The Romanian central bank unexpectedly cut interest rates by 75bps to 8%. The move follows a moderation in inflation and a strengthening of the domestic currency, which has increased by 4% over the euro in the last six months.
The Colombian central bank’s report on the state of economy for 2006 noted a surprise increase in non-tradable services and food prices leading to inflation concerns. The use of Treasury bonds to stabilize liquidity is also discussed.
The Argentine government received a lawsuit from Task Force Argentina- a group that represents Italian retail bondholders. Analysts expect that such legal pressure is unlikely to lead to a bond swap in the short term.
Ecuador’s president Rafael Correa said any debt restructuring may be delayed due to a referendum on constitutional reform. A coupon payment on the Global 2030 bond is due on February 15but carries a 30-day grace period.
- Information provided by Euromoney group sources.