Venezuela rated as high-risk country for investment

Complex risks, arbitrary policies and a wave of nationalizations have turned Venezuela, Ecuador, and Bolivia in countries with a high risk for investments, while other countries such as Peru, have improved as to economic stability and are viewed as moderately risky.

According to the 2008 Political and Economic Risk Map prepared by insurance company AON, disclosed Wednesday in Madrid, 25 out of the 50 world’s largest economies show a “high level of political and economic risk,” Efe reported.

Among the major risks, the survey pointed to exchange, economic and political risks as the key factors for decision-making in the business sector, as they provoke large loses among foreign firms and investors every year.

AON Credit’s Javier Valero said the political situation has deteriorated in some countries, and were placed under the category of high-risk countries in the map of the insurance company.

Among high-risk countries there are Venezuela, Ecuador, and Bolivia, where the major risk factors are present, including money transfers, strikes and social instability, political interferences in the economy, terrorism, war and unpaid debt.

According to Valero, in Venezuela, with six risk icons, there is a risk of “political interference” as “you have the sense that the State is warning it may take legal actions against business ownership.”

One Comment to “Venezuela rated as high-risk country for investment”

  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Tim Ramsey

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