Colombia has decided to grant asylum to ex president of Ecuador Lucio Gutiérrez, the country announced. Gutiérrez arrived in Colombia at the end of September and was given leave to stay for 90 days while Colombia assessed his application to seek asylum. The former colonel was ousted from power on 20 April this year by Congress after he dissolved the Supreme Court sparking protests in the country. In June Gutiérrez gave up his political asylum status in Brazil, granted following his exit from Ecuador.
Category: Regions
Posted inDaily Brief
Telefónica Del Perú First Local-currency Issue Abroad
Peru’s largest telecoms operator, Telefónica del Perú, has issued its first local currency bonds abroad. The $225 million sol-denominated paper matures in 2016. Telefónica’s issue follows Brazil’s successful first issue on 20 September, when it sold $1.5 million of real-denominated bonds to international investors.
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Ecuador GDP Grows By 2.9%
Ecuador’s GDP grew by 2.9% year-on-year in the second quarter of 2005, compared with 10% in the same period last year. The drop in growth is due to the crisis in the oil sector earlier this year, which saw a fall in oil production of 4.5%. Between April and June this year non-oil sectors of the economy grew by 3.2%; when the oil sector is included it contracted by 2.8%.
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América Móvil Bonds Rated BBB
Mexican América Móvil’s Ps5 billion ($462 million) senior notes due 2016 have been rated BBB by Standard & Poor’s. Although issued in Mexican pesos, the notes will pay principal and interest in US dollars, unless investors elect to be paid in pesos. América Móvil, owned by business magnate Carlos Slim, in one of the most important telecommunication companies in Latin America, based both on the number of wireless subscribers and investments realized, which are made in high growth markets, currently with relatively low wireless penetration.
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$450 Million Loans For Cerro Verde
Phelps Dodge Corp, which owns Peru’s third-largest copper mine, Cerro Verde, has said it has secured loans of $450 million to help with its expansion plans for the mine. The US company said it may replace $90 million of the financing with a bond sale in Peru. This follows a decision late last week by Cerro Verde shareholders to approve issuing bonds for up to $250 million. Phelps Dodge expects to triple annual production to 300,000 metric tons following expansion.
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Inflation Roundup For September
Peru experienced 0.09% deflation in September, making it the second month of consecutive deflation in the country after 0.18% recorded in August. This takes cumulative inflation for the nine months to end-September to 0.89%. Brazil also witnessed a fifth deflationary month with a rate of 0.53%, following August’s fall of 0.65%. Meanwhile, Colombia recorded a rise of 0.43% in September’s rate of inflation, pushed up by higher school fees at the start of the academic year, according to official sources. Cumulative inflation was at 4.42% as at end-September. And Venezuela registered 1.5% in September, meaning that cumulative inflation for the first nine months of the year is now 11.6% against 14.7% for the same period last year. Argentina is due to release its figures on Wednesday.
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Peru To Auction La Granja In December
Peru has set the date of 16 December for the anticipated privatization of La Granja copper deposit. The project, which has gold as well as copper deposits, has been explored before, most recently by Melbourne-based BHP Billiton. The Australian company, however, pulled out citing low-grade ore and high extraction costs. Officials say new technology now available should make extraction easier. An estimated $700 million is needed to develop the project.
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Cerro Verde Shareholders Approve Bond Issue
Shareholders of Peruvian copper mining group Cerro Verde have approved a $250 million bond issue, the company said. The funds raised will be used to pay for its $850 million expansion plans which are expected to boost copper production to around 300,000 metric tons a year by mid-2007 from around the current 100,000 tons a year.
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FLAR Attaches Strings To $416 Million Ecuador Loan
The Bogotá-based Latin American Reserve Fund (FLAR), has attached conditions to the $416 million four-year loan it is extending to Ecuador to help that country improve its fiscal accounts. FLAR has said that Ecuador’s primary spending of its non-financial public sector must not exceed 7% of GDP in 2006 and 5% in 2007, 2008 and 2009. The short-term loan from the fund will allow Ecuador to consolidate its short-debt obligations on better terms. FLAR is an adjunct of the six-member Andean Community and aims to support the financial accounts of its member countries.
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Nicaragua Recalls Ambassador From Costa Rica
Nicaragua has recalled its ambassador to Costa Rica, Francisco Fiallos Navarro, as a long-running border dispute between the two countries escalates. Since 2001, Nicaragua and Costa Rica have been disputing sovereignty of the San Juan River border between the two nations. Costa Rica says it is considering bringing the case in front of the International Court of Justice in The Hague.