America's Insider articles from June 2001

America's Insider archives from June 2001

Triumphant Toledo now faces challenge of meeting expectations in Peru.(new president Alejandro Toledo)(Brief Article)
June 7, 2001... LIMA -- Defeating former President Alan Garcia may be one of the easiest tasks president-elect Alejandro Toledo has to tackle this year. Meeting the expectations of the country's millions of poor who voted for him and addressing Peru's...

Some in Mexico fret about foreign control of banking and insurance.(prospect of Citigroup acquiring Banamex worries some)(Brief Article)
June 7, 2001... MEXICO CITY- Acquisitions in the banking and insurance sectors by foreign investors are spawning complaints about outside domination of the country's financial sector. But it appears the trend is irreversible. In May US financial...

Prisoner swap means little for Colombia's search for peace.(FARC begins to release government prisoners in deal with president)(Brief Article)
June 7, 2001... BOGOTA -- The FARC has begun releasing government prisoners in the first prisoner exchange in the guerrilla's 37-year war. The deal is the first substantive agreement between the communist rebels and the government and has raised hopes that the...

Cuba becomes the boogey man in Venezuelan politics.(relationship between Hugo Chavez and Fidel Castro is political liability)(Brief Article)
June 7, 2001... CARACAS -- Venezuela's close ties with Cuba, the brainchild of President Hugo Chavez, increasingly are becoming a political and financial liability for the Venezuelan leader. Cuban leader Fidel Castro welcomed Chavez as a hero after his...

Political instability remains the rule in Ecuador as Congress fires its president.(Hugo Quevedo resigns under pressure)(Brief Article)
June 7, 2001... QUITO -- After a week of theatrics, Congress President Hugo Ouevedo resigned as head of Ecuador's notoriously fractious legislature after it became clear lawmakers were about to oust him on corruption charges. There is some hope his firing may...

Stalled effort to define democracy is small blow to FTAA efforts.(Free Trade Area of the Americas)(Brief Article)
June 7, 2001... CARACAS -- An attempt to define what constitutes a democracy in the Americas failed after officials from Venezuela and several other countries objected to a US-backed definition, dealing a small, but symbolic blow to efforts to form a regional...

Swap succeed but more debt restructuring to come.(Argentina swaps over $29 billion in bonds)(Brief Article)
June 7, 2001... BUENOS AIRES- Investors swapped more than $29 billion in bonds maturing in the next three years for obligations paying higher interest but maturing later. The swap was seen as a huge success. Markets rose and Standard & Poors removed...

Bolivia pitches free trade to US.(Bolivia hopes to capitalize on natural gas reserves)(Brief Article)
June 7, 2001... LA PAZ -- The government has named a team to travel to Washington to try to negotiate a bilateral free trade agreement with the United States. Although the United States says it prefers to focus efforts on regional free trade, Bolivian...

Franco will not enforce energy plan.(governor Itamar Franco of Minas Gerais, Brazil)(Brief Article)
June 7, 2001... BRASILIA -- Maverick Minas Gerais state Governor Itamar Franco said he will not enforce a federal plan to reduce energy consumption. Faced with the threat of blackout, the government has adopted a plan under which it will fine companies and...

Tax cut talks to begin.(Chile)(Brief Article)
June 7, 2001... SANTIAGO -- The government plans to begin talks with the private sector and organized labor to try to reach consensus on a plan to cut income taxes. The government's plan is to cut personal taxes and to offset the lost revenue by raising...

Warlord's resignation is official.(Carlos Castano of Colombian Self Defense Force)(Brief Article)
June 7, 2001... BOGOTA --The leadership of the Colombian Self Defense Force (AUC) has accepted the resignation of Carlos Castano as head of the paramilitary organization. Castano resigned last week after a dispute within the organization over its relations...

Pipeline to get license.(Ecuador allows oil pipeline despite protests from environmentalists)(Brief Article)
June 7, 2001... QUITO -- The government plans to issue an environmental license to the consortium of oil companies planning to build a new heavy oil export pipeline. The route of the line has drawn fire from environmentalists because it passes through several...

US okays Mexican truck ownership.(investors can own 100% of US trucking companies)(Brief Article)
June 7, 2001... MEXICO CITY- US President George W. Bush has signed a memo that will allow Mexican investors to own 100% of US trucking and bus companies. Under Nafta, US companies can own 51% of Mexican transport companies, a cap that will be lifted by 2004.

Debate grows on state of economy.(experts disagree on Mexico slowdown)(Brief Article)
June 7, 2001... MEXICO CITY -- Financial exports differ on whether the deceleration of the Mexican economy has halted. Conference Board Economist Gail Fosler said she believe the slowdown has not hit bottom. However, government officials, and some private...

Smuggling costs millions.(Peru)(Brief Article)
June 7, 2001... LIMA -- Officials estimate that smuggling costs the government up to $300 million in lost taxes and import duties every year. The most popular smuggled goods are cigarettes, which are heavily taxed, beer and textiles. Officials have tried to...

Interest rate cap proposed.(Venezuela's Patria Para Todos party seeks 20% cap)(Brief Article)
June 7, 2001... CARACAS -- The Patria Para Todos party, a close ally of the ruling MVR coalition, has proposed that the Central Bank adopt a mechanism to fix interest rates. The party is asking the bank to consider setting a band in which interest rates would...

Vigilantes target street crime.(Venezuela)(Brief Article)
June 7, 2001... CARACAS -- Vigilantes have launched a wave of attacks against people they say are responsible for street crime. The gangs have killed dozens of people and are said to have ties to the police and some of the country's wealthy. The government's...

The mouth that roared: Chavez continues feud with opponents.(Venezuelan President Hugo Chavez)(Brief Article)(Statistical Data Included)
June 14, 2001... CARACAS -- A threat to expel foreigners who criticize Venezuela has created a furor over President Hugo Chavez's respect for human rights and touched off another round of hand wringing among foreign investors. Chavez's comment, made at a...

Lagos, businesses put aside differences to pursue tax reform.(Chilean President Ricardo Lagos)(Brief Article)(Statistical Data Included)
June 14, 2001... SANTIAGO -- A government effort to convince business interests to accept a hike in corporate tax rates as a way of paying for reductions in personal income taxes appears to be off to a good start. The government is trying to sell the idea...

Castano resignation may herald political, military offensives.(Colombian paramilitary leader Carlos Castano)(Brief Article)(Statistical Data Included)
June 14, 2001... BOGOTA -- Colombia's alliance of right-wing militias have restructured their leadership in a move that may herald a political bid for talks with the government as well as a military response to a recent state crackdown on paramilitary...

Brazil telecom sector poised for reform after explosive first phase.(Brief Article)(Statistical Data Included)
June 14, 2001... SAO PAULO -- In just under three years, the privatization of the Brazilian telecom system has revolutionized the communications industry. With the next stage of deregulation just under six months away, Brazil's telecommunications companies are...

Financial worries ease as scandals, airline troubles become latest preoccupations.(Argentina)(Brief Article)(Statistical Data Included)
June 14, 2001... BUENOS AIRES -- The big picture has brightened considerably following the success of the $29.5 billion megaswap two weeks ago and this week's Letes treasury bond auction, which saw rates decline considerably compared to the last sale in May....

Fight over trade promotion authority begins.(fast-track treaty powers for President George W. Bush)(Brief Article)
June 14, 2001... WASHINGTON --The battle over President George W. Bush's effort to win trade promotion authority- better known as fast-track- got underway this week in Congress, but supporters will have trouble enough winning the battles to get the measure on...

US pitches bilateral accord again.(planning of free trade pact with Argentina)(Brief Article)
June 14, 2001... BUENOS AIRES -- Argentine officials say the United States has once again approached the government with a proposal to begin work on a bilateral free-trade treaty that would be similar to the one under discussion with Chile. Although the Bush...

Government highlights blackout risk in 2000.(Energy crises forecasts and power rationing in Chile)(Brief Article)
June 14, 2001... SANTIAGO -- Government officials say they are increasingly worried that a shortage of power generating capacity could lead to rationing and blackouts next year. The National Energy Commission is considering calling a tender to try to attract...

Copper prices to hit economy.(effect of price reduction throughout Chilean economy)(Brief Article)(Statistical Data Included)
June 14, 2001... SANTIAGO -- Government officials say two-year lows in world copper prices could hit the economy. Officials say that every one-cent drop in annual copper prices costs the country $100 million in lost revenue and the government $44 million....

Success in local debt swap spurs international effort.(restructuring of Colombia's foreign debt)(Brief Article)(Statistical Data Included)
June 14, 2001... BOGOTA -- A successful program to exchange more than $2 billion in domestic debt coming due in the short term for obligations carrying longer maturities has prompted the government to make plans for the country's first ever international debt...

University hopes to sell domain ending.(University of the Andes in Colombia)(Brief Article)
June 14, 2001... BOGOTA -- The University of the Andes, the administrator for Colombia ".co" suffix in internet domains, is seeking companies to market the ending in a bid to raise money for scholarships and other purposes. The University hopes that firms will...

Airline merger rejected.(Colombian airlines Avianca and Aces)(Brief Article)(Statistical Data Included)
June 14, 2001... BOGOTA -- The government has rejected the proposed merger between Avianca and Aces, the country's two main airlines. Although the firms are in financial trouble and the move would help them compete internationally, regulators ruled that a...

Government to cut red tape.(easing costs of starting new businesses)(Brief Article)
June 14, 2001... BOGOTA- In an effort to make it easier for entrepreneurs to set up shop, the government plans to consolidate the bureaucratic requirements for setting up companies in Colombia. Currently, individuals and companies setting up new entities must...

Offensive will cost millions.(effort by Colombia to regain control of towns held by guerrillas)(Brief Article)(Statistical Data Included)
June 14, 2001... BOGOTA -- A government plan to retake control of 192 towns controlled by guerrillas or right-wing paramilitary groups is expected to take three years and cost tens of millions of dollars. About 18% of Colombia's towns are outside of government...

Auto sales soar.(Ecuadorian automobile industry)(Brief Article)(Statistical Data Included)
June 14, 2001... QUITO -- Auto makers and resellers say they expect to sell between 37,000 and 40,000 new vehicles in Ecuador this year, up from 19,150 last year. Sales through May were 18,691, say officials. The boom is the result of the economy beginning to...

Government to offer micro loans.(efforts to foster entrepreneurship in Mexico)(Brief Article)(Statistical Data Included)
June 14, 2001... MEXICO CITY- President Vicente Fox is backing a program to make tens of thousands of small loans to entrepreneurs. The loans are intended to help poor Mexicans start small enterprises. The program is the centerpiece of the government's...

Banking record may be opened.(release of government records on bailout of Mexican banking system)(Statistical Data Included)
June 14, 2001... MEXICO CITY -- The Congress has voted overwhelmingly to open sealed records dealing with the controversial 1994-1997 bailout of the banking system. All three major parties voted to release the information, which is contained on an encrypted...

Worry grows that rising wages could threaten Mexican exports.(Brief Article)
June 21, 2001... MEXICO CITY -- Rising wages at a time of a slowing economy and declines in workplace efficiency are causing concern Mexico's competitiveness could be threatened. During the first quarter of this year, contractual wages in the manufacturing...

Toledo faces serious hurdles in dealing with corruption charges.(President of Peru Alejandro Toledo)(Brief Article)
June 21, 2001... LIMA -- Amid the general sense of relief that accompanied the electoral victory of Alejandro Toledo over former president Alan Garcia, one key fact has been largely forgotten: Toledo inherits a bureaucracy, armed forces and government that is...

Court ruling raises fears about respect for freedoms.(journalist Elias Santana is denied rebuttal of accusations by President of Venezuela Hugo Chavez)(Brief Article)
June 21, 2001... CARACAS -- A ruling by the Supreme Court denying a journalist the right to rebut accusations made by President Hugo Chavez last year during his radio show Alo Presidente has raised fears about the government's commitment to respect civil...

Last month's hero is this month's bum as Cavallo shakes up the exchange system.(Economy Minister of Argentina Domingo Cavallo)(Brief Article)
June 21, 2001... BUENOS AIRES -- Having pleased investors with the successful international debt swap just weeks ago, Economy Minister Domingo Cavallo drew their wrath with an ill-timed scheme to end the current exchange system for exports. At home, the...

Attack raises concerns over US role in war.(American involvement in civil war in Colombia)(Brief Article)
June 21, 2001... BOGOTA -- Three American civilian airmen providing airborne security for a US oil company coordinated an antiguerrilla raid in Colombia in 1998, marking targets and directing helicopter gun ships that mistakenly killed 18 civilians, Colombian...

New ministry intended to attack problems with corruption.(Cuba's Audit and Control Ministry)(Brief Article)
June 21, 2001... HAVANA -- In a bid to get control of rising corruption, the government has created a new ministry charged with overseeing business practices in the state sector and monitoring the use of public funds and property. The Audit and Control...

Hearing on trade promotion authority reveals depth of opposition.(Senate Committee on Finance hearing)(Brief Article)
June 21, 2001... WASHINGTON -- The tone of a Senate Finance Committee hearing on trade promotion authority this week only reinforced a political reality on Capitol Hill: President Bush stands little, if any, chance of being granted the power to negotiate free...

Banzer relents on coca eradication.(President of Bolivia Hugo Banzer to make eradication of coca plantations voluntary)(Brief Article)
June 21, 2001... LA PAZ -- The government has agreed to abandon forced eradication of coca cultivation in the Yungas after it became clear that growers would resist such efforts forcefully. Instead, the government agreed to make coca eradication voluntary, but...

Petrobras to invest heavily in power.(planned construction of thermal power plants in Brazil)(Brief Article)
June 21, 2001... RIO DE JANEIRO -- State oil company Petrobras plans to spend $1 billion on new gas-fired thermal power plants by 2004. The move is part of the company's efforts to help alleviate a worsening power shortage in the country. The company plans to...

Oil round is big success.(bidding on government concessions for exploration of oil blocks in Brazil)(Brief Article)
June 21, 2001... RIO DE JANEIRO -- Foreign firms and state oil company Petrobras agreed to pay nearly $250 million in bonuses for the rights to explore 34 oil blocks. Petrobras was the big winner, taking all or part of 15 concessions. Germany's Wintershall won...

Transfer law approved.(regulation of federal aid to regional governments to reduce government spending in Colombia)(Brief Article)
June 21, 2001... BOGOTA -- Congress has approved a law that will alter the way in which federal assistance to regional governments is given and place limits on the growth of those funds. The law fixes contributions by the federal government, sets requirements...

Military given new powers.(detention and interrogation of suspected guerrilla members in Colombia)(Brief Article)
June 21, 2001... BOGOTA -- Congress has voted to give the armed forces a range of judicial powers that are intended to allow the military to fight leftist guerrillas more effectively. The law allows the military to detain and interrogate suspected guerrillas....

Social Security reform progresses.(Ecuador)(Brief Article)
June 21, 2001... QUITO -- Congress has approved a series of reforms to the country's retirement and social security system. Among the changes are increases in the retirement age, new requirements for contributing to the pension system and limits on benefits....

Toledo plans Inca inauguration.(newly-elected President of Peru Alejandro Toledo)(Brief Article)
June 21, 2001... LIMA -- President-elect Alejandro Toledo has announced plans to hold a second inaugural ceremony on July 29 at the Machu Picchu ruins outside of Cuzco, the former capital of the Inca empire. Although Toledo wanted to hold the official ceremony...

Electroandes auction planned.(sale of government shares in hydroelectric corporation in Peru)(Brief Article)
June 21, 2001... LIMA -- The Copri privatization commission hopes to sell all the shares the state owns in Electroandes, which operates five hydroelectric plants with 183MW capacity in Peru's central Andes. The auction would be held July 20, just over a week...

Union elections set.(labour unions in Venezuela to elect new officials)(Brief Article)
June 21, 2001... CARACAS -- Members of more than 2,500 local unions will elect new leaders in a series of elections slated to be held July 25-Sept. 25. Leaders of the three main labor confederations, the Venezuelan Workers Confederation, Unified Workers Front...

Poverty's rise continues.(Venezuela)(Brief Article)
June 21, 2001... CARACAS -- The percentage of the Venezuelan population living in poverty dropped a minimal 0.5% in the first five months of the year, according to a new study by a public research firm. The survey found that 44.1% of Venezuelan families live in...

Return of Montesinos could lead to more allegations against Fujimori.(former Intelligence director of Peru Vladimiro Montesinos and ex-president Alberto Fujimori)(Brief Article)
June 28, 2001... LIMA -- Just days after his arrest and extradition from Venezuela (See story on page 4), disgraced spy chief Vladimiro Montesinos has rattled Peru almost as much as last weekend's earthquake with an offer to reveal thousands of new videos of...

Trucking vote is defeat for Bush's free trade agenda with Mexico.(North American Free Trade Agreement )
June 28, 2001... WASHINGTON -- Congress has dealt President George W. Bush a humiliating blow to his effort to meet a pledge to end a long-running dispute over unrestricted access to the United States by Mexican trucks. This week, the House approved an...

Montesinos' arrest raises questions about ties with Chavez.(former spy chief Vladimiro Montesinos)(Brief Article)
June 28, 2001... CARACAS --At a summit meeting of Andean heads of state over the weekend, President Hugo Chavez breathlessly announced that Venezuela's arrest and extradition of former Peruvian spy chief Vladimiro Montesinos was an example of Venezuela's...

Life after Castro likely to involve many of the same players as now.(Fidel Castro, President)
June 28, 2001... HAVANA -- Fidel Castro's fainting spell last weekend in Havana has triggered swarms of rumors about what was wrong with him and touched off speculation about what will come once the aging dictator exits the scene. Castro was two hours into...

Abduction leads to suspension of soccer tournament.(kidnapping of Colombian Soccer Federation vice president Hernan Mejia)(Brief Article)
June 28, 2001... BOGOTA -- The kidnapping of an important soccer official and threats against Argentine players have prompted South American sports officials to suspend the Americas Cup, which was to be held in Colombia next month. The decision is an...

High power prices send utility company to the brink of default.(Brazil's Centrais Electricas de Santa Catarina)(Brief Article)
June 28, 2001... SAO PAULO -- After months of trying to renegotiate $61.2 million in debt with European creditors, Centrais Eletricas de Santa Catarina (Celesc) is near default. The electric distributor for Santa Catarina state- one of the largest utilities in...

Domestic demand remains weak.(Argentina)(Brief Article)
June 28, 2001... BUENOS AIRES -- Retail sales continue to be soft in Argentina. Sales from shopping centers dropped nearly 13% in May compared to the same period last year and sales at supermarkets fell 2%. Officials also indicated that the number of employees...

Bond auction is disappointment.(Letes treasury bond auction in Argentina)(Brief Article)
June 28, 2001... BUENOS AIRES -- The government's most recent Letes treasury bond auction saw limited demand. As a result, the government had to pay 9.1% interest rates on 91-day notes, above its expected range of 7.75% to 9%. The results indicate that...

Brazil pledges to work to boost Bolivian economy.(Brief Article)
June 28, 2001... LA PAZ -- President Hugo Banzer and Brazilian counterpart Fernando Henrique Cardoso signed a number of agreements to expand economic cooperation between their two countries. The most import seeks to expand natural gas sales from about 1 Bcf/d...

Group to study GTL plant.(viability of natural gas reserves in Bolivia)(Brief Article)
June 28, 2001... LA PAZ -- A consortium led by US private investment bank the Deane Group has signed a memorandum of understanding with US firm Rentech to study building a plant that would convert Bolivian natural gas into middle distillates such as diesel...

Government to bail out state banks.(Brazil)(Brief Article)
June 28, 2001... SAO PAULO --The government plans to inject capital and take over bad loans held by a number of state-owned banks in a bid to boost their competitiveness. The moves will add an estimated $5.4 billion to the nation's public debt. The two major...

Power auction draws limited interest.(Brazil)(Brief Article)
June 28, 2001... SAO PAULO -- Investors showed little interest in the government's first electricity auction. The sales are intended to help create a viable market for electricity and assist in over-coming the country's electricity shortage. The auction was...

Tax cut accord said to be near.(Chile)(Brief Article)
June 28, 2001... SANTIAGO -- Government officials say they are close to reaching consensus with private-sector companies on a deal that would cut personal income tax rates in exchange for a rise in corporate tax rates. Sources say the increase in corporate...

Unemployment rises sharply.(Chile)(Brief Article)
June 28, 2001... SANTIAGO --The unemployment rate rose 0.5% in May to 9.6%, according to the government. The rise comes as joblessness is expected to rise in coming months due to seasonal employment patterns. Officials already are warning that rates could be...

Generators may move to Brazil.(thermal-power generators in Colombia)(Brief Article)
June 28, 2001... BOGOTA --A number of thermal power generators say they may move some of their generating units and turbines to Brazil, where electricity prices are higher and the security situation is better. Recent government regulations capping prices have...

Oil pipeline gets final approval.(Ecuador)(Brief Article)
June 28, 2001... QUITO -- A consortium of oil companies is set to begin work on a $1.1 billion heavy oil export pipeline after receiving final approval from the national government. Several permits from local governments still must be secured but those are...

Fox supports truth commission.(investigation of human rights violations; President of Mexico Vicente Fox)(Brief Article)
June 28, 2001... MEXICO CITY -- President Vicente Fox said that he supports proposals to form a commission to investigate human rights violations by the police and government security agencies. However, he qualified his support by saying that the scope of the...

Kuczynski to be economy minister.(Pedro Pablo Kuczynski; Peru)(Brief Article)
June 28, 2001... LIMA -- After weeks of speculation about his role in the government, President-elect Alejandro Toledo has announced that Pedro Pablo Kuczynski will become economy minister in his government. Kuczynski, a fund manager and long-time international...

Direct foreign investment rises.(Venezuela)(Brief Article)
June 28, 2001... CARACAS -- Despite investor wariness of the political situation, foreign direct investment has shown a sharp increase this year, according to government figures. Direct investment through the end of May totals some $449 million, a jump of 83%...