PRIMA DE RIESGO Y DEUDA PÚBLICA

Abstract

The purpose of this paper is to illustrate how the logic of the global financial market negatively affects the debt sustainability
of developing countries, showing that the valuation of the risk premium based on current financial indices necessarily determines an acceleration of the cost of sovereign debt that hinders the economic growth of these countries. A qualitative analysis of documentation also analyses the different alternatives proposed by the international community that promote eradicating or mitigating the negative impact of the risk premium on sovereign debt. Finally, it concludes on the necessity and
feasibility of these alternatives, although recognizing that the success of its implementation depends on the economic-political scenarios in which they are introduced, and on the fair and equitable participation of developing countries in its formulation.