Ecuador’s country risk plummeted again and closed at 1,290 on March 6, following market optimism regarding Ecuador’s intention to sign a credit agreement with the IMF.
This indicator is made by the investment bank JP Morganwhich shows Ecuador’s intention to pay its external debt and not fall into default.
The fall that the indicator has had so far reflects the market’s optimism regarding the good management of the country’s economic policy.
Reasons why the country risk decreased
- The increase in VAT to 15%, achieved by Noboa through the Internal Armed Conflict Law, which will go through the ministry of law.
- President Daniel Noboa’s announcement of the intention to sign an agreement with the International Monetary Fund (IMF).
Confirmed today, March 7, 2024, the IMF communications director, Julie Kozack, confirmed that the Government of Ecuador has already formally requested the start of negotiations to access a new loan with this multilateral organization. The amount to be disbursed by the multilateral organization would be pending.
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