Bloomberg Línea — Mexico’s President Andrés Manuel López Obrador has introduced a bill that would eliminate more than a third of the seats in Congress, but which is unlikely to have the support of opposition parties. The proposal would eliminate legislators selected by party leaders - and not voters - known as ‘plurinominal’ seats, which the government says would save money and create a more democratic legislature. The initiative would need a two-thirds majority in both chambers, and López Obrador may find it difficult to persuade more than 200 legislators to vote to lose their jobs.
The Ecuadorian government has suffered an upheaval, with the resignation of four ministers over the space of two days. The defense, energy, agriculture, and human rights portfolios will all change hands in President Guillermo Lasso’s government as a result of the departures. The most recent departure was that of Energy and Mines Minister Juan Carlos Bermeo, who offered his resignation on Thursday after 11 months in the role, and who will be replaced by Xavier Vera Grunauer, formerly vice minister for the portfolio.
The region’s main stock markets closed with gains on Thursday, led by Peru (SPBLPGPT) and Brazil’s Ibovespa (IBOV).
Following is a roundup of Thursday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- Economy Minister Martín Guzmán said Thursday that the production and export of liquefied natural gas (LNG) could be a key vector for Argentina’s energy development and foreign currency generation, and forecast that shale gas from the Vaca Muerta deposit could result in exports worth $15 billion per year from 2027.
Brazil:
- U.S. securities regulators have sued mining giant Vale for allegedly making false safety claims prior to the collapse of its Brumadinho dam in January 2019, which killed 270 people.
Chile:
- The unemployment rate increased to 7.8% during first quarter, up from 7.5% in the previous quarter, according to the country’s statistics bureau.
Colombia:
- Poverty levels in Colombia dropped in 2021 to 16% of the national population, down from 18.1% in 2020, when poverty was exacerbated at the height of the pandemic.
Ecuador:
- The Ecuadorian government has suffered an upheaval, with the resignation of four ministers over the space of two days. The defense, energy, agriculture, and human rights portfolios will all change hands in President Guillermo Lasso’s government as a result of the departures. The most recent departure was that of Energy and Mines Minister Juan Carlos Bermeo, who offered his resignation on Thursday after 11 months in the role, and who will be replaced by Xavier Vera Grunauer, formerly vice minister for the portfolio.
El Salvador:
- El Salvador has clocked up one month since the imposition of the so-called state of emergency by the government to combat gangs, a strategy which has reportedly met with approval from most sectors in the country, despite allegations of human rights violations by security forces.
Guatemala:
- Guatemala’s GDP growth in 2021 was 8%, according to the president of the central bank, Sergio Recinos, compared with negative 1.5% during 2020 as a result of the Covid-19 pandemic.
Mexico:
- Mexico’s President Andrés Manuel López Obrador has introduced a bill that would eliminate more than a third of the seats in Congress, but which is unlikely to have the support of opposition parties. The proposal would eliminate legislators selected by party leaders - and not voters - known as plurinominals, which the government says would save money and create a more democratic legislature. The initiative would need a two-thirds majority in both chambers, and López Obrador may find it difficult to persuade more than 200 legislators to vote to lose their jobs.
Panama:
- The Panamanian government has proposed eliminating fuel tax as a means of fighting inflation in the country, where fuel prices have skyrocketed, impacting a number of sectors. The suspension of the tax is expected to deprive the treasury of some $15 million.
Peru:
- S&P Global Ratings has reduced its global scale foreign currency rating of Peruvian state-owned oil company Petroperú to ‘BB’ from ‘BB+’, reflecting what the rating agency sees as weakness in the company’s liquidity and its financial flexibility.
Uruguay:
- Uruguay’s business climate is perceived as “exceptional” and the best in more than 10 years, Tamara Schandy, a partner at consulting firm Exante, has said. Presenting preliminary data from the company’s latest Expectations Survey, conducted among some 300 senior executives, she revealed that 89% of those consulted said the business climate is “good” or “very good”, while 52% said that their company’s investment will increase over the next 12 months.
