Colombia has taken initiative with its sovereign financing, following in the footsteps of sophisticated countries like Mexico while putting itself back on track to regain an investment grade rating. The […]
Category: Regions
Posted inMagazine
Consumers Ignite Mexican Credit
A flood of consumer lending is set to boost Mexican credit, which is relatively small for the economy’s size. Lower fees will likely accelerate growth.
Posted inMagazine
First to Finish
Mexico became the first Latin American issuer to take its local currency yield curve to 30 years in October 2006, with a 2 billion peso ($184.5 billion) auction of 30-year […]
Posted inMagazine
Bancafe Exposes Offshore Risks
Bancafe’s meltdown in 2006 highlights areas where Guatemalan financial supervision can be improved.
It also spotlights the pitfalls of offshore banking.
Posted inMagazine
Communists and Hedge Funds
Latin America is basking in an unusually benign markets environment that has slashed volatility. China and hedge funds play a key role in this, but the calm cannot last. by David Rolley*
Posted inDaily Brief
Peru Foresees Growth Of 7.5%
Peru’s minister of economy and finance, Luis Carranza, has predicted economic growth of 7.5% this year, the highest level seen in more than 10 years. Growth this year was driven by the country’s exports as well as increased private investment, said Carranza. In a press conference on Thursday, the minister said the government was committed to deliver long-term growth of between 6% and 7%.
Posted inDaily Brief
CIBC Acquires Barclays Stake In FirstCaribbean
Canada’s CIBC has acquired a majority stake in FirstCaribbean International Bank after buying the 43.7% share owned by Barclay’s Bank. CIBC paid $988.6 million in cash, or $1.62 per share. The Canadian bank said it will now push forward with its planned mandatory offer to all shareholders in FirstCaribbean at the same price of $1.62 per share plus accrued but unpaid dividends. CIBC’s agreement with Barclays allows the UK bank the option to tender all or a portion of its remaining FirstCaribbean shares under that offer. FirstCaribbean was formed in 2002 when CIBC merged its Caribbean operations with those of Barclays’. It is now the largest regionally listed bank in the English-speaking Caribbean with assets of around $12.4 billion, according to CIBC.
Posted inDaily Brief
Correa Finalizes Team
President-elect of Ecuador, Rafael Correa, is finalizing his team ahead of taking power on January 15. On Wednesday he announced the appointment of Guadalupe Larriva as minister of defense, the first time a civilian and a woman has been tapped for the post. Also named were Trajano Andrade as minister of transport and public works, Jorge Encalada as head of agriculture and Carolina Chang who is to head up the health ministry. Correa is keeping three ministers from the current Palacio administration: Raul Vallejo as education minister, Maria Isabel Salvador as tourism minister, and Anita Alban Mora as head of the environment. Correa has so far named 17 ministers, including his economy minister – Ricardo Patiño – and his energy chief, Alberto Acosta, as well as Maria Fernanda Espinosa as his foreign minister, who were appointed earlier this month.
Posted inDaily Brief
Ashmore Takes Control Of Promigas
International investment fund Ashmore, based in London, has taken control of Colombian natural gas distribution company Promigas after increasing its 33% stake to almost 43%. Ashmore, via its subsidiary AEI paid $160 million for a 9.9% stake owned by local financial entity Corficolombiana. In August Ashmore paid $350 million for a 33% share of the distributor after it acquired Prisma Energy, owners of the holding. Promigas is the largest private natural gas transmission company in the country and transports around 65% of natural gas in Colombia.