Latin American market round up: Credit squeeze for Latin America

Euromoney Limited, Registered in England & Wales, Company number 15236090

4 Bouverie Street, London, EC4Y 8AX

Copyright © Euromoney Limited 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Latin American market round up: Credit squeeze for Latin America

According to a statement released after the Latin American Shadow Financial Regulatory Committee (Claaf) meeting in December, Latin American governments could have very limited access to credit in 2009. The committee, which includes former finance ministers and central bank governors in the region, fear that Latin American borrowers could get crowded out of the credit markets as the US attempts to fund its fiscal deficit of more than $1 trillion. As large volumes of US treasury bonds are issued so the Latin governments, which face financing needs in excess of $250 billion next year, will have to develop "powerful and innovative" new mechanisms to direct money back to the region, warned the Claaf committee.

Gift this article