Category: Chile

Chile’s GDP grew 5.2% in the third quarter of this year, driven by strong copper prices and consumer spending. The rate of growth is, however, down on the second quarter expansion of 6.5% as a strengthening peso is having an effect on exporters. The economy has expanded in every quarter for the past six years since coming out of recession at the end of 1999.

Chile’s banking sector grew by 11.45% between January and October this year. Net earnings rose to $1.26 billion, driven by an increase in lending. Chile’s largest financial institution, Banco Santander Chile, announced profits for the period of $377 million.

Chile’s Supreme Court has rejected an appeal for bail for former president of Peru Alberto Fujimori. Fujimori was arrested two weeks ago in Chile after arriving from Japan where he has been since resigning his presidency and fleeing Peru in 2000. Last week an Appeals Court rejected an initial request for bail. Fujimori faces charges in Peru of corruption and human rights abuses.

Inversiones Aguas Metropolitanas (IAM), Chile’s largest drinking water provider, has suspended a planned secondary share offering citing a failure to reach the minimum share price set. IAM had been looking to raise $550 million via the local market with a listing of 49.9% of its stock.

Masisa, Chile and Latin America’s leading wood board manufacturer is looking to raise $160 million via a share offering to increase the company’s capital. Around 40% of the shares to be offered will be preferential shares made available to existing shareholders. The offering will be made via the Santiago Stock Exchange on 7 December.

A Chilean Appeals Court has ruled that former President of Peru Alberto Fujimori must remain in jail while extradition proceedings take place and has rejected an appeal against his imprisonment without bail. Fujimori faces charges in Peru of corruption and human rights abuses. He resigned his presidency and fled to Japan in 2000.

The Chilean peso has hit a five-year high against the US dollar, up to 523.20 pesos yesterday. Buoyant copper prices continue to boost exports and drive the currency higher. The peso has risen 13% against the US dollar in the past 12 months, one of the best performing developing market currencies in the world. Analysts believe the currency will continue to appreciate this year in the light of good economic indicators.

Chile has raised its benchmark overnight lending rate again, from 4.25% to 4.50%, to help curb inflation. This is the eleventh rate hike since last September. The Central Bank raised the overnight rate 25 basis points last month. Annual inflation rose to 4.1% in October from 3.9% through September, the highest rate in two-and-a-half years.

Former president of Peru, Alberto Fujimori, who was arrested in Chile on Monday at the request of the Peruvian government, has been denied bail. Fujimori arrived on Sunday in Santiago, Chile from Japan where he has been since fleeing Peru in 2000 after resigning his presidency. Peru has unsuccessfully fought his extradition from Japan since he left Peru on charges of human rights abuses and corruption charges. Fujimori has said he plans to run in Peru’s presidential elections next April.

Chile’s year-on-year growth slowed to 5.5% in September from 5.9% in August as the mining and construction sectors cooled off. Analysts had predicted expansion of 5.8%. The Central Bank says it expects annual growth this year of around 6%, slightly below earlier government figures of 6.2%.