Jorge Arredondo, the president of the Comisión Federal de Telecomunicaciones (Cofetel), Mexico’s telecom regulator, is to step down from his post at the end of April. This follows the resignation last week of three senior figures at the regulator, who left in protest against the recent approval of a controversial reform to the country’s media laws. Critics of the reform claim that it favors the large broadcasters and will allow them to consolidate their control of the media.
Category: Regions
Posted inDaily Brief
Bolivia Buys 5% Of Telesur
Bolivian and Venezuelan presidents, Evo Morales and Hugo Chávez, officially sealed the deal for Bolivia to buy a 5% stake in Latin American broadcaster Telesur. The heads of state signed the agreement in Asunción, Paraguay, where they are both attending an energy meeting. As a stakeholder in Telesur, Bolivia will form part of the company’s advisory board, along with Venezuela, Cuba, Argentina and Uruguay. Telesur began operating in July last year. Venezuela has a 51% stake, Argentina 20%, Cuba 19% and Uruguay 10%.
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Ecuador Approves 50% Oil Reform
Ecuador’s Congress has approved a proposal put forward by government to allow the state to take a 50% share in extra revenues earned by oil companies as a result of high international crude oil prices. Congress had originally wanted 60% of extra revenues for the state. Foreign oil companies have rejected Ecuador’s oil reform, and the impasse has led to a stalling in the free trade agreement between Ecuador and the US.
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Santander Sells Up In Bolivia
Spanish bank Grupo Santander has completed the sale of its majority stake in Bolivia’s Banco Santa Cruz to local Banco Mercantil. Santander is thought to have garnered anything between $26 million and $38 million for its 96.3% stake in the country’s fourth-largest bank. The acquisition of Banco Santa Cruz makes Banco Mercantil Bolivia’s largest bank; currently it is the second largest.
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Analysts: Banxico To Hold Interest Rates
A recent survey of market experts predicts that Mexico’s central bank, Banco de México (Banxico), will hold interest rates steady after eight consecutive months of cuts. Banxico will decide on Friday whether to lower the benchmark overnight lending rate from its current level of 7.25%. Last month, the Bank cut the rate from 7.50%, but a slight rise in core inflation in March is likely to stay Banxico’s hand from lowering the rate further this month, according to a majority of economists.
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Globeleq Finalizes Panama-DR Energy Deal
Emerging markets energy company Globeleq, registered in Bermuda, has finalized the deal to buy controlling shares of El Paso Corporation in Panama and Dominican Republic. The deal includes a stake in Fortuna, a hydroelectric plant with a capacity of 300 MW and Pedregal, a 55 MW thermogenerator in Panama, as well as an increased stake in CEPP, a 65 MW thermogenerating plant in Dominican Republic. Globeleq is expected to make further acquisitions in the region later in the year. The company has energy plants in Bolivia, Peru, Guatemala, Nicaragua and Jamaica.
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Cablemás And Famsa To Make Stock Offerings
Mexico’s second-largest cable company Cablemás and local conglomerate Famsa are to make local and international share offerings imminently. The companies will issue shares in Mexico via the Stock Exchange and in the US as ADRs. Cablemás is planning to raise up to $180 million with a mixed offering and will use the proceeds to help pay down some of its debt. Citigroup is arranging the Cablemás sale. Meanwhile, Grupo Famsa, is hoping to list around 40% of its share capital in return for around $68 million, which will be used to fund expansion. The sale will be led by BBVA Bancomer Casa de Bolsa.
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US Cone Denim To Build Nicaragua Plant
US jeans manufacturer Cone Denim, part of International Textile Group, is to build a plant in Managua, Nicaragua, which will be the country’s largest plant. The planned investment of $100 million is equal to 2% of Nicaragua’s total GDP, according to a government spokesman, who said the agreement reinforces the message that “Nicaragua is open for CAFTA business.” The Central American Free Trade Agreement (CAFTA) with the US came into effect in Nicaragua earlier this month. CAFTA has been opposed by small textile manufacturers in the region who say the Agreement will result in the closure of local businesses.
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Venezuela Seeks Bolivian Bank
Venezuela has said that it is looking to buy a controlling stake in a financial institution in Bolivia and offer microlending within that country. The announcement was made by Luis Quiaro, the president of state-owned Banco Industrial de Venezuela. Quiaro did not identify any particular Bolivian bank under Venezuelan consideration. Hugo Chávez’s government has provided practical support to Bolivia’s new administration, under President Evo Morales, consulting in areas such as hydrocarbons, education and health. Last month Venezuela’s development bank Bandes acquired a troubled Uruguayan cooperative bank, Cofac, for around $7 million.
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García Confident Of Place In Run-off
Former president of Peru, Alan García, says he is confident that he will beat off rival Lourdes Flores to proceed to the second round of voting to elect Peru’s president. He will face the victor of the first round, nationalist Ollanta Humala, in a run-off slated for May 28 or June 4. García has said he will withdraw his complaints against voting carried out abroad in the US, Italy and Spain, such is his confidence in his victory. However, with 89.5% of the votes counted, the difference in votes between the two second-round contenders had narrowed to just a little over 95,000 votes. Humala had garnered 30.90%; García 24.38% and Flores 23.53%.