Peru’s proposal to pay back early as much as $2 billion of debt owed to the Paris Club was accepted by a majority of the group’s creditor nations. Peru will cut its borrowing costs by paying down the debt early since the government’s bond yields today are lower than the interest rate it is paying on the Paris Club debt, Economy Minister Pedro-Pablo Kuczynski said last week. Peru will sell bonds in international and domestic markets to finance the payment.
Category: Regions
Posted inDaily Brief
Rodriguez Appoints Cabinet
Eduardo Rodriguez, Bolivia’s new president, named 12 new ministers to his 16-member cabinet. Among them are Luis Gemio, a former United Nations consultant, is economy minister. Jaime Dunn, former CEO of state oil company YPBF, took over as hydrocarbons minister. Rodriguez has promised to hold new elections within six months.
Posted inDaily Brief
Peru: Growth Quickens
Peru’s economy grew 6.4 percent year-on-year in April. Higher output of natural gas, chemicals, paper and cotton outpaced declines in copper and gold. Manufacturing rose 7 percent led by a 57 percent surge in chemicals. The Central Bank revised its growth forecast for 2005 to 5 percent from 4.5 percent. The economy grew 5.2 percent in the 12 months through April, compared with 4.9 percent through March.
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José Antonio González Anaya, Director of Insurance and Securities at the Mexican Ministry of Finance and Public Credit, joins “Mortgage Insurance” workshop at LatinFinance’s Cumbre Financiera Mexicana, July 13-14, Mexico City.
Debate and discuss the challenges and opportunities presented by Mexico’s dynamic financial markets at this invitation-only event. View the full agenda and apply for an invitation at www.latinfinance.com/mexicana
Posted inDaily Brief
Dr. Guillermo Babatz, CEO of Sociedad Hipotecaria Federal (SHF), joins workshop for LatinFinance’s Inaugural “Cumbre Financiera Mexicana”
Dr. Guillermo Babatz will join the “Mortgage Insurance: The Next Step” workshop at LatinFinance’s Inaugural “Cumbre Financiera Mexicana”, which will take place on July 13-14 in Mexico City. Delegates will debate and discuss the challenges and opportunities presented by Mexico’s dynamic financial markets at this invitation-only event. View the full agenda and apply for an invitation at www.latinfinance.com/mexicana.
Posted inDaily Brief
Colombia Swaps Bonds
Colombia swapped $583 million of dollar and euro-denominated bonds for new peso debt in a bid to reduce financing costs and stretch out the average life of its obligations. Investors holding bonds worth $1.0 billion offered to take part in the exchange. Colombia’s foreign-currency debt is rated Ba2 by Moody’s and BB by Standard & Poor’s, the second highest level in South America after Chile.
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Bolivian Military Backs Congress
Bolivia’s armed forces warned against coup attempts and said the military will accept Congress’s choice of a successor to President Carlos Mesa, who resigned this week amid street protests that shut down the capital. Politicians postponed an emergency session of Congress which was to name a replacement for Mesa.
Posted inDaily Brief
Alejandro Schwedhelm, Managing Director, Darby Financial Services, joins panel for LatinFinance’s Inaugural “Cumbre Financiera Mexicana”
Alejandro Schwedhelm will join the “Mexican Banking Sector: The Reemergence of Domestic Players” panel at LatinFinance’s Inaugural “Cumbre Financiera Mexicana”, which will take place on July 13-14 in Mexico City. Delegates will debate and discuss the challenges and opportunities presented by the ever-changing face of Mexico’s dynamic financial markets at this invitation-only event. View the full agenda and apply for an invitation at www.latinfinance.com/mexicana
Posted inDaily Brief
Mexico: Inflation Falls
Mexico’s core inflation rate fell to 3.41 percent in May, the lowest rate since the central bank began calculating the index in 1983. The central bank has raised the benchmark loan rate in 12 of the past 15 months to 9.75 percent. Mexico’s $677 billion economy grew 2.4 percent in the first quarter, down sharply from the previous quarter, dragged by the interest-rate increases and lowered US demand for Mexican exports.
Posted inDaily Brief
Mesa Warns of Civil War
Bolivian President Carlos Mesa, who offered to resign this week, warned that the country could face civil war if new elections weren’t held immediately. By law, Senate leader Hormando Vaca Diez, is next in line for the presidency. But Mesa asked Vaca Diez to refuse the position. Congress is scheduled to meet this morning and is expected to accept President Mesa’s resignation. Protesters broke into oilfield installations in eastern Bolivia yesterday.