MercoPress. South Atlantic News Agency

South America News

Headlines:
30 billion for Brazil;
Petrobras discovers oil in Patagonia; Urchin ban suspension; Deadly storm hits

30 billion for Brazil

Managing Director of the International Monetary Fund, Horst Koehler announced this Wednesday that Brazil will receive an additional 30 billion US dollars funding, 80% of which will be disbursed during 2003. The stand by credit is for fifteen months and comes at a crucial moment for Brazil, just two months from presidential elections that have intensified the region's turbulence with the local currency reaching record lows against the US dollars and, on the investors side, growing doubts about the country's ability to repay its mounting foreign debt of 250 billion US dollars. The loan is additional to a previous one of 15 billion US dollars agreed last year and is linked to budget targets which the new administration will have to meet, that is a primary surplus of at least 3,75% of GDP during 2003. Once the credit if formally approved in the coming days, Brazil can lower another 10 billion US dollars its bottom level of international reserves liberating more funds for the jittery markets. "By reducing vulnerabilities and uncertainties the new IMF supported program provides a bridge for the new administration beginning 2003", said Mr. Koehler, adding that Brazilian authorities are convinced on the merits of the agreement and "trust it will be sustained by the main presidential candidates". Actually none of the candidates, with the exception of president Fernando Cardoso's hand picked hopeful, José Serra, and running a distant third, is willing to express open support to the IMF program until after the elections. The US government expressed its satisfaction after the agreement was announced, underlining its willingness to continue supporting as long as stable policies are implemented. "Brazil has the right economic policies in place to maintain stability so that the economy can continue to grow. The United States stands ready to support Brazil as it continues to implement these policies", the Treasury Department said in a release.

Petrobras discovers oil in Patagonia

The Brazilian company Petrobras operating in Patagonia announced the discovery of hydrocarbons in the Neuquén Basin close to an area identified as Puesto Zúñiga in the province of Rio Negro. The actual discovery occurred in Block CNQ-32, following an exploratory well, identified as PZX-1001 reaching a depth of 3,650 meters. According to the Argentine Energy Department assessment tests indicate an initial daily production of 82 cubic meters of condensed petroleum and 240,000 cubic meters of natural gas. Petrobras sources in Buenos Aires pointed out this is "another step to consolidate us as a fully integrated company in the Argentine oil company". The Brazilian government run consortium recently acquired a majority of Pérez Companc, Argentina's second rated private oil company.

Urchin ban suspension

Two hundred workers from the fisheries canning industry protested early this week in downtown Punta Arenas demanding a suspension of the urchin ban that is scheduled to begin next August 15th. Government officials, and representatives from the Regional Economy and Labor Departments met with the protestors who want the ban to begin September 30th., including a special "window" in mid December when prices of urchins are at its highest. "Three thousand jobs in a particularly difficult year are at stake, and we're demanding more tolerance from the authorities. The additional activity will benefit not only the canneries but all the adjoining industries from transport to the actual fishermen and divers", said Alejandro Muñoz head of the workers. Mr. Muñoz said it has been a particularly difficult year, and "five months out of jobs for 75% of plant workers in the canneries is causing panic". Government officials promised to study the petition, although they anticipated that to secure the sustainability of the resource on the long term, "an exception could be done for a couple of weeks in December, but not much more". Bernardo Troncoso, head of the Economy Department added that in 1999 a total 29,000 tons of urchins were extracted, and "this forced us to begin imposing seasonal bans". "Research done by the Magallanes University indicates that maximum volume for a sustainable long term urchin resource is 10,000 tons annually", stressed Mr. Troncoso. According to official statistics extraction dropped to 17,600 tons in 2000 and 13,000 in 2001, "but it started to climb again and we're now in 15,600 tons, that is why the August 15th. decision was taken", said Mr. Troncoso suggesting other options such as hake, king crab, red crab and avalon. There are a total of 41 processing plants in Magallanes, 29 of them in Punta Arenas, 7 in Natales, 5 in Porvenir, 2 in Puerto William and one in Puerto Edén, employing 2,503 people in full and seasonal jobs. Urchin employs 695 full time and 808 part time, according to an official 2001 census in the Magallanes Labor Department.

Deadly storm hits

Two coastal fishermen drowned, blackouts and extensive damage has been reported in Punta Arenas following a wind and hail storm that is expected to last until next weekend, according to the local weather forecast office. Beginning early Wednesday fifty miles gales, curtains of hail and temperatures of up to 12 degrees below zero kept most of Punta Arenas residents at home, and in some areas without electricity because columns and cables collapsed. One of the fishermen disappeared in Ultima Esperanza and the second fell overboard in the Magellan Strait five miles from Punta Arenas The port that has been closed for all operations and all vessels ordered to leave the jetties. The ferry that regularly crosses the Strait to Porvenir was cancelled while another tourist vessel, "California" was reported sunk. Some of the smaller vessels and boats managed to take refuge in Tierra del Fuego or in Santa Isabel island, protected from the full impact of the storm.