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Weekly Observatory Latin America

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Argentina and Colombia published data confirming the fiscal deterioration

Tue, Nov 3 2009, 09:08 GMT
by BBVA Bancomer Team

BBVA Bancomer


Weekly Highlights

In a week characterized by the absence of key macro data releases, we highlight credit reports in Brazil and Chile, where credit aggregate keeps on growing in the first case, while remaining stable in the second. Chile also shows signs of recovery through data on retail sales and unemployment. In Venezuela, on the contrary, unemployment maintains an upward trend during September. Finally, Argentina and Colombia published data confirming the fiscal deterioration, both through weaker tax collection and greater expenditures.

1. Argentina

  • The Economic Ministry announced a re-opening of the debt swap in default for bondholders that had not accepted the official proposal in 2005. The market reacted positively (U$S 20000 pending restructuring). The offer will include a “haircut” slightly above 65% and is 60% acceptance is expected. It will imply also an additional income of 10% of the swap value provided by the coordinators banks.
  • September’s Primary Fiscal result reached $223 millions falling 93.7% with respect to the same month of previous year. The figure was in line with our forecast and confirms the continuation of the fiscal deterioration due to revenue


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http://www.bancomer.com/economica | e.economicos@bbva.bancomer.com

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This document was prepared by Banco Bilbao Vizcaya Argentaria’s (BBVA) Research Department on behalf of itself and its affiliated companies (each a BBVA Group Company) for distribution in the United States and the rest of the world and is provided for information purposes only. The information, opinions, estimates and forecasts contained herein refer to that specific date and are subject to changes without notice due to market fluctuations. The information, opinions, estimates and forecasts contained in this document have been gathered or obtained from public sources believed to be correct by the Company concerning their accuracy, completeness, and/or correctness. This document is not an offer to sell or a solicitation to acquire or dispose of an interest in securities.

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