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Energy
Pemex To Assume USD 3.5 Billion In Pidiregas Government-Backed Bonds
December 29, 2008
Pemex announced it is taking USD 3.5 billion in government-backed bonds under a swap program to organize its debt. Pemex has assumed ultimate responsibility for debt that had been issued under a federal government project financing arrangement known as Pidiregas. Pemex said it will exchange USD 2.5 billion in bonds due 2018, USD 501 million in bonds due 2035, and USD 500 million in bonds due 2038 for new notes.
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Trade & Investment
USDA: Mexico Clears 25 U.S. Meat Plants To Resume Shipments
January 1, 2009
The United States Department of Agriculture (USDA) has confirmed that Mexico’s Agriculture, Livestock and Rural Development Ministry (SAGARPA) has approved 25 of the 30 suspended U.S. meat plants to resume shipments to the country. The USDA said Mexico had concerns about the general condition of meat products, sanitation issues and “possible pathogen findings.” The 30 meat plants, which produce beef, pork, and poultry, were suspended from shipping to Mexico due to sanitary issues like packaging, labeling, and transport conditions.
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Banking, Insurance & Finance
Banxico: Bank Lending Loses Steam In November But Raises Year-On-Year
December 31, 2008
According to the central bank (Banxico), growth in Mexican bank lending to individuals and companies lost steam in November amid increasing concerns about defaults and fallout from the world credit debacle. However, bank lending to Mexico’s private sector rose 7.3% year-on-year at the end of November and direct performing loans rose to MXN 1.646 trillion, up from MXN 1.443 trillion a year earlier.
IPC Starts 2009 With Gains After Grim Year
January 2, 2009
Mexican stocks jumped by the most in more than two weeks as investors expected further major stimulus packages abroad would jolt economies around the world out of deepening slumps. The benchmark IPC stock index rose 3.89% to 23,250.96 points, its higher percentage gain since December 17, when the market rallied the day after the U.S. Federal Reserve cut its target interest rate to nearly zero.
SHCP Approves Increase In Grupo Financiero Interacciones’ Capital
December 31, 2008
The Finance and Public Credit Ministry (SHCP) announced that it has approved an increase of MXN 239.5 million in Mexican financial group Grupo Financiero Interacciones’ capital. Most of the funds were provided by Mexican businessmen and the bank’s leading shareholders Carlos Hank Rhon and son Carlos Hank Gonzalez, who jointly own approximately 82% of the firm.
Grupo Salinas’ Retail Subsidiary To Raise Conglomerate’s Banking Unit Capital
December 31, 2008
Shareholders of Mexican conglomerate Grupo Salinas’ electronics and home appliances retail unit Elektra announced plans to raise the group’s banking unit Banco Azteca’s capital by 6%, or MXN 125 million, to MXN 2.2 billion.
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Business & Industry
Arca Closes Purchase Of Argentinean Coca-Cola Bottler
December 29, 2008
Mexican Coca-Cola bottler Embotelladoras Arca announced that it has completed the purchase of the Coca-Cola franchise in northwestern Argentina as part of its international expansion plan. Arca did not provide financial details of the transaction but said it gives it a presence in six states with a population of nearly 5 million people. The acquisition, in addition to the planned purchase of Coca-Cola’s franchise in northeastern Argentina, will raise Arca’s sales in that country to more than 120 million unit cases, 24% of the sales volume of Coca-Cola branded products in Argentina.
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Housing & Mortgaging
Banxico: Banks Lending For Low Income Housing Falls In November
January 2, 2009
According to the central bank (Banxico), banking loans destined to low-income family housing fell by 10.4% in November when compared to 2007 figures to MXN 37.7 billion. However, Banxico’s reports also indicate that bank’s credits for middle and high income housing jumped by 9.1% in November when compared to the like-2007 period to MXN 272.2 billion. Experts say banks will maintain the same lending trend to avoid overdue payments in 2009.
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Construction & Infrastructure
Cemex Closes Sale Of Canary Islands Assets To Cimpor Cimientos De Portugal
December 29, 2008
Mexican cement maker Cemex announced the completion of its Canary Islands operations’ sale to Cimpor Inveriones, the Spanish unit of Cimpor Cimentos de Portugal, for EUR 162 million. Cemex said that EUR 5 million of the proceeds will be held in escrow to cover possible contingencies and that the rest will be used to lower debt.
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Retail
Wal-Mex Opens 36 Stores In December
January 2, 2009
Wal-Mex, the Mexican unit of U.S. retailer Wal-Mart, announced that it opened 36 stores employing more than 1,800 people in December. Wal-Mex said it had 1,178 stores and restaurants as of December 3. Wal-Mart de Mexico executives said early last year that the firm would open 205 retail establishments during 2008, after closing 2007 with 1,023 stores and restaurants.
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Transportation
Asur: Government Extends Deadline For Development Plans
December 29, 2008
Mexican airport operator Grupo Aeroportuario del Sureste (Asur) said that the government has extended the deadline for approval of its master development plans for another 90 days. Under the terms of Asur’s concessions, each of its subsidiary concession holders is required to submit an updated master development plan every five years for approval by the Communications and Transport Ministry (SCT).
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Media & Entertainment
Codere, CIE To Reimburse MXN 400 Million Of Shareholders’ Partial Withdrawals
December 30, 2008
Impulsora de Centros de Entretenimiento de las Americas, a Joint Venture between Spanish gaming and entertainment firm Codere and Mexican peer Corporacion Interamericana de Entretenimiento (CIE), announced a MXN 400 million reimbursement to its shareholders as part of their partial withdrawals. The companies said that 51% of the funds, or MXN 204 million, will go to CIE, while Codere will receive MXN 196 million.
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Farming & Agriculture
Mexico, U.N. To Build World’s Fourth Largest Bamboo Center
January 4, 2009
The National Forests Commission (Conafor) announced that the government and the United Nations (U.N.) have signed an agreement to boost bamboo planting in Mexico. Conafor added that approximately USD 715,000 will be allocated to establish the Center of Bamboo Technology Development in the state of Veracruz, as part of the country’s productive reforestation strategy. The Center will be the fourth largest in the world, after China, India and Cuba.
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Economy
SHCP: November Fiscal Surplus At MXN 13.5 Billion
December 30, 2008
The Finance and Public Credit Ministry (SHCP) said Mexico posted a fiscal surplus of MXN 13.505 billion in November, narrowing from the surplus of MXN 78.372 billion posted in October. The accumulated surplus for the first 11 months of the year totaled MXN 231.7 billion, which was MXN 39.6 billion greater than what was registered in the same 2007 period.
Government To Refinance Foreign Debt With 10-Year, 30-Year Bonds
December 31, 2008
The Finance and Public Credit Ministry (SHCP) said it plans to refinance all of the government’s foreign debt maturing next year, mainly through the issuance of 10-year and 30-year bonds. SHCP expects the share of inflation-indexed bonds (UDIs) in the government’s overall debt to increase next year beyond its current weighting of 13%. The ministry also said it will continue to do bond swaps and buybacks during 2009 to improve the maturity profile of the public sector debt.
Banxico: Migrant Remittances Fall 11% In November To USD 1.61 Billion
January 2, 2009
According to the central bank (Banxico), remittances from Mexicans living abroad fell 11% in November from the year-ago month to USD 1.61 billion. Remittances had risen 13% in October to USD 2.44 billion, with the increase attributed largely to the sharp depreciation that month of the Mexican peso (MXN) against the dollar; however, the downward trend in remittances as a consequence of the U.S. economic slowdown, a tighter U.S. labor market and a crackdown on illegal migration, resumed in November.
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Border & Migration
Local Daily: Mexicans In U.S. Do Not Expect To Return Home Any Time Soon
January 2, 2009
According to a local daily, nearly 54% of Mexicans who emigrated to the U.S. have no thought of returning to Mexico, even though they foresee difficult times ahead because of the economic situation. On the flip side, 41% of those surveyed said they are thinking of returning or know someone who is ready to do so. The U.S. is home to some 12 million Mexicans, roughly half of them undocumented. More than 90% of Mexicans who have emigrated live in the U.S. Meanwhile, a report by the Institutional Revolutionary Party (PRI) said that at least 725 Mexicans died in 2008 trying to cross the border into the U.S.
New Spanish Law Makes 150,000 Mexicans Eligible For Spanish Citizenship
December 30, 2008
Approximately 150,000 Mexicans that are the children or grandchildren of Spain-born people who fled their country since the beginning of the Spanish civil war (1936-1939) until 1955, are eligible to be awarded Spanish citizenship under a new law by that European Country.
Immigrant Association: 58,000 Hondurans Deported From U.S., Mexico In 2008
January 1, 2009
According to the Center for Assistance to Returning Migrants, more than 58,000 Hondurans were deported in 2008 from Mexico and the U.S. The association said that approximately 30,099 were deported by air and around 28,000 arrived home by land. The center’s report noted that many of those sent home by land from the U.S. were detained in Mexico and Guatemala. In 2007, a total of 70,000 Hondurans were deported from the U.S. and Mexico by air and land.
Mexico Deports More Guatemalans Than The U.S.
January 1, 2009
According to information from Guatemala’s General Direction of Migration (DMG), Mexico deported more illegal Guatemalan migrants than the U.S. in 2007 and 2008. Data indicated that in 2008, Mexico repatriated 36,362 Guatemalans, a 26.5% reduction from a year ago, while the U.S. deported 27,929 people, reflecting a 21% increase in deportations.
INM: Mexico Assists 29,000 Minor Migrants In 2008
December 31, 2008
According to the National Immigration Institute (INM), the government has assisted nearly 29,000 Mexican minor migrants in the first 10 months of 2008. A total of 28,456 Mexican minors were repatriated from the U.S. from January 1 to October 31, 2008. The INM oversees the delivery of those minors as well as their integration into the original family nucleus or communities. Among the minors, 3,104 were children under 12 years old.
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Politics
Zapatistas Mark 15th Anniversary Of Uprising
January 4, 2009
Approximately 2,000 supporters of the Zapatista National Liberation Army (EZLN) gathered in the southern state of Chiapas to mark the 15th anniversary of the group’s uprising and the 25th anniversary of its founding. The EZLN also held a meeting with its supporters in San Cristobal de las Casas as part of the Digna Rabia (Dignified Rage) Festival. Calm prevailed in Chiapas during the commemoration, with the group once again opting to maintain a low profile vis-á-vis Mexican society.
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Justice, Safety & Crime
President Calderon Launches Law Enforcement Overhaul
January 2, 2009
President Calderon signed into a law a reorganization of Mexico’s law enforcement agencies aimed at taming drug-related violence. The president’s office said in a statement that the New Act of the National System of Public Safety, passed by Congress last month, is meant to ensure “effective action” among the different levels of government – federal, state and municipal – in the battle against drug cartels and other organized crime groups.
U.S. DOJ: Mexico Extradites 10 Drug Cartel Suspects To U.S.
December 31, 2008
According to the U.S. Department of Justice (DOJ), Mexico has extradited ten drug defendants to the U.S., capping an already record year for extraditions between the two countries. Mexico’s federal Attorney General’s Office (PGR) calls the suspects high-ranking members of the country’s three most powerful drug cartels (the Gulf, Sinaloa and Arellano-Felix gangs). Among them is a former federal official who allegedly worked as security chief for the Tijuana-based Arellano-Felix group.
Authorities Detain La Familia Drug Cartel Top Operatives
December 30, 2008
The Federal Attorney General’s Office (PGR) and the Defense Ministry (SEDENA) said authorities have detained alleged top leaders of the La Familia drug cartel Armando Palomino and Alberto Espinoza Barron in the state of Michoacan. Press reports indicated that a total of ten people were detained and that the kingpin of La Familia, Nazario Moreno, may be among those taken into custody.
International, Local Press: Ciudad Juarez Is Mexico’s Most Violent City
January 1, 2009
According to tallies published in local and international press, more than 1,600 people were murdered in 2008 in Ciudad Juarez, in the state of Chihuahua, making it Mexico’s most violent city. The year ended with a total of 1,605 people murdered in the city, including 71 federal, state and municipal police officers, as well as 85 bank robberies, an average of 10 cars stolen per day and more than 20 businesses burned.
Zapatista Leader Subcomandante Marcos Slams War On Drugs In Mexico
January 3, 2009
Subcomandante Marcos, leader of the Zapatista National Liberation Army (EZLN) rebels, said that Mexico’s security forces are losing the battle against violent drug cartels, a fight that has been one of the centerpieces of President Calderon’s agenda. Marcos said Calderon decided “with the backing of one gang of drug traffickers, to undertake a war against the other gang,” although he did not specify which of the country’s numerous drug mobs he was referring to.
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Other
Japanese “Tenant” Leaves Mexico City Airport
December 29, 2008
A Japanese man who had been living in Terminal 1 of Mexico City International Airport (AICM) since September 2, for no apparent reason, has finally left the terminal. A local daily ran photos of the man getting into a cab at the airport and indicated he is now living in an apartment in the city with a Japanese woman. His visa to remain in Mexico expires on February the 9th, 2009.
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