MercoPress. South Atlantic News Agency

Chile's country risk in new historic minimum

Chile's country risk dropped to a new historic minimum, 55 basic points. This is one point below July 29 last record and nine points below the end of 2004.

According to risk assessment agency JP Morgan Chile's five sovereign bonds have spreads below 53 basic points: the 2007 issue 37,36 bp; 2008, 37,45 bp; 2009, 48,85 bp; 2013, 50,02 bp and 2012, 52,52 bp.

The risk rate of a country is the bonus Chilean sovereign bonds must pay compared to US Treasury bonds interest rates, considered the most trustworthy in the world.

In Latinamerica Chile is followed closely by Mexico which has a rate spread of 148 bp; Peru figures in third place with 157 bp; Colombia fourth, 302 bp; Uruguay with 346 bp; Brazil, 382 bp; Argentina with 400 bp; Venezuela 413 bp and Ecuador, 700 bp.

The risk rate is a sign of international investors' confidence on the economic future of a country.

The lower the country risk, the cheaper is the access to credit or financing.

Saddled on this positive assessment the Chilean peso continues to appreciate and closed Wednesday at a new record 542/543 pesos against the US dollar.

So far this year the Chilean peso has revalued 2,8% while in 2004 appreciation totalled 6,5%.

"The peso is operating stronger because the US dollar has been dropping in international markets particularly against the Euro and the Brazilian Real, which are the currencies most monitored in Santiago's money markets", said Patricio Mella from Investments JC Tour.