Sandinista leader Daniel Ortega is hoping to be fourth time lucky and be elected by his fellow Nicaraguans in Sunday’s elections. The former Marxist guerrilla, who led the country between 1985 and 1990, has tried – unsuccessfully – to be re-elected no fewer than three times since then. Ortega was the favorite to beat off nearest rival, Harvard-educated Eduardo Montealegre, going into election day, yesterday, although polls have been notoriously wrong in the past. Any outright winner must win 40% of the votes or 35% with a 5 percentage-point lead over the nearest rival. If not, a second-round run-off is needed; something experts say would almost certainly mean the end of Ortega’s presidential bid. Outgoing president, Enrique Bolaños, has called for calm from all parties should a further round of voting be necessary.
Category: Regions
Mexico Improves Growth Forecast
Mexico’s ministry of finance has upped its growth forecast for the year, from 4.5% to 4.7%. The predictions compare with those of the Central Bank, Banco de México, which expects the economy to expand between 4.3% and 4.8%. Meanwhile, outgoing finance minister Francisco Gil called for greater private investment in the energy sector and increased competition in the telecoms sector to promote growth prospects.
Colombia Prices Fall 0.14% In October
Colombia’s national statistics institute, Dane, said consumer prices fell by 0.14% in October, taking inflation for the 10 months through October to 4.0%. The October figure is the lowest since 1977 and the cumulative inflation is the lowest since 1955.
ISA Takes Control of TransMantaro; Ponders Share Offering
Colombia’s largest energy provider, state-controlled Interconexión Eléctrica SA (ISA), together with state-owned Empresa de Energía de Bogotá (EEB) have taken 100% control of Peruvian electricity transmission company Consorcio TransMantaro. ISA and EEB bought the remaining 28% stake outside their control from Canadian Fonds de Solidarité des Travailleurs du Quebec de Canada for $33 million. Meanwhile, ISA has called an extraordinary general meeting for November 24 to propose to a new share offering. The offering of 88.34 million new shares, with which ISA hopes to raise around $218 million, will help to fund the utility’s acquisitions. The total bill for TransMantaro was around $118 million, while the cost of buying Brazilian electricity distributor Companhia de Transmissão de Energia Elétrica Paulista (CTEEP) in June amounted to $535 million.
Peru Inflation Slows
Peru’s annual inflation slowed in October to 1.89%, from 2% in September, helped down by the decline in international oil prices. On a monthly basis, prices were up by 0.04%, versus 0.03% in September. The Bank is targeting annual inflation this year of between 1.5% and 3.5%. The Bank was expected to hold the benchmark interest rate steady at 4.5% at its meeting Thursday evening.
Colombia Prefinanced For Next Year
Colombia’s $468.4 million reopening of its 2037 global issue wrapped up financing needs for next year, leaving the sovereign sitting pretty if market conditions deteriorate. The deal also finished up a $2 billion shelf, hence the odd number. According to a banker on it, the tap of the 7.375% coupon paper saw $3.2 billion in orders and at 102.875 to yield 7.142%, came tight to guidance. Some 450 accounts apparently participated. It was heard at 103.65 Wednesday, the day after the reopening. It was helped by strength at the long end of the US Treasury curve. Barclays and HSBC were the leads.
Venezuela And Guatemala Pick Panama As Compromise
Venezuela and Guatemala, who have been battling it out at the United Nations in New York for the fifth available, non-permanent seat in the United Nations Security Council have agreed on a compromise candidate – Panama – according to news agency AFP. After 47 rounds of voting since October 16, there was still no clear winner to replace the seat’s current occupant, Argentina, when it steps down on December 31. Although Guatemala managed to beat Venezuela in all but one of the rounds of voting, it failed to secure a two-thirds’ majority needed to win the seat. The battle between the two Latin American nations has been billed by many as a battle against the will of the US, which has been openly backing Guatemala’s bid. The 10 non-permanent seats on the UN Security Council have a two-year tenure (two seats are allocated for Latin America and the Caribbean region). Only five of the 10 are up for renewal at the end of this year. The permanent members of the Council, who enjoy the power of veto, include the US, Russia, the UK, France and China.
Banco Popular Sells Subordinated Bonds
Colombia’s Banco Popular has sold $100 million of subordinated bonds, due 2013, with an interest rate of inflation plus 5.49%. This is the second issue of subordinated bonds by the Bank and the offering was 1.4 times oversubscribed. The transaction was led by Valores Popular.
Escaping Original Sin
Mexico’s shift to domestic markets points the way for emerging economies to cast off the original sin of too much overseas debt. Talking to international investors has been key. By Gerardo Rodríguez*