International investors rated Venezuelan bonds more risky than Argentina’s

Argentina’s bonds – the country that received in last three years USD 7 billion funds in total from Chavez government, are rated less risky than Venezuelan bonds by international investors. Week before the President Hugo Chavez supported Argentinean bonds and stated that alike of United States, Argentinean bonds are not useless items and Argentinean government compensated an overblown interest rate of 15 percent to Venezuela to receive in investment amount of USD 1 billion.

Last Wednesday country risk premium closed at 6.75 percent for Venezuelan bonds however it closed at 6.51 percent of Argentina’s. Country risk premium is a marker measuring the spread linking the yield an investor demands in order not to buy US Treasury bonds and purchase in its place Venezuelan bonds.

Amid the chief economies of Latin America Venezuelan bonds has the maximum country risk.

Brazil’s spread is 2.28 percent, Peru’s 1.88 percent, Mexico’s 1.74 percent Colombia’s 2.10 percent which are lower than Venezuela.

According to analysts in order to attain growth, borrow international funds at lower rate and to attract universal investors it is essential for growing country should have low risk sensitivity.