Bloomberg Línea — Argentina reached an agreement with China to extend its debt swap by $3 billion as the South American country’s foreign reserves dwindle, and Mexico has raised its key interest rate by half a percentage point to 6% as policymakers look beyond a sluggish economy to address inflation that is near a two-decade high.
On the region’s stock markets, Brazilis Ibovespa (IBOV) recorded the highest gains, up 0.81%, while Chile’s Ipsa (IPSA) ended the day with the second best result, closing with a gain of 0.79%.
Following is a roundup of Thursday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina
- Amid the low level of the Central Bank’s net international reserves, Argentina reached an agreement with China to extend its debt swap by $3 billion, according to government spokesperson Gabriela Cerruti.
- Tension between Buenos Aires city and the federal governments over public transport subsidies has increased after a hearing was called for the transfer of 32 bus lines to the city’s management.
Brazil
- União São João de Araras, the São Paulo professional soccer team that unveiled five-time world champion Roberto Carlos, has become an SAF (Sociedade Anônima de Futebol) to attract investment capital and improve its financial situation.
- Eve, Embraer’s “flying car” company (EMBR3), has applied to Brazil’s civil aviation agency ANAC for a license to operate its planned electric-powered aircraft.
Chile
- Chile’s central bank said last month it refrained from raising its monetary policy rate by 175 basis points for fear of confusing investors, as speculation grows that it may call an emergency meeting following last month’s unexpected spike in inflation.
- Chilean-based regional carrier Latam Airlines intends to file court documents related to its refinancing by February 17 as it strives to find lenders.
Colombia
- The recovery of Colombian trade lost traction in January 2022, despite the good momentum of the automotive and footwear cluster, reported this Thursday the country’s trade federation FENALCO.
- The Organization for Economic Cooperation and Development (OECD) presented an economic survey of Colombia in which it examines the country’s economic recovery after the Covid-19 crisis and said the country needs to increase its tax revenues.
- The president of Ecopetrol, Felipe Bayón, said that while the industry must prepare for a future with less demand for fossil fuels, the transition must be “orderly”.
Ecuador
- Ecuador’s Imports of seafood products from China recovered by 12% and Ecuador is now, for the first time, Chna’s biggest export market for such products, having surpassed Russia, with Canada in third place.
- The country has normalized its oil production after overcoming an oil pipeline rupture, with output currently at 490,000 barrels per day.
Mexico
- Mexico has raised its key interest rate by half a percentage point to 6% as policymakers look beyond a sluggish economy to address inflation that is near a two-decade high.
- State oil company Petroleos Mexicanos (Pemex) outpaced new production from private companies in Mexico between 2019 to 2021 almost eight-fold.
Peru
- Spanish energy company Repsol said Thursday that the clean-up operation in the sea and on Peruvian beaches that were affected by the spillage of some 11,900 barrels of crude oil is already 56% complete, and the company estimates that the first stage of the works will be completed in February.
