El Salvador is on its way to regaining financial confidence

Country risks fell by 40 percent in the first half of 2023, according to information highlighted by the newspaper El Diario El Salvador, which considered it “a sign of the paradigm shift and the gradual recovery of confidence in El Salvador by the markets.”

The bulletin said that the repayment of the debt, which ended at the beginning of the year, represented an improvement in the country’s rating by two of the three international agencies that analyze this variable.

Now, as the data closes for the first half of this year, it is learned that this country reported a 40 percent drop in the Emerging Markets Bond Index (EMBI), when comparing the current record of 1,096 points with the number that closed in 2022 when it set 1 839, an example of the source.

Exor Latin America estimated that the fundamental reasons for this improvement are mainly due to a series of actions that demonstrate the government’s commitment to its international creditors.

The entity cited by the newspaper indicated that the fiscal deficit reduction and immediate recognition by institutions such as JP Morgan, along with the credit improvement implemented by Fitch Ratings and S&P Global in May 2023, allowed for a significant improvement in EMBI, the leading indicator of country risk that is His account is by JP Morgan Chase.

If this path continues, experts estimate that it will enter the field of “better credit and investment conditions”.

The data provided by El Salvador newspaper shows that the latest analysis of the risks of Latin American countries provided by Bloomberg indicates that El Salvador bonds were the most improved between January and June 2023.

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