Chile’s state-owned copper giant Corporacion Nacional del Cobre (Codelco) posted a net profit of $389 million for the first quarter of 2005, up 87 percent year-on-year. The company’s revenues rose $396 million to $2.26 billion, boosted by high copper prices. Copper prices on the London Metal Exchange stood at $1.48 per pound on March 31, 2005, up from $1.24 per pound in the same period a year earlier.
Category: Daily Brief
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Colombia: IMF Approves Loan
Colombia has received a $613 million loan from the International Monetary Fund as part of an agreement that commits the government to limiting growth in spending. The IMF agreed to let the government increase this year’s budget deficit target to 2.5 percent of gross domestic product from 2.3 percent. Colombia will stick to a budget deficit target of 2 percent of GDP for 2006.
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Salinas Pliego Could be Charged
Mexican Finance Minister Francisco Gil Diaz has asked prosecutors to bring criminal charges against TV Azteca Chairman Ricardo Salinas Pliego on allegations he used privileged information to trade shares. Mexican regulators separately fined Azteca, its chairman and board member Pedro Padilla $2.3 million for securities law violations.
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Santander Serfin’s Net Falls
Mexican financial group Santander Serfin, owned by Spanish largest financial holding Grupo Santander, posted a net profit of $142 million for the first quarter 2005, down 5.5 percent year-on-year. Santander Serfin’s credit portfolio expanded 20 percent and its market share stood at 17 percent at the end of March.
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Banorte’s Profit Rises
Mexican financial group Banorte posted a net profit of $98 million for the first quarter, up 78 percent year-on-year. The firrm’s profit from its core banking business totaled $81 million, up 99 percent. The Banorte group includes a bank, a brokerage house, a pension fund and an asset management fund.
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Codelco to Remain State-Owned
Chilean state-owned copper producer Codelco is backing away from the idea of selling stock to the public in a partial privatization. Executive President Juan Villarzú says he has given up on the idea he floated earlier this year, arguing that the government cannot alone finance the company’s multi-billion dollar investment plans. Codelco’s investment plan for the period 2005-2012 will cost $13 billion- $17 billion.
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Telesp Issued Debt
Brazilian mobile carrier Telesp Celular has begun offering R$1 billion ($411.5 million) in ten-year floating rate bonds in two separate tranches. The bonds will yield 3.3%-4.2% over the 252-day interbank rate. Banco Itaú is coordinating the sale with ABN Amro Real, Santander, Citibank, HSBC, BB Banco de Investimento and Pactual will as co-managers. The offering was rated ‘brAA-‘ by Standard & Poor’s.
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Vale Finds Partners
Brazil’s Companhia Vale do Rio Doce, the world’s largest iron-ore producer, and two Korean steelmakers announced they will invest $2.75 billion to build two blast furnaces in Brazil to meet rising demand for steel spurred by China’s economic boom. Posco, the world’s fifth-largest steelmaker, agreed with Vale to build a $2 billion, 4.5 million-metric ton a year mill in Maranhão state. Dongkuk Steel, Korea’s third-largest steelmaker, plans to join Vale and Italian steel-mill equipment maker Danieli to build a $750 million, 1.5 million-metric-ton a year mill in Ceará state.
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Argentina Begins Swap
Argentina has begun swapping defaulted bonds for new securities after overcoming legal challenges to the exchange that will end its four-year default. The debt exchange is a also condition for reviving a $13.3 billion loan accord with the International Monetary Fund, which abandoned talks almost a year ago pending the restructuring. Finance Secretary Guillermo said this month the country might resume selling international bonds after the restructuring.
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Brazil Primary Surplus Hits Record
Brazil’s primary budget surplus, which excludes interest payments, rose to a record R$12.26 billion ($4.9 billion) in March on strong tax revenues and government controls on social security spending. The surplus was 19% up on the same period last year.