Latin America issues $42 billion in bonds as country risk penalizes the 'popular South'

Sovereign debt issuance by Latin American governments in international financial markets reached $42 billion in the first eight months of 2026.

However, the EMBI+ (Emerging Markets Bond Index) country risk index, a tool developed by JPMorgan that measures the interest rate premium a country pays to borrow relative to the United States, reveals an abysmal gap: while nations with conservative policies such as Chile and Uruguay pay preferential rates with spreads of just 120 and 110 basis points, economies that seek sovereignty such as Ecuador, Bolivia and Venezuela face financial penalties above 1,100 basis points.