Latin America

  • 2016-04-20 15:55

    By Tom Hennigan

    SAO PAULO (MNI) - Hopes the impeachment proceedings against Dilma Rousseff would ease the country's political and economic crisis are being disappointed as Brazil Vice President Michel Temer reportedly is encountering difficulties in recruiting a new economics team.

    Rousseff's defeat in the Sunday's vote in the lower house of Congress means the impeachment process now passes to the Senate, which is likely to vote by May 17 to take up the motion, which accuses her of breaking budget laws.

    Should the Senate decide, by simple majority, to take up the motion Rousseff will be suspended for up to six months while her fate is decided in a Senate trial. If it votes by a two-thirds majority to convict her, Temer will complete her mandate.

  • 2016-04-19 14:37

    By Vicki Schmelzer

    NEW YORK (MNI) - The central bank stands ready to respond to any spillover effects from a change in U.S. monetary policy and or any destabilization in Mexican financial markets, said Bank of Mexico Governor Agustin Carstens Tuesday.

    The most "important external interest rate" is the U.S. fed fund rates and the Bank of Mexico continued to keep a close eye on Fed policy, the peso exchange rate and global investor flows, he said in a speech to an audience at the Credit Suisse Global Macro Conference.

    "We will adjust our policy rate if it is needed to comply with out objectives," Carstens said. In Q&A later, he stressed again, "We will not be shy" about using all monetary policy tools to stabilize the market.

    The performance of the U.S.

  • 2016-04-15 17:41

    By Denny Gulino

    WASHINGTON (MNI) - IMF officials said Friday Mexico's growth is decelerating to 2.4% this year because of low oil prices but the economy is much more insulated from the oil market, thanks to fiscal and other reforms that are still on schedule, prompting more investment despite the "headwinds of the global economy."

    The positive assessment came as part of the fund's review of Western Hemisphere economies, very few of which have been making as much progress as Mexico.

    "Certainly growth is lower now than we had expected it to be," Robert Rennhack, deputy director of the IMF's Western Hemisphere Department, told reporters Friday.

  • 2016-04-15 10:59

    --Senate Would Have Up to Six Months to Vote
    --Despite Political Crisis, Markets See Hope in Rousseff Exit

    SAO PAULO (MNI) - Brazil's Congress Friday morning started debating whether to remove President Dilma Rousseff from office after the country's Supreme Court blocked a last minute bid by the government to halt an impeachment vote, opening what could be a lengthy period of political uncertainty, which ironically has cheered markets.

    In a marathon extraordinary session that only wrapped up in the early hours of this morning the Supreme Court ruled by eight votes to two that the lower chamber could proceed with its debate, with a vote expected by Sunday night.

    Rousseff is formally charged with breaking budgetary laws in order to illegally boost public sp

  • 2016-04-12 12:38

    --WEO Sees Threats in Low Growth, Mkt Turbulence, Political Sphere

    WASHINGTON (MNI) - Its resistance lowered by prolonged low growth among the advanced economies, the global economy is worrying the IMF with its rash of non-economic factors that could help lower growth substantially to the low end of expectations or worse, the Fund's economic specialists said Tuesday.

    Even without the unsettled political campaign rhetoric in the United States, where anti-trade themes prevail in both parties, the prospect of a UK negative vote on participation in the eurozone, the European refugee crisis and a general discrediting of politicians as a class are non-economic factors that make it harder to implement needed economic reforms.

  • 2016-03-31 12:55

    WASHINGTON (MNI) - Moody's Monday lowered Mexico's outlook to negative from stable, citing the subdued economy and economic headlwinds, while affirming the A3 credit rating. The text of the statement follows:

    Moody's Investors Service has today affirmed Mexico's A3 issuer and government bond ratings and changed the outlook to negative from stable.

  • 2016-03-31 08:48

    By Tom Hennigan

    SAO PAULO (MNI) - Efforts to tackle Brazil's recession remain hostage to the country's political crisis, local analysts warn, just as uncertainty surrounding the fate of President Dilma Rousseff increased this week with the departure of the country's biggest political party from her embattled government.

    The Democratic Movement of Brazil (PMDB) said Tuesday it is quitting the ruling coalition, increasing the likelihood that Rousseff's opponents will muster the two-thirds majority in Congress required to impeach her.

    Rousseff has denounced the effort to remove her, ostensibly over breaking fiscal laws, as a "coup" and says she will not be forced out.

    But analysts say her administration's efforts to deal with a moribund economy and gaping fiscal hole

  • 2016-03-21 14:57

    --Anti Government Protests, Falling Economy Add to Nation's Woes

    SAO PAULO (MNI) - With a crisis apparently spiraling out of control and new developments daily if not hourly, Brazil's President Dilma Rousseff faces another crucial week in her battle to prevent her mandate being consumed by a full-blown constitutional crisis.

    Reeling from some of the biggest anti-government protests in the country's history and with congress debating whether to impeach her, Rousseff's Workers Party government is now locked in a confrontation with the country's judiciary as a result of its latest move to save itself.

    The Supreme Court must decide if the president can install her powerful predecessor Luiz Inacio Lula da Silva as her new cabinet chief, an appointment which an

  • 2016-02-19 16:00

    --Discloses White House Meeting of Puerto Rico Stakeholders

    WASHINGTON (MNI) - The following is an announcement Friday afternoon by the Treasury Department that Treasury Secretary Jack Lew met to urge "shared sacrifice' on Puerto Rico bondholders and that at the White House earlier in the week, Lew and other administration officials met with key Puerto Rico stakeholders:

    Today, Secretary of the Treasury Jacob J. Lew met with a group of Puerto Rico bondholders as part of the Treasury Department's ongoing engagement on the fiscal and economic crisis in Puerto Rico, which affects 3.5 million American citizens. Secretary Lew explained that the crisis in Puerto Rico is severe and rapidly deteriorating.

  • 2016-02-17 15:32

    --Ratings Outlook Negative

    WASHINGTON (MNI) - Standard & Poor's said Wednesday it has cut Brazil's debt rating to BB with a negative outlook on the "considerable" political and economic challenges. The text of the statement follows:

    On Feb. 17, 2016, Standard & Poor's Ratings Services lowered its long-term foreign currency sovereign credit rating on the Federative Republic of Brazil to 'BB' from 'BB+' and the long-term local currency sovereign credit rating to 'BB' from 'BBB-'. The outlook is negative. We also lowered the short-term local currency rating to 'B' from 'A-3' and affirmed the 'B' short-term foreign currency rating. At the same time, we lowered the transfer and convertibility assessment to 'BBB-' from 'BBB'.