LatinFinance - Special Edition - August 2013 - 45

Dec 2012
—
MEXiCO REfORMS PiCk uP PACE PRi president enrique Peña
nieto takes office, forging cross-party alliances and pushing forward
with the Pact for mexico – a political agreement consisting of 95
initiatives negotiated and agreed upon by mexico’s main political
parties: the leftist party of the Democratic Revolution (PRD), the conservative national action Party (Pan) and nieto’s own institutional
Revolutionary party (PRi) to push through much needed reforms.
the pact aims to improve mexico’s economy, strengthen the democratic system, and reduce crime, corruption and inequality. energy,
fiscal and financial reforms are among the highest profile measures.

May 2013
—

STORM BREWiNG: Slowing Chinese growth
hits forecasts for LatAm

Cycle turns

Sep 2012
—
Brazil targets investors

Brazil’s government strives to attract long-term
US treasury yields edge sharply higher when US fedinvestment in infrastructure with a BRl133bn
eral Reserve chief Ben Bernanke signals an end to an
($66bn) investment program. investors remain
extraordinary $85bn per month bond buying program,
skeptical, though, unimpressed by heavy state
amid improving prospects for the US economy. the
control in the economy and unpredictable
policies. tax breaks to encourage infrastructure
abrupt change in sentiment makes it difficult for latin
investment are undermined the following year when Brazil scraps the 6% iof
borrowers to issue bonds as investors readjust their
tax on all portfolio inflows. Poor economic management – highlighted by a
portfolios in anticipation of higher US interest rates.
GDP growth rate that slumps to 0.9% in 2012, from 7.5% in 2010 – also deters
the swing comes on top of slowing output in china.
investors. in 2013, a hike in public transport fares sparks widespread protests
as Brazilians unite in their condemnation of economic mismanagement and
Double-digit growth rates in the early 2000s saw a surge
corruption.
in demand for raw materials, boosting commoditydriven latin economies.
china’s slowdown – as
April 2010
well as a slump in Brazil
—
euro crisis a request by Greece for a $45bn bailout from the eU and imf triggers panic
and other big emerging
over bank exposures to a possible sovereign default. over the next two years, growing
turmoil will bring the eurozone to the brink of a break up, as banking woes exacerbate
economies – leads many
sovereign crises, and vice versa, across the single currency area. the tumult revives fears of
to conclude that an era
another global financial crisis, with the reverberations felt across latin financial markets.
of high growth may have
meanwhile, european lenders struggle with slow growth, overstretched balance sheets, and
a tightening regulatory noose. in their bid to shore up capital, european banks scale back
come to an end for latin
international operations, offering opportunities for latin buyers to pick up choice assets.
america and the emergeurozone fears begin to ease in July 2012 when european central Bank head mario Draghi
ing markets.
says he will “do whatever it takes to preserve the euro.”

feb–12

AméricA móvil Adds
dim sum to menu
América Móvil becomes LatAm’s
first borrower to tap the Dim
Sum market selling a Rmb1bn
($160m) three-year bond. The
deal is the first of several from
the Mexican telecom giant.

sept–12

GlobAl brinG
lAtAm’s first
covered bond
Global Bank prints
Latin America’s
first covered bond,
raising $200m.
The bond offers
recourse to both
the issuer and a
pool of residential mortgages
denominated in
dollars and located
in Panama.

to read more, see www.latinfinance.com

MAR–13
HuGo cHávez dies Socialist Venezuelan president Hugo Chávez dies
after 14 years in power.
His vice president Nicolás
Maduro jostles for power
with governor of the Venezuelan state of Miranda,
Henrique Capriles Radonski. Maduro wins.

JUL–-13

2013
bAtistA empire crumbles
The empire of Brazilian
industrialist Eike Batista
crumbles as the assets of his
oil company OGX are found to
be practically worthless. The
dramatic reversal of fortune
for Brazil’s hitherto richest
man – until then the face of
Brazilian capitalism and one
of its most compelling corporate success stories – represents another blow to the
country’s waning appeal to
international investment.

August 2013 - 25 Years - l atinfina nce.com 45

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LatinFinance - Special Edition - August 2013

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