The country risk fell again, this time by 73 points on April 17, in the context of the participation of the Minister of Economy in the spring meetings of the IMF.
This drop in country risk occurred when the Minister of Economy, Juan Carlos Vega, participated in the spring meetings of the International Monetary Fund (IMF) and the World Bank. The meetings have been held in Washington, United States, since April 16.
In addition, Vega has met with representatives of other multilaterals, such as with the president of the Inter-American Development Bank (IDB), Ilan Goldfajn, and with investors.
What affects country risk
The prolonged drop in country risk began to be recorded since President Daniel Noboa announced the increase in the Value Added Tax (VAT) from 12% to 15%, when he presented, on January 12, the then draft Law to Face the Armed conflict. Then, on March 7, 2024, the IMF confirmed that the Government asked to negotiate a new credit program with the multilateral.
Another factor that usually influences Ecuador’s country risk to decrease is when the price of oil improves, because it is an important source of income for the country.
Currently, the price of WTI oil, which serves as a reference for the barrel of Ecuador, began the day on April 17, 2024 with an increase of 0.63% and stood at USD 83.2 in the morning.
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