Why is access to credit can increase the risk of the country Bolivia
The improvement in country risk rating will enable Bolivia to have greater access to credit, but does not involve major investments in the international arena, said analyst and former finance minister, Armando Careaga.
The international Standard & Poor’s (S & P) upgraded yesterday the rating of country risk Bolivia’s B-/ C to B / B due to the reduction of external debt and high international reserves (U.S. $ 8,500 million), according reported yesterday by Finance Minister Luis Arce.
“Obviously you can go in Bolivia to loans from the World Bank or the Inter-American Development Bank with such qualification,” but “not the private market, because Bolivia has no input to that,” Careaga said.
Since 1980, Bolivia is not subject to credit for private international lending institutions because they had government debt after the period of military dictatorships, he said.
However, this classification does not imply greater investment to arrive from abroad, noted the expert. In addition, he said, “the image of nationalization is not in any way a good indicator for foreign investment.”
S & P considers Bolivia as a net external creditor, a situation that is accompanied by a steady increase in exports and a significant entry input options so their remittances, citing an official.
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