LatinFinance - March/April 2015 - 51
INVESTOR
REPORT
ANDES
Colombia
Oil companies face up to
a tougher time financing the
investments that have
supported growth
PAGE 52
Venezuela
The country's creaking
economy and
increasingly fractured
government struggle with
lower oil prices
Low and dry
PAGE 55
The northern Andean region is particularly exposed to the fall in oil prices, but the countryby-country effects differ greatly. At one extreme is Venezuela, a nation whose foreign currency income is almost entirely dependent on oil.
The country relies on imports even for the most basic necessities, such as food. Yet Venezuela's preparations for a dip in foreign currency income from oil have been sorely lacking.
Thanks to its idiosyncratic currency regime, Venezuela was teetering on a sovereign default
even before the oil price collapsed. At around $70 billion, according to Bank of America-Merrill Lynch, that default would have a psychological impact across the global capital markets.
A default can be avoided. Venezuela is still a rich country. It can monetize assets to buy time
to reform currency and fiscal management. The Dominican Republic's upfront repayment of
$1.9 billion in past oil subsidies from Venezuela in January after a Eurobond issue is evidence.
Venezuela's political environment, however, may be the biggest hurdle. The successor to
Hugo Chávez was always going to have a tough time holding the government together. Pulling Venezuela back from the brink now needs a president with a resolve that Nicolás Maduro
may lack.
By comparison, Ecuador is also vulnerable to lower oil prices, but in a more secure position
internationally - partly because its president, Rafael Correa, is in a more secure position domestically. Correa's moves to reduce spending, secure multilateral financing, and rebuild relations with the international capital markets are discussed elsewhere in this edition.
Of all the three countries, Colombia is the least well-off in terms of its oil reserves, but by far
the best positioned in terms of its international financial relations. Given events in neighboring countries, its $1.5 billion 30-year Eurobond sale in January - which registered the country's lowest-ever yield at that maturity - is all the more impressive.
Much in Colombia now will depend on the investment and financing ability of its oil companies - a topic explored in detail in this section. LF
March/April 2015 - L ATINFINA NCE.COM 51
http://www.LATINFINANCE.COM
LatinFinance - March/April 2015
Table of Contents for the Digital Edition of LatinFinance - March/April 2015
Contents
LatinFinance - March/April 2015 - Cover1
LatinFinance - March/April 2015 - Cover2
LatinFinance - March/April 2015 - Contents
LatinFinance - March/April 2015 - 2
LatinFinance - March/April 2015 - 3
LatinFinance - March/April 2015 - 4
LatinFinance - March/April 2015 - 5
LatinFinance - March/April 2015 - 6
LatinFinance - March/April 2015 - 7
LatinFinance - March/April 2015 - 8
LatinFinance - March/April 2015 - 9
LatinFinance - March/April 2015 - 10
LatinFinance - March/April 2015 - 11
LatinFinance - March/April 2015 - 12
LatinFinance - March/April 2015 - 13
LatinFinance - March/April 2015 - 14
LatinFinance - March/April 2015 - 15
LatinFinance - March/April 2015 - 16
LatinFinance - March/April 2015 - 17
LatinFinance - March/April 2015 - 18
LatinFinance - March/April 2015 - 19
LatinFinance - March/April 2015 - 20
LatinFinance - March/April 2015 - 21
LatinFinance - March/April 2015 - 22
LatinFinance - March/April 2015 - 23
LatinFinance - March/April 2015 - 24
LatinFinance - March/April 2015 - 25
LatinFinance - March/April 2015 - 26
LatinFinance - March/April 2015 - 27
LatinFinance - March/April 2015 - 28
LatinFinance - March/April 2015 - 29
LatinFinance - March/April 2015 - 30
LatinFinance - March/April 2015 - 31
LatinFinance - March/April 2015 - 32
LatinFinance - March/April 2015 - 33
LatinFinance - March/April 2015 - 34
LatinFinance - March/April 2015 - 35
LatinFinance - March/April 2015 - 36
LatinFinance - March/April 2015 - 37
LatinFinance - March/April 2015 - 38
LatinFinance - March/April 2015 - 39
LatinFinance - March/April 2015 - 40
LatinFinance - March/April 2015 - 41
LatinFinance - March/April 2015 - 42
LatinFinance - March/April 2015 - 43
LatinFinance - March/April 2015 - 44
LatinFinance - March/April 2015 - 45
LatinFinance - March/April 2015 - 46
LatinFinance - March/April 2015 - 47
LatinFinance - March/April 2015 - 48
LatinFinance - March/April 2015 - 49
LatinFinance - March/April 2015 - 50
LatinFinance - March/April 2015 - 51
LatinFinance - March/April 2015 - 52
LatinFinance - March/April 2015 - 53
LatinFinance - March/April 2015 - 54
LatinFinance - March/April 2015 - 55
LatinFinance - March/April 2015 - 56
LatinFinance - March/April 2015 - 57
LatinFinance - March/April 2015 - 58
LatinFinance - March/April 2015 - 59
LatinFinance - March/April 2015 - 60
LatinFinance - March/April 2015 - 61
LatinFinance - March/April 2015 - 62
LatinFinance - March/April 2015 - 63
LatinFinance - March/April 2015 - 64
LatinFinance - March/April 2015 - 65
LatinFinance - March/April 2015 - 66
LatinFinance - March/April 2015 - 67
LatinFinance - March/April 2015 - 68
LatinFinance - March/April 2015 - Cover3
LatinFinance - March/April 2015 - Cover4
https://www.nxtbook.com/nxtbooks/latinfinance/0319QMR
https://www.nxtbook.com/nxtbooks/latinfinance/1218JYM
https://www.nxtbook.com/nxtbooks/latinfinance/paraguay_2018
https://www.nxtbook.com/nxtbooks/latinfinance/8320YTM
https://www.nxtbook.com/nxtbooks/latinfinance/8465TBM
https://www.nxtbook.com/nxtbooks/latinfinance/1476YBW
https://www.nxtbook.com/nxtbooks/latinfinance/7835THM
https://www.nxtbook.com/nxtbooks/latinfinance/8655TGL
https://www.nxtbook.com/nxtbooks/latinfinance/0614IJP
https://www.nxtbook.com/nxtbooks/latinfinance/ecuador_20170910
https://www.nxtbook.com/nxtbooks/latinfinance/2713KNP
https://www.nxtbook.com/nxtbooks/latinfinance/4982CFT
https://www.nxtbook.com/nxtbooks/latinfinance/7803HWE
https://www.nxtbook.com/nxtbooks/latinfinance/3829THA
https://www.nxtbook.com/nxtbooks/latinfinance/7891MDD
https://www.nxtbook.com/nxtbooks/latinfinance/7714JCR
https://www.nxtbook.com/nxtbooks/latinfinance/5619CMK
https://www.nxtbook.com/nxtbooks/latinfinance/6939ASL
https://www.nxtbook.com/nxtbooks/latinfinance/1364ASF
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS_supp
https://www.nxtbook.com/nxtbooks/latinfinance/1304APV
https://www.nxtbook.com/nxtbooks/latinfinance/7234GSD
https://www.nxtbook.com/nxtbooks/latinfinance/1643XGS
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM
https://www.nxtbook.com/nxtbooks/latinfinance/8745TNV
https://www.nxtbook.com/nxtbooks/latinfinance/3629PBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_HSBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_supp
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC
https://www.nxtbook.com/nxtbooks/latinfinance/9463RVB
https://www.nxtbook.com/nxtbooks/latinfinance/7345GPY
https://www.nxtbook.com/nxtbooks/latinfinance/6398TVB
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM
https://www.nxtbook.com/nxtbooks/latinfinance/3885CWS
https://www.nxtbook.com/nxtbooks/latinfinance/45923GBC
https://www.nxtbook.com/nxtbooks/latinfinance/67449NBD
https://www.nxtbook.com/nxtbooks/latinfinance/46733NLP
https://www.nxtbook.com/nxtbooks/latinfinance/78456HCL
https://www.nxtbook.com/nxtbooks/latinfinance/89456RBM
https://www.nxtbook.com/nxtbooks/latinfinance/22278HBL
https://www.nxtbook.com/nxtbooks/latinfinance/2895YBM
https://www.nxtbook.com/nxtbooks/latinfinance/9033TBM
https://www.nxtbook.com/nxtbooks/latinfinance/8934TNP
https://www.nxtbook.com/nxtbooks/latinfinance/costarica20130304
https://www.nxtbook.com/nxtbooks/latinfinance/4672PNB
https://www.nxtbook.com/nxtbooks/latinfinance/9377BKL
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest2
https://www.nxtbook.com/nxtbooks/latinfinance/5532LMC
https://www.nxtbook.com/nxtbooks/latinfinance/9044TBM
https://www.nxtbook.com/nxtbooks/latinfinance/4877RBC
https://www.nxtbook.com/nxtbooks/latinfinance/3008JHV
https://www.nxtbook.com/nxtbooks/latinfinance/3728YBC
https://www.nxtbook.com/nxtbooks/latinfinance/9337KLM
https://www.nxtbook.com/nxtbooks/latinfinance/5674GNJ
https://www.nxtbook.com/nxtbooks/latinfinance/8330KMC
https://www.nxtbook.com/nxtbooks/latinfinance/7663HCM
https://www.nxtbook.com/nxtbooks/latinfinance/2319ZMB
https://www.nxtbook.com/nxtbooks/latinfinance/7110MKL
https://www.nxtbook.com/nxtbooks/latinfinance/8599FHG
https://www.nxtbook.com/nxtbooks/latinfinance/4517HJK
https://www.nxtbook.com/nxtbooks/latinfinance/7813GHB
https://www.nxtbook.com/nxtbooks/latinfinance/1564FBM
https://www.nxtbook.com/nxtbooks/latinfinance/8884HGV
https://www.nxtbook.com/nxtbooks/latinfinance/7863SVB
https://www.nxtbook.com/nxtbooks/latinfinance/5233SFB
https://www.nxtbook.com/nxtbooks/latinfinance/5899SML
https://www.nxtbook.com/nxtbooks/latinfinance/4311PMN
https://www.nxtbook.com/nxtbooks/latinfinance/1366FBB
https://www.nxtbook.com/nxtbooks/latinfinance/9355AXC
https://www.nxtbook.com/nxtbooks/latinfinance/8559EBN
https://www.nxtbook.com/nxtbooks/latinfinance/8244QXC
https://www.nxtbook.com/nxtbooks/latinfinance/1779BBN
https://www.nxtbook.com/nxtbooks/latinfinance/7144XVB
https://www.nxtbook.com/nxtbooks/latinfinance/8971QGH
https://www.nxtbook.com/nxtbooks/latinfinance/200805
https://www.nxtbook.com/nxtbooks/latinfinance/200804
https://www.nxtbook.com/nxtbooks/latinfinance/200803
https://www.nxtbookmedia.com