PERU TODAY

A report published recently by UBS bank's research department identifies Peru as the country with the least financial risk in Latin America and the third highest level of secured external finance (solvency). The combination of both factors led UBS to highlight Peru's relative economic strength in the context of emerging market exposure to the financial crisis.

The study conducted by UBS analysed a number of financial risk indicators in 45 emerging markets: (ratio of loans to deposits in the banking system, evolution of this ratio in the last five years, credit/GDP ratio in the last five years, and net public debt as a percentage of GDP). It also measured exposure to both financial and trade external shocks by looking at the ratio of exports to GDP, balance of payments current account as a percentage of GDP, net external debt as a percentage of GDP, and by comparing net international reserves to toal external debt.

SOURCE: BCRP, El Comercio, Peru 21, RPP.