On Monday, March 16, the country risk was 3,869 points
This Wednesday, March 18, 2020, the country risk closed at 3,717 points, amid a drastic drop in the price of oil and a health emergency at the level caused by the spread of the coronavirus.
Since February of this year, the trend of increasing country risk has not decreased, despite the fact that days ago, President Lenín Moreno announced several measures to mitigate the impact on the economy.
Among the factors that harm Ecuador is the dramatic drop in the price of oil. This Wednesday, the barrel of WTI, benchmark for Ecuador, reached its lowest price since 2002 with a drop of 24%, reaching USD $ 20.37.
Yesterday, the country risk was at 3,476 and on Monday, March 16 at 3,869. This indicator measures the probability (risk) that a State may or may not pay the maturities of its obligations.
The coronavirus pandemic caused many countries, such as Ecuador, to take drastic measures to stop it from spreading the virus. This considerably affects the demand for oil, in a context of a price war between Riyadh and Moscow, after the failure of their negotiations in March at the last meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
The authorities announced the impact that the paralysis of the country will generate, due to the coronavirus. Among the most affected sectors is the flower grower and exporter.
Source: JP Morgan
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