Five Colombian Congressmen have been sacked by their parties following allegations of links to paramilitary organizations. The Partido de la U and the Cambio Radical party, both supporters of President Alvaro Uribe, decided to oust the lawmakers ahead of the legislative elections on 12 March. Cambio Radical expelled Senators Jorge Castro and Jorge Caballero. The Partido de la U, which removed Congressmen Dieb Maloof, Habib Merheg and Luis Eduardo Vives as party candidates said the matter threatened the party’s credibility.
Category: Regions
Posted inDaily Brief
Panama To Issue $1.4 Billion Of New Global Bond
Following its recent swap offer, which saw the sovereign accept $1.062 billion of shorter-dated paper, Panama will issue $1.363 billion 30-year bonds. The bonds, which mature in 2036, will be issued with a coupon of 6.7%. The government had been hoping to swap up to $2.8 billion of its shorter-dated bonds and published the initial swap terms earlier this week. The bonds being exchanged were the 2020, 2023, 2027, 2029 and 2034. The deal was jointly managed by HSBC and JP Morgan.
Posted inDaily Brief
Panama Publishes Initial Swap Terms
Panama has published initial terms for its bond swap which plans to exchange up to $2.8 billion of its shorter-dated global debt for a new 30-year global bond. The sovereign is offering 230 basis points above comparable US treasuries on its new global bond which matures in 2036. The maximum clearing spreads offered on the bonds to be swapped are: 1.73% on the 2020 bond; 2.02% on the 2023 bond; 2.15% on the 2027 bond; 2.28% on 2029 and 2.30% on 2034. The deal is being jointly managed by HSBC and JP Morgan.
Posted inDaily Brief
Peru’s Growth Quickens
The pace of Peru’s economic growth quickened in November, increasing by 7.9% against October’s rate of 7.2%. The growth was driven in main by the mining, natural gas and fishing sectors, which increased output by approximately 50%, 70% and 30% respectively. Annual inflation last year is estimated to be 6.3%.
Posted inDaily Brief
Bolivia Undecided On Mercosur
President-elect of Bolivia, Evo Morales, has said that he is undecided about whether Bolivia will ask for full membership of regional trading bloc Mercosur. Morales said that the new government will analyse all the trade accord options – CAN (Andean Community of Nations), TLC (Free Trade Agreement) and Mercosur — once installed. Morales is due to take office on 22 January. Bolivia is currently an associate member of Mercosur; full members currently include
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Telefónica and CANTV Size Up Colombia Telecom
According to the Colombian government, Spanish telecoms giant Telefónica and Venezuela firm CANTV have both expressed an interest in buying state-owned Colombia Telecom, a controlling share of which is due to go under the hammer in March.
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More Resignations In Panama
Trade talks between the US and Panama have claimed another casualty with the resignation Wednesday of the director of agricultural quarantine, Concepción Santos Sanjur. This follows the departure on Tuesday of Panama’s agriculture minister, Laurentino Cortizo, protesting the loss of agricultural sovereignty to the US and claiming that Panama would face an increase in animal diseases that would threaten the health of its citizens.
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Bolivian Fiscal Deficit Drops To Low
Bolivia’s fiscal deficit as a percentage of GDP fell to a 15-year low last year at only 1.6% as at year-end and well below the official initial target of 5.2%. In 2004 the deficit reached 5.5% of GDP. The remarkable improvement in the deficit was certainly helped by a 32% tax levied on foreign oil and gas companies. Meanwhile cumulative inflation for the year reached 4.91% and GDP growth was estimated at 3.9%.
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Fujimori Out Of Presidential Race
Peru’s Electoral Tribunal has ruled that former president Alberto Fujimori may not stand as a candidate in the country’s upcoming elections in April due to his ‘special disqualification’. Fujimori is currently being held under arrest in Chile awaiting extradition to Peru where he will likely face charges of corruption and human rights abuses. He resigned his presidency in 2000 after fleeing to Japan and in 2001 was banned from holding public office in Peru until 2011.
Posted inDaily Brief
Panama Offers Bond Swap
Panama has offered to swap five of its shorter-dated global bonds for a 30-year dollar-denominated bond as part of its strategy to extend its debt maturity profile and reduce its short-term debt burden. In November, the sovereign offered to swap four of its global bonds, due in 2008, 2011, 2012 and 2020 for up to $980 million new 20-year paper, yielding 7.295%.