Latin America

Trends | Peace Deals
Low oil prices are widening Colombia’s current-account deficit, dampening the confidence of foreign investors and dragging down the economy.

Brazil: The Banco Central do Brasil gave new Finance minister Nelson Barbosa a bit of help on January 20, when it decided to hold the short-term interest rate, the Selic, to 14.25%.

The axe fell on Brazil heading into 2016 as it suffered a downgrade to junk status by Fitch Ratings, heightening the air of crisis as the beleaguered nation grapples with political turmoil and recession.

Corporate Governance | Management
Selling the assets could improve BTG’s net worth by 20 billion reais ($5 billion). 

The opposition party in Venezuela won the majority of seats in the National Assembly (Venezuela’s parliament) in national elections early in December.

Argentina
The appointment of Alfonso Prat-Gay as Argentina’s new Finance minister was a clear sign to international investors that president Mauricio Macri, sworn in December 10, was serious about unraveling the populist policies of the previous government.

Hit by a sharp decline in the price of copper, Chile is putting the brakes on public spending with a 2016 budget that aims at keeping costs under control.

Puerto Rico
He has become the face of Puerto Rico’s woes, warning in media interview after interview of its inability to pay its bills and serving as the island’s bearer of bad financial news.

Grassroots anti-corruption movement promises new era of transparency.

In the province of Imbabura in northern Ecuador, approximately a two-and-a-half-hour drive from the capital, Quito, and close to the border of Colombia, sits Yachay, the country’s first planned “city of knowledge.”

José Antonio Ocampo Gaviria, professor at Columbia University’s School of International and Public Affairs, says the slowing of international trade since the financial crisis is a major threat to the world economy.

Trends | Taxation
Brazil is well known in the global business sector for its tax complexity, heavy tax burden (around 35% of GDP) and high use of technology for tax collection. Not for nothing do Brazilians call their tax authority—Receita Federal do Brasil—“the Lion.”

Global Finance interviews senior executives from some of the banks featured in this year’s World’s Safest Banks rankings.

Developing countries have long sought a greater voice in running the IMF and World Bank. The rise of rival development banks gives them more options—and more leverage.

A selection of winners from Global Finance’s awards program over the past year. 

Guatemala’s political turmoil, with parties deadlocked in Parliament, a runoff election looming and corruption scandals exploding, means the government will operate in a kind of suspended animation until 2016.

Regional Report | Latin America
The large economies on the east coast of Latin America—Brazil, Venezuela and Argentina—are slumping badly. Things are far different out west.

Global Finance unveils its annual list of the best banks globally, regionally and by country. The winners have provided the best service to clients.

Global Finance’s annual evaluation of the work of the world’s central bankers found some stellar performances, and some dismal ones. The toughest challenge for many: propping up falling prices.

Compared with several other markets in the region, Peru’s economy is rock-solid.