The Bank of Mexico has reduced its forecast for economic growth in 2005 by a quarter of a percentage point, citing the impact of two hurricanes that hit Mexico in the past few months. GDP growth of between 2.75% and 3.25% is now expected.
Category: Regions
Posted inDaily Brief
Peruvians Say “No” To Decentralization
President Alejandro Toledo’s plans to decentralize government in Peru have been dealt a blow. An overwhelming majority of people in Peru voted against the creation of new regions in Sunday’s referendum. Peruvians in 16 of the country’s 24 provinces were asked to decide on the consolidation of their regions to create five new “macro-regions”, which would effectively decentralize power from Lima.
Posted inDaily Brief
Sol Continues To Slide
Meanwhile, Peru’s currency — the sol — continues to slide for the third month in a row and has become the worst performer among Latin American currencies. The sol traded at 3.3785 per dollar as at 31 October, down from 3.2575 on 26 August, a drop of 3.6% Analysts say that low local yields have led large institutional investors to switch from local paper to US-denominated assets in search of higher returns.
Posted inMagazine
The Midas Touch
Carlos Slim’s recent equity deals helped diversify the Mexican stock market and cap a year of heightened equity activity. But have his stocks done too well?
Posted inMagazine
Exclusive Interview – Evo Morales
LatinFinance talks with Evo Morales on the future of Bolivia, his presidential campaign, and his relationship with Hugo Chávez.
Posted inDaily Brief
BBVA Outbids Competitors For Granahorrar
BBVA in Colombia, the affiliate of Spanish banking giant, has outbid local competitors to buy state-owned mortgage-lender Granahorrar, which went under the hammer yesterday in Bogotá in the second phase of its privatization. BBVA bid $423.6 million to take control of 98.78% of Granahorrar, beating off Colpatria, Davivienda and Banco de Bogotá in the process. Spanish bank Santander, which had been expected to present an offer, failed to bid.
Posted inDaily Brief
Peru BBVA Banco Continental $50 Million Bond Issue
Peru’s second-largest bank, BBVA Banco Continental, has issued $50 million worth of bonds in the local market. Most of the bonds were sold to mutual funds, said the bank. The bonds’ maturity is five years and 12 days and offers a rate of 1.4% plus six-month Libor.
Posted inDaily Brief
Bolivia Cancels December Elections
Bolivia’s National Electoral Court has cancelled elections due to take place on 4 December following the failure by Congress to redistribute seats among provinces based on the 2001 census. The elections were called earlier this year following the resignation of President Carlos Mesa in June following months of popular protest. Interim president Eduardo Rodriguez has said he will step down in January even if elections have not taken place.
Posted inDaily Brief
Banorte Net Profits Up 140%
Mexico’s fourth-largest financial institution, Banorte, has announced net profits of $121.4 million in the third quarter of this year, 140% up on the same period last year and above analysts’ expectations. The results are equivalent to earnings per share of 2.63 pesos, compared with 1.09 pesos for the third quarter of 2004.
Posted inDaily Brief
HSBC Mexico Earnings Rise 40%
HSBC Mexico has reported a 40% year-on-year rise in its net profits for the first nine months of the year. The net profits of $327.7 million exceeded expectations. HSBC Mexico, an affiliate of UK bank HSBC, is Mexico’s fifth-largest financial institution.