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Emerging MarketsEM LatAm

El Salvador and Costa Rica rally on IMF hopes but risks linger

Costa Rica, fruits, sweet, LatAm, market, Central America, 575

International bonds issued by El Salvador and Costa Rica are proving to be a sweet spot for EM investors, with the notes extending their rally this week as both countries look closer than ever to signing IMF programmes. But there are risks to the positive credit narratives driving the performance of both sovereigns, analysts warned.

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