Page 11 - ATD 8OCT,2015
P. 11
WORLD NEWS A11
Thursday 8 October 2015
IMF sees recession Honduran businessman accused of money laundering
for Latin America on
commodities shock F. CUEVAS In this 2012 photo, Yani Rosenthal walks with his wife Claudia in ficial, who requested ano-
C. SHERMAN nymity to speak about the
JOSHUA GOODMAN Associated Press Tegucigalpa, Honduras. The U.S. Justice Department released a case, said that it was the
Associated Press TEGUCIGALPA, Honduras first time the Kingpin Act
LIMA, Peru (AP) — Latin (AP) — One of Honduras’s statement Wednesday, Oct. 7, 2015, saying that Jaime Rolando had been used against a
America’s economy is ex- most powerful business- foreign bank.
pected to enter recession men has been indicted in Rosenthal Oliva, his son Yani Benjamin Rosenthal and nephew The official called it “one of
this year for the first time the United States for alleg- the most significant mon-
since the end of the global edly laundering money for Yankel Rosenthal, as well as seven businesses were labeled ey laundering networks in
financial crisis as China’s drug traffickers. Central America.”
slowdown drives lower The U.S. Justice Depart- “specially designated narcotics traffickers” under the Kingpin “The Rosenthals have in the
demand for the region’s ment released a statement past used their immense
commodities, threatening Wednesday saying that Act. (AP Photo/Fernando Antonio) and ill-gotten wealth to
to undo recent progress in Jaime Rolando Rosenthal obtain political influence
reducing poverty, the In- Oliva, his son Yani Benjamin and their criminal organi- businesses ranging from and to provide services
ternational Monetary Fund Rosenthal and nephew zations.” a bank to a meatpacker to a number of Central
said Wednesday. Yankel Rosenthal, as well Jaime Rosenthal heads and is a four-time presiden- American drug traffickers
The Washington-based as seven businesses were Grupo Continental, a tial candidate. A senior U.S and their criminal organi-
lender, in a report released labeled “specially desig- sprawling collection of Treasury Department of- zations,” the official said.
its annual meetings being nated narcotics traffickers” All of their assets in the U.S.
held in Peru, said that the under the Kingpin Act. have been blocked so that
rate of economic growth Yankel Rosenthal was ar- no U.S. citizens may do
in Latin America and the rested Tuesday at Miami’s business with them or their
Caribbean was set to de- airport. A call to his attor- companies anywhere in
cline for the fifth consecu- ney in Miami was not im- the world.
tive year before rebound- mediately returned. Aggressive interdiction
ing in 2016. The statement said they efforts in the Caribbean
Pulled down by a deep “provide money launder- pushed cocaine trafficking
recession in Brazil and Ven- ing and other services that into Central America, over-
ezuela, two of South Amer- support the international whelming small countries
ica’s largest economies, narcotics trafficking ac- with histories of political in-
and by a smaller contrac- tivities of multiple Central stability and without the re-
tion in oil-dependent Ecua- American drug traffickers sources to combat it.q
dor, the economies of Latin
America and the Caribbe- IMF:
an are expected to shrink
by 0.3 percent this year. Up to $3T in over-borrowing in emerging markets
While a stronger U.S.
economy and lower com- FRANK BAJAK Financial Stability report at The worst-case scenario, means getting rid of some
modity prices should help Associated Press its annual meeting. said Vinals, is “a vicious cy- 900 billion euros worth
manufacturers in Mexico, LIMA, Peru (AP) — The He told reporters that an cle of fire sales and volatil- of bad loans that Vinals
Central America and the biggest risks to the glob- unprecedented lending ity.” called a continuing drag
oil-importing countries of al economy are now in spree has come to an end Vinals said over-borrowing on the region’s economy.
the Caribbean, the big- emerging markets, where with the plunge in prices in China, where an August Once removed from bal-
gest economies in South private companies have for oil, minerals and other devaluation sent global ance sheets, the report es-
America, about half of racked up considerable commodities that econo- markets reeling, amounts timates, two-thirds of that
whose exports are natu- debt amid a fifth straight mists attribute to China’s to nearly 25 percent of the amount would be freed up
ral resources, are likely to year of slowing growth, slowdown. Asian power’s economic for new lending.
suffer a protracted slump, the International Monetary The risk is that shocks from output and will need to be Vinals, director of the IMF’s
the IMF said. Venezuela’s Fund said Wednesday. bankruptcies in the devel- managed gingerly. Monetary and Capital
economy is expected to “We estimate that there oping world’s private sec- Seven years after the Markets Department, said
buckle by a whopping 10 is up to $3 trillion in over- tor, particularly in heavily global recession, he said the fund does not yet con-
percent even as it copes borrowing in emerging commodities-dependent advanced economies still sider it time for the U.S. Fed-
with widespread shortages markets,” Jose Vinals, a Latin American econo- need to address remaining eral Reserve to raise inter-
and the world’s highest top IMF official, said in pre- mies, could be amplified in legacies of the crisis. est rates, which have been
inflation, around 200 per- senting the body’s Global global financial markets. For European banks, that near zero since the crisis.q
cent, the IMF said.q
