Moody’s Estimates a Detrimental of Peru’s Debt for 2019

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Several Latin American countries will experience an increment in their debt next year, according to Moody’s.

Peru will be one of the countries to experience a detrimental of its debt indices in 2019, according to a report from the risk rating agency, Moody’s.

They also added, according to RPP Noticias, that Peru will continue to maintain relatively high levels of fiscal space.

Other countries to experience a similar situation as Peru’s are Paraguay and Chile, said the report, cited by RPP Noticias, that also added that the financial situation of Latin American countries, in general, will continue to experience deterioration in the next two years due to a worsening of the 2015 and 2016 crisis in the region.

According to Moody’s, the countries that will be most affected because of the increment of their debt next year will be Brazil, Ecuador, and Argentina. Those that will have an increase in interests are Colombia, Argentina, and Ecuador.

RPP Noticias indicates that Renzo Merino, Moody’s Deputy Vice President, thinks that if the debt worsens, the amount of Latin American countries that will be able to respond to the possible new crisis will be limited.

The report also points out that Brazil, Colombia, and Costa Rica are the governments with less relative fiscal space in the region.

“We estimate that the levels of debt will be on average about nine percentual PIB points higher in 2018 and 2019”, considers Merino.

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(Cover Photo MaxPixel)

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Ermelinda Maglione

Ermelinda is a journalist from Caracas, Venezuela. She has a Master’s degree in Digital Journalism and has recently finished a technical degree in Veterinary Assistance because of her love for animals. She likes to do sports, but especially ballet, which she has practiced for more than 17 years. Her passion is to read, write, and blog about different topics, as well as travel whenever she can.