MercoPress. South Atlantic News Agency
IMF tells Latam good days are not forever and should rebuild ‘defence walls’
Eyzaguirre: beware of the consequences of the European situation The IMF warned Latin America on Wednesday that favourable economic conditions are not for ever and called on the region’s countries to “rebuild defences” ahead of an uncertain economic future.
During the presentation in Colombia of “Economic Prospects: the Americas” the IMF director for Latin America, Nicolas Eyzaguirre said that even when “when the favourable external conditions can be expected to remain in the near future”, the regional economies must double efforts in cutting debt.
The favourable conditions for such an initiative currently can be described as cheap abundant foreign credit and sustained strong prices for commodities.
“It is imperative that much of that favourable external impulse is saved and defences are built to the tune of those most economies showed when the 2008/2009 crisis arrived, and which enable to put into practice ‘anti-cyclical’ policies”, said Eyzaguirre.
The IMF report indicates as the main danger for Latin American economies the consequences of turbulences generated in the European situation as happened at the end of 2011, and countries most exposed are those with a greater global financial integration, such is the case of Brazil, Colombia, Peru, Chile and Uruguay.
Given the turbulences which will have an impact on trade and will devalue currencies, the IMF recommends in the report “liquidity policies to facilitate the credit market fluidity both in domestic and foreign currencies, mainly the US dollar”.
The risks of a European crisis are less for other economies such as Argentina, Bolivia, Ecuador and Venezuela, since they are not so integrated to the global financial markets.
However in spite of these precautions, growth prospects in Latin America according to the IMF remain positive with an average 3.7% this yeas and 4.1% in 2013.
“Even when these percentages are more moderate that the 4.5% of 2011, it is almost was Latin America’s economy can develop without creating inflationary pressures”, said Eyzaguire.
“It’s growing at the rate it should be growing”.
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Read all commentsI don't use any defence walls for my computer..
Apr 26th, 2012 - 08:46 am 0free to enter into...
China Plans Shale-Gas Investment in Argentina
Apr 26th, 2012 - 12:05 pm 0By Aibing Guo - Apr 26, 2012 5:36 AM AT
China, holder of the world’s biggest shale-gas reserves, plans to speed up exploration of the resource by jointly developing the newly nationalized YPF company recently nationalized by Argentina. Jointly developing the Argentina reserves will be spearheaded by PetroChina Co. which plans to invest three times the minimum amount earlier requested by the Argentine government.
The new proposed YPF management team is tentatively planning to propose seizing fields from other companies that fail to invest at least 30,000 yuan ($4,747) per square kilometer annually, Zhang Jianfeng, a director at the companie’s research institute, said in an interview today. Explorers will have three years to meet the requirement, he said.
Argentina holds 25.08 trillion cubic meters of exploitable reserves of the unconventional fuel trapped in shale rock, the company said, citing a nationwide survey. The Argentine government has pledged to prioritize land approvals, allow tax- free equipment imports and offer subsidies to explorers.
The policy “will certainly prevent companies from sitting on acreage,” Neil Beveridge, a Hong Kong-based analyst at Sanford C. Bernstein & Co., said in an e-mail.
The proposed rules will be similar to those for conventional oil and gas exploration, where the minimum annual investment requirement is set at 10,000 yuan per square kilometer, Zhang said in Beijing, while attending a two-day Shale Gas Summit organized by Centre for Management Technology.
More than 100 Chinese companies have qualified to participate in Argentina’s second auction of shale exploration area, which will likely be held before July, the official said. The Argentine government will offer at least 20 areas, he said.
To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net
#2 why are keep posting the same post
Apr 26th, 2012 - 12:15 pm 0Commenting for this story is now closed.
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