Peru: Morning News Headlines – Monday July, 16


FTA negotiations between Peru – Canada begin today

(LIP-ir) — Peru’s Minister of Tourism and Foreign Affairs Mercedes Aráoz, announced that the first round of negotiations between Peru – Canada for a Free Trade Agreement (FTA) will begin today. She pointed out that this will be especially beneficial in the farming and textile sectors. Currently Peru is negotiating Free Trade Agreements with Canada, the United States and with the European Free Trade Association (EFTA).

– related articles –
Exportation to EFTA countries nearly $1bn in 2007 (by LIP, July 13, 2007)
Democrats ready to Vote on FTA in September (by LIP, July 11, 2007)

SUTEP decides to continue strike

In a meeting held on Friday, Peru’s teachers union (SUTEP) decided to continue the strike they began July 5. Union leaders Nílver López and Olmedo Auris stated this was the decision taken by all SUTEP branches which had gathered in Lima for an analysis of their strike. López considered the government’s condition to stop the strike in order for negotiations to proceed, "blackmail." SUTEP’s secretary general Luis Muñoz argued that the government has negotiated with other unions during times of strike.

– related articles –
Protestors Attempt to Take Over Train Station – Machu Picchu, Peru (by LIP, Jul 12, 2007)

Peru’s Education Minister refuses negotiation with Teacher’s Union

Education Minister José Antonio Chang stated he will not negotiate with Peru’s teacher’s union (SUTEP) unit they end the strike they began July 5. He lamented the fact that teachers have decided to strike instead of fulfilling their duty to the children they teach. "First they [the teachers]need to return to class then we can talk," stated Peru’s Education Minister. He also pointed out that SUTEP decided to stop negotiations over the new teacher’s law, not the Ministry of Education.

– related articles –
Peru’s Ministry of Education Will Not Give In to Blackmail (by LIP, Jul 13, 2007)

Peru’s Maple Energy Brings Sterling IPO

Maple Energy, the Peruvian power firm, priced Friday a $55m equivalent IPO on London’s AIM, says Dealogic. Canaccord Adams and Mirabud were the leads, with Banco de Credito del Peru as co-manager. It sold 32.6m shares at 84p each. Maple is a diversified energy company with oil and gas assets. (Latin Finance)

Peru Readies $1bn+ In 30-Year Local Bonds

Peru is set to offer at least $1bn equivalent in new PEN-denominated bonds this Thursday in a deal that establishes a series of milestones for the sovereign. The 2037 is the longest dated local currency deal from Peru and the sovereign’s first to get investment grade. On Friday, Fitch assigned a BBB minus rating to the 144A/Reg S notes. S&P, which last month updated its methodology to include split ratings, may also follow suit with a high-grade rating for the local currency bond. Proceeds are earmarked for paying down some $1.8bn in Paris Club debt. “With this bond, we’re establishing a 30-year benchmark, raising debt in local currency, which reduces our FX-exposure, and reducing our public foreign currency debt,” Marco Nieto, spokesman at the finance ministry tells LatinFinance. Citi is leading the offer. (Latin Finance)

T&T U-17s lose opening match in Peru

Trinidad and Tobago’s national Under-17 footballers suffered a 3-1 defeat to Sporting Cristal’s Under-20 team in Lima, Peru on Friday evening. The T&T squad, led by head coach Anton Corneal, arrived in Peru on Wednesday night for two matches, the second being today against Universidad’s Under-20 outfit. Speedy striker Daniel Joseph was T&T’s lone scorer on Friday, pulling a goal back in the second half after the home team went 2-0 up. Corneal used seven substitutes in the match and said his players should have made better use of their chances on goal, particularly in the second half. Winger Micah Lewis was a threat to Sporting Cristal with his movements but T&T were guilty of not getting enough numbers into the penalty box whenever they made inroads along the flanks. (Trinidad & Tobago Express)