Mexico is planning to reform the country’s securities law to create a market for mortgage credit securities modeled on the Danish system. The mortgage market has seen a boom this year after nearly 10 years of stagnation following the financial crisis in 1995. Mexico has a growing economy and a large need for financing new homes, in particular for the country’s middle class.
Category: Regions
Posted inDaily Brief
Peru Approves Oil Contract With Chinese Firm
Peru has signed a hydrocarbon exploration contract with an affiliate of state-owned China National Petroleum Corp, Sapet Development Peru Inc., to operate in the south-eastern region of the country bordering Bolivia, an area with the country’s highest gas reserves.
Posted inDaily Brief
Political Agreement In Nicaragua
An agreement has been reached between President Enrique Bolaños of Nicaragua and the left-wing Sandanista leader Daniel Ortega to delay until next year constitutional reforms which will weaken presidential powers. Growing conflict between President Bolaños and the opposition-controlled Congress has created a deepening political crisis in the country, described by the President as a ‘creeping coup’.
Posted inDaily Brief
Bolivia Judge Freezes Entel’s Assets
A labor law judge in Bolivia has ordered the freezing of assets of the country’s largest telecoms operator, Empresa Nacional de Telecomunicaciones (Entel), which is owned by Italian Telecom. The company is reported to owe around $9.7 million in wages, going back a decade or more when Entel was state-owned.
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Palacio Will Miss IberoAmerican Summit
President Alfredo Palacio of Ecuador has said he will not be attending the annual IberoAmerican Summit due to the continued wrangling between the President and Congress regarding a referendum to be held on constitutional reform. The Summit it to be held in Salamanca, Spain on the 14-15 October.
Posted inDaily Brief
Mexico Publishes List of Insider Traders
Mexican financial regulators have, for the first time, published a list of companies fined for breaking insider trading laws. These ‘name and shame’ tactics have been borrowed from its northern neighbor where the SEC names offending companies.
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U.S. Hunt Oil To Issue Bonds In Peru
Hunt Oil of the U.S. has filed with Peru’s securities commission to issue $150 million of bonds in the local market. Hunt has plans for a $2 billion project to export natural gas from Peru to Mexico and is due to start construction of infrastructure at the end of this year. The company also recently signed an oil exploration and production contract with the Peruvian government to operate in the south of the country.
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Banorte Shareholders Approve Capital Increase
Shareholders of Mexico’s fourth-largest financial institution, Banorte, have approved a capital increase for the bank. The increase of P$5.3 billion ($490 million) will be financed via a new issuance of ordinary shares to be distributed to shareholders at a ratio of three new shares to one existing share. Shareholders also approved an annual dividend of P$1.25 per share.
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Mexican Infonavit Issues 20-Year Mortgage-backed Debt
Infonavit, Mexico’s largest home financing company, has issued 20-year domestic debt worth P$1.058 billion ($98 million) with a fixed annual rate of 5.90%. The mortgage-backed debt is the fourth tranche of an offering that was launched last year. The non-profit lender said it placed most of the offering with pension funds, insurers, investment companies, and also – for the first time – with foreign investors. Infonavit said it is preparing another issue for December.
Posted inDaily Brief
Mexico Inflation Record Low
Mexico’s rate of inflation in September rose by only 0.40%, below analyst forecasts. The annual rate fell to a record low of 3.51%. Economists expect the Central Bank to continue to cut interest rates to boost growth in light of the low inflation figures. Since August 26, the Bank has cut the overnight lending rate by 50 basis points to 9.25%.