MercoPress. South Atlantic News Agency

World Bank vigilant

The World Bank is concerned about diminishing direct investments in Latinamerica that could have a negative impact in a continent already suffering from financial and political difficulties, according to the organization's head economist for the area, Guillermo Perry.

"We're a bit concerned about the level of direct investment coming into the area", said Mr. Perry. However he added that the current Argentine situation and the pre electoral market nervousness in Brazil will not necessarily spread to the region.

"So far Brazil's numbers are good, but there's concern about a possible slowing down of investment that could cause medium term problems", indicated Mr. Perry.

The coming presidential election with Socialist candidate Luis Inacio Lula da Silva comfortably leading and the fact that in the past he preached restructuring Brazil's foreign debt has investors quiet jittery.

But Mr. Perry is confident about Brazil, "who ever wins, he will basically keep to the same current economic policies, and Brazil has ample international reserves".

Regarding Argentina, Colombian born Mr. Perry said that the international financial community is ready to help the country but until the frozen assets in banks issue is not solved, or until depositors accept some form of payment in bonds, "it's hard to elaborate a macroeconomic program and long term policy".

As to Ecuador that still has to reach an agreement with the IMF, and Colombia, in the midst of a strong rearmament policy to combat insurgency, Mr. Perry said the World Bank was reasonably confident:, "Ecuador has ample oil reserves, and prices are strong, and Colombia will be receiving support if it can find a political working mechanism".

However Perry admitted, "it's a moment of great volatility and turmoil. But with the exception of Argentina and Uruguay, and maybe Venezuela, we are confident about the rest of the continent".