The profits of Ecuador’s banking sector were up 61% in the first quarter of this year against the same period in 2005. Earnings at the 25 banks rose from $59.1 million to $95.3 million according to government figures. Top of the list was Banco del Pacífico with $19.3 million. Overall, assets as at end April totaled $10.7 billion; liabilities reached $9.7 billion.
Category: Regions
Posted inDaily Brief
Colombia Improves Budget Deficit
Colombia’s government has said its 2006 budget deficit will be equivalent to 1.5% of GDP, slightly better than the 2% forecast. This compares with a balanced budget last year. The main contributing factor to the improved figures was the price of crude and the revenues of state-run Ecopetrol. The government is forecasting a deficit equal to 1.7% of GDP in 2007.
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Bolivia Seeks New Frontiers
Bolivia has announced a bold energy integration plan with neighbor Paraguay as it seeks out new markets for its natural gas. The plan calls for around $2 billion to be invested in gas pipelines and industrial plant to supply Bolivian gas for domestic use in Paraguay. Companies interested in participating in the project are being invited to put their names forward to both countries ahead of a tender process. Bolivia currently exports its gas to Argentina and Brazil only.
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Mexican Inflation At 3%
Consumer prices in Mexico fell 0.45% in May, taking annual inflation down to 3%, from 3.2% as at end-April, according to Central Bank figures. Headline inflation was driven down by declines in food and energy prices. However, stripping out food and energy left core inflation up 0.15%.
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MexDer First Foreign Member To Start Trading Soon
The Mexican Derivatives Exchange’s (MexDer) first foreign member – Timber Hill of the US – is likely to start trading soon on the Mexican exchange following regulatory approval. The company plans to trade futures contracts based on Mexico’s benchmark stock index. Owned by Interactive Brokers, Connecticut-based Timber Hill is the largest equity options market-maker in the US. In March this year Timber Hill became the first foreign company to be granted “remote membership” of the exchange after regulatory changes at MexDer allowed for the entrance of foreign players. MexDer is keen to lure other international firms that trade Mexican derivatives over the counter to become remote members and instead trade via the exchange.
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Gazprom Studies Bolivia Investment
Russian energy giant Gazprom says it is studying the possibility of investing up to $3 billion in Bolivia to work with state-run YPFB to develop various energy projects. Those on the table include exporting natural gas to Mexico and the US as well as exploration of new fields.
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EPM Buys Orbitel
Colombian municipal telecoms operator Empresas Públicas de Medellín (EPM) has bought up Orbitel, the long-distance operator in which it had a 50% stake, from Grupo Sarmiento and Grupo Valorem for $85 million. The acquisition gives EPM additional services, such as VoIP, to offer customers.
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Exit Polls Say García Wins In Peru
Alan García, former president and unlikely comeback kid, appears to be the winner of Sunday’s voting in Peru’s second-round presidential elections. Exit polls Sunday evening indicated that García had won 58.2% of the vote against 47.2% garnered by Humala. García’s first time in office, between 1985 and 1990, saw Peru default on its debt and annual hyperinflation of 8,000%. However, voters have obviously forgiven or forgotten García’s record of economic management or perhaps are simply voting against the alternative: former coup leader and ex-military man, nationalist Ollanta Humala. García polled 24.3% of the vote against Humala’s 30.6% in the first-round poll on April 9. He narrowly beat off market favorite, conservative Lourdes Flores, who gained 23.8% of the votes.
Posted inDaily Brief
Colombia Inflation Slows
Colombia’s rate of inflation in May slowed to 0.33%, the lowest month-on-month rise for May since 1986. Last year inflation for the month was 0.41%. Inflation for the year so far is running at 2.71%, compared with accumulated inflation of 3.51% for the first five months of 2005.
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Bolivia To Launch Iron And Steel Industry
The contract to develop Latin America’s largest iron ore deposits – Bolivia’s El Mutún – has been awarded to Indian company Jindal Steel and Power. The government says the deal marks the launch of the country’s iron and steel industry. Jindal has promised to invest $2.3 billion in the project over the next 10 years, the largest foreign investment yet secured by the new government led by Evo Morales. The company will not only extract iron ore but also produce iron and steel. Bolivia, rich in mineral and energy resources, has to date largely exported raw materials rather than processing them. The deal is likely to earn President Morales much political capital, after the government changed the terms of the original tender to ensure more job creation. The changes in the terms were to include a steel production operation and guarantee the site be fueled by natural gas. The project will include the extension of a gas pipeline and investment in local infrastructure to accommodate the terms. Jindal was the only company to remain in the bidding process after Netherlands-based Mittal Steel failed to make the final cut and Argentine Siderar withdrew from the process.