The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Absence of crisis is the limit of progress

Latin American bond markets have maintained unexpected buoyancy so far this year. But the restructuring of Argentina's debt still looms as a prerequisite of the investment flows it needs, and Brazil is yet to institute the reforms that will enable its private sector to generate growth. Trade agreements would help. Felix Salmon reports.

AS BANKERS, FINANCE ministers and thousands of other interested parties converge on Lima for the annual meeting of the Inter-American Development Bank (IDB) at the end of this month, regulars could be forgiven for wondering where the crisis is.

Argentina will be a prime topic of conversation, of course; the Dominican Republic and Haiti are in crisis; and the president of the host country, Peru, is still struggling to keep his approval rating in double digits. Nevertheless, the broader picture is pretty healthy.

The economy of the region as a whole is expected to grow by more than 4% over the year, and not a single major country seems to be anywhere near recession. The capital markets remain open to both sovereign and corporate borrowers, and there's even a hint of hope that there might be some equity issuance soon.

The strongest indication that everybody is pretty comfortable about 2004 is that they are already worrying about 2005. Will the US Federal Reserve start a tightening cycle after the US presidential election? Will Brazil's cyclical rebound fail to transform itself into solid, sustainable growth? Will the flood tide of liquidity that washed into the region's bond markets in 2003 ebb back north two years later, drawn inexorably by the tidal pull of the US current-account deficit?

So far, though, 2004 is going extremely well.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree