After an 18 month delay, Argentina’s government said it will evaluate offers to construct two combined cycle thermal power plants that would add capacity equivalent to ten percent of present energy consumption or 1.6 MW. The two new facilities in Campana and Timbres will cost around $900 million. Four foreign turbine manufacturers are in the race for the contract.
Fitch Ratings revised up its ratings on Romania’s Tiriac Bank, BancPost, Romanian Bank for Development - Groupe Societe Generale (BRD-GSG) and UniCredit, after a change in the agency’s methodology led to a two-notch upgrade of Romania's sovereign rating. Fitch also put the Romanian Commercial Bank's (BCR) rating on positive outlook and said it will upgrade it after it is taken over by Austria's Erste Bank. Romania's sovereign rating was raised at the end of last week to BBB+ from BBB-. Fitch's changed methodology led to upgraded ratings for 39 other countries. The country’s’s four banks, all owned by financial groups with better ratings than Romania, have the maximum rating; BBB+; the country ceiling.
The People's Bank of China raised interest rates by 0.27% on Friday, the second rate hike this year. The one-year deposit rate has been raised to 2.52% and the one-year loan rate to 6.12%. China's economy grew at 10.9% during the first half of 2006. Investment was also up on the previous year fuelled by bank credit. Concerned at the by excessive manufacturing capacity generation and the subsequent non-performing loans, the People’s Bank has been taking fiscal and administrative measures to contain money supply.
The Bank of Thailand's Governor Pridiyathorn Devakula refuted concerns among investors and businesses that the central bank would target an exchange rate conducive to growth. The governor said the central bank would balance export growth and inflation. A weak Baht will increase inflationary pressures of inflation and a strong Baht will affect exports growth. The recent strength of the Thai Baht led to the central bank to intervene in the foreign exchange market more than once during the last week. The central bank expects inflation of 4% during 2007.