Venezuela will pay for $600 million of food imports including milk and live chicks from Colombia with dollar-denominated bonds, a sign the nation is running out of money to address the chronic shortages of basic goods fueling the world’s fastest inflation.
Venezuela could default on its debt as early as the second half of 2013 if President Hugo Chavez wins re-election next month and fails to shore up the oil- producing nation’s “increasingly fragile” balance sheet, Morgan Stanley said.
Argentina’s currency is headed to its smallest decline against the dollar in three years, cutting central bank profits and pushing the government to use reserves at a faster pace to meet financing needs.
Peru’s central bank kept borrowing costs unchanged yesterday for a 12th month and signaled its readiness to respond to any shifting inflation expectations after boosting reserve requirements to tame credit growth.
Former Argentine President Nestor Kirchner , who antagonized investors in the aftermath of the country’s $95 billion debt default before handing power to his wife in 2007, died of a heart attack today. He was 60.