The Bolivian government is negotiating with the majority owner of Lloyd Aereo Boliviano to give up his stake in the airline as it seeks to head off staff protests. Ernesto Asbun may give up his share in the debt-ridden company to workers who have not been paid for three months. It is not clear the workers will agree to the conditions and whether this will be enough to save the country’s largest airline, which is sagging under US$160 million in debt.
Category: Regions
Posted inDaily Brief
Mexican Stocks Hit Record High
The Mexican stock market index reached its highest level ever, driven up by mining companies enjoying soaring metals prices and America Movil, which today bought Verizon Communications Inc.’s Latin American assets. The index rose 2% to 19,634.21. The stock market has risen recently thanks to a buoyant economy, fueled by consumer spending, high oil prices for its exports and low interest rates.
Posted inDaily Brief
Vitro Sells Subsidiary for $103 Million
Grupo Vitro SA, Mexico’s largest glassmaker, sold a 51 percent stake in Vitrocrisa to its U.S. partner Libbey Inc. for $103 million to pay down debt. At the end of 2005 the company had debt of US$1.38 billion and has been shopping assets in a bid to avoid default. The Mexican glass market has become increasingly competitive with the arrival of foreign companies.
Posted inDaily Brief
Colombia sets Telecom Minimum Price at US$233 Mln
The minimum bid for a controlling stake in Colombia’s state owned telecommunications company, Telecom, will be $233 million. The government set the price after a valuation by Citicorp. Bidders have until Tuesday to submit their technical offers and join the auction. The government is selling off 50% plus one of the shares in the company and has set a minimum price after calling off a previous sale when the price was too low. Mexico’s Telmex’s bid then valued the company at $350 million. Telmex, Spain’s Telefonica, Venezuela’s CANTV and the consortium Cablecentro-Phone One-Swedtel are expected to take part in the contest.
Posted inDaily Brief
Colombian Economy Grew at Fastest Rate for a Decade in 2005
The Colombian economy expanded 3.74% percent in the fourth quarter of 2005 and 5.13% in the full year. The country benefited from surging consumer demand last year as interest rates fell making it cheaper for people to purchase on credit. A strong currency also held down the cost of imported goods. The Colombian economy under President Alvaro Uribe has picked up in the last two years following several years of very moderate growth. The president has controlled much of the violence that has plagued the country and restored greater order to the economy, helping it to grow and boosting investor confidence.
Posted inDaily Brief
World Bank Forgive $1.5 Bln in Bolivian Loans
The World Bank wrote off $1.5 billion worth of loans to Bolivia as part of a program to ease the debt burden on 18 of the world’s poorest country. Evo Morales, the country’s newly-elected populist president, thanked the institution and said the $140 million that would have gone to pay down the loan this year will be spent on social programs. At the end of last year Bolivia had approximately $5 billion in foreign debt. Separately, the president ruled out a nationalization of the country’s airline Lloyd Aereo Boliviano, which is almost bankrupt. He called on unions to lift their protests and blockades while negotiations with management over wages and conditions continue.
Posted inMagazine
Remittances to Latin America and the Caribbean
Remittances to Latin America and the Caribbean by Donald Terry, Manager, and Pedro de Vasconcelos, Coordinator, Remittance Program Multilateral Investment Fund Call it the case of the missing billions. For […]
Posted inMagazine
Man With The Plan
AMLO’s economic advisor explains how his left-leaning presidential candidate plans to shake things up in Mexico without spooking the financial world.
Posted inMagazine
Japan’s Latin American Ex-Pats and their Impact on Remittances
Japan’s Latin American Ex-Pats and their Impact on Remittances by Jan Smith, Director Financial Services Practice, and Renée-Maude Lebrun, Consultant, InfoAmericas Until recently, most of the attention on remittances was […]
Posted inDaily Brief
Remittances to Latin America Rise to $53.6 Bln in 2005
Remittances from immigrant workers in the U.S., Europe and Japan to Latin American countries rose 17 percent last year to $53.6 billion, according to the Inter-American Development Bank. The cash is the largest source of foreign funding for many countries, overwhelming the amount received in foreign aid. Mexico was the largest recipient at $20 billion followed by Brazil with $6.4 billion.