Bolivia Country Risk Falls to 407 Points, Below Argentina and Ecuador
Bolivia's country risk fell to 407 basis points on August 13, 2026, slipping below Argentina and Ecuador as investors reward President Rodrigo Paz's reforms. The post Bolivia Country Risk Falls to 407 Points, Below Argentina and Ecuador appeared first on The Rio Times .
On August 13, 2026, Bolivia's country risk fell to 407 basis points, marking its lowest level in years and now placing it below both Argentina and Ecuador. Country risk measures investor nervousness about lending to a government, with a lower number indicating greater confidence. This significant shift occurred just months after President Rodrigo Paz took office in November 2025, signaling a turnaround for the country.
In 2025, Bolivia's risk had hovered between 673 and 424 basis points, with a peak of 2,242 points in April of that year. The drop to 407 points reflects easing investor concerns and aligns Bolivia with Argentina's 470 and Ecuador's 432 point risks. Achieved on the same day, this move underscores the positive impact of Paz's reforms, including spending cuts and efforts to secure external financing.
In practical terms, the 407-point risk means Bolivia pays about 4% more than U.S. Treasuries to borrow, but a lower number translates to cheaper loans and reduced pressure on public finances. The easing is largely due to confidence-building measures, such as eliminating a tax on dollar transactions and announcing 30% spending reductions.
While challenges remain, particularly in addressing the dollar shortage that affected families and businesses, the government's strategy aims to rebuild reserves and stabilize the currency market. Investors are clearly rewarding President Paz's efforts, as Bolivia's status as a speculative borrower improves.
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