Juan Manuel Santos next President Elect of Colombia attracts record investments.
Next President Elect Juan Manuel Santos with Colombia´s President Alvaro Uribe
Colombia’s peso and dollar bonds rose for a fourth straight week on speculation former Defense Minister Juan Manuel Santos will win the presidential election this weekend, attracting record foreign direct investment.
The peso gained 0.8 percent this week to 1,909.60 per U.S. dollar at 3:23 p.m. New York time and is up 7 percent this year, the best performance among world currencies tracked by Bloomberg. The extra yield investors demand to own dollar bonds instead of U.S. Treasuries has narrowed to 2.15 percentage points today from 2.31 percentage points at the end of last week, according to JPMorgan’s EMBI Plus index.
Santos plans to boost infrastructure spending and tax revenue while achieving annual economic growth of as much as 6 percent in two years, according to Juan Carlos Echeverry, his economic adviser. Santos is likely to win the second round vote on June 20, according to a poll by Gallup Colombia published on June 10. Investors are betting Santos will continue the policies of President Alvaro Uribe, said Carola Sandy, an economist with Credit Suisse Group AG in New York.
“We’re getting really bullish on Colombia,” said Siobhan Morden, a Latin America debt strategist at RBS Securities Inc. in Stamford, Connecticut. You consider “what the prospects can be here and you don’t see that anywhere else in the region. It’s exciting.”
Colombia will attract about $10 billion in…READ MORE HERE.