a state expenditure of about 3.2 billion dollars. The prices of 85 octane gasoline, the highest consumptionand diesel are kept frozen to the public.
Future situation
He has also raised the possibility of dilate the closing and dismantling period of the Block 43-ITT. One of the main oil fields located in the National Park Yasuníwhose cessation of exploitation was voted in a plebiscite national last year.
Before taking office, Noboa was also emphatic in pointing out the need to make changes in policy economic of the country so as not to follow a course that, according to their criteria, could cause the country to enter ‘default‘(non-payment of debt) in 2026 o 2027.
In a recent agreement valuation report credit culminated in December 2022, the International Monetary Fund (FMI) suggested Ecuador deepen the reforms that were left incomplete during the program, specifically the progressive elimination of fuel subsidies and tax reform. EFE
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