The federal public security intervention in Rio de Janeiro is one more example of the political perspicacity of the government leaders. In one fell swoop they managed to remove the monopoly on the public safety agenda of an important competitor, give a sign of strength to unfaithful allies, and put the opposition in the uncomfortable position of criticizing a measure with popular appeal.
The issuers, borrowers and mediators of the most innovative and outstanding debt capital market deals on the continent to be lauded at the prestigious awards ceremony. Winners: Latin America Deals of the Year Awards 2018
If volumes are anything to go by, 2017 was a watershed year for green bonds, with the market seeing more than USD130bn of these securities issued globally. Emerging markets saw their fair share of firsts, including Latin America’s first sustainability bond, and the first green bond in Africa, while China continued to dominate the supply pipeline
The golden rule of the public accounts establishes that the federal government can only issue debt for investment and refinancing of the existing debt, not to pay current expenses. It is a good constitutional rule, because it forbids one generation from creating debts resting on future generations to pay for a profligate state.
The Temer administration appears to have lost the communication battle. It has achieved several advances on the economic agenda, and according to Carlos Pereira, this has been achieved at a cost – in terms of cabinet appointments and budget allocations in favour of lawmakers – lower than that paid under previous presidents. All the same, mistrust prevails, with a distorted interpretation of more or less any initiative undertaken by government.
CAF tapped the international markets – Argentina raised interest rates by 100bp – Banorte and Interacciones to merge – Colombia pre-paid a bond – Brazil cuts rates – Banco Hipotecario issued a ARS6.3bn bond – Colombia’s stable outlook affirmed – Televisa’s head to step down – Venezuela to restructure USD60bn worth of debt
Nafin to return to the yen market – CFE issued a triple-tranche bond in the local market –Petrobras gets upgraded – Gerdau sold USD650mn in fresh debt – Argentina raises rates – Consumer prices to fall in Peru – The IMF might bail out Venezuela – PDVSA´s assets continue to rally – Guatemala gets downgraded – Bancolombia issued a ten-year bond
The past 15 years in Brazil were marked by retrogression in the electricity sector, with questionable investments and misguided regulations. The Rousseff administration aggravated the situation alarmingly. There was no lack of warnings from specialists. There was too little dialog and too much incompetence. More recent developments suggest that likely solutions to the sector’s woes can often come from unlikely places.
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11 Apr 2018