Brazil and the high cost of risk
In previous columns, I have argued that the high cost of capital in Latin America is primarily due to political risk and weak institutions. Brazil, the region’s largest economy, is one of the clearest examples.
Latin America can lower its cost of capital, but only through reforms
After analyzing the cost of capital across Latin America throughout this series, one conclusion stands out: the region’s high financing costs are not a fixed condition. They stem from policy decisions and persistent structural weaknesses—factors that can be improved over time.
Latin America can lower its cost of capital by 2030
Latin America's future growth will depend not only on politics or commodity prices, but also on a less visible yet equally decisive factor: the cost of capital.
Infrastructure and the Cost of Capital: Lessons from Panama and Paraguay
Infrastructure is the backbone of any economy that aspires to grow sustainably. Roads, ports, dams, and canals require long-term capital. They require a large amount of capital and, above all, capital at a reasonable cost.
The cost of capital in the Uruguayan banking sector
Cada préstamo que concede un banco, ya sea a un agricultor, a una pequeña empresa o a una familia que compra una vivienda, parte de una pregunta fundamental: ¿cuánto le cuesta al banco obtener fondos? Ese costo influye en la tasa de interés del préstamo, en la disposición del banco a concederlo y en la […]
Startups and Technology in Latin America
El ecosistema tecnológico de América Latina avanza a gran velocidad. Las startups persiguen grandes mercados, se adaptan rápidamente e introducen nuevos modelos de negocio en la vida cotidiana. Sin embargo, el principal obstáculo no siempre es el diseño del producto o la falta de talento. En mi trabajo de evaluación de valoraciones, riesgos y estructuras […]
The next Central American integration project: cheaper capital
Los líderes centroamericanos hablan constantemente de integración: reforma comercial y aduanera, además de logística e infraestructura. Pero el próximo avance concreto de la región podría provenir de algo más discreto: la reducción del costo del capital mediante la armonización de las normas y procedimientos que determinan los costos de endeudamiento público y la forma en […]
The race for net-zero financing: Brazil and Mexico attract cheaper capital
While Western institutional investors and Chinese state-backed lenders compete for influence over Latin America’s energy infrastructure, one factor is quietly determining who will build the region’s clean energy future: the cost of capital.
Political Risk and the Cost of Capital: Venezuela, Ecuador, and Uruguay
In previous installments of this series, we examined how inflation acts as a hidden tax that makes money more expensive, and we broke down the components of equity, debt, and the weighted average cost of capital (WACC).
The Hidden Tax of Inflation on Capital: Lessons from Argentina and Bolivia
In previous installments of this series on financing international projects in Latin America, we examined how sovereign risk and exchange rate volatility influence the cost of capital for long-term investments. This article focuses on inflation, an equally critical factor that operates quietly but relentlessly.
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