While the US market has largely spurned Latin American borrowers, euro-denominated paper has filled in the gap for governments and companies consolidating their European investor base. The weakened currency has also cut their debt service costs. In a series of stories, LatinFinance explores the depth and breadth of the euro market.
Category: 2000
Posted inMagazine
Thinking Globally, Acting Locally
New types of instruments, falling interest rates and less currency volatility in Latin America should encourage global-minded investors and debt issuers to tap the local markets.
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Firmly On the Path
In all respects, the Dominican Republic is an emerging nation. It is a country in a hurry to make up for lost time. While it remains generally poor, the stage is set for increased development as it joins the world in coming to terms with the new global economy.
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Venezuela’s Missing Windfall
State oil company PDVSA’s oil revenues have produced a bonanza for the Venezuelan government, but there is something about the central bank’s numbers that just doesn’t add up.
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Getting Brazil to Clean Up Its Act
Mark Mobius, president of Templeton Emerging Markets and a crusader for minority shareholder rights, says Brazilian laws encourage entrenched corporate management to control companies without owning a majority of capital. Investors therefore have the incentive to buy control of companies at big premiums and then lower the purchase price by offering to buy the shares held by hapless minority investors, who lose out again and again.
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Where Have All the Bradys Gone?
Latin sovereigns retired billions in Brady debt this year as the markets showed renewed appetite for swaps to simpler, cheaper and longer-term bonds.
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Giving Globo a Warm Reception
Investor enthusiasm for the Brazilian media company’s euro issue this year sends a positive signal to Latin American corporate borrowers, who still need to work on raising their profile in Europe.
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Will Mexico’s Financial Armor Hold?
Early government action to protect Mexico from external financial shocks put it in solid shape for Vicente Fox’s administration. But with red flags on the horizon, there is still room – and time – to repeat history.
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A Tax-and-Spend Spree?
Plans for more than $1 billion in new public spending were followed by a tax package that alarmed business leaders. If Congress approves it, the country?s unprecedented growth spurt may soon end.
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Jury Still Out on Privatizations
The previous administration’s aggressive privatization agenda helped cost it the election last May. The new government has now softened its criticism, which may give the program time to succeed.