America's Insider articles from February 2001

America's Insider archives from February 2001

Montesinos' video library could end up tainting most of Peru's elite.(former spy chief Vladimiro Montesinos)(Brief Article)
February 1, 2001... LIMA- Peruvians are not the only people who are cynical about their politicians, but Peru may be the only country where the misdeeds of its leaders exist on video tape for the world to see. Disgraced spy chief Vladimiro Montesinos was...

Huge injections of capital fail to solve Ecuador's banking problems.(Brief Article)(Industry Overview)
February 1, 2001... QUITO -- Despite having spent an estimated $2.4 billion since 1999 to rescue the Ecuadorian banking sector, public confidence in the country's financial system remains low and significant structural problems still persist. When all of the...

Crackdown on tax fraud in Brazil reveals just how big the problem was.(Brief Article)
February 1, 2001... RIO DE JANEIRO -- Rampant tax fraud in Brazil, once a national pastime, may be in its waning days. However, as the government begins using stricter enforcement tools, the breadth of the problem is only now becoming apparent. In mid...

Botched murder investigation damages PRD image.(murder of Paco Stanley in Mexico hurts public opinion of ruling party of Mexico)(Brief Article)
February 1, 2001... MEXICO CITY -- A sordid murder case involving two of Mexico's media companies has damaged efforts by the leftist PRD party to portray itself as the party of honest government. On Jan. 25, a judge acquitted six people charged with the 1999...

Bush, Fox may find little in common when they meet this month.(Pres Bush; Mexico Pres Vicente Fox)(Brief Article)
February 1, 2001... WASHINGTON -- President Vicente Fox and US President George W. Bush may not be on the same page when they meet in February. Fox has an ambitious agenda that includes a controversial plan to allow more Mexicans into the United States to...

Universal auto insurance to boost industry, but poses regulatory problems.(Bolivia)(Brief Article)
February 1, 2001... LA PAZ- The Bolivian government was responsible for a large bonus for the country's insurance industry this year. On Jan. 1,2001 a new law took effect requiring universal vehicle insurance. By the time the new law took effect, some 200,000...

Democrats step up pressure on fast track authority.(Brief Article)
February 1, 2001... WASHINGTON -- Senior Democratic members of Congress say they will fight efforts to grant President George W. Bush fast-track authority unless the administration agrees to address labor and environmental issues in future trade treaties. "If...

Peronists target reform decrees.(Argentina political party questions decrees to make country more attractive to investors)(Brief Article)
February 1, 2001... BUENOS AIRES -- The Peronist party has called for an extraordinary session of Congress to discuss a number of decrees issued by President Fernando de la Rua to make Argentina more attractive to investors and comply with IMF loan conditions....

Tariffs, water threaten Chile ties.(with Bolivia)(Brief Article)
February 1, 2001... LA PAZ -- Talks between Bolivia and Chile yielded progress on economic and political ties, but disputes over tariffs and water rights threaten the process. Last week, officials from the two countries met to discuss bilateral ties. However, high...

Brazil reports surplus.(Brief Article)
February 1, 2001... BRASILIA -- Brazil finished the year with a primary budget surplus of $19.4 billion, higher than the $18.6 billion it had promised in a 1998 IMF loan agreement. The excess is largely due to high profits from state oil company Petrobras, which...

Disputes arising over privatization.(in Chile)(Brief Article)
February 1, 2001... SANTIAGO -- Members of the governing Concertacion coalition are starting to fight over privatization. After a proposal by a senator from the Party for Democracy (PPD) to try to reactivate the economy by privatizing state enterprises, Socialist...

Codelco to restructure.(Chile's national copper company)(Brief Article)
February 1, 2001... SANTIAGO -- National copper company Codelco hopes to double its value to $18 billion by 2006 through a massive reorganization that would eliminate or restructure the company's five divisions. The idea is to take advantage of existing synergies...

Pastrana extends demilitarized zone.(Pres Andres Pastrana of Colombia)(Brief Article)
February 1, 2001... BOGOTA -- Colombian President Andres Pastrana announced he will extend the demilitarized zone controlled by the FARC until the end of the week in an attempt to bring FARC leader Manuel Marulanda back to the negotiating table. The two year-old...

New pipeline approved.(for petroleum in Ecuador)(Brief Article)
February 1, 2001... QUITO -- The Attorney General has approved a contract for the construction of a new heavy crude export pipeline. The approval is contingent on the government and the consortium building the line agreeing to make 73 changes. Several of the more...

Protests disrupt transportation.(in Ecuador)(Brief Article)
February 1, 2001... QUITO -- Thousands of indigenous people poured into Quito to protest government-mandated price increases for bus fares and fuels. At least ten people were hurt in clashes with police. Other groups have blocked highways around the capital and...

Zapatistas demand more.(from Mexican government)(Brief Article)
February 1, 2001... MEXICO CITY -- Zapatista leader Subcomandante Marcos said the Zapatista Liberation Army rebels would not resume contact with the government until all his demands have been met. Since taking office, President Vicente Fox has complied with many...

US defers WTO complaint.(World Trade Organization; US complains that Mexico will not open telecommunications market)(Brief Article)
February 1, 2001... MEXICO CITY -- The US government has decided not to seek an arbitration with regard to complaints that Mexico has not opened its telecom market to competition. However, it reserved the right to do so in the future. The decision comes as Mexican...

Mexico may stop building reserves.(foreign exchange reserves; monetary policy)(Brief Article)
February 1, 2001... MEXICO CITY -- Bunco de Mexico officials may halt the accumulation of foreign exchange reserves and suspend the monthly auction of dollar options, a mechanism it has used to build hard-currency reserves. Mexico currently has $33.9 billion in...

Generals discuss panty case.(defamation case in Venezuela)(Brief Article)
February 1, 2001... CARACAS -- The Venezuelan Minister of Defense met with high-ranking military officers to discuss the case against Pablo Aure, a lawyer and professor against whom the military charged with defamation after he wrote an editorial entitled...

Venezuela awards ID contract.(for citizens and residents; to Hyundai Corp.)(Brief Article)
February 1, 2001... CARACAS -- Venezuela has awarded a contract to develop a national identification system to a consortia led by South Korea's Hyundai Corp. Venezuelan company Sidif has a minority stake in the consortium. The contract requires the consortium to...

Registration for wireless tender begins.(Venezuela)(Brief Article)
February 1, 2001... CARACAS -- Venezuela opened registration for an auction to award licenses to build and operate Local Multipoint Distribution Systems (LMDS) wireless technology, which is commonly used for data transmission, broadband internet access and...

Ranchers plan to form militias.(for protection purposes in Venezuela)(Brief Article)
February 1, 2001... CARACAS -- Venezuelan ranchers along the Colombian border have begun forming paramilitary groups to defend themselves against Colombian guerrillas. Kidnappings and extortion by guerrillas are common in the area, and the ranchers accuse the...

Electoral maneuvering threatens cohesion of Brazil's ruling coalition.(Social Democratic Party)(Brief Article)
February 8, 2001... RIO DE JANEIRO -- Although Brazil's presidential elections are two years off, maneuvering within the ruling coalition already has begun and internal disputes have paralyzed Congress. The coalition will have trouble settling on a consensus...

New appointments may harm diplomacy, relations with the military.(Venezuela Pres Hugo Chavez realigns cabinet)(Brief Article)
February 8, 2001... CARACAS -- President Hugo Chavez capped off three days of celebrations of his Feb. 4, 1992 failed coup attempt with a cabinet shakeup that has raised tensions within the military and likely will complicate the country's foreign relations. ...

CIA predicts growing gap between rich and poor nations in region.(Latin America)(Brief Article)
February 8, 2001... WASHINGTON -- The Central Intelligence Agency, in a report on global trends over the next 15 years, said many Latin American countries will be richer as a result of global trade links and lower birthrates. Mexico and Brazil will lead in...

Investors shun Brazilian mobile phone tender.(Brief Article)
February 8, 2001... SAO PAULO -- Brazil is having trouble finding investors for the telecoms industry. The Telecommunications Regulatory Agency (Anatel) on Feb. 6 cancelled a tender for a nationwide concession to operate a Band C mobile phone system after is...

US loses first major Nafta decision.(about allowing trucks from Mexico in the US)(Brief Article)
February 8, 2001... MEXICO CITY -- An arbitration panel composed of two US citizens, two Mexicans and a Britain has made the first major ruling stemming from a dispute over the North America Free Trade Agreement (Nafta). The panel on Feb. 6 confirmed an earlier...

Protests damage Noboa's image as Ecuador's government suffers defeat.(Pres Gustavo Noboa's economic policy proposal)(Brief Article)
February 8, 2001... ECUADOR -- The government will have to revise its deal with the IMF and hope higher oil prices will continue in the wake of its decision to give in to some demands by demonstrators who protested against economic measures for 10 days. For...

Pastrana begins talks with FARC in effort to resume Colombian peace process.(Pres Andres Pastrana)(Brief Article)
February 8, 2001... BOGOTA- As this issue of Americas Insider went to press, Colombian President Andres Pastrana had flown to San Vicente del Caguan and was meeting with FARC leader Manuel Marulanda in the nearby town of Los Pozos to discuss ways of keeping the...

Latin America taking center stage in tech meeting with Bush.(desire of high technology industry to expand into Latin America examined with Pres Bush)(Brief Article)
February 8, 2001... A meeting between President George W. Bush and a number of high-tech industry executives is expected to devote significant attention to prospects for the Free Trade Area of the Americas (FTAA). The FTAA is second on the agenda for this...

Nafta boosted US-Mexico trade.(North American Free Trade Agreement)(Brief Article)
February 8, 2001... WASHINGTON- The latest study concludes that the North American Free Trade Agreement (Nafta) led to a significant expansion of trade between the United States and Mexico. The study by the Economic Strategy Institute found that between 1993 and...

Central Bank maintains control on money laundering investigations.(Argentina)(Brief Article)
February 8, 2001... BUENOS AIRES -- Until the Financial Information Unit created by Congress last May takes over, the Central Bank will continue to be in charge of investigating allegations of money laundering activities. Although the Central Bank has held this...

Canada, Brazil dispute worsens.(Brief Article)
February 8, 2001... BRASILIA--Canada's announcement last week that it would suspend imports of Brazilian beef because of fears of mad cow disease has worsened already bad relations between Brazil and Canada. Tempers already are high thanks to an on-going dispute...

Eletrobras to adjust Furnas' books.(Brief Article)
February 8, 2001... BRASILIA -- Brazil's federal power holding Eletrobras has announced it plans to adjust the books of its giant power generating unit Furnas to meet US standards in preparation for privatization later this year. Plans are not complete for the...

Financial sector cut losses in 2000.(Brief Article)
February 8, 2001... BOGOTA ---The Colombian banking sector produced better results in 2000 after a poor showing in 1999. The improvement is due largely to injections of new capital and write offs of bad loans. Although the red ink continued last year, 2000 losses...

Government accused of using videos to attack rivals.(Brief Article)
February 8, 2001... LIMA--Two presidential candidates are accusing the interim government of Valentin Paniagua of using videos made by ex-spy chief Vladimiro Montesinos to favor leading candidate Alejandro Toledo. Former President Alan Garcia and former Finance...

Inelectra finds oil.(Brief Article)
February 8, 2001... CARACAS -- Local oil company Inelectra has struck oil in an offshore block near the border with Trinidad and Tobago. Trinidad state oil company Petrotrin provided technical assistance during the drilling and is expected to buy as much as a 50%...

Sincor to cut production.(Brief Article)
February 8, 2001... Heavy oil joint venture Sincor has been ordered to cut oil production just as it was planning a major expansion. The project, backed by state oil company PDVSA, France's TotalElfFina and Norway's Statoil, had planned to boost output from 50,000...

Nestle ponders bid for Mavesa.(Brief Article)
February 8, 2001... CACACAS --Swiss firm Nestle is considering a bid for food processor Mavesa. Nestle company officials already have visited Mavesa plants. However, local firm Polar has signed an agreement to buy the company for $500 million. Any offer by Nestle...

New banking law proposed.(Brief Article)
February 8, 2001... CARACAS -- The Central Bank has proposed a law that would maintain the Bank's power to fix interest rates and impose exchange controls. Officials say the bank is holding talks with local banks to try to reach accord to voluntarily lower...

Proposed regulations would allow unlicensed food sales to Cuba : Bush administration officials have not reviewed rules and may delay or change regulations.(Brief Article)
February 15, 2001... WASHINGTON -- The Commerce Department has drafted regulations that would allow US exporters to sell food to Cuba without prior approval of the deals. Department sources say proposed regulations governing the sale of food and agricultural...

Colombia peace accord offers little in way of substance.(Brief Article)
February 15, 2001... BOGOTA -- As a former journalist, Colombia's President Andres Pastrana is well versed in the art of putting a new spin on an old story. Last week he held a two-day summit with Communist guerrilla warlord Manuel "Sureshot" Marulanda to...

Government signs airport contract but video scandal continues to take a toll.(Brief Article)
February 15, 2001... LIMA -- The Lima Airport Group, led by Germany's Flughafen Frankfurt Main in partnership with US firm Bechtel Enterprises and Peru's Cosapi signed a 30-year concession to upgrade and modernize Lima's international airport. The contract was...

D-Band tender restores confidence in Brazilian cellular sector.(Brief Article)
February 15, 2001... SAO PAULO -- After failing to attract any bidders for the C Band cellular tender earlier this month, officials at telecommunications regulator Anatel were relieved when two bidders offered a 20% premium for the three D-Band licenses this week....

Congress selects leaders after bruising fight.(Brief Article)
February 15, 2001... SAO PAULO -- Brazil's Chamber of Deputies and Senate elected new leaders this week after months of conflict that has damaged the ruling coalition. In a race that involved personal rivalries ad a breakdown of an alliance between the ruling...

Fox announces major reorganization of Pemex.(Brief Article)
February 15, 2001... MEXICO CITY -- President Vicente Fox is planning a major reorganization of Pemex in a bid to make the sluggish state oil company more efficient. However, it is unclear whether the plan, which is expected to reverse much of the work of the last...

Mavesa acquisition may signal investor willingness to give Venezuela a try.(Brief Article)
February 15, 2001... CARACAS -- For those who think President Hugo Chavez's "revolutionary" government has ground private investment to a standstill, Empresas Polar's takeover bid for consumer products company Mavesa was food for thought. Polar, Venezuela's...

IMF deal, pipeline contract are good news for Ecuador's battered economy.(Brief Article)
February 15, 2001... QUITO -- Things may be looking up for Ecuador. The IMF is willing to cut the government some slack and a consortium of oil companies has signed a deal to build a new pipeline that will nearly double the country's export capacity. The IMF...

Increase in deficit raises alarm.(Brief Article)
February 15, 2001... BUENOS AIRES -- A 75% increase in the deficit in January has raised alarm both within the government and among lenders and investors. The deficit reached $941.9 million in January. While part of the increase can be attributed to factors outside...

Government tries to protect Pou.(Brief Article)
February 15, 2001... BUENOS AIRES --The governing coalition launched an effort to defend Central Bank President Pedro Pou, who has been under attack since the US Senate opened an investigation into money laundering. Critics charge that Pou has been ineffective in...

Banzer pitches constitutional reforms.(Brief Article)
February 15, 2001... LA PAZ -- President Hugo Banzer proposed sweeping changes to the Bolivian Constitution Wednesday in a speech to Parliament. Proposed reforms include restrictions on parliamentary immunity, the ability to elect independents to political office,...

Limits sought on torture complaints.(Brief Article)
February 15, 2001... SANTIAGO -- Saying he was concerned for the "good of the country," not just the armed forces, Interior Minister Jose Miguel Insulza said that complaints about torture during the military regime should be limited. Instead, he said,...

Paramilitary chief accuses Venezuela of aiding guerrillas.(Brief Article)
February 15, 2001... BOGOTA -- Carlos Castano, head of the paramilitary group Self-Defense Units of Colombia, accused Venezuela of "subversive hostility" and said that Venezuelan President Hugo Chavez was harboring FARC and ELN guerrillas. He suggested that such...

US official warns of guerrilla gains.(Brief Article)
February 15, 2001... WASHINGTON --The US Assistant Secretary of State for the Western Hemisphere, Peter Romero, said this week that it is if the US does not take action, Colombian guerrillas could take over the entire eastern half of Colombia. From there, they...

ELN attacks roads, electric grid.(Colombia)(Brief Article)
February 15, 2001... BOGOTA -- The ELN carried out four separate attacks this week, severely damaging the infrastructure of the country. The Medellin-Bogota highway was attacked several times and the Medellin-Puerto Berrio road was cut by the explosions. The two...

New hydro complex approved.(Brief Article)
February 15, 2001... LIMA -- The government has approved a plan by Prohisa Consultores y Promotores Asociados to build a new hydroelectric facility, breaking for the second time a prohibition on new hydro projects issued by the last administration. The new Huanza...

Chavez blasts rating agencies.(Brief Article)
February 15, 2001... CARACAS -- President Hugo Chavez said this week that risk rating services had been unjust to Venezuela in rating the country as more risky than some nations with civil wars and uprisings. "Political risk?" he asked. "Which? Where is the...

Government finances may not cover salary increase.(Brief Article)
February 15, 2001... CACACAS -- Public sector salaries this year are expected to reach 450 billion bolivars, or 21.6% of government revenues. This includes a 20% pay raise from last year, and an additional 10% salary increase that will go into effect May 1 but is...

Close election called in Amazonas.(Brief Article)
February 15, 2001... CARACAS- Liborio Guarulla of the PPT party won reelection this week in a dose race against Bernabe Gutierrez of the Accion Democratica party. Although the election was too dose to call throughout Sunday and Monday, the president of the National...

Chavez launches damage control effort after tensions get out of hand.(Venezuela Pres Hugo Chavez appoints Luis Miquilena as Justice and Interior Minister)
February 22, 2001... CARACAS -- President Hugo Chavez's decision to bring Luis Miquilena out of retirement to fill the posts of Justice and Interior Minister is an attempt to reduce tensions in the wake of a dangerous period in which the populist president angered...

Scandal could hit independence of Argentine Central Bank.(accusations of money laundering)(Brief Article)
February 22, 2001... BUENOS AIRES -- Allegations of money laundering, rooted more in politics than evidence of wrongdoing, could threaten the future independence of the Central Bank. President Fernando de la Rua has launched a strenuous effort to defend...

Business leaders say constitutional reforms detract from priorities.(Bolivia)
February 22, 2001... LA PAZ -- During a rare personal appearance to address Bolivia's congress on Feb 14, President Hugo Banzer laid out an ambitious and complex fifty-point constitutional reform plan. Corruption and poor economic performance have taken their toll...

Politics do not deter Peru power line bid.(Brief Article)
February 22, 2001... LIMA -- Even as the blackmail and corruption scandal related to the 2,400 video tapes made by disgraced spy chief Vladimiro Montesinos rages, foreign investors seem satisfied that the political turmoil will not affect business. Colombia's...

Situation on Ecuador-Colombia border is worse than thought.(Brief Article)
February 22, 2001... QUITO -- Ecuadorian military sources say there is mounting evidence Colombian guerrillas have established a more significant presence in the border region than has been acknowledged and there are indications the oil industry could be...

Investors are becoming increasingly concerned about the impact of violence in Colombia.(Brief Article)
February 22, 2001... BOGOTA -- Despite more then 35 years of civil strife, there has rarely been a shortage of investors with the intestinal fortitude and deep pockets required to do business in Colombia. But if recent investment figures and comments from business...

US citizens end up in combat as drug eradication efforts come under question.(Brief Article)
February 22, 2001... BOGOTA -- The US and Colombian governments have been trumpeting the latest accomplishments of the drug war, touting the huge numbers of acres of coca plants destroyed by aerial fumigation and the tepid response from leftist guerrillas who now...

Effort to modify drug certification process could benefit Mexico, cause frictions with Colombia.(Brief Article)
February 22, 2001... WASHINGTON -- Momentum is mounting in Congress to temporarily end the annual US drug certification review process, but the effort could strain US-Colombian relations if Mexico receives special treatment. Three bills have been introduced in...

Auto plant closings expected.(Volkswagen to close assembly plants in Latin America)(Brief Article)
February 22, 2001... BRASILIA -- Volkswagon, the largest auto maker in Brazil, expects to close a number of auto assembly plants in Latin America. Officials blamed "brutal competition" among car makers, as well as slumping markets over the last few years as Brazil...

Lagos says tax reform is a priority.(Chile Pres Ricardo Lagos introduces new tax reforms)(Brief Article)
February 22, 2001... SANTIAGO -- President Ricardo Lagos called for a quick approval of a new tax reform bill designed to cut tax evasion from 24% to 20% in five years. Unpaid taxes, which currently stand at an estimated $4 billion a year, would be reduced by $800...

Guerrilla attacks slow oil production.(Brief Article)
February 22, 2001... BOGOTA- Repeated attacks by the ELN on Colombia's second-largest crude export pipeline have forced Occidental Petroleum to cut production at its Cano Limon oil field to minimum levels. Two bombs crippled the pipeline on Feb. 17 in a remote...

State bank losses up, debt falls.(Brief Article)
February 22, 2001... QUITO -- Ecuador's state banks, Filanbanco and Bunco del Pacifico, ended 2000 with losses of $150.8 million, largely due to a high level of defaults by borrowers hurt by the E1 Nino weather phenomenon. The 24 private banks, in total, saw...

Constitutional, leadership changes.(proposed constitutional modifications in Ecuador)(Brief Article)
February 22, 2001... QUITO -- The Commission on Constitutional Issues has proposed a modification to the Constitution that would guarantee provincial and regional autonomy from the central government. The measure is scheduled to be debated in Congress. ...

Arbitration system created.(Brief Article)
February 22, 2001... LIMA -- Beginning March 1, the use of a system of arbitration centers created by the government will be mandatory in Lima and Callao and optional throughout the rest of the country. Many business disputes and other disagreements are expected to...

Church to return Montesinos videos.(Brief Article)
February 22, 2001... LIMA -- The Roman Catholic Church has agreed to return videos from the collection of ex-spy chiefVladimiro Montesinos to some people who were secretly recorded, if the subjects want them. The tapes apparently contain sexually-explicit material...

Two bombs found in Caracas.(Brief Article)
February 22, 2001... CARACAS -- Bomb disposal experts disarmed an explosive device near the Colombian consulate in Caracas. A short time later, a train conductor found a bomb in a metro car in the Capitolio metro station. Both bombs were diffused without injuries.

Tax reform sought.(Brief Article)
February 22, 2001... CARACAS -- One of the nation's largest business groups, Fedeindustria, has presented the Finance Commission of the National Assembly with a plan to lower interest rates. Under the proposal, the Central Bank would fix a series of bands within...

Oil workers prepare to strike.(Brief Article)
February 22, 2001... CARACAS -- Venezuelan oil workers announced they plan to strike next week, setting the clock ticking on a 120-hour waiting period required by law. The strike, which would involve 18,000 workers, is in protest of state oil company PDVSA's...