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The country risk index rose from 393 to 405 basis points on September 3 since the publication of the narcovideo.
Honduras’ country risk rate has risen 12 points following the denunciation of the Extradition Treaty with the United States and the drug trafficking scandal involving the former Secretary of the National Congress, Carlos Zelaya.
The country risk rate is defined as the degree of economic and political stability of a nation.
According to the Emerging Markets Global Bond Index (Emby) compiled by JP Morgan, Honduras’s rate rose from 393 to 405 basis points on September 3 since the video was published.
Given the current climate in Honduras, this percentage could increase, which could result in chaos, according to businessman Amilcar Bulnes.
“The chaos is even worse. We are already living through difficult situations and we do not need more,” he told TN5. In this regard, he recommended that both government and opposition politicians “calm down” the country’s conflicts.
https://www.gurutrends.com.ng/watch?v=Y6P3EwQRJd4
According to economist Ricardo Matamoros, this increase in the risk rate “reflects the fact that markets and investors perceive the national context for these investments in a negative way.”
The current situation in Honduras has led to the country being described as a narco-state that does not inspire confidence, according to the former president of the College of Economists, Luis Guifarro.
“It gives rise to the belief that what we have had and what we have today is a narco-state. This increases the country’s risk and in the whole context that favours investment, there is no encouraging news,” he said.
What is the country risk index?
Country risk is an index that measures the debt payment possibilities that a country may have and the higher this index is, the higher the active interest rates (debt) will be for a country, its banks and companies for international markets.
