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Monday, February 12, 2007 Online Edition 06

Mexican billionaires in Honduras for business

Álvaro Morales Molina
Honduras This Week

The Bank Commission of Honduras, finally, after more than two years' wait, gave legal approval to the Mexican Banco Azteca to work in the country. Gustavo Alfaro, Director of the Commission, confirmed in a press conference that they had decided to allow the bank to operate in Honduras, and that following the necessary legal paperwork, it could begin operations by June this year.

Mexican businessman Roberto Salinas Pliego, President of Grupo Elektra and Grupo Salinas, visited the Presidential House on Friday to have a private meeting with Honduras' President Manuel Zelaya, and immediately after the meeting the official announcement was made: Banco Azteca is coming to the country, with an initial capital of USD $250 million.

Grupo Elektra is one of the biggest corporations in Latin America. It owns Banco Azteca, Television Azteca and Elektra, one of the biggest department stores in the area. They also have investments in strategic business in all of the Americas. Banco Azteca has been working as a bank since 2002 and they have been trying to get an approval to work in Honduras since 2005. However Ricardo Maduro's administration did not give permission, citing legal problems that the financial group had in the U.S stock market.

The banks primary objective is to be the financial solution of the popular market. Both poor families and the people from the informal economy who do not meet the requirements of the conventional banks can request small loans with less complicated paperwork.
Another characteristic is that they do not invest in their own infrastructure or offices to attend to their clients. Instead they utilize the same buildings as the Elektra stores.

Also in the meeting, another influential Mexican businessman, Carlos Slim Helu, made an announcement that following the governmental decision to open up the telecommunications market in Honduras, letting other wireless phone companies enter the local market, he will invest USD $200 million in his cellular company by the end of this year.

With a net worth of US$37.6 billion, Slim Helu is Latin America's richest man, and, according to Forbes magazine, the third richest man in the world. He is today the most influential man in Latin American telecommunications with his global Telcel (Claro) and Americatel.

BUSINESS WEEK IN REVIEW

Colon, Olancho and Choluteca pilot agricultural insurance

Pilot projects are being developed in Colon, Olancho and Choluteca to deliver agricultural insurance to producers of grain. Financed by international organizations yet operated by Honduran companies, the initiative is designed to reduce the financial risk of climatic phenomenon and will be extended to cover the production of vegetables. Insurance companies Equidad and Atlántida will both present pilot insurance policies, specializing in corn, in less than three months. El Heraldo

Lempira stable to the Dollar

Gabriela Núñez, president of the Honduran Central Bank, has announced that the value of the Lempira to the Dollar should remain stable during the coming year, at a rate of between 18.19 and 19.02 Lempiras to the Dollar. This stability is reflected in Honduran savings, 70% of which are now made in Lempiras rather than Dollars. El Heraldo

Rises predicted in the price of coffee

The Central Bank has predicted that the price of coffee should oscillate in the coming year between 116.60 and 130.0 dollars per quintal <sacks of forty six kilograms>, signifying rises that could mean an extra income of 3.8 million dollars per every dollar increase. Between October and December 2006 Honduran producers exported 226,800 quintales of coffee, worth a total 26 million dollars. El Heraldo

Honduran Telecommunications in need of more competition

Rasel Tomé, president of the National Commission of Telecommunications, has identified the necessity and capacity within the Honduran telecommunications market for four competing mobile phone companies. It is expected that the Honduran Telecommunications Company Hondutel will introduce a mobile telephone service, joining telecommunication giants Tigo and Claro which have 1.2 million and 70 000 users respectively. El Heraldo

Honduran economy closes in deficit

The Honduran Central Bank has announced that the Honduran economy closed in 2006 with a deficit of $3,488.4 million, despite an annual increase of 12.469% in export. Of the $1,929.5 million of export, silver, zinc and seafood were dominant. There was a total import of $5,417.8 million, an increase of 19.4%. El Heraldo

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