Brazilian economy minister Paulo Guedes announced on Thursday that pandemic emergency cash payments to the vulnerable will be extended, but with compensating cost-cutting measures to avoid bankrupting public finances.
Fitch Ratings, one the world's leading credit rating agency has confirmed Uruguay's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-', however with a Negative Outlook, despite the country faring much better than its neighbors.
Ecuador received a temporary reprieve over the weekend when the government announced that a sufficient number of investors had agreed to a consent solicitation to defer interest payments.
An improvement in Brazil’s sovereign credit rating hinges more on stronger economic growth than lower interest rates, rating agency Moody’s said on Tuesday, urging economic reform and the shoring up of public finances.
The Brazilian government posted a fiscal surplus of 46.9 billion reais (US$ 12.5 billion) in January, the central bank said, above forecasts but unchanged from a year earlier. In Brazil, January is traditionally marked by higher tax revenues and lighter spending, so these figures do not change the fragile outlook for public finances, analysts said.