Macroeconomy/Finance

Moody’s: Political risk and weak growth will affect Bolivian banking

On Bolivia, Moody’s reported : GDP growth will slow due to increased political risks. Fiscal deficit and foreign exchange buffers may continue to deteriorate as budgetary and current account deficits remain large. This situation, in turn, will affect banks’ business prospects and put pressure on the risk of their assets and financing and liquidity profiles. The rating agency noted that loan mandates and interest rate limits would limit the ability of financial institutions to set risk prices appropriately.

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Source: Pagina Siete