Economists expect Chile’s GDP to grown 5.8% this year, according to a poll conducted by the country’s central bank. This figure is slightly less than the government’s projection of 6%. The central bank raised its lending rate to commercial banks 25 basis points last week to 3 percent in a move to control inflation. Chile continues to benefit from strong global demand for copper.
Category: Daily Brief
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OAS Vote Ends in Tie
The Organization of American States will begin the process of electing a new secretary-general from scratch again, starting with new nominations, following a fifth 17-17 tie vote Monday. A new vote is scheduled for May 2. Chile’s Interior Minister José Insulza tied with Ernesto Derbez, the former foreign minister of Mexico and a former World Bank official. Insulza had the support of most major South American countries, the Caribbean Community and Venezuela’s President Hugo Chávez.
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Citigroup Wins Victory
Citigroup won approval from Brazilian regulators to retake control of three phone companies, defeating a challenge by the former manager of its $728 million investment fund, Daniel Dantas. The decision clears one obstacle to Citigroup’s plans for removing Dantas and the executives he named while he managed the bank’s shares in Brasil Telecom, Brazil’s third-biggest telephone company, and two mobile phone companies. Dantas has been fighting to stay in control of Brasil Telecom since March 9, when he was fired by Citigroup.
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Palocci: Lift Trade Barriers
Brazil’s Finance Minister Antonio Palocci called on developed countries to lift barriers on farm products from developing nations. Speaking at the International Monetary Fund and World Bank spring meetings in Washington, Palocci said a successful completion of the Doha Round of trade talks would translate into annual gains of $250 billion through 2015, with more than one third of that amount going to developing countries.
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People
The Brazilian government has confirmed Elifas Gurgel do Amaral, 49, as president of Anatel, the federal telecom regulatory agency. Gurgel, an engineer and reserve army colonel, had taken over on an ad hoc basis in January. He is a close ally of Communications Minister Eunício Oliveira and member of the PMDB party, a member of the ruling coalition. The government picked Gurgel over senior career Anatel officials, despite opposition from Finance Minister Antonio Palocci and telecom operators concerned that nominally independent Anatel is losing its autonomy. Brazil has one of the largest and fastest-growing telecom markets in the developing world.
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Carlos Garcia Moreno, CFO, America Movil confirmed to speak at the LatinFinance/IDB “Latin American Borrowers’ & Investors’ Forum 2005”
LABIF is a high-level, invitation-only summit where representatives of Latin American issuers — directors of public credit, central bank governors and the senior management of leading corporate issuers — can engage in detailed discussion and debate with major institutional investors, analysts, advisers and representatives of the rating agencies. To apply for an invitation please
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Paranapanema Ends Losses
Brazil’s Paranapanema mining group earned $44.4 million in 2004, ending six years of losses. The company is now negotiating with the government’s BNDES development bank to convert its $100 million debt into equity. Pension funds led by Previ, the country’s largest, control the company and will convert $200 million in corporate bonds into equity before they mature in 2007.
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Chile Exports Weaken
The government announced that Chile’s trade surplus fell to $1.053 billion last month, 12% less than in the same period last year. Economists had expected a balance of $1.30 billion. Last month, Chile posted a $585 million surplus in February. Exports last month rose 20% year on year to $3.65 billion, and imports rose 39% to $2.6 billion. Economists say the data suggest continuing robust economic activity, with external demand, investment, and consumption all making a strong contribution to growth.
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Pemex To Issue Up To US$1.8bn Bonds In Q2
Mexico’s state oil company Pemex plans to issue up to 20bn pesos (US$1.8bn) of bonds, most of which will have variable interest rates, in the second quarter this year, the company said in a statement.
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Chile: Central Bank Raises Rates
Chile’s Central Bank increased its benchmark lending rate by 25 basis points to 3%, a two-year high. Central bankers said they expect to continue raising rates. International risks to the economy have increased and oil prices probably will impact inflation in the short term, the bank said. Economists expect rates to increase to 4% by year-end, according to a Central Bank survey.