A. M. 
El Salvador closed 2025 with a country risk of 328 points, a score that places it in a better position within Latin America and reflects a more favorable perception by international markets of its ability to meet its sovereign debt payments. This level places the country below economies such as Ecuador, Argentina, and Bolivia, and closer to the group of nations with the lowest risk in the region.
This behavior is explained, in part, by greater stability in the Salvadoran debt market. When investors perceive lower risk, bond prices tend to rise and yields tend to fall, which reduces country risk. This means that El Salvador has managed to maintain the interest of international markets in its financial instruments.
According to Bloomberg Línea, compared to other countries in the region, El Salvador remains in a favorable middle ground, above economies considered safer, such as Chile, Uruguay, or Peru, but with a better perception than countries with higher levels of financial uncertainty. This middle ground reflects a balance between risk and return that is attractive to certain investor profiles.
Country risk is a key indicator for measuring investor confidence. In simple terms, it shows how much more a country must pay in interest to finance itself compared to the United States. The lower the score, the lower the cost of borrowing and the greater the market confidence. In the case of El Salvador, the 328 points indicate a reduction compared to previous periods and a compression of yields on its sovereign bonds during 2025.
The country risk indicator is calculated using the EMBI (Emerging Markets Bond Index), compiled by JPMorgan Chase, one of the world’s leading investment banks. This index compares the yield on sovereign bonds from emerging countries with that of US Treasury bonds. If the spread is lower, it means that the country needs to pay less interest to attract financing.
For El Salvador, keeping country risk at contained levels has direct implications for the economy. A lower score facilitates access to external financing on better terms, reduces pressure on public finances, and improves the climate for foreign investment. It also sends a signal of greater confidence in the government’s economic management and ability to pay.
El Salvador’s country risk performance in 2025 confirms that the country has managed to maintain a more stable perception in international markets. Although challenges remain, the current level of the indicator represents an advantage over other countries in the region and a key factor for debt management and attracting capital in the medium term.
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