2010-02-09 16:46:54 - New Business research report from Business Monitor International is now available from Fast Market Research

Lessons learnt from past mistakes have put Latin America in a far stronger position to deal with the current global crisis than previously. The fact that no Latin American banking sector has faced a systemic failure in 2008-2009 is testament to that progress. Regional authorities have implemented a number of measures to reduce risk in recent years, not least by reducing their reliance on external financing, strengthening capital defences and boosting regulatory robustness. Latin America's commercial bank loan portfolio is adequately covered by a stable and growing domestic depositor base. The region's loan-todeposit ratio falls within the 1.10 mark, which suggests that collective lending is primarily financed by local deposits. However, we anticipate a significant deterioration in the quality of

commercial bank loan books, with non-performing loan ratios expected to head higher. CB Richard Ellis reported in its Americas MarketView for Q109 that, for the most part, Latin America is still experiencing low vacancy rates and has benefited from stable local demand for real estate. CBRE expects vacancy rates to creep up slowly, but for there to be no 'implosion'. Office demand remains weak, while industrial and retail availability rates have increased marginally. Retailers are adjusting to weaker consumption by delaying new openings and strategic downsizing. In Peru there appear to be a number of significant projects under way in 2009 and beyond. The Central Reserve Bank of Peru's Inflation Report of March 2009 noted: 'Dubai Ports World Callao will invest US$250mn in the construction of the South Pier this year, as a result of which it will have the capacity to mobilise 450,000 20ft containers by July 2010. Red de Energía del Perú will continue with the construction of the Machu Picchu-Cotaruse and Chilca-Zapallal transmission lines, with an investment of US$200mn in 2009. In the commerce sector, Malls Perú will build two commercial centres - one in Lima and another one in Piura - with a total investment of US$120mn. These projects should be completed by end 2009.' The report nominates Peru's electricity supply as one of the risks of development, saying that supply is close to its capacity limit, and that adverse climatic events could have significant impact. Bearing in mind the factors that contribute to Peru's Real Estate/Construction Business Environment Rating (RECBER), we suggest that the following are the key issues to monitor for the real estate sector: Growing international interest in the Peruvian real estate market as the political environment stabilises. Continued strong growth in construction activity underpinned by a healthy level of public expenditure. A strong outlook for the housing sector as employment and inflation levels remain under control and consumer confidence grows within a relatively strong economy.

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About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

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