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
