IADB sees Latam growth falling to 1-1.5 pct in '99
Reuters, Thursday, November 12, 1998 at 14:15
WASHINGTON, Nov 12 (Reuters) - Inter-American Development
Bank President Enrique Iglesias said on Thursday he expected
growth across Latin America to slow in 1999 to 1-1.5 percent
from 2.5 percent this year because of the global crisis.
Iglesias also told a news conference that the bank's board
of governors was expected later on Thursday to approve $10
billion in new emergency financing to help Latin America get
through the crisis. That package will include $3.4 billion for
Brazil. The IADB in September approved a $1.1 billion loan for
Brazil to help in the development of small- and medium-sized
enterprises.
The $3.4 billion IADB loan, part of a much larger
international rescue package, will charge Brazil about four
percentage points over market rates and run for five years.
Iglesias said two other Latin American states had asked for
emergency loans from the IADB. He said the bank's board would
consider a $2.5 billion loan for Argentina and a $1.25 billion
credit for Colombia during its Thursday-Friday session.
Iglesias said there were clear signs that Latin America was
overcoming the financial crisis, which started in Asia and has
spread to emerging markets around the globe.
"The external situation has calmed down a lot," Iglesias
said. He said an recent agreement between Group of Seven
industrial nations to create a new precautionary credit line at
the IMF had helped to restore calm to markets.
Iglesias said Brazil's international rescue package,
expected to be announced as early as Friday, would also help
shore up investor confidence. He called Brazil's economic
program "serious and credible."
Iglesias noted that Latin American shares were up about 50
percent overall in the last two months in a sign the region was
recovering.
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Copyright 1998, Reuters News Service |
