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T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, June 4, 2014, Vol. 15, No. 109
Headlines
A R G E N T I N A
EMPRESA DISTRIBUIDORA: S&P Affirms 'CCC-' Rating; Outlook Negative
B A R B A D O S
BARBADOS: Moody's Downgrades Government Bond Rating to B3
C A Y M A N I S L A N D S
ACI-KOREA: Shareholders' Final Meeting Set for June 16
CHEYNE REAL: Shareholders' Final Meeting Set for June 19
CONSCIOUS FUND: Shareholders' Final Meeting Set for June 16
EAGLE RIVER: Shareholders' Final Meeting Set for July 4
EAGLE RIVER MASTER: Shareholders' Final Meeting Set for July 4
FOURESS LIMITED: Members Receive Wind-Up Report
GRANITE FINANCE: Shareholders' Final Meeting Set for June 23
IBERLOAN 2000-1: Shareholders' Final Meeting Set for June 23
SALIDA ACCELERATOR: Shareholder to Hear Wind-Up Report on June 12
TRENDHEDGE 2X FUND: Shareholders' Final Meeting Set for June 23
D O M I N I C A N R E P U B L I C
XSTRATA PLC: Operation Calls Opponents' Claims 'Baseless Lies'
E L S A L V A D O R
EL SALVADOR: To Get $40MM IDB Loan to Improve Coastal Towns
T R I N I D A D & T O B A G O
CL FINC'L: Bank Seeks to Assure Policyholders Ahead of CLICO Sale
X X X X X X X X X
LATAM: IDB Warns of Fin'l. Burden From Demand for Health Care
- - - - -
=================
A R G E N T I N A
=================
EMPRESA DISTRIBUIDORA: S&P Affirms 'CCC-' Rating; Outlook Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC-' global
scale ratings on Empresa Distribuidora Y Comercializadora Norte
S.A. (EDENOR). The outlook remains negative.
S&P's ratings on EDENOR reflect its expectation that the company's
very poor financial performance will continue in 2014, which could
hinder its ability to continue complying with its financial
obligations in the second half of 2014, in particular its October
2014 interest payment for about $9.4 million
The ratings also reflect Argentina's high regulatory risk, the
company's exposure to foreign exchange risk (because it generates
cash in Argentine pesos, while its debt is denominated in
dollars), its "weak" liquidity, and the somewhat high capital
expenditures (capex) necessary to meet increased demand with no
automatic tariff increases. These weaknesses are partly offset by
its status as Argentina's largest electricity distribution company
and its exclusive concession to distribute electricity in the
northern and northwestern regions of greater Buenos Aires, and its
relatively favorable debt maturity profile (it doesn't have
significant maturities until its series nine bond amortizes in
2022).
===============
B A R B A D O S
===============
BARBADOS: Moody's Downgrades Government Bond Rating to B3
---------------------------------------------------------
Moody's Investors Service has downgraded Barbados' government bond
rating to B3 from Ba3. The outlook remains negative. The three-
notch downgrade reflects the following drivers:
Reinforcement of negative fiscal trends given (i) the increasing
size of the fiscal deficit, which exceeded 11% of GDP in FY
2013/14, and (ii) our expectation of continued challenges to
fiscal consolidation;
Increasing government debt ratios projected at above 100% of GDP
by FY 2014/15, coupled with elevated short-term debt issuance and
gross financing needs in excess of 30% of GDP in 2014 and 2015;
Moody's expectation of a decline in international reserves this
year, due to large current account deficits and weaker private
sector inflows;
Central bank financing of the fiscal deficit that will increase
pressure on the country's currency peg to the US dollar.
Ratings Rationale
First Driver -- Widening Government Deficit And Fiscal
Inflexibility
The deficit in fiscal year (FY) 2013/14 exceeded 11% of GDP. This
deficit was driven by lower-than-expected revenues, linked to last
year's slight economic contraction. Despite the authorities'
recent efforts, expenditures remain high and rigid, particularly
the public sector wage bill and transfers to loss-making public
enterprises, and interest payments have increased significantly.
The government announced several fiscal adjustment measures,
including widespread public sector layoffs, but we think the
authorities will be challenged to meet a deficit target of 6-7% of
GDP in the running FY, given Moody's projection of a GDP
contraction of around 1% this year.
Second Driver -- Large Debt Stock, Elevated Short-Term Debt
Reliance, Gross Financing Needs In Excess Of 30% Of Gdp
The government's debt burden has climbed sharply and debt
affordability has deteriorated significantly. The debt-to-GDP
ratio had risen to 97% as of March 2014 from 85% at the end of
2012, and interest payments now consume nearly 30% of the
government's revenues.
These ratios are already among the highest in the B rating
category, and we expect that government debt metrics will continue
to worsen.
Concomitantly, there has been a marked deterioration in the
government's debt profile given a significant increase in domestic
short-term borrowings over the past several years. During 2013,
two-thirds of the government's debt issuance was short-term,
reflecting the challenges the government faces in terms of placing
long-term debt. Because of this, the government's gross financing
needs will be in excess of 30% of GDP in 2014 and 2015, when
short-term debt is included.
Third Driver -- Expected Continuation Of Decline In International
Reserves In December 2013, international reserves increased due to
a US$ 150 million bank loan received by the government. Reserves
have remained relatively stable throughout the first quarter of
2014, in part because the government received an additional US$ 75
million bank loan in March. Nevertheless, at US $550 million
reserves are roughly one-quarter lower now than they were at the
end of 2012. As Moody's expects a current account deficit of 8% of
GDP in 2014 and private sector inflows to continue the downward
trend they have exhibited since 2011, we anticipate international
reserves will likely decline again.
Fourth Driver -- Increased Pressure On Currency Peg
Part of the increase in the government's short-term debt has been
financed by the country's central bank, a practice that became
more prevalent last year. While supportive of government borrowing
costs, such financing of the fiscal deficit pressures the
country's currency peg to the US dollar, long considered a
critical element of Barbados' economic policy framework.
Rationale For Continued Negative Outlook
The continued negative outlook on Barbados' rating incorporates
our expectation that (i) the government will continue to find it
difficult to meet its fiscal deficit targets owing to both weak
revenues and expenditure rigidities, (ii) high levels of domestic
short-term borrowing will continue to undermine the government
debt profile and lead to increased refinancing risks, and (iii)
continued central bank financing of the fiscal deficit will
compromise authorities' ability to preserve the currency peg.
What Could Move The Rating Up/Down
Barbados' rating would experience further downward pressure if it
becomes clear that the government faces a trade-off between debt
servicing and maintaining the currency peg, given past evidence of
the central bank's financing of the fiscal deficit.
While an upgrade is unlikely given the negative outlook, we could
stabilize the outlook if the government's fiscal consolidation
plan leads to a stabilization of debt ratios, the economic outlook
improves on a sustained basis with GDP reporting positive growth,
the government materially decreases its reliance on short-term
debt and central bank financing, and international reserves
steadily increase.
Country Ceilings
Moody's also adjusted Barbados' local-currency bond and deposit
ceilings to Ba3, its long-term foreign-currency bond ceiling to
Ba3, and its long-term foreign-currency deposit ceiling to Caa1.
The short-term foreign-currency bond and deposit ceilings remain
unchanged at Not-Prime.
GDP per capita (PPP basis, US$): 25,181 (2013 Actual) (also known
as Per Capita Income)
Real GDP growth (% change): -0.1% (2013 Actual) (also known as GDP
Growth)
Inflation Rate (CPI, % change Dec/Dec): 2.2% (2013 Actual)
Gen. Gov. Financial Balance/GDP: -11.3% (2013 Actual) (also known
as Fiscal Balance)
Current Account Balance/GDP: -10.5% (2013 Actual) (also known as
External Balance)
External debt/GDP: 55% (2013 Actual)
Level of economic development: Moderate level of economic
resilience Default history: No default events (on bonds or loans)
have been recorded since 1983.
On May 27, 2014, a rating committee was called to discuss the
rating of Barbados, Government of. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have materially decreased. The issuer's
fiscal or financial strength, including its debt profile, has not
materially changed. The issuer has become increasingly susceptible
to event risks. An analysis of this issuer, relative to its peers,
indicates that a repositioning of its rating would be appropriate.
Other views raised included: The issuer's institutional strength/
framework, have not materially changed. The issuer's governance
and/or management, have not materially changed. The systemic risk
in which the issuer operates has not materially changed.
Methodology
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2013.
==========================
C A Y M A N I S L A N D S
==========================
ACI-KOREA: Shareholders' Final Meeting Set for June 16
------------------------------------------------------
The shareholders of ACI-Korea Real Estate Investment Ltd will hold
their final meeting on June 16, 2014, at 10:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Fides Limited
c/o Clive Gibbons
Michelle McLaughlin
P.O. Box 10338 Grand Cayman KY1-1003
Cayman Islands
Telephone: (345) 949-7232
CHEYNE REAL: Shareholders' Final Meeting Set for June 19
--------------------------------------------------------
The shareholders of Cheyne Real Estate Opportunities Fund Inc.
will hold their final meeting on June 19, 2014, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
CONSCIOUS FUND: Shareholders' Final Meeting Set for June 16
-----------------------------------------------------------
The shareholders of The Conscious Fund Limited will hold their
final meeting on June 16, 2014, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Fides Limited
c/o Clive Gibbons
Michelle McLaughlin
P.O. Box 10338 Grand Cayman KY1-1003
Cayman Islands
Telephone: (345) 949-7232
EAGLE RIVER: Shareholders' Final Meeting Set for July 4
-------------------------------------------------------
The shareholders of Eagle River Credit and Event Fund Ltd. will
hold their final meeting on July 4, 2014, at 4:00 p.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
DMS Corporate Services Ltd.
c/o Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
EAGLE RIVER MASTER: Shareholders' Final Meeting Set for July 4
--------------------------------------------------------------
The shareholders of Eagle River Credit and Event Master Fund Ltd.
will hold their final meeting on July 4, 2014, at 4:00 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
DMS Corporate Services Ltd.
c/o Nicola Cowan
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
FOURESS LIMITED: Members Receive Wind-Up Report
-----------------------------------------------
The members of Fouress Limited received on May 24, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Eagle Holdings Ltd.
c/o Barclays Private Bank & Trust (Cayman) Limited
FirstCaribbean House, 4th Floor
P.O. Box 487 Grand Cayman KY1-1106
Cayman Islands
GRANITE FINANCE: Shareholders' Final Meeting Set for June 23
------------------------------------------------------------
The shareholders of Granite Finance SPC will hold their final
meeting on June 23, 2014, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
IBERLOAN 2000-1: Shareholders' Final Meeting Set for June 23
------------------------------------------------------------
The shareholders of Iberloan 2000-1 Limited will hold their final
meeting on June 23, 2014, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
SALIDA ACCELERATOR: Shareholder to Hear Wind-Up Report on June 12
-----------------------------------------------------------------
The shareholder of Salida Accelerator Fund (International) Limited
will hear on June 12, 2014, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Ogier
c/o Jonathan Turnham
Telephone: (345) 815 1839
Facsimile: (345) 949-9877
TRENDHEDGE 2X FUND: Shareholders' Final Meeting Set for June 23
---------------------------------------------------------------
The shareholders of Trendhedge 2x Fund Limited will hold their
final meeting on June 23, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
===================================
D O M I N I C A N R E P U B L I C
===================================
XSTRATA PLC: Operation Calls Opponents' Claims 'Baseless Lies'
--------------------------------------------------------------
Dominican Today reports that Glencore's Dominican Republic
operation slammed as 'baseless lies' by the growing number of
opponents of its planned mine at Loma Miranda, the claims that the
site is a major source of water and that the project would lead to
widespread contamination.
The statement came in a Monday morning press conference hosted by
Glencore Xstrata Nickel's Dominican company Falcondo, while
several prominent members of the Catholic Church have also voiced
opposition to the extraction of iron-nickel ore at Loma Miranda,
according to Dominican Today.
The report relates that Falcondo legal adviser Eduardo Jorge Prats
listed what he calls "falsehoods" and suppositions the numerous
claims by the mine's opponents, and warned of legal consequences
the country could face in the event the State declares Loma
Miranda Eminent Domain to create the national park. "That law
(for a national park) would violate Falcondo's right to property
and its mining concession and the legal consequences that could
entail," the report quoted Mr. Prats as saying.
The report notes that the prominent attorney also noted that the
mining company has been operating in the country for more than
four decades and contributing to Dominican Republic's economic
development. "If Falcondo has been doing things right in the
country for over 40 years, why would it do something wrong now,"
Mr. Prats said, the report relates.
Also speaking in the press conference held in the Hotel El
Embajador was former Mining Agency Director Octavio Lopez, who
agreed with Mr. Jorge's accusation that the opposition to mining
Loma Miranda is based on lies, the report notes. "The issue of
Loma Miranda has been cemented with many lies and it's high time
that the country is presented with the truth," the report quoted
Mr. Lopez as saying.
Among the allegations about Loma Mirada that Falcondo refutes
figure claims that the area is the source of major rivers, but
which the mining company says it's only the Jaguey, with a flow
they affirm is barely one cubic meter of water per second, the
report adds.
As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2014, Dominican Today said that Chief Executive Officer
of Xstrata PLC's Falcondo reiterated that the company's presence
in the country depends on a long term mining, with cheap
electricity available, to produce and compete in world markets.
David Soares said they pin their hopes of extracting nickel at the
controversial site of Loma Miranda, between La Vega and Bonao
(central), for which they expect to get the mining permit,
according to Dominican Today. But environmental and civil society
groups could keep them from carrying out the project, after the
Chamber of Deputies agreed with the protesters and passed a bill
which declares Loma Miranda a protected area, arguing that much of
the Cibao region's (north) water depends on it, the report
related.
Xstrata PLC is the operator of Falconbridge Dominicana, C. por A.
("Falcondo") with an 85.26% ownership. Falcondo is a ferronickel
surface mining operation located in the Dominican Republic with
operations dating since 1971.
Headquartered in Zug, Switzerland, Xstrata PLC is a major producer
of coal, copper, nickel, primary vanadium and zinc and the largest
producer of ferrochrome
=====================
E L S A L V A D O R
=====================
EL SALVADOR: To Get $40MM IDB Loan to Improve Coastal Towns
-----------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a $40
million loan aimed at improving the competitiveness of 30 towns
along the coast of El Salvador. The money will go toward
developing productive infrastructure, support micro-, small- and
medium-sized businesses and enhance environmental management of
natural resources.
The coast of El Salvador is among the country's least developed
areas because of the low competitiveness of the business sector
there and poor infrastructure. A total of 56 percent of coastal
households live in poverty, compared to the national average of 37
per cent. But the zone also features the country's main ports,
Acajutla and La Union, and the border crossings of La Hachadura
and El Amatillo. It boasts 51 per cent of the country's most
fertile land, as well as rich environmental diversity and maritime
resources.
"The program will mark the beginning of new opportunities and a
new way of life for the community it targets, helping to improve
its economic growth," said Galileo Solis, IDB Project Team Leader.
The project, to be run in coordination with the Economy Ministry
and the National Council of Micro-and Small-sized Businesses
(CONAMYPE) will help improve the supply of goods and services from
such companies via technical assistance, training, the use of
information and communications technologies and by encouraging the
creation of partnerships. Non-reimbursable co-financing will also
be provided to those micro-, small- and medium-size companies with
the greatest potential for growth in high-demand sectors such as
fishing, fish farming, tourism and agro-industry.
The program also calls for financing infrastructure works to
expand economic development. This includes the construction of
three dual-use marinas for fishing and tourism on the islands of
Zacatillo and Conchaguita, and in Punta Chiquirin. It also
includes money for investment in common use infrastructure such as
warehouses to improve the quality and safety of fishing and fish
farm products. This will make it easier for products from the area
to gain access to national and international supply chains, adding
value and reducing product loss.
The investments will be complemented with financing of road
projects such as the refurbishing of the Corsain-Las Playitas
highway; the widening of the road between the towns of San Marcos
Lempa and El Zamor n in Usulut n Department, and works to improve
public areas that will be part of the waterfront esplanade in La
Union. The works will help reduce travel times and transport
costs.
The loan will be over 25 years, with a grace period of 5.5 years
and an interest rate based on LIBOR. The agencies executing the
program are the Economy Ministry and the Ministry of Public Works,
Transport, Housing and Urban Development.
===============================
T R I N I D A D & T O B A G O
===============================
CL FINC'L: Bank Seeks to Assure Policyholders Ahead of CLICO Sale
-----------------------------------------------------------------
Caribbean360.com reports that the Central Bank of Trinidad and
Tobago is seeking to assure policyholders that the terms of
conditions of their policies "have not changed at all" and that
the plan for the resolution of the insurance giant "has always
included the transfer of the traditional insurance portfolio to a
third party insurance company.
The Central Bank confirmed it had put up for sale, the cash-
strapped insurance company, whose near total collapse four years
ago, led to the Trinidad and Tobago government pumping billions of
dollars to keep it afloat, according to Caribbean360.com.
"As part of the resolution strategy for CLICO, the Central Bank
proposes to transfer CLICO's traditional insurance portfolio for
value to an acquiring insurance company that is well capitalized,
has a proven track record and the capacity to honor all
obligations to policyholders," CLICO said in a statement obtained
by the news agency.
In newspaper advertisements, the Central Bank said that "CLICO
will continue to pay your monthly pension, honor your health and
life claims, renew all group and health and life contracts and
receive and process your premiums," the report notes.
It said that the plan for the resolution of CLICO "has always
included the transfer of the traditional insurance portfolio to a
third party insurance company and, as such, this group of policy
holders was not included in the payout arrangement by government,
but continued to be serviced by CLICO," notes the report.
Central bank Governor Jwala Rambarran said that as the first step
in the transfer of the traditional portfolio, "an independent
valuation is being performed in accordance with the Central bank
Act," the report relates.
"Following this exercise, the market will be invited to make
offers for CLICO's traditional business through an open and
transparent process. The preferred buyer must meet the regulatory
requirements of the Bank, including meeting capital and "fit and
proper" requirements," the report quoted Mr. Rambarran as saying.
The report notes that Mr. Rambarran said once a preferred buyer
has been identified, the Central Bank will follow the transfer
scheme process under the Insurance Act.
Mr. Rambarran said that the Central Bank "continues to undertake
the resolution of CLICO in a transparent manner and I am committed
to keeping policy holders informed on the progress," the report
adds.
The report notes that CLICO and its sister company, the British
American Insurance Company (BAICO) collapsed in 2009 and the
Trinidad and Tobago government signed a shareholders' agreement
with then CLICO chairman Lawrence Duprey following the signing of
a memorandum of understanding (MOU) between them on January 30,
2009. The MOU gave the government control of 49 per cent of
CLICO's shares.
The then Patrick Manning government injected seven billion
Trinidad and Tobago dollars (US$1.01 billion) into CLICO in 2009
to keep the collapsed insurance firm running and protect policy
holders, the report recalls.
Through the passage of legislation in the Parliament, the Kamla
Persad Bissessar led coalition People's Partnership Government
committed a further TT$13 billion (US$2.01 billion) to keep the
floundering insurance company afloat, the report relays.
Earlier this year, CLICO, announced it had made an after tax
profit of nearly TT$3.8 billion (One TT dollar = US$0.16 cents) in
2012, the report adds.
About CLICO International
Colonial Life Insurance Company Ltd. (CLICO) is a member of the CL
Financial Group.
About CL Financial
CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago. Founded as an insurance company by Cyril Duprey,
Colonial Life Insurance Company was expanded into a diversified
company by his nephew, Lawrence Duprey. CL Financial is now one
of the largest local conglomerates in the region, encompassing
over 65 companies in 32 countries worldwide with total assets
standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 6, 2013, Caribbean360.com said that over TT$8 billion worth
of Colonial Life Insurance Company Limited's (CLICO) profitable
business will be transferred to Atruis, a new company that will be
owned by the state. CLICO is a subsidiary of CL Financial
Limited. The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat, according to Caribbean360.com.
Caribbean360.com noted that CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.
Caribbean360.com related that at its annual general meeting in
Sept. 2013, CL Financial shareholders voted to extend the
agreement with Government until August 25, 2014, while Cabinet
decides on a new framework accord to recover the debt owed to
Government through divestment of CL subsidiaries, including
Methanol Holdings, Republic Bank, Angostura Holdings, CL World
Brands and Home Construction Ltd.
Proceeds from the divestment of these assets will go toward
Government's recovery of the billions it pumped into CLICO,
Caribbean360.com said.
=================
X X X X X X X X X
=================
LATAM: IDB Warns of Fin'l. Burden From Demand for Health Care
-------------------------------------------------------------
Demand for health care services in Latin America will overwhelm
the financial capacity of the region's governments to provide
coverage and services in an equitable and effective manner over
the next decade, according to a study released by the Inter-
American Development Bank (IDB).
Rapid epidemiological transition, marked by a greater prevalence
of chronic illnesses and the aging of populations, as well as new
health care technologies, are raising medical costs and creating
more pressure on public health care spending in Latin American
countries.
In 2010, 68 percent of deaths in the region were caused by chronic
diseases, which are increasingly affecting productivity in the
workplace. A study carried out in Brazil, Mexico, Colombia and
Argentina concluded that heart attacks, strokes and diabetes
caused accumulated losses of more than $13.5 billion in the period
2006-2015.
However, growth in resources for health care have not kept pace
with demand. In the region, spending on health care as a
proportion of GDP rose moderately from 3.4 percent to 4.1 percent
in the past 15 years. Looking ahead to the fiscal scenarios of
the future, it is projected that public health care spending will
rise between 1 and 1.5 percentage points of GDP in the next 20
years.
Public resources earmarked for health, as a percentage of GDP, are
on average double in the countries of the OECD (7.9 percent of
output) compared to Latin America and the Caribbean. "The growing
gaps between available financial resources and what it would cost
governments to ensure health care services that benefit people the
most, and how to do so, is one of the biggest challenges of public
policy," said Ferdinando Regalia, head of the IDB's Division of
Social Protection and Health.
The IDB analyzed Health Benefit Plans in seven countries:
Argentina, Chile, Colombia, Honduras, Mexico, Peru and Uruguay.
The plans spell out explicitly what services are covered and they
feature the advantage that people know their rights. They also
allow better financial planning and greater efficiency in
management of the system by determining which services will be
sought from providers and the human resources and infrastructure
required to close inequality gaps.
"The study analyzes what motivated these countries to adopt them,
the criteria and processes they used to define and adjust these
plans and the challenges they faced in implementing them," said
Ursula Giedion, the study's main author.
For the first time, the plans were studied in terms of target
population, scope, financial coverage and the public resources
earmarked for financing those plans. For instance, Uruguay offers
a plan that covers nearly its entire population and covers all
levels of services for an average annual cost of $650 per
beneficiary, while Honduras has a maternal-infant health care plan
for poor, rural people that costs around $25.
The study found that there is a great variety of plans, but
concluded that a country's having a health benefits plan is an
important step toward narrowing inequality gaps and advancing
toward universal health care coverage, which is a major goal for
all the countries of the region.
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
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Send announcements to conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.
Copyright 2014. All rights reserved. ISSN 1529-2746.
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