Thursday, January 15, 2009

News reel: Economic Meltdown p1 – South America

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Peru in Talks to Borrow From U.S. Fed, China, Valdivieso Says – Bloomberg - Jan 15, 2009

Jan. 15 (Bloomberg) -- Peru is in talks with the U.S. Federal Reserve and China’s central bank to swap its currency for dollars as the government seeks to boost liquidity amid the global credit crunch, Finance Minister Luis Valdivieso said.

The country may tap another $9 billion in loans from multilateral lenders to help finance about $35 billion in mining, energy and other development projects, Valdivieso said in an interview with Bloomberg television last night at the Finance Ministry in Lima.

Brazil Company Debt Payment Aid Points to Larger Need in Region - Bloomberg - Jan 15, 2009

Jan. 15 (Bloomberg) -- Brazil’s plan to provide more than $20 billion to help companies roll over maturing international debt may point to even bigger financing constraints in the rest of Latin America, according to Standard & Poor’s.

Brazil’s central bank President Henrique Meirelles unveiled plans yesterday to tap reserves for helping 4,000 or more companies meet international debt payments this year. Brazilian companies have $61.6 billion of foreign debt coming due this year, including $44.9 billion of obligations that mature in less than a year, Schineller said, citing central bank data.

Brazil’s Exports May Plunge 20 Percent in 2009, Barral Says – Bloomberg - Jan 15, 2009

Jan. 15 (Bloomberg) – Brazil’s exports may plunge 20 percent this year on slumping demand and falling prices as world economic growth slows, Foreign Trade Secretary Welber Barral said.

Argentina’s Buzzi Says Government’s Plan Isn’t Enough (Update1) – Bloomberg - Jan 15, 2009

Jan. 15 (Bloomberg) -- Argentine farm leader Eduardo Buzzi, president of the country’s Agrarian Federation, said measures announced by the government yesterday aren’t enough to help farmers facing drought and falling commodity prices.

Ecuador Bank Drafting Bill for Second Currency, Hoy Reports – Bloomberg - Jan 15, 2009

Jan. 15 (Bloomberg) -- Ecuador’s central bank is preparing legislation that would allow it to issue a currency to be used alongside the dollar, Quito-based newspaper Hoy reported, citing a draft of the bill it had obtained

Bolivia breaks relations with Israel over Gaza invasion – MercoPress- Jan 15, 2009

President Evo Morales announced Wednesday that Bolivia severed diplomatic ties with Israel as an act of solidarity with Palestinians suffering from the current offensive in the Gaza strip.