Peru’s economy expanded 7.21% in October compared with the same month in 2004, driven by a strong mining sector (up 15%). GDP grew by 6% between January and October, compared with the first 10 months of last year, and in line with the government’s forecast for annual growth this year.
Category: Regions
Posted inDaily Brief
Telmex Wins Chilean Telecoms License
Mexican telecoms company Telmex, owned by billionaire businessman Carlos Slim, has won a concession to operate a fixed wireless service – or WiLL — in Chile countrywide. Another license winner was VTR Banda Ancha, owned by Liberty Media, which won a regional concession. The first wireless license in Chile was awarded to local operator Entel, the country’s largest long-distance provider. Telefónica CTC Chile, owned by Telefónica de España, and MIC Chile were also interested in the licenses.
Posted inDaily Brief
Santander Sells Up In Bolivia
Spanish bank Santander has sold its affiliate company in Bolivia – Banco Santa Cruz — to local financial institution Bisa in a deal estimated to be worth $38 million. Santander bought Banco Santa Cruz in 1998.
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Bancolombia Offers To Buy Comercia
Bancolombia, Colombia’s largest bank in terms of assets, has offered to buy Compañía de Financiamiento Comercial (Comercia) in a deal worth over $19.4 million. Comercia is the eighth-largest financial institution in asset terms.
Posted inDaily Brief
Mexican Production Rises In October
Mexican production in October rose 2.6%, a recovering from the 1% rise seen in September, but below analysts’ forecasts of 3.3%.
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Mexico Lowers Growth Forecast
The Mexican government has lowered its growth forecast for 2005 from 3.5% to 3%, pointing the blame at Congress’ failure to pass economic reform measures proposed by Vicente Fox’s administration. Last month the Bank of Mexico reduced its forecast to between 2.75% and 3.25% for the year. The government predicts economic expansion of 3.5% in 2006.
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Peru Taps International Capital Markets For $500 Million
Peru has reopened its 2025 bond issue to sell a further $500 million, increasing the total amount of the offering to $1.25 billion. The bonds carry a coupon of 7.35% and were placed at a yield of 7.25%. The deal was arranged by Citigroup. Peru’s move to tap the international markets is part of its strategy to repay an $830 million loan to the Japan Peru Oil Co (Japeco). Last week it raised $238 million through the sale of local currency bonds, below its target of $273 million. Peru says it will settle the remaining $92 million through a further local currency bond offering or directly from Treasury funds.
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Bolivian Quiroga’s Candidacy Confirmed
Bolivia’s Electoral Court has rejected a legal challenge lodged last week against the candidacy of presidential hopeful, conservative and ex president Jorge Quiroga. The Court found that there was not sufficient legal argument to support disqualification of his candidacy. The legal charge was that a full five years have not passed since Quiroga was last president (thereby barring him from running). Ex president Quiroga is the only serious candidate to threaten the presidential frontrunner, left-wing cocalero leader Evo Morales. Elections are due to take place on 18 December.
Posted inDaily Brief
Peru Bonds Below Target
Peru sold $238 million in local currency bonds, below its $273 target, as part of a strategy to repay a loan to the Japan Peru Oil Co (Japeco). The local bonds, which mature on 20 August 2020, carry a coupon of 8.74% and were placed at a yield of 8.15%. Peru needs to raise at least $830 million to repay the Japeco debt and hopes to make up the difference with an international tranche before the end of the year.
Posted inDaily Brief
Mexico Cuts Benchmark Rate To 8.25%
Mexico cut its benchmark interest rate by half a percentage point to 8.25%, Friday, in a bold move to stimulate the economy. The rate cut was larger than expected and followed a second month of record low annual inflation: prices rose only 2.91% in November. Analysts now expect rates to fall as low as 7% by the first quarter of next year.