The IMF says it has completed its second review of El Salvador’s economic performance as part of its 3-year stand-by arrangement (SBA). The arrangement was approved on March 17 for SDR513.9m, equivalent to 300% of the country’s quota in the IMF. “The decline in the overall fiscal deficit envisaged for 2011 will continue to support the economic recovery and stabilize the public debt,” the IMF says. For 2011, it adds, improved prospects for external and domestic demand are expected to lift output growth, although high global fuel and food prices will increase inflation and the external current account deficit.
Category: Economy & Policy
Posted inDaily Brief
LatAm Equities See Outflows
In the week ended March 30, LatAm equities saw outflows of $80m, according to EPFR Global, the 11th consecutive week of inflows. “Sentiment towards the region’s biggest market shows some signs of thawing with Brazil equity funds posting inflows for the first time since the second week of January as evidence that fiscal discipline is beginning to have an effect brightened the outlook for interest rates,” EPFR says. Brazil equities posted inflows of $7m in the week. GEM equity funds had inflows of $1.5bn. As for performance, Lipper data shows that in the week ended March 31, LatAm equities gained 6.23%, but are still down 1.54% year-to-date. Meanwhile, EM equities gained 6.34% in the week and are up 0.33% ytd. Global small and mid-cap funds are up 4.77% in the week and 3.89% ytd.
Posted inMagazine
Colombia Floods Focus Infrastructure Agenda
Devastating floods that have wreaked havoc on Colombia’s roads and highways are forcing a rethink in government. This could boost the infrastructure investment climate.
Posted inMagazine
Argentina Agribusiness: Feed the World
Demand for agricultural commodities is rising fast, propelling Argentine producers. However, they require significant investment to fully tap the country’s potential.
Posted inMagazine
LatAm Finance Ministers Face New Challenge
Praised for a speedy earthquake response, Chile again leads the LatAm finance ministry pack. Capital controls hurt Brazil, while Argentina finally draws some praise.
Posted inMagazine
André Esteves: The Humble Billionaire
André Esteves is deploying simple concepts and hard work to take BTG Pactual global. He inspires a new generation of homegrown financial entrepreneurs.
Posted inMagazine
Chilean Retail Comes Off Boil
Chilean retailers have unveiled aggressive expansion plans for 2011. Bottom line growth and stock performance are not expected to hit last year’s heady pace.
Posted inMagazine
Argentine Assets: Shiny on the Outside
Spread compression and an acquisition boom would suggest Argentina is emerging from a decade-long slump. Markets may be poised to correct since little has changed.
Posted inMagazine
COMMENT: Head in the Sand
There’s a war going on in the second biggest LatAm economy, but no one in its capital seems particularly bothered.
Posted inDaily Brief
Chile’s Molymet Issues Mexican Bond
Molymet issued MXP1.5bn in 1.5-year bonds in the Mexican market that priced at TIIE + 55bp, tight to the TIIE + 60bp area guidance, says a banker on the deal. The bonds are rated AA+ on a national scale and were 2.7x oversubscribed, the banker says. Proceeds from the Chilean mining company’s issue are marked for the refinancing of MXP1.2bn of outstanding debt and for general corporate purposes. There was significant interest from institutional investors, says the banker, with bonds being bought by mutual funds, insurers and bank desks. This is the third issuance in MXP by the company, which has operations in Mexico. Banamex led the issue.