An imminent shift to more prudent macroeconomic policies to address Venezuelas chronic imbalances and reduce oil dependency risk is unlikely, say ECRs expert contributors, following Chavezs death on Tuesday.Low and declining levels of FDI in the country and rising domestic tensions heap on near-term risks, according to Pascaline della Faille, analyst at ONDD. In general, market analysts expected the announcement of president Hugo Chávezs death sooner rather than later as such, the recent events in the country were priced in by market analysts. This is reflected by a tightening of Venezuelas yields in the last month and a bottoming out of the countrys ECR score, which plunged nine places in the ECR rankings in 2012.
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