Archive for November 6th, 2012

Argentina to fight U.S. court ruling on debt: minister

| November 6th, 2012 | No Comments »
Article originally appeared in Reuters

BY ALONSO SOTO & LUIS ROJAS

MEXICO CITY – Argentina will use all legal means to defend its position against a U.S. court ruling that would force the country to repay creditors who sued to collect on defaulted Argentine bonds, Economy Minister Hernan Lorenzino said on Monday.

Argentina staged the world’s biggest sovereign debt default in 2002 during a deep economic crisis. About 93 percent of Argentine bondholders agreed to swap their defaulted debt for new issues in 2005 and 2010, but “holdout” creditors who rejected the swaps continued to press for full repayment on the bonds in courts throughout the world.

Late last month, a federal appeals court in New York ruled that Argentina violated bond provisions to treat all creditors equally when it made payments to creditors who accepted the swaps, while refusing to pay the holdouts.

Lorenzino said Argentina would honor debt payments to bond holders who agreed to the restructuring.

“We ... Read More

Colombia: trading in a virtuous circle

| November 6th, 2012 | No Comments »
Financial Times

BY ANDRES SCHIPANI

For years many people thought that Colombia only produced coffee and cocaine. Now, after an impressive turnaround, people think Colombia only produces coal and oil.

However, armed with his Adrien Brody looks and a PhD in Economics from an Ivy League university, Juan Pablo Córdoba, the president of Bogota’s stock exchange, the BVC, is ready persuade you that the local financial market is the future.

“In the last seven years the Colombian market has grown at an annual average rate of 26 per cent; everybody would like to have a business that grows at a 26 per cent rate annually,” he tells beyondbrics.

“Eight or nine years ago, Colombia was not necessarily targeted as an investment destination,” he says. But things have changed. Colombia, where consumer spending and rampant growth in oil and coal production have spurred impressive growth in recent years, is increasingly being seen as a key geography for foreign investors of all ... Read More

Venezuela: Chávez contemplates bolívar devaluation

| November 6th, 2012 | No Comments »
Euromoney

BY JASON MITCHELL

PDVSA, Venezuela’s state-owned oil company, might issue up to $3 billion in bonds before the end of the year and the country is expected to devalue the bolívar next year, according to bankers. This follows the October 7 re-election of Hugo Chávez as president for a third term, obtaining 54.4% of the vote, 9.5% ahead of the opposition nominee, Henrique Capriles Radonski.

PDVSA, which in many ways operates as an arm of the government, has tapped the capital markets to the tune of $3 billion already this year compared with a total of $15 billion last year. This debt was sold directly in the local market or allocated to the central bank to be sold to locals at the official Sitme exchange rate (which applies primarily to financial outflows and a limited category of imports and is currently Bs5.30 to the dollar). However, most of this debt ultimately enters ... Read More

Brazilian, U.S. Firms to Launch World’s Largest Biofuel Marketer

| November 6th, 2012 | No Comments »
Latin American Herald Tribune

RIO DE JANEIRO – Brazil’s Copersucar and U.S. company Eco-Energy announced Monday that they are linking their ethanol operations to create the largest biofuel marketer in the world.

The two firms together control 12 percent of the global market for ethanol, with a combined supply capacity of 2.6 billion gallons (10 billion liters) of biofuel per year, the partners said in a press release.

Brazil makes ethanol from sugar, while U.S. producers use corn as raw material.

The two companies agreed on a joint investment in Eco-Energy “to build and expand their integrated biofuel platform,” according to the press release.

Copersucar, which calls itself “the largest Brazilian sugar and ethanol trader integrated to production,” will have a controlling stake in the venture, company sources said.

The Brazilian firm has annual sales of roughly $7.5 billion, compared with roughly $3 billion for Eco-Energy.

“With this partnership, Copersucar becomes a truly global company in the biofuel market, expanding ... Read More