Latin American Economy & Business - February 2018 (ISSN 1741-7430)

The government tapped capital markets on 9 January, raising US$3bn, in the fourth bond issuance in under a year. Given a still-large fiscal deficit and relatively high external financing needs, the authorities remain reliant on debt issuance to close its financing gap. The fact that this most recent issuance was at better terms than previous bond sales augurs well, while President Lenín Moreno’s subsequent win in a referendum on constitutional reform is another indication of a shift to the centre, both in terms of political and economic policy-making.