Posted inDaily Brief

Paying the Price

Parts of Mexico’s northern border region have become a battleground as gangs massacre hundreds. The town of Nuevo Laredo is under federal intervention. Bolivia’s political system is unraveling as protestors take the street, booting out two presidents in as many years. Colombia’s Congress has approved a controversial law allowing rightwing paramilitary militias to demobilize at the risk of entrenching their drug empires. In Rio de Janeiro, warlords dominate several of the city’s favelas in a brutal reign of terror.

Latin America is paying a heavy price in lives, political instability, corruption and economic disruption for Washington’s futile war on drugs.

Drugs are Latin America’s most lucrative export. North American and European consumers will pay almost any price for their drugs. Repression and interdiction have failed, so governments should legalize and regulate this trade. Opponents in the US say this would lead to further moral degradation. That seems scarcely possible. But a well-structured drug market would ensure a livelihood for farmers, drugs for addicts and tax revenues to pay for their counseling. Until policymakers realize this, Latin America – not the US – will continue paying a bitter price for its hypocritical war on drugs.

Posted inDaily Brief

ICA Issues Debt

Mexican construction and engineering company Empresas ICA issued $75 million of debt on the local market. The bonds mature in 17 years and pay 13.16 percent. ICA will use the proceeds to pay down existing debt with Mexican bank Banco Nacional de Obras y Servicios Publicos.

Posted inDaily Brief

José Antonio González Anaya, Director of Insurance and Securities at the Mexican Ministry of Finance and Public Credit, joins “Mortgage Insurance” workshop at LatinFinance’s Cumbre Financiera Mexicana, July 13-14, Mexico City.

Debate and discuss the challenges and opportunities presented by Mexico’s dynamic financial markets at this invitation-only event. View the full agenda and apply for an invitation at www.latinfinance.com/mexicana

Posted inDaily Brief

John McCarthy, CEO of FONATUR and William Pingleton, Managing Director – Americas, Franklin Templeton International

are confirmed as panelists at LatinFinance’s Inaugural Cumbre Financiera Mexicana, July 13-14, in Mexico City. Debate and discuss the challenges and opportunities presented by Mexico’s dynamic financial markets at this invitation-only event. View the full agenda and apply for an invitation at www.latinfinance.com/mexicana

Posted inDaily Brief

Dr. Gerardo Rodríguez Regordosa, Director of Public Credit, Mexican Ministry of Finance and Public Credit and Victor Herrera, Managing Director, Standard & Poor’s

are confirmed as panelists at LatinFinance’s Inaugural Cumbre Financiera Mexicana, July 13-14, in Mexico City. Debate and discuss the challenges and opportunities presented by Mexico’s dynamic financial markets at this invitation-only event. View the full agenda and apply for an invitation at www.latinfinance.com/mexicana

Posted inDaily Brief

Mexico Approves Voter Plan

Legislators approved a law allowing Mexicans living abroad to vote in next year’s presidential elections. Congress approved the legislation by 455 votes, with six abstentions. Some 11 million Mexicans live in the US and about 4 million already have voting papers allowing them to vote in the July 2006 election. Nearly all Mexicans living abroad reside the US.

Posted inDaily Brief

AHMSA Eyes Israel

Altos Hornos de Mexico SA (AHMSA) is considering a $100 million investment to build copper mines in Timna, Israel. The company estimates that mines in the region have sufficient reserves to allow production of 50,000 tons of copper a year for 10 years. Mines near Timna have been shut since 1985 but Israel plans to reopen them due to record high copper prices.

Posted inDaily Brief

Mexico: End to Cuts Signaled

Mexican central bankers dropped from their monthly policy statement a sentence saying the country’s interest rates should follow rising US rates, which some interpret as a signal they’re done raising rates after 12 increases in 14 months. The central bank has raised its benchmark lending rate to 9.75 percent to drive inflation down to its 3 percent annual target. Inflation in May was 4.6 percent. Expectations of lower interest rates have increased demand for Mexico’s fixed-rate bonds; the yield on Mexico’s peso-denominated note due in 2014 has been below the overnight lending rate since June 8.

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