The combined net profits of banks operating in Mexico stood at 13.6 billion Mexican pesos ($1.2 billion) in the first quarter of 2006, up 22.9 % on the previous year, according to Mexico's banks and securities' commission. Profits were boosted mainly by interest income, which grew by 21.2% on the previous year to 38 billion pesos ($3.3 billion), and a 16.4% rise in commission income to 12.5 billion ($1.1 billion). Mexican banks’ total assets stood at 2.3 trillion pesos ($204.7 billion) at the end of the first quarter of 2006.
Fitch affirmed Croatia’s foreign-currency issuer rating at BBB-, and local-currency rating at BBB+. The outlook on both ratings was stable. Croatia’s rating is supported by a diverse economy and high per-capita income, which stood at $8500, some 40% above the median of its rating peer group. Fiscal weakness and high external debt ratios are the key constraints. Fitch said the start of the EU accession talks last year was a milestone for the country, and the prospect of entry would provide an anchor for policy reform. Fitch expects both the fiscal and current account deficits to widen this year.
The Bank of Thailand announced that plans to issue 200 billion baht of government bonds by the end of the year. The funds will refinance the liabilities of the Financial Institutions Development Fund. The Fund was set up after the 1997 Asian financial crisis to recover assets seized from the 56 financial companies that were shut down.
The Bank of Thailand plans to auction the Funds assets, which include substantial shareholdings in Krung Thai Bank, Siam City Bank and BankThai.
India’s economy will grow at an average rate of 5.9% between 2006 and 2020 according to a survey by the Economist Intelligence Unit (EIU). The survey also estimated that India will contribute 12.2% of global economic growth in the next 15 years.
An early report from the People’s bank of China estimated that the country’s economy grew at an annualised rate of 10.3% during the first half of this year. The People’s bank said it expects growth to slow in the second half of the year, averaging at 10% for the full-year, and inflation averaging 1.7%. The Chinese government has adopted various fiscal and administrative measures to slow down economic growth, but so far met with little success.