Category: Colombia

Colombia has raised its forecast for economic growth in 2005 to between 4.5% and 4.7% from 4%. The higher projections have been driven by growing demand for credit and a greater volume of exports.

The Constitutional Court of Colombia has confirmed that President Alvaro Uribe can stand for reelection next year after it found in favor of the electoral guarantees law. The ruling had been widely expected and was the final step in a process that began last year when Congress approved a change in the country’s constitution allowing Uribe to stand for another four years.

The Colombian share market hit an all time high Friday, with the general share index reaching 8.083,79. Prices were driven up by large volumes of trading – in particular stocks of local brewer Bavaria – and in anticipation of a positive ruling by the Constitutional Court (since handed down) to allow President Alvaro Uribe to stand for reelection next year.

Colombian Cemento Argos is to buy rival Cementos Andino and concrete producer Concrecem in a deal worth $192 million. Argos is Latin America’s fifth-largest cement producer and recently purchased two cement companies in the US in the largest investment by a Colombian firm in the US.

BBVA in Colombia, the affiliate of Spanish banking giant, has outbid local competitors to buy state-owned mortgage-lender Granahorrar, which went under the hammer yesterday in Bogotá in the second phase of its privatization. BBVA bid $423.6 million to take control of 98.78% of Granahorrar, beating off Colpatria, Davivienda and Banco de Bogotá in the process. Spanish bank Santander, which had been expected to present an offer, failed to bid.

The Colombian Central Bank left the official repo intervention rate unchanged at 6.00% following its latest meeting. The Bank also announced that it expected annual inflation to hit the range of 4.5% to 5.5% set by the government.

A recent poll commissioned by various local media in Colombia show that 68% of people in the country support the decision of the Constitutional Court to allow President Alvaro Uribe to stand for reelection next year.

SABMiller, the London-based beermaker that now owns 71.8% of Colombia’s largest brewer Bavaria, is to made a public offer for shares on 5 December to minority shareholders as part of its takeover plan. It will offer shareholders $19.48 per share.

Colombian brokerage company Suvalor has been granted a license by Panama’s Securities Commission to operate in the local market. Suvalor is the second Colombian brokerage to be allowed to enter the Panamanian market – Interbolsa received the green light in September and began operations last week.

Colombia is to sell off its 12.66% stake in local paper-producer Propal. It hopes to raise around $17.3 million from the sale. Propal is Colombia’s second-largest paper and cardboard producer. The company is based in the south-western industrial city of Yumbo.