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.
Category: Regions
Posted inMagazine
Building a Brilliant Future
Bancolombia has struggled for years to raise profits. Now it is reaping the results of its hard work as it leads bank consolidation in Colombia.
Posted inMagazine
Hunting for Champions
LatinFinance picked over 20 banks across Latin America and the Caribbean as the very best in the business. This is how we chose the winners.
Posted inDaily Brief
Mexico New Energy Minister Announced
Economy Minister Fernando Canales Clariond has been chosen as Mexico’s new Energy Minister following the resignation of Fernando Elizondo earlier this week to stand as a candidate for the Senate. Canales has had extensive private sector experience and was director general and vice president of the steel conglomerate and industrial group IMSA. He was governor of Nuevo León between 1997 and 2003 when he was named Economy Minister by President Vicente Fox. He is replaced at the Ministry of the Economy by Sergio García de Alba, Under Secretary at PyME, Mexico’s contact point for small and medium-sized companies.
Posted inDaily Brief
Bolivia May Delay December Elections
Bolivia may have to delay its general elections, due to take place on 4 December, because of administrative delays and regional disputes. Bolivia has been in political and social turmoil in the past two years and seen two presidents during this time. The current interim president, Eduardo Rodríguez, took office in June following the resignation of Carlos Mesa.
Posted inDaily Brief
Mexican Constructor Places $250 Million Notes
Mexican home construction company Homex has announced it has successfully placed $250 million of 7.55% senior guaranteed 10-year notes with US institutional investors. The notes, which are due in 2015, are the first of this kind to be issued by the domestic home construction sector in Mexico. The issue extends the company’s debt profile by five years as well as strengthening its balance sheet following the purchase of Casas Beta. The home construction sector has seen robust growth in the past four years due to the increase of mortgage lending by government and private institutions.
Posted inDaily Brief
Colombia Industrial Production Up 2.5%
Colombia’s industrial production for the six months to July this year, excluding coffee processing, rose 2.5% year-on-year. Growth was led by the automotive sector, which grew by 43.2% compared with last year. Of the 48 industrial sub-sectors, 31 recorded growth this year.
Posted inDaily Brief
Cemex To Make Secondary Share Offering
Mexico’s Cemex, the world’s third-largest cement producer is to make a global secondary share offering of nearly 27 million ADS, with an over-allotment of 3.99 million, to help pay futures contracts and debt obligations. Cemex ADSs are traded on the New York Stock Exchange and are well considered by investors. The company recently announced it expected third-quarter results this year to be up on forecasts.
Posted inDaily Brief
Colombia To Choose Telecom Partner By Auction
Following the announcement that Colombia Telecom will not be signing a memorandum of understanding with telecoms giant Telmex of Mexico, the government has said it will continue to look for a strategic partner for the company via a bidding process. Although Telmex has reportedly made the best offer to date for the company, Colombia is keen to open up the field of contenders. An independent valuation of the company is due following recommendations by the country’s Comptroller General.
Posted inDaily Brief
Panama Economy Grows 6.2%
The Panamanian economy expanded by 6.2% in the first six months of this year, as measured by the monthly index of economic activity (IMAE). The most dynamic sectors included fish and seafood exports, agriculture products and tourism. The government has forecast economic growth this year of between 4.5% and 5%, below the 6.1% growth witnessed in 2004.