November 4, 2013

Abel Halpern November 4, 2013

Brazil's Embraer investigated for bribery
Probe involves commercial and defence aircraft deals worth some $992 million

U.S. and Brazilian authorities are investigating whether Embraer bribed officials from Argentina and Dominican Republic to secure deals for commercial and defence aircraft. The probe involves the sale of 20 passenger jets worth some $900 million to Argentina's state airline, and eight Super Tucano light attack planes for Dominican Republic's armed forces worth about $92 million, The Chicago Tribune reports.

China's Gezhouba to build dams worth $4.7 billion in Argentina
The two hydroelectric projects will have a combined capacity of 1,740 Megawatts

Chinese firm Gezhouba said it will build two hydroelectric dams in Argentina's Patagonia region worth $4.7 billion. The dams will be built on the Santa Cruz river and are expected to have a combined capacity of 1,740 Megawatts. Work on the dams will take some 66 months, the company said Reuters reports.

Brazil's BNDES to cut loans by 20 percent
Decision comes after posting largest deficit in four years

Brazil's development bank, BNDES, will cut down its lending next year by 20 percent, aiming to bolster its finances after posting its biggest budget deficit in almost four years. The bank will give out loans worth $66 billion next year, down from an estimated $87 billion for this year, according to Finance Minister Guido Mantega (left), Bloomberg reports.

Pemex business plan leaves out $10 billion refinery project
Company cited insufficient funds as reason for dropping the plan

Mexico's state oil company Pemex left out a refinery worth $10 billion for the central town of Tula from its 2014-2018 business plan. The firm had announced the project in 2008, but said it had to remove if from the new plan due to insufficient funds. The company said it had already invested $370 million to date in the project, Fox News Latino reports.

Ecuador's economy grows 3.5 percent in second quarter
Growth driven by oil, communications and construction sectors

Ecuador's economy grew 3.5 percent in this year's second quarter, compared to the same period a year before. Growth was boosted by the construction, communication and oil sectors, the central bank said. Ecuador grew 5 percent last year, but this year is expected to slow down as prices for commodities slump and the country pauses its largest refinery plan for an overhaul, Business Recorder reports.

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