LATIN AMERICA OVERVIEW

LATIN AMERICA OVERVIEW MACRO-ECONOMIC RISK AND INTEREST RATE DATA Macro-economic data as of December 2 Standard & Poor s rating as of: December 21 Interest rate as of: December 2 Bolivar # 472 Of. 72 Miraflores Lima 18 - Peru Tel. (511) 446 8877 Fax. (511) 446 8585 www.cyrano-management.com

INDEX Latin America macro-economic figures Macro-economic comparison: GDP 2 3 Macro-economic comparison: GDP per capita 2 4 Latin American macro-economic data 2 5 Macro-economic data 1998-2 6 Gross Domestic Product 9 GDP per capita 1 Trade Balance 11 Trade Balance (% of GDP) 12 Balance of payments 13 Balance of payments (% of reserves) 14 Reserves 15 Reserves (% of GDP) 16 Inflation 17 Devaluation 18 Inflation vs. Devaluation 19 Key figures by country Argentina 2 Bolivia 21 Brazil 22 Chile 23 Colombia 24 Costa Rica 25 Dominican Republic 26 Ecuador 27 El Salvador 28 Guatemala 29 Honduras 3 Mexico 31 Nicaragua 32 Panama 32 Paraguay 34 Peru 35 Uruguay 36 Venezuela 37

MACRO-ECONOMIC COMPARISON GDP 2 () Latin America vs. OECD countries 1 75 5 25 Latin America France United Kingdom Germany Japan United States Big Latin American countries vs peer group Medium Latin American countries vs peer group 8 1 6 8 6 4 4 2 2 Mexico Brazil Russia Australia Korea India Spain Canada Peru Chile Colombia Nigeria Hungary New Zealand Philippines Malaysia Small Latin American countries vs peer group Very small Latin American countries vs peer group 4 15 35 3 12 25 9 2 15 6 1 5 3 Guatemala Dom. Rep. Uruguay Luxembourg Vietnam Morocco Romania Honduras Paraguay Bolivia Madagascar Iceland Cameroon Bulgaria Source: International Financial Status, International Monetary Fund, December 21 3

MACRO-ECONOMIC COMPARISON GDP PER CAPITA 2 ($) Large Latin American countries vs peer group Medium Latin American countries vs peer group 16 125 12 1 75 8 5 4 25 Mexico Uruguay Argentina Libya Saudi Arabia Greece Taiwan Brazil Panama Chile South Africa Malaysia Hungary Portugal Small Latin American countries vs peer group Very small Latin American countries vs peer group 4 2 3 16 12 2 8 1 4 Paraguay Colombia Peru Morocco Iran Egypt Turkey Honduras Ecuador Bolivia India Philippines Egypt Romania Source: International Financial Status, International Monetary Fund, December 21 4

LATIN AMERICAN MACRO-ECONOMIC DATA 2 Country GDP () GDP growth (%) GDP per capita ($) Balance of Payments (M $) Trade Balance (M $) Reserves (MM USD) Inflation Devaluation Mercosur 976 Argentina 285 -.5% 7,778-1,176 2,558 25.1-1% % Brazil 593 4.5% 3,362 7,98-696 32.5 7% 9% Chile 7 5.4% 4,728 232 1,438 14.7 4% 8% Paraguay 8 -.4% 1,343-342 -532.8 9% 6% Uruguay 2-1.3% 6,59 234-937 2.5 5% 8% Andean region 277 Bolivia 9 2.4% 1,83-4 -381.8 5% 7% Colombia 81 2.8% 1,92 862 2,543 8.9 9% 17% Ecuador 14 2.3% 1,48 n.r. n.a..9 96% 23% Peru 53 3.1% 1,954-13 -323 8.4 4% % Venezuela 121 3.2% 5,38 5,89 17,965 13.1 16% 8% Mexico 575 6.9% 5,693 7,15-8,3 35.5 1% -1% Mexico, Central America and the Carribean 86 Costa Rica 16 4.5% 4,257 n.r. n.r. 1.3 12% 7% Dom. Rep. 2 7.8% 2,321-48 -3,742.6 8% 2% El Salvador 13 3.% 2,12-49 -1,719 1.9 3% -5% Guatemala 19 3.3% 1,54 655-1,426 1.7 6% 5% Honduras 6 6.2% 852-338 -658 1.3 11% 4% Nicaragua 2 5.9% 474-454 -995.5 1% 6% Panama 1 4.5% 3,396-327 -1,291.7 1% % Source: International Financial Status, International Monetary Fund, December 21 5

GROSS DOMESTIC PRODUCT 2 () GROUPS BY SIZE: 1) GDP > 2, 2) 5 < GDP < 2, 3) 1 < GDP < 5, 4) GDP < 1 98 99 Brazil 787.5 529.7 593.7 Mexico 42.9 479.9 1) 574.5 GDP > 2 Argentina 298.9 283.3 285. Venezuela 195.8 13.3 12.5 Colombia 98.8 79.5 76.1 Chile 8 73 67.6 7 Peru 56.9 5.7 52.9 6 Uruguay 22.4 2.9 2 Dom. Rep. 4 16 17.4 19.8 Guatemala 19.4 18.3 18.6 Costa Rica 214.1 15.7 16.3 Ecuador 19.7 13.6 13.6 El Salvador 12.1 12.5 13.2 Brazil Panama 9.1 9.5 9.9 Mexico Argentina Bolivia 8. 8.1 8.3 Paraguay 8.5 7.7 1998 7.5 1999 2 Honduras 5.2 5.4 5.8 Nicaragua 2.1 2.2 2.4 15 125 1 75 5 25 2) 5 < GDP < 2 Venezuela Colombia Chile Peru 1998 1999 2 3) 1 < GDP < 5 3 25 2 12 1 8 4) GDP < 1 15 6 1 4 5 2 Uruguay Dom. Rep. Guatemala Costa Rica Ecuador El Salvador Panama Bolivia Paraguay Honduras Nicaragua 1998 1999 2 1998 1999 2 Source: International Financial Status, International Monetary Fund, October 21 9

GDP PER CAPITA 2 ($) GROUPS BY SIZE: 1) GDP per capita > 4, 2) 18 < GDP per capita < 4, 3) GDP per capita< 18 Country GPD per capita ($) 98 99 Argentina 8,365 7,827 7,778 Uruguay 6,844 1) GDP per capita 6,36 > 4 6,59 Mexico 4,237 4,718 5,693 Venezuela 1, 4,132 4,44 5,38 Chile 5,59 4,623 4,728 Costa Rica 3,986 4,365 4,257 8, Panama 3,254 3,336 3,396 Brazil 4,623 3,42 3,362 Dom. Rep. 6, 1,976 2,11 2,321 El Salvador $ 1,927 1,939 2,12 Peru 4, 2,173 1,93 1,954 Colombia 2,583 2,41 1,92 Guatemala 2, 1,696 1,557 1,54 Paraguay 1,63 1,414 1,343 Bolivia 1,156 1,11 1,83 Ecuador 1,581 1,68 1,48 Honduras 796 79 852 Nicaragua 432 1998 1999 2 449 474 Argentina Uruguay Mexico Venezuela Chile Costa Rica 2) 18 < GDP per capita < 4 5, 4, 3, $ 2, 1, Panama Brazil Dom. Rep. El Salvador Peru Colombia 1998 1999 2 3) GDP per capita < 18 2, 1,5 $ 1, 5 Guatemala Paraguay Bolivia Ecuador Honduras Nicaragua 1998 1999 2 Source: International Financial Status,, International Monetary Fund, October 21 1

TRADE BALANCE 2 ( M $) GROUPS BY SIZE: 1) TB >, 2) -1 < TB <, 3) TB < -1 98 99 Costa Rica -399 66 n.a. Ecuador -995 1,665 n.a. 1) Trade Balance > Venezuela 2,471 7,66 17,965 Argentina -3,99-794 2,558 Colombia -2,45 1,775 2,543 2, Chile -2,516 1,664 1,438 Peru -2,462-633 -323 16, Bolivia -655-488 -381 Paraguay 12, -393-36 -532 Honduras -323-74 -658 M $ Brazil 8, -6,63-1,261-696 Uruguay -772-897 -937 Nicaragua 4, -817-1,146-995 Panama -1,362-1,415-1,291 Guatemala -1,49-1,445-1,426 Venezuela Argentina Colombia El Salvador -1,36-1,345-1,719 Chile Dom. Rep. -2,617-2,94-3,742 Mexico -7,915-5,581-8,3 2) -1 < Trade Balance < Peru Bolivia Paraguay Honduras Brazil Uruguay Nicaragua -2-4 M $ -6-8 -1, -1,2 3) Trade Balance < -1 Panama Guatemala El Salvador Dom. Rep. Mexico -2, -4, M $ -6, -8, -1, Source: International Financial Status, International Monetary Fund, October 21 11

BALANCE OF PAYMENTS 2 (M $) GROUPS BY SIZE: 1) BP >, 2) BP < Balance of Payments (M $) Country 1) Balance of payments > 98 99 Costa Rica -54 151 n.a. Ecuador -47-326 n.a. Brazil -1632-16765 798 Mexico 3193 4278 715 Venezuela 7-2931 141 589 Colombia -1398-312 862 Guatemala 235-125 655 Uruguay 355-11 234 M $ 9 8 6 5 Chile -2135-758 232 4 Bolivia 11 27-4 3 Dom. Rep. 11 151-48 El Salvador 2 33 199-49 Peru -1362-866 -13 1 Panama -463-148 -327 Honduras -155-191 -338 Brazil Mexico Venezuela Colombia Guatemala Uruguay Chile Paraguay 17-31 -342 Nicaragua -41-46 -454 Argentina 49 213-1176 2) Balance of payments < Bolivia Dom. Rep. El Salvador Peru Panama Honduras Paraguay Nicaragua Argentina -2-4 -6 M $ -8-1 -12-14 Source: International Financial Status, International Moneterary Fund 13

RESERVES Mexico 32 32 36 Brazil 43 35 32 Argentina 25 26 25 Chile 16 1) Reserves 14 > 1 15 Venezuela 12 12 13 Colombia 5 9 8 9 Peru 1 9 8 Uruguay 4 2 2 2 El Salvador 2 2 2 3 Guatemala 1 1 2 Costa Rica 2 1 1 1 Honduras 1 1 1 Ecuador1 2 2 1 Bolivia 1 1 1 Paraguay 1 1 1 Mexico Brazil Argentina Chile Venezuela Panama 1 1 1 Dom. Rep. 1 1998 1999 1 2 1 Nicaragua 1 2) 1 < Reserves < 1 12 1 8 6 4 2 Colombia Peru Uruguay El Salvador Guatemala Costa Rica Honduras 1998 1999 2 3) Reserves < 1 2 1 Ecuador Bolivia Paraguay Panama Dom. Rep. Nicaragua 1998 1999 2 Source: International Financial Status, International Monetary Fund, October 21 Source: International Financial Status, International Monetary Fund, October 21 15

INFLATION vs DEVALUATION 2 1% 5% % -5% -1% 2% Inflation vs. Devaluation Inflacion Devaluacion Argentina -.9%.% Panama 1.4%.% El Salvador 2.5% -5.1% Chile 3.8% 8.% Peru 3.8%.5% Bolivia 4.6% 6.7% Argentina Panama Uruguay El Salvador Chile 4.8% Peru 7.7% Bolivia Guatemala 6.% 5.1% Brazil 7.% 9.3% Dom. Rep. 7.7% 2.4% Paraguay 9.% 5.9% Colombia 9.2% Inflation Devaluation 16.7% Mexico 9.5% -1.1% Nicaragua 9.7% 6.% Honduras 1.5% 4.4% Costa Rica Inflation vs. 11.5% Devaluation 6.7% Venezuela 16.2% 7.9% Ecuador 96.2% 23.5% 15% 1% 5% % Uruguay Guatemala Brazil Dom. Rep. Paraguay Colombia Inflation Devaluation Inflation vs Devaluation 1% 75% 5% 25% % Mexico Nicaragua Honduras Costa Rica Venezuela Ecuador -25% Inflation Devaluation Source: International Financial Status, International Monetary Fund, October 21 19

ARGENTINA S&P RATING LOCAL CURRENCY FOREING CURRENCY Long Term Outlook Short Term Long Term Outlook Short Term SD C SD C MACROECONOMIC DATA 1996 1997 1998 1999 2 Population (M) 35.2 35.7 36.1 36.6 37. Gross domestic product () 27.3 29.9 298.9 283.3 285. GDP (annual % growth) 5.5% 8.1% 3.8% -3.4% -.5% GDP per capita ($) 7,756 8,242 8,365 7,827 7,778 Balance of payments (M $) 3,258 3,331 4,9 2,13-1,176 Balance of payments (% of GDP) 1.2% 1.1% 1.4%.7% -.4% Balance of payments (% of reserves) 18.% 14.9% 16.5% 7.7% -4.7% Reserves () 18.1 22.3 24.8 26.3 25.1 Trade balance (M $) 1,76-2,123-3,99-794 2,558 Exports (M $) 24,43 26,431 26,433 23,39 26,49 Imports (M $) -22,283-28,554-29,532-24,13-23,851 Inflation (annual % change).2%.5%.9% -1.2% -.9% Official rate 1 1 1 1 1 Devaluation (annual % change) % % % % % INTEREST RATES 1996 1997 1998 1999 2 LOCAL CURRENCY Deposit rate 7.36 6.97 7.56 8.5 8.34 Lending rate 1.51 9.24 1.64 11.4 11.9 Spread 3.15 2.28 3.7 2.99 2.75 FOREIGN CURRENCY Deposit rate 6.1 5.87 6.4 6.42 7.3 Lending rate 9.1 7.84 8.9 9.7 9.67 Spread 2.91 1.97 1.7 2.65 2.64 Source: International Financial Status, International Monetary Fund, October 21 2