Standard & Poor's says it is to be sued by the US government over the credit ratings agency's assessment of mortgage bonds before the financial crisis. The civil lawsuit would focus on S&P high ratings in 2007 for some mortgage-backed securities that later collapsed in value, said the agency.
Argentina’s central bank reported that at the end of January it had reserves totalling 42.65 billion dollars which is the lowest level since President Cristina Fernandez took office in December 2007. At the time the central bank international reserves totalled 46.2 billion dollars. Only in April 2007 were reserves at a lower level, 38.6bn dollars.
Argentina has made its final written arguments ahead of a February 27 US courtroom showdown against holdout bondholders demanding full payment of capital plus interests for sovereign debt from the default of more than a decade ago.
Following Friday’s IMF ‘declaration of censure’ on Argentina because of the lack of reliability in its inflation and GDP stats, and the country’s first reaction virtually describing the Fund as mother of all financial evils, Minister of Economy Hernan Lorenzino announced a new ‘national’ Consumers Prices Index to be implemented in the course of this year and which will replace the current GBA-IPC.
After months of delays, the P-63 floating production storage and offloading unit (FPSO) has made its temporary home in Brazil's Port of Rio Grande, Petrobras and the Quip consortium said on Thursday.
Uruguay’s budget fiscal deficit soared to 1.35 billion dollars or 2.8% of GDP last year, the highest since 2003, propped by energy costs, extraordinary one time payments and support for the recently implemented national health scheme, according to a release from the Ministry of Economy.
Argentina became the first country censured by the International Monetary Fund for not sharing accurate data on inflation and economic growth under a procedure that can end in expulsion. The declaration of censure was adopted Friday by the IMF 24-member board of directors and even if it doesn’t have immediate effects, the decision takes the country a step closer to sanctions that include barred access to IMF loans.
Argentina’s powerful organized labour even divided have agreed that the recent rise in the income tax floor announced by the government of President Cristina Fernandez is ‘not enough’ and industrial action is anticipated as soon as next March, when full activity resumes in Argentina following summer holidays.
Peru, Chile, Paraguay and Bolivia area among the South American countries best prepared in the event of another global crisis while Venezuela stands at the opposite end with ‘weakened’ defences, according to the latest report released by the IMF.
The outlook for Southern Cone Banks is mixed in 2013, with a stable outlook for Chile and Uruguay, while Argentina faces a negative outlook and the potential for downgrades, according to a new Fitch Ratings report.