Despite full dollarisation of the economy, the liquidity risk in Ecuador is relatively elevated. In fact, plummeting oil prices that exacerbated fiscal and external weaknesses inspired a downgrade of the short-term political risk classification to category 6 (from 4) in January 2016. Since then, oil prices have somewhat rebounded, however, and the IMF indeed revised its oil price projections upwards in its July World Economic Outlook (compared to the April Outlook). Moreover, Ecuador secured IMF support to cover its most urgent liquidity needs following the devastating earthquake that struck the country in April 2016. These elements imply that the likelihood of a liquidity crisis has significantly reduced in recent months. As such, Credendo Group judged that the time is right to upgrade the short-term political risk classification to category 5 (from 6).
27 Apr 2020
Short-term political risk: multiple downgrades as emerging markets see liquidity squeeze amid covid-19 crisis
The current economic crisis provoked by the covid-19 pandemic combined with the commodity price shock is having a pronounced impact on the short-term ...
COUNTRIES : Албания о. Аруба Барбадос Белиз Чили Колумбия Эквадор Египет Фиджи Грузия Гренада Гайна Гондурас Ямайка Иордания Казахстан Кения Кыргызстан Малазия Мальдивы Мьянма остров Науру Македония Оман острова Палау Сент-Винсент и Гренадины Американское Самоа Самоа (Западное) Синегал Шри Ланка Тонга Уганда Вануату Бразилия Сент-Люсия