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.
Category: Regions
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.
Peru Central Bank Holds Rate; Growth Continues
Peru’s Central Bank decided to hold its benchmark interest rate unchanged yesterday, Thursday, for the first time in six months, keeping it at 4.50%. A rise of 25 basis points had been expected by economists to help cool domestic demand, which is driving Peru’s continued economic growth. GDP expanded by 6.8% in the first quarter of the year, compared with the same period in 2005. Internal demand rose by 9.9%, driven mainly by capital investment. Meantime, the rate of inflation in May declined for the first time since September last year, falling 0.53%. Annual inflation slowed to 2.2%, within the government’s target range of 1.5% to 3.5%.
Colombia To Sell $2 Billion Globals
Colombia’s Congress has authorized the government to tap the international markets for up to $2 billion by issuing global bonds. The money raised will be used to fund the 2007 budget. The government has also been authorized to seek a further $2 billion in loans from multilateral organizations.
Banistmo Applies To List On Latibex
Panamanian financial group Banistmo has applied to list on Latibex, the Madrid-based index of Latin American stocks. If accepted, it will become the thirty-third company to be quoted on Latibex, and the first from Panama. Banistmo operates in Panama, Colombia, Honduras, Nicaragua, Costa Rica, El Salvador and the Bahamas.
BBVA Looks To Expand Real Estate Activity In Latin America
Spanish BBVA’s real estate unit, Anida, says it is planning to expand its operations in Mexico and is considering projects in Chile and Colombia. The company says it anticipates projects in Mexico will represent 25% of Anida’s portfolio by 2011. The housing market in Mexico has taken off in recent years as a result of government incentives and a boom in the mortgage market.
Ready for REITs
After having worked out some tax complications, Mexico is poised to become the first Latin American country to develop a REIT market.
DR Approves Verizon Sale To América Móvil
Dominican Republic has approved the sale of Verizon’s local assets to Mexican wireless phone operator América Móvil for just over $2 billion. The Mexican company offered to buy the Dominican unit in April, along with Verizon’s 28.5% stake in Venezuela’s CANTV for $676.6 million.
Cushioning the Blow
Dan Ozizmir, managing director in Swiss Re’s capital markets unit, explains how the reinsurer structured a $160 million catastrophe bond for Mexico.
Long, Slow March
With homebuilding and lending going full-throttle in Mexico, originators are hurrying to package their mortgage portfolios into securities.