Ecuador’s president, Rafael Correa, has confirmed the appointment of lawyer Carlos Pólit, a member of the opposition party Sociedad Patriótica (PSP), as his new attorney general. Pólit is closely allied to former president Lucio Gutiérrez, serving in his administration.
Category: Regions
Posted inDaily Brief
Zuluaga Named Colombia Finance Minister
Oscar Iván Zuluaga, a presidential advisor to President Alvaro Uribe, has been named the new finance minister of Colombia. He replaces Alberto Carrasquilla, who tendered his resignation last month. Although the 50-year old economist has served as a senator (2002-2006), most of his experience has been in the private sector, including a post at the head of Acerías de Colombia. Zuluaga has a tough act to follow and most expect him to stick closely to the policies implemented by Carrasquilla.
Meanwhile, pressure mounts on foreign minister Maria Consuelo Araujo to resign following the arrest last week of her brother, Senator Alvaro Araujo, on charges of links to paramilitary groups.
Posted inDaily Brief
Mexico Growth Slows
Mexico’s economic growth slowed in the fourth quarter of last year, down to 4.3% from 4.5% in the third quarter. The slowdown in growth over the year is attributed to the drop-off in exports to the US, Mexico’s largest export market, in the face of falling demand. However, overall, GDP grew by 4.8% last year, the highest rate in six years and domestic demand is buoyant. The government has predicted growth this year of around 3.6%.
Posted inDaily Brief
Ecuador Makes Bond Payment
After much speculation and some confusion, Ecuador met the deadline on Thursday for the payment of the $135 million coupon on its 2030 global bond. A statement on the ministry of finance website said that the payment had been made after all other domestic obligations had been met for the month of February. Just a few days ago, deputy finance minister Fausto Ortiz announced that the payment would be delayed until some time during the 30-day grace period due to a cash crunch. The ministry of finance statement also explained that a loan of $275 million from the Andean Development Corporation (CAF) for 18 years at a rate of Libor plus 1.05% will allow the Republic to meet its short-term debt payments.
Posted inDaily Brief
Peru Launches Exchange For 2012 and Bradies
Peru launched its biggest-ever liability management effort Thursday, an offer to take out its 9.125% 2012 Globals and two classes of Bradies, altogether worth $4 billion. The 2012 bonds, originally issued in 2002, will be exchangeable for up to $750 million in 8.375% 2016 bonds, of which there are already $500 million outstanding, and an unlimited amount of 8.75% 2033 bonds, of which there are $900 million outstanding. Holders of 2017 and 2027 Brady bonds will be able to exchange those for an unlimited amount of million in new 2037 bonds. Bankers away from the deal believe Peru may also raise funds for the buyback in the domestic market. Spreads on the ’16s, ’33s and ’37s are expected to be announced on the morning of February 22 and pricing will take place the following morning. Citi and Deutsche Bank are dealer managers.
Posted inDaily Brief
Mexico’s IXE Grupo Financiero Preps Launch
IXE Grupo Financiero, a Mexican bank, is expected to price a $100 million non-call 5 bond today in the 10% area following a roadshow in Europe. The 144A offering is to be rated B+ by Fitch, while the issuer’s default rating is at BB. The offering is sole-led by Goldman Sachs.
Posted inDaily Brief
Digicel Launches $1.4 Billion Senior Note Offering For Buyout
Jamaica-based Digicel, the Caribbean wireless provider, launched a roadshow Wednesday for a $1.4 billion sale of 2015 senior notes expected to be priced at the end of next week. Price talk is due out early next week. Proceeds will be used to help Irish entrepreneur Denis O’Brien, who controls 78% of Digicel, buy back of the remaining shares of the company he doesn’t already own. Citi and JPMorgan are joint lead books on the unregistered deal.
Posted inDaily Brief
Bolivia Tries to Finalize El Mutún Deal
In other mining news, Bolivia has set a deadline of the end of the month for Indian company Jindal Steel to finalize an agreement to develop the El Mutún mine, Latin America’s largest iron ore deposits. Last year, the Indian company was awarded the 40-year concession to develop the deposits by the newly elected government of Evo Morales in return for a commitment to invest $2.3 billion in the project over 10 years. However, there have been problems agreeing terms which include the price to be paid by Jindal for the supply of natural gas.
Posted inDaily Brief
Glencore Prepares To Fight
Swiss natural resources company Glencore says it will take Bolivia to court and to international arbitration if necessary if it is not compensated for the seizure of its assets in the Latin American nation. The company said that the Bolivian government had contravened an agreement signed between Bolivia and Switzerland in 1991 when it nationalized the Vinto tin foundry last week. The Swiss government has already said it expects Bolivia to honor the accord. The Bolivian government, meanwhile, has said that it considers the sale of Vinto by former president Gonzalo Sánchez de Lozada as illegal and that Glencore has no case against it. The nationalization of Vinto is part of a wider program announced last year to return mining assets to state control.
Posted inDaily Brief
Colombia Q4 Economic Growth Around 8%
Colombia’s economy grew by around 7% last year, and perhaps as much as 8% in the last quarter, according to finance minister Alberto Carrasquilla. Earlier this week, the central bank governor, José Darío Uribe, said that GDP had grown by 7.7% in the final quarter of last year, driven by domestic demand and private investment. The official statistics bureau DANE is due to release the official figures in the next few weeks.