The European Union can no longer legally recognise Venezuelan opposition leader Juan Guaido as the country's legitimate head of state after he lost his position as head of parliament, the bloc's 27 governments said on Wednesday, Reuters reported. Guaido is still seen by the United States and Britain as Venezuela's rightful leader following the disputed 2018 re-election of President Nicolas Maduro, and two EU diplomats stressed the EU still did not recognise Maduro as president.
The Brazilian state of Minas Gerais is hoping to win at least 28 billion reais ($5.3 billion) from a compensation deal with miner Vale SA after the 2019 Brumadinho deadly dam burst, a senior state official said on Wednesday, Reuters reported. State and Vale officials will meet on Thursday, when it is expected talks on compensation will begin, ahead of a court-mediated hearing expected in January, said state secretary general Mateus Simões. “The idea is that we end the text discussion tomorrow and start the value discussion,” he told Reuters.
Venezuelan President Nicolas Maduro installed a new National Assembly filled with regime loyalists, consolidating his power over key institutions in the crisis-torn nation despite mounting U.S. sanctions, Bloomberg News reported. Lawmakers on Tuesday elected former Information Minister Jorge Rodriguez as the new president of the legislative body.
Shunned in global financial markets, Argentina is seeking about US$5 billion for next year from multilateral organisations other than the International Monetary Fund as it negotiates a larger refinancing programme with the Washington-based lender, according to three people familiar with the plans, the Buenos Aires Times reported. Alberto Fernández’s administration is looking to institutions including the Inter-American Development Bank and the World Bank, said the people, who asked not to be named because discussions are private.
Latin America’s luck will change. Pandemic lockdowns caused more regional corporations to default between early May and June. But yield-starved investors will ignore some of these risks, Reuters reported. There’s a lot of bad news to ignore. The International Monetary Fund expects Latin American and Caribbean economies to contract by more than 8% in 2020, the most of any region, with only a 3.6% improvement in 2021. And non-financial companies with foreign debt have seen revenue dented by a combined $200 billion due to the pandemic, Fitch Ratings estimates.
The drop in the amount of distressed debt across emerging markets has been a barely anticipated bonus for many countries this year. But it’s scant comfort for those nations still struggling with mounting obligations, Bloomberg News reported. The number of emerging- and frontier-market nations with debt trading at distressed levels -- yields more than 10 percentage points above those on U.S. Treasuries -- has tumbled from as many as 19 at the height of the coronavirus selloff in March to about a half-dozen now.
TIM Participacoes, Telefonica Brasil SA and America Movil SAB de CV’s Claro won an auction on Monday to acquire the mobile operations of Brazil’s Oi SA with a joint bid of 16.5 billion reais ($3.23 billion), the companies said in a series of securities filings, Reuters reported. The winning trio, which had submitted an initial bid in July, plans to split Oi’s assets once they have antitrust approval. Oi, which filed for bankruptcy protection in 2016, is selling assets to repay creditors. The group was the auction’s sole bidder, according to the filings.