Category: Bonds

The Andean Development Corporation (known as CAF in its Spanish initials) issued two sets of Samurai bonds worth $184 million. $138 million worth of three-year bonds are set to yield 6.96 percent at par, while $46 million worth of seven-year bonds will yield 15.72 percent. The sale was managed by Mizuho Securities and Nomura Securities. CAF’s principal shareholders are Venezuela, Colombia, Ecuador, Peru and Bolivia.

The Central American Free Trade Agreement (CAFTA) passed 25-16 in the influential Ways and Means Committee in the US congress. The bill now passes to the White House for review before going back to Congress for a final vote. CAFTA has become an explosive political issue in the US with Democratic leaders arguing it will cost jobs and will worsen the country’s already giant current account deficit. President Bush argues it will help US exporters and promises to sign it.

The Bush administration is pushing Congress to pass the US-Central American Free Trade Agreement (CAFTA), arguing the pact is necessary to ensure economic growth, freedom and democracy in Central America. The presidents of the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua were in Washington Wednesday and also encouraged Congressional leaders to ratify the agreement. CAFTA faces stiff resistance from US textile manufacturers and the country’s sugar industry.

US President George W. Bush urged congress to approve a free trade agreement with Central America (known as CAFTA) to help bolster US exports. Central America is the US’s 13th-largest export market, bigger than Russia, India and Indonesia combined, and the US is the biggest buyer of Central American products. Goods worth about $33 billion are expected to be traded between the US and Central America this year.