Editor's letter
Dear Reader,
If there is one element universally felt across Latin America, and the world, it is that the destructive force of the SARS-CoV-2 virus has exposed the fissures and wounds in societies’ connective tissues. The COVID-19 pandemic, now reaching close to a full-year of exposure, has killed a million and sickened millions more. In late June, the death toll was at 500,000. That is staggering increase and we’re still not in the clear.
And yet, as science struggles to gain a solid grip on controlling the virus, we are witness to a patchwork of policies and cash to help people figure out a way of just getting on with life. In essence, as we see through Ivan Canu’s cover illustration, the financial aid and debt restructurings trying to keep the pieces from completely falling apart are fixes that may not be pretty and cost a lot of money, but there has to be a start somewhere.
In our small corner of the world, we saw deals close, new ideas percolate toward action, and efforts to heal old wounds before COVID-19 keeps them festering.
Charles Newbery tackles the restructuring of the government debts in Argentina and Ecuador. Under more normal circumstances, concluding the deals may have taken even longer except that COVID-19, with its weighty presence, might have softened positions on all sides. As we learn, however, when it comes to their debt, neither of these nations has a clean bill of health. Tom Azzopardi takes a hard look at the implications for Chile’s decision to allow citizens to tap their retirement incomes in order to survive the economic stall. In Brazil, Joe Rowley gives us a view inside one of Brazil’s most aggressive financial companies, XP Investimentos, and how they are navigating through the crisis. Jo Bruni looks at the long-term implications of the debt countries are accumulating in these hard times. Mat Youkee chronicles how harder times might be in store for Panama, and its canal, as global trade shifts not only because of COVID-19 but because of the geopolitical tensions between the United States and China. And while all of these issues might leave a bad odor, it might be that Brazil’s sewage and garbage has the smell of money for those willing to grab at a persistent and long-standing problem, Rodrigo Amaral writes.
It may seem grim, but there are reasons to be optimistic. We celebrate the winners of the 2020 LatinFinance Project & Infrastructure Finance awards in this issue. Some deals that were years in the making were put in danger of failure because of the pandemic. Yet, many extraordinary transactions were closed, while others are being lauded for their unique structures and importance to society. Congratulations to our PIF Award winners.
And finally, thank you to all our subscribers, old and new, who continue to support the independent journalism at LatinFinance.
It’s always good to end on a positive note.
Be well and stay well,
Daniel BasesManaging Editor