Ecuador’s Congress reconvened on Tuesday after the legislature met its necessary quorum of 51 members. Congress’s president, Jorge Cevallos, swore in 21 new lawmakers to replace some of the 57 deputies ousted earlier this month by the country’s Supreme Electoral Court (TSE). The TSE sacked the lawmakers after Congress removed the president of the TSE for supporting a move to appoint a constituent assembly to rewrite the constitution. Despite having a quorum, Congress needs to appoint a further 36 members if it is to pass legislation as most requires approval by a two-thirds majority. Congress comprises a total of 100 members.
Category: Regions
Posted inDaily Brief
Peru Capital Market Reform To Begin With Mortgage Market
Peru’s finance ministry is set to embark on a major reform of the country’s capital markets, and will begin by implementing measures to create a market for mortgages and mortgage-backed securities, the country’s vice minister of economy Juan Miguel Cayo, told LatinFinance. Cayo added the ministry hopes to complete its proposal for market reforms in the second half of this year. The document will suggest changes in taxation, securities law and regulation.
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Peru To Pay Down Paris Club, Brady Debt By 2008
Peru plans to pay down its remaining outstanding $900 million in Brady debt and $1.8 billion in Paris Club debt by the end of the year, vice minister of economy Juan Miguel Cayo told LatinFinance. “We aim to pay down all the Bradies and non-concessional parts of our Paris Club debt this year,” Cayo said. Local issuance of bonds, which will help finance Peru’s liability management exercises, will likely total $2.5 billion this year, added the vice minister. That is more than three times the amount originally outlined in the country’s financing plan for 2007.
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Mexican Supermarket Chain Launches Europeso Bond
Comerci, the Mexican retailer, will launch a $200-$250 million 20-year international bond to be denominated in Mexican pesos. Roadshow dates are set for March 20-22. Merrill Lynch will be leading the offering.
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Scotiabank To Roll Out Wealth Management In Caribbean, Central America
Canada’s Scotiabank is planning to extend its wealth management business across the Caribbean and Central America region, explaining that the pattern of the expansion will “reflect Scotiabank’s retail footprint in the region”. Last week it launched its Scotia Private Client Group in the Bahamas; it will roll out services in the Cayman Islands and the Dominican Republic over the next few months. Scotia Private Client Group will offer high net worth clients international brokerage and local private banking services. Additional services may be offered depending on local regulatory conditions. Where permitted, Scotia Private Client Group will also provide offshore private banking and onshore brokerage, as well as trust and estate services, said the Bank.
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Alicorp Sells Local Bonds
Peruvian food products company Alicorp sold $20 million-worth of local-currency bonds on Friday, receiving bids for more than twice the amount on offer. The 10-year bonds, which mature March 16, 2017, were sold to yield 6.16%. Citi was the sole lead.
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Colombia To Extend Local Yield Curve
Colombia plans to continue extending its local yield curve with a new peso-denominated 20-year benchmark Treasury bond (TES). The finance ministry said it plans to issue the new paper by the middle of this year. The new 2027 bond would replace the current longest fixed-rate TES paper, maturing in 2020. The longest inflation-linked TES, launched earlier this year, matures in 2023. The ministry said there may also be demand for a 30-year bond further down the line.
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Morales Says Elections May Be Next Year
Bolivian president, Evo Morales, has indicated that general elections may be held as early as next year if the country’s new constitution has been drawn up and approved by then. Morales began his five-year term at the beginning of last year but called for a Constituent Assembly to rewrite the country’s constitution with which to “refound” Bolivia. The Assembly has until this August to finish drawing up the new document after which it will be put to a national referendum, perhaps by the end of this year or the beginning of next. Once approved, the Constitution calls for new elections.
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Zabalaga Appointed New Bolivia Bank Superintendent
Marcelo Zabalaga has been appointed the new superintendent of banks in Bolivia by President Evo Morales. Zabalaga replaces Fernando Calvo Unzueta who comes to the end of his six-year term during which he has served no fewer than six presidents.
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Peru Economy Grows 9%
Peru’s economy expanded by 9.22% in January, the strongest year-on-year growth for this month in the past 11 years, according to national statistics agency INEI. Retail and manufacturing led growth, expanding 13.8% and 11.5% respectively. Construction was up by 11%. However, the mining and hydrocarbons sector contracted by 1%, largely due to a drop in output of gold as well as a lesser fall-off in copper and tin production.