The Inter-American Development Bank completed its first Mexican peso loan under a new local currency option agreed with state-owned development bank Banobras for a program supporting government decentralization. The disbursement of 202.3 million pesos (equivalent to $19.1 million) came from a $300 million loan approved in 2001 for the first phase of a nine-year decentralization program.
Category: Regions
Posted inDaily Brief
Pemex To Sign Anti-Corruption Pact
Mexico’s state-owned oil company Pemex will sign on to the United Nations’ ten-point Global Program Against Corruption next week. The program covers human rights, the environment and workers rights as well as corruption. Pemex, Mexico’s biggest company, has a reputation for damaging the environment, neglecting workers health and rampant corruption.
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Spain Forgives Bolivia Debt
Spain’s Prime Minister José Luis Rodríguez Zapatero told Evo Morales, president-elect of Bolivia, he would cancel part of a $120 million Spanish loan to Bolivia to support education initiatives. Morales visited Madrid ahead of his swearing-in scheduled for January 22. Morales said, “Bolivia needs partners and private, foreign companies but not owners.” He added that, “We will nationalize but this doesn’t mean confiscation.” Morales goes on to visit Belgium, France, South Africa, China and Brazil.
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Mexican Rates Slide
Rates for Mexico’s benchmark 28-day Cetes fell to 7.98%, their lowest level since October 2004. Interest rates in Mexico have fallen steadily since mid-2005. The Bank of Mexico, the country’s central bank, said 91- and 182-day Cetes rates fell to 7.96% and 7.88% respectively. Mexico’s stock market index rose 2.7% to 18,406.81 points. The peso lost 0.2%, falling to 10.6455 per dollar.
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Morales and Chávez Meet
Evo Morales, Bolivia’s president-elect, met with President Hugo Chávez of Venezuela Tuesday in Caracas in their first meeting since his landslide election victory last month. Morales promised to join Chávez, a close supporter, in his “anti-neoliberal and anti-imperialist struggle.” He said, “This is a century for the people, not the empire. This movement isn’t just in Bolivia. With Fidel in Cuba and Hugo in Venezuela, we continue to add victories for left-wing parties.” Morales arrived in Venezuela from Havana where visited Cuban leader Fidel Castro.
Morales is going on to Europe to meet with Spanish Prime Minister José Luis Rodríguez Zapatero, President Jacques Chirac of France and EU officials in Brussels. Morales will go on to South Africa to visit Nelson Mandela, winding up his tour in Beijing with a meeting with President Hu Jintao. Morales is to meet Brazil’s President Luis Inácio Lula da Silva in Brasilia on January 13.
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Ecuador: Palacio Accepts Economy Minister Resignation
Ecuador’s president, Alfredo Palacio, has accepted the resignation of economy minister, Magdalena Barreiro. An expert in private sector finance, she had been in the post only four months. However, during that time – despite the continuing political turmoil – Ecuador has won respect from the markets, credit agencies and multilateral institutions for its prudent fiscal management. Barreiro was considered instrumental in re-establishing Ecuador’s link with the multilaterals. Ministers routinely offer their resignations at the end of the year to allow the president to reshuffle the cabinet.
Posted inDaily Brief
Colombian Industrial Output Up 0.49%
Colombia’s industrial output, excluding coffee processing, was up 0.49% in October as measured against the same month last year.
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Colombian Banco de Occidente To Buy Banco Unión
Colombia’s fifth-largest financial institution, Banco de Occidente, a unit of local holding company Grupo Aval, is to buy smaller rival Banco Unión in a share swap between the two banks. Banco de Occidente will make a public offer for 44% of the share capital of Banco Unión. Grupo Aval will then acquire those shares in Occidente.
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Hunt Oil Issues Bonds In Peru
US firm Hunt Oil, which is involved in the Camisea natural gas project in southern Peru, is to issue $150 million of corporate bonds in the local market today, Tuesday. The issue is being arranged in Peru by Banco de Crédito.
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Deutsche Bank To Buy Mortgage Stake From Ixe
Germany’s Deutsche Bank is to buy 49% of Mexican mortgage lender Fincasa Hipotecaria from local financial group Ixe. Fincasa specializes in financing low-income housing, an area that is attracting foreign investors. Ixe bought Fincasa Hipotecaria in February for $49.6 million. The amount paid by Deutsche Bank has not been revealed.