(Reinstates dropped word 'million' in para 8)
By Rodrigo Campos
NEW YORK, March 17 (Reuters) - Bolivian government bond
spreads, a reflection of how risky investors see them, have
opened to the widest on records going back at least a decade, as
the South American country battles against a sharp fall in
foreign currency reserves.
The spread, or premium demanded by investors to hold
Bolivian debt compared to similar U.S. paper , shot
past 1,000 basis points this week, up from 550 bps at the start
the year and 750 bps earlier this month.
That came after worries about sliding central bank reserves
triggered lines outside banks as savers feared a shortage of
dollars and put pressure on the pegged currency. It led Fitch
Ratings to downgrade Bolivia's debt earlier this week while S&P
Global warned of an upcoming downgrade.
Reserves have fallen steeply from over $15 billion in 2014
to $3.5 billion last month as gas exports dwindled, inflation
heated globally and amid increased public spending. Recent bank
failures in the United States dented global confidence further.
Bolivia is in a group of countries with declining reserves
and "which are less able to withstand a sudden stop in capital
flows," said Tellimer in a research note this week highlighting
implications for emerging markets of the current bank crisis.
Data show a reverse to outflows in EM portfolios this month.
The local boliviano currency has traded in a pegged
rate of 6.96/6.86 per dollar since 2011, but the shortage has
seen it fall close to 8 per dollar in unofficial markets.
That said, the Andean country's marketable debt totals about
$2 billion in just three notes, with under $185 million
outstanding in one maturing in August . A $1
billion note matures in 2028 and there is $850
million outstanding in a 2030 bond .
The central bank lists over $10 billion more owed to
multilateral, bilateral and private creditors as of October.
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Bolivian debt spreads jump on liquidity concerns Bolivia: Reserves fall Bolivia: Reserves fall (Interactive) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Rodrigo Campos; Editing by Adam Jourdan, William
Maclean)
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