El “default” de Argentina tiene tantas lecturas como tenedores de bonos argentinos hay en EEUU. La apreciación sobre si el país está o no en cesación de pagos ha extendido el debate económico al campo político, en donde el concepto “soberanía” se ha agitado de manera preponderante por el gobierno de Cristina Fernández de Kirchner.
Para las calificadoras de riesgo Standard & Poor’s, Fitch y Moody’s, Argentina entró en un default selectivo el 31 de julio tras no cumplir el pago a los llamados “fondos buitres,”ordenado por un fallo del juez norteamericano Thomas Griesa. Sin embargo, para la Comisión Económica para América Latina y el Caribe (CEPAL), el país todavía se encuentra en un litigio inédito en la Corte Suprema de EEUU, y la Asociación Internacional de Derivados y Swaps (ISDA) revertió su apreciación inicial de default para decir que no hubo moratoria en el pago de la deuda–al fin y al cabo, el dinero del 93% de los bonistas está en las cuentas del Bank of New York Mellon.
After 36 years of searching, Estela de Carlotto, president and founder of the Abuelas de la Plaza de Mayo (Grandmothers of the Plaza de Mayo) was reunited with her grandson in a private meeting in La Plata on Wednesday evening. Ignacio Hurbán, named Guido Montoya Carlotto by his biological mother, discovered his true identity after taking a DNA test Tuesday resulting in a 99.9 percent match with the Carlotto family.
Guido met with his grandmother and his aunt and uncles, Claudia, Kibo and Remo Carlotto, in an undisclosed location from 3 pm to 9:30 pm Wednesday evening, catching up on the decades that had passed since Guido was taken from his 23 year-old mother Laura, who was being held prisoner of the state by the Argentine military dictatorship and had her baby stolen from her only five hours after giving birth.
While recuperated children's identities are carefully guarded to protect the individuals who may be suffering from shock, the news of Guido quickly spread to local and national news. The 36 year-old musician was brought up in Olavarría, a town just under 200 miles from Buenos Aires, by a family with no direct connection to the dictatorship.
During the Argentine military dictatorship from 1976 to 1983—during which time more than 30,000 people were taken prisoner, tortured and killed or disappeared—over 500 babies were stolen from prisoners as "botín de guerra" (spoils of war) and adopted by military and other families. Guido is the 114th grandchild to be recovered after the Abuelas started a DNA bank to help reunite stolen children with their biological families.
The impact of finding Guido has spread across the country. The Abuelas, which usually receive between 10 to 40 calls a day regarding identity, had to bring in additional help on Wednesday to attend to the 100 calls received. While the Abuelas are hopeful of reuniting all of the stolen children with their biological families, they are also cognizant of the difficulty of doing so.
“If it took us 36 years to find 114 grandchildren, calculate how much time will have to pass for us to find the rest of the 400 we’re missing,” said Rosa Roisinbilt, vice president of the Abuelas.
Argentina’s stock market fell 8.4 percent on Thursday after the country slid into what Standard & Poor is calling a selective default. Despite emergency negotiations Wednesday night, holdout bondholders and Argentina’s Finance Minister Axel Kicillof were unable to reach a compromise.
The default crisis was sparked by lawsuits led by Paul Singer for $1.5 billion after the country defaulted on its bonds in 2001. President Cristina Fernández de Kirchner’s administration foreshadowed the default in June after the U.S. Supreme Court upheld a ruling requiring Argentina to pay the full amount owed to hold-out bondholders.
This is the second default the country has seen in 13 years. While Argentina is bracing for higher inflation and increased cost of borrowing, the consequences are not predicted to be as dire as in 2001 when the banking system failed leading to an economic collapse.
This week’s likely top stories: Mercosur leaders meet in Caracas; former General Hugo Carvajal returns to Venezuela; California Governor Jerry Brown visits Mexico; Mexican Congress discusses energy reform; Argentina nears its debt deadline.
Mercosur leaders to address Israel at Mercosur summit: Brazilian President Dilma Rousseff is expected to lead Mercosur leaders in condemning Israel’s military offensive in the Gaza Strip at Tuesday’s summit of Mercosur presidents in Caracas. Last Thursday, Israel referred to Brazil as a “diplomatic dwarf” after Rousseff recalled Brazil’s ambassador to Israel and the Brazilian Foreign Ministry cited Israel’s “disproportionate use of force” in Gaza. All five presidents of Mercosur’s full members—Argentina, Brazil, Paraguay, Uruguay and Venezuela—are expected to attend the summit, along with Bolivian President Evo Morales, whose country is in the process of joining the bloc. Argentine President Cristina Fernández is also expected to deliver a speech condemning “vulture funds” only one day before Argentine debt talks are set to expire.
Venezuelan ex-general freed in Aruba: Former Venezuelan General Hugo Carvajal received a hero’s welcome in Venezuela after he was released from detention by Aruban authorities on Sunday. U.S. officials have accused Carvajal of aiding in drug trafficking and supporting left-wing guerillas in Colombia. While Carvajal was waiting to be confirmed as Venezuela’s consul in Aruba, he was arrested last Wednesday at the request of the United States, but the Dutch government finally agreed that he “should have diplomatic immunity as nominated consul to Aruba.” The United States has accused the Venezuelan government of threatening the governments of Aruba and the Netherlands to release the former general.
California Gov. Jerry Brown trade mission to Mexico: California Governor Jerry Brown has arrived in Mexico to discuss immigration and trade with Mexican President Enrique Peña Nieto and leaders from Central America. The governor will meet with Peña Nieto today and with Central American leaders on Tuesday to discuss the wave of undocumented minors arriving in the United States. The focus of the trip will be the economy and trade, and the governor will be joined by a delegation of more than 100 state government, business, economic development, investment and policy leaders to foster trade, educational exchanges, climate change, and tourism between California and Mexico.
Mexico’s Chamber of Deputies to discuss energy reform legislation: Members of Mexico’s lower house will begin discussion today on secondary legislation for Mexican energy reform. The reform will permit the participation of private national and foreign investment in Mexico’s oil and gas company PEMEX and the Comisón Federal de Electricidad (CFE–Federal Electricity Commission) for the first time in the country’s history. The Partido Acción Nacional (National Action Party—PAN) has promoted the creation of a Fondo Mexicano del Petróleo (Mexican Fund for Oil) with profits derived from the oil industry in order to invest in infrastructure and technology. The director of CFE, Enrique Ochoa Reza, emphasized the benefits of the reform, including generating cheaper and more environmentally friendly forms of energy.
Argentina at risk of default as debt deadline nears: Upon the news that the Argentine government will not meet with a debt mediator until tomorrow, Argentina’s government bonds dropped to a one-month low today. The Argentine government has met with court-appointed mediator Daniel Pollack on four occasions, and negotiations over $1.5 billion in unpaid debts remained deadlocked after no progress had been made with talks on Friday. If negotiations are not completed by July 30, or a court delay is not offered, Argentina will default for the second time in only 13 years.
This week’s likely top stories: Colombia inaugurates a new legislature; Argentina must pay its debt by July 30; Reforms to Peru's environmental agency are criticized; Five Nicaraguans are killed after a Sandinista anniversary celebration; Bolivia allows those as young as 10 to work.
Colombia installs new legislature: As Colombia’s new legislature was sworn in on Sunday, re-elected Colombian President Juan Manuel Santos hailed the installation of a new “Congress of peace.” Though Santos’ Partido de la U (Party of the U) faces a reduced majority in Congress and outspoken opponents like current Senator and former president Alvaro Uribe, Santos said he hoped that the newly-elected legislators would continue to support the government’s ongoing peace talks with the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) in Havana. Since the talks began in 2012, the FARC and the government have agreed on three points of a six-point plan, and must still decide on restitution for victims of violence, rebel disarmament, and how to ratify the final peace agreement.
Argentine debt negotiations near deadline: Argentina must reach a deal with its holdout creditors before July 30 or face its second default in 13 years. There is still a possibility that U.S. courts could issue a stay to allow the country to continue negotiating with holdouts, but a default would likely trigger recession, inflation, high unemployment and other economic woes for the country. Argentina has been ordered to pay approximately $1.5 billion to its holdout creditors, but if other bondholders demand the same terms as the holdouts, Argentina said it may have to pay up to $120 billion. Meanwhile, Argentine Cabinet Chief Jorge Capitanich said that the holdouts may try to seize YPF-Chevron assets in the Vaca Muerta shale gas deposit.
Controversial reforms to Peru’s environmental agency: After Peruvian President Ollanta Humala enacted a controversial law on July 11 to reform the country’s Organismo de Evaluación y Fiscalización Ambiental (Environmental Evaluation and Regulation Organization—OEFA), environmental groups, Peru’s ombudsman, environmental authorities and some elected officials say the changes will weaken the country’s environmental protections. The law—which the Peruvian government says will refocus the OEFA on “preventative” rather than disciplinary actions—will streamline the environmental review process and lower fines for all but the largest environmental infractions, among other changes designed to attract mining investment. Meanwhile, the agency faces a lawsuit by the mining sector that could slash its 2014 budget by 40 percent.
Five Killed in Nicaragua: Five people were killed and at least 24 wounded in Nicaragua on Sunday following a Sandinista political celebration. In two separate attacks, two men and two women were killed by gunshots as they traveled on the Pan American highway outside the community of Las Calabazas, while north of Matagalpa, another man was killed. Thousands of Nicaraguans had gathered in Managua on Saturday to celebrate the 35th anniversary of the Sandinista revolution. An anti-Sandinista group reportedly claimed responsibility for the attack on Facebook.
Bolivia legalizes child labor: Bolivian Vice President Alvaro García Linera signed a law last Thursday that will permit Bolivian children as young as 10 to work independently, and will permit 12-year-olds to work for others with parental authorization. The measure was approved by Bolivia’s congress earlier this month. Previously, the minimum working age in Bolivia was 14, but the government said that the new law would help to combat extreme poverty, and reflects the realities of a nation where some 800,000 children are already employed. The International Labour Organisation says that it will study the legislation to decide whether it contravenes international conventions. Human Rights Watch issued a statement in January calling on the Bolivian government to reject a proposal to lower the minimum working age.
This week’s likely top stories: BRICS leaders meet in Brazil; Argentina and Russia sign energy agreements; U.S. considers action on child immigrants; Colombian forces strike FARC; Argentine soccer fans riot.
BRICS leaders to launch new bank at summit: Leaders from Brazil, Russia, India, China, and South Africa will convene in Fortaleza, Brazil for the sixth BRICS summit on Tuesday. The leaders will launch the “New Development Bank” (NDB) with $50 billion in initial capital to allow developing nations to secure infrastructure construction loans, pending legislative approval from all five BRICS countries. The BRICS countries also plan to set up the Contingent Reserve Arrangement (CRA)—a $100 billion emergency lending pool for countries facing currency crises—whose purpose would be similar to that of the International Monetary Fund (IMF). It is not yet clear how the lending criteria of the CRA will differ from the IMF, if at all. China will contribute $41billion in initial funding to the CRA, South Africa will contribute $5 billion, and Brazil, Russia and India will each contribute $18 billion.
Argentina and Russia reach agreements on nuclear power: Russian President Vladimir Putin and Argentine President Cristina Fernández de Kirchner signed a number of energy deals on Saturday while the Russian leader visited Buenos Aires to cooperate on nuclear energy and other projects. Putin announced that Russia will help build a nuclear reactor and bases for a satellite system in Argentina and may help construct two hydroelectric plants. Fernández de Kirchner confirmed that Russia is also interested in investing in Argentina’s Vaca Muerta shale formation and is planning to send a delegation to the area. On Friday, Putin was in Cuba meeting with Raúl and Fidel Castro to discuss energy, security, and health cooperation between Cuba and Russia.
U.S. Congress to consider $3.7 billion for child immigrants: After U.S. President Barack Obama requested $3.7 billion in funding last week to address the growing crisis of young undocumented immigrants crossing the U.S.-Mexico border, Democrats and Republicans are deeply divided on how to proceed. Some Republicans have said that the $3.7 billion propose spends too little on border security. Many have advocated overturning a 2008 law signed by former President George W. Bush intended to protect unaccompanied children from human and sex trafficking, arguing that the children should be immediately returned to their home countries. Time is running out for congressional action, as Congress will begin a month-long break in August.
FARC guerrillas killed by Colombian army and police: Colombian national police and military killed 12 presumed guerrillas from the Fuerzas Armadas Revolucionarias de Colombia (The Revolutionary Armed Forces of Colombia—FARC) on Sunday in the northwestern Colombian department of Antioquia. In a joint security operation, the police and military forces also seized weapons, computers, cellphones and USB memory sticks that could be useful for Colombian military intelligence. This comes after Saturdays’ capture of Manuel Cepeda Vargas—a member of FARC accused of more than 40 terrorist acts–in another joint operation between the police and army in the southwestern department of Cauca. Peace talks between the Colombian government and the FARC will resume in Havana on Tuesday.
World Cup riots in Argentina: An initially peaceful gathering of Argentine soccer fans near the Obelisk monument in Buenos Aires turned violent late on Sunday night as some hardcore fans rioted in response to the Argentine soccer team’s 0-1 loss to Germany in the 2014 World Cup final, making Germany the first European team to claim the World Cup trophy on American soil. As rioting and looting broke out along Avenida 9 de julio in Buenos Aires, police fired tear gas and rubber bullets and used water cannons on the crowd. At least 15 police officers were reported injured in the violence, and at least 50 people were detained. The Argentine national team is expected to return to Buenos Aires on Monday.
This week’s likely top stories: Argentine negotiates with holdout creditors; Russia’s Vladimir Putin will visit Cuba, Argentina and Brazil; Italy investigates dictatorship-era murders; an earthquake hits Mexico and Guatemala; and Honduran authorities search for eight missing miners.
Argentina begins debt negotiations: Argentina will begin negotiating a settlement today with its holdout creditors, who are owed some $1.5 billion, according to a U.S. federal court decision that was upheld by the U.S. Supreme Court in June. Argentine Minister of the Economy Axel Kicillof leads an Argentine delegation to New York today, and will meet with Daniel A. Pollack, a mediator designated by U.S. judge Thomas Griesa to help reach an agreement. Argentina has until the end of July to make its first interest payment, or else face default for the second time in 13 years.
Putin tours Latin America: Russian President Vladimir Putin will begin a six-day tour of Latin America on July 11 with a visit to Cuba to meet with Fidel and Raúl Castro, followed by stops in Argentina to meet with Cristina Fernández de Kirchner and Brazil to meet with Dilma Rousseff. On Friday, Russia’s parliament voted to write off 90 percent of Cuba’s $35 million debt, and instead aim to use the money for investment projects in Cuba. Putin, along with heads of state from India, China, South Africa and Brazil, will then meet for a summit of the BRICS countries starting on July 13, just after the final match of the 2014 FIFA World Cup in Rio de Janeiro. The same day, Brazilian President Dilma Rousseff is expected to pass responsibilities for the World Cup to Putin in an official handover ceremony, since Russia will be hosting the international tournament in 2018.
Italy investigates Plan Cóndor murders and disappearances: Italian judge Alessandro Arturi began the first stage of an investigation into the murder and disappearance of 23 Italian citizens during “Plan Cóndor,” an operation carried out by South American dictatorships in the 1970s and 1980s to repress and murder political opponents to the regimes. On Monday, Arturi accepted a list of the accused, which includes 33 former members of the military and security forces in Uruguay, Chile, Bolivia and Peru. Italian prosecutor Giancarlo Capaldo is reportedly conducting a similar investigation of the military governments of Argentina, Brazil and Paraguay. The preliminary hearings are expected to take place this fall, and Arturi will decide on October 6 if the evidence presented by human rights groups and families of the disappeared will allow the case to progress to a criminal trial in 2015.
Earthquake hits Mexico and Guatemala: At least 2 people in Guatemala have died in a 6.9-magnitude earthquake that struck southern Mexico and Guatemala on Monday morning. The quake set off landslides and caused widespread damage to homes and power lines. The quake’s epicenter was Puerto Madero, a Mexican city near the Guatemala border, but the two deaths were reported in San Marcos, Guatemala, where at least two residents were killed when the walls of their homes collapsed.
Search for trapped miners continues in Honduras: Eight miners remain trapped in an informal gold mine near El Corpus, a small town in the southern department of Cholutecas in Honduras. The mine is in an area where landslides and earthquakes are common, and El Corpus mayor Luis Andres Rueda said there were more than 50 informal mines in the area. The mine collapsed last Wednesday, and the authorities saved three miners two days after the collapse when the miners yelled for help. If the remaining miners are not found near the site where the other three miners were rescued, the search may be called off.
With the second round of the World Cup soccer tournament concluded the main storylines have been the success of teams from the Americas, the early exit of previous stalwarts England, Italy and Spain, the relatively high number of goals, and—at least in the United States—the sudden realization that soccer actually has a strong and passionate following. The dog that hasn’t barked? The pre-tournament meme about Brazil’s unpreparedness to host such a large event and the crime and street protests which were to have shut down various venues. Clearly, that’s not proven out. With two weeks to go, some commentators are already wondering aloud whether this will be the most successful World Cup of all time.
That may be a bit dramatic, but the signs are encouraging. Problems exist, of course, as they do in every major global event, and big questions about cost and legacy of the tournament will be asked by Brazilians themselves after the tournament concludes. Most observers, however, now seem to be content to enjoy Brazil’s famous hospitality and the joy of the beautiful game at the highest international level.
And what a competition it’s been. Goalies have stolen the show. The U.S.’ Tim Howard, Mexico’s Memo Ochoa, Brazil’s Júlio César, Costa Rica’s Keylor Navas, and others have become international celebrities as a result of their acrobatic, gravity-defying saves. Nonetheless, more goals have already been scored to this point in the tournament this year than were scored in the full 2010 tournament, and that has made the games suspenseful and fun to watch.
This week's likely top stories: Juan Carlos Varela takes office as Panama's new president; Argentina negotiates a settlement with holdout creditors; the ELN attacks in Arauca; Costa Rica and Colombia advance to the World Cup quarterfinals for the first time; Argentine Vice President Boudou faces charges.
Juan Carlos Varela inaugurated in Panama: Panamanian President-elect Juan Carlos Varela will be officially sworn into office on Tuesday with a number of regional leaders in attendance, including a U.S. delegation led by Secretary of State John Kerry. Varela, of the Partido Panameñista (Panameñista Party) was elected on May 4 over José Domingo Arias of the Cambio Democrático (Democratic Change) party, earning 39 percent of the vote over Arias’ 32 percent, though Varela’s party only won 11 seats in Panama’s 71-seat legislative assembly. Varela, Panama’s former vice president, has promised to fight corruption and improve government transparency while continuing to improve Panama’s infrastructure.
Argentina to negotiate as interest payment comes due: With a $539 million interest payment on bonds due today (Monday), Argentina has 30 days to make the payment to avoid its second default in 13 years. Earlier this month, the U.S. Supreme Court rejected Argentina’s appeal in a long-running battle with holdout creditors after it defaulted on its debt in 2001. The Supreme Court decision allowed a lower court ruling to stand, which requires Argentina to pay a group of holdout creditors some $1.3 billion before it can pay other bondholders. The country has one month to negotiate a settlement with the holdouts in U.S. District Court to avoid a default.
Attack on oil camp in Western Colombia leaves 13 injured: The Colombian government has accused the Ejército de Liberación Nacional (National Liberation Army–ELN) of attacking on a camp in the Caño Limón oilfield in the Colombian state of Arauca in western Colombia, injuring 13 people as they were preparing to attend Sunday Mass. While the ELN has traditionally carried out attacks on oil pipelines themselves, Colombian Minister of Mining and Energy Amylkar Acosta said this was the first time they had attacked a camp for workers, and accused the ELN of cowardice. The ELN has agreed to engage in formal peace talks, but have yet to agree to a formal truce; they have been accused of three other attacks on the same oil pipeline in the last ten days.
Costa Rica and Colombia make World Cup history: Costa Rica and Colombia both advanced to their teams’ first-ever World Cup quarterfinals this weekend, after Colombia defeated Uruguay 2-0 on Saturday and Costa Rica beat Greece in a penalty shootout on Sunday after tying 1-1 in regulation time. Colombia—led by 22-year-old James Rodríguez, who has scored at least one goal in each of his first four World Cup games—will face host country Brazil in the quarterfinals on July 4. Costa Rica will face the Netherlands on July 5 after the Dutch defeated Mexico on Sunday with a controversial penalty kick.
Argentine vice president charged with bribery: An Argentine judge charged Vice President Amado Boudou with bribery and corruption on Friday. If he is found guilty, Boudou could face between one and six years in prison. Boudou is accused of using his position as economy minister to interfere in bankruptcy proceedings against a printing company—charges that he denies. He is the first sitting Argentine vice president since 1983 to face such charges.
This week’s likely top stories: Colombian President Juan Manuel Santos wins re-election; the U.S. Supreme Court rejects Argentina’s appeal; U.S. Vice President Joe Biden visits Latin America; Bolivia hosts the G77+China Summit; Aecio Neves will represent the PSDB in Brazil’s elections.
Santos Re-elected President in Colombia: Colombian voters re-elected incumbent President Juan Manuel Santos on Sunday, awarding him nearly 51 percent of the vote. Óscar Iván Zuluaga, who led in the first round election on May 25, gained only 45 percent of the vote in Sunday’s runoff election and delivered a concession speech on Sunday. Santos’ campaign focused on continuing his government’s peace talks with the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) in Havana, and called his election a victory “of hope over fear.” Santos will be inaugurated on August 7 to serve another four-year term.
Argentine Appeal Rejected By U.S. Supreme Court: The U.S. Supreme Court dealt a major blow to the Argentine government on Monday, rejecting the country’s appeal in its case against holdout creditors Aurelius Capital Management and NML Capital Ltd. The court let a lower-court ruling stand without comment, upholding a decision that Argentina owes more than $1.3 billion in principal and interest. The Argentine government warned that the decision could have severe consequences and “trigger a renewed economic catastrophe.” Argentina defaulted on about $100 billion of its debt during its 2001 financial crisis.
Biden to visit Brazil, Colombia, the Dominican Republic and Guatemala: Obama administration officials announced on Sunday that Vice President Joe Biden will add a stop to his tour of Latin America this week: Guatemala. The vice president will attend today’s soccer match between the U.S. and Ghana in Brazil, and then visit Colombia and the Dominican Republic before meeting with Central American leaders in Guatemala on Friday. The vice president is expected to discuss the soaring number of unaccompanied Central American minors who have crossed into the United States without papers. This year, 48,000 unaccompanied young immigrants were apprehended by U.S. Border Patrol.
Bolivia Hosts G77+China Summit: Bolivia hosted the G77+China Summit this weekend in Santa Cruz, marking the 50th anniversary of a group of 77 developing countries that has since expanded to 133 countries. China, while not a member of the G77, joined the summit to signal its increasing trade ties with the region. Bolivian President Evo Morales called for a new world order where “the peoples of the world can grow in peace and live well” and an end to the UN Security Council, which Morales said has only reinforced global hierarchies and no longer promotes peace. UN Secretary General Ban Ki-moon emphasized the importance of the G77+ China for global development and added that countries must protect human rights to achieve sustainable development. The summit concluded with a call to end poverty by the year 2030.
Aecio Neves to Run Against Rousseff in October: The Partido da Social Democracia Brasileira (Brazilian Social Democracy Party—PSDB), nominated Senator Aecio Neves to run for president against incumbent President Dilma Rousseff in Brazil’s October 5 presidential elections. On Saturday, Neves, a former governor from the state of Minas Gerais, said that he would implement a more austere economic policy, reducing public spending to reign in the country’s inflation. However, Neves also said in a June 2 interview that his government would continue funding the popular Bolsa Familia cash transfer program. Current polls show that Rousseff holds an eight percentage point lead over Neves in the case of a runoff election, which would take place on October 26.
June 1: This AQ-Efecto Naím segment looks at sustainable cities in the hemisphere.