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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, September 9, 2020, Vol. 21, No. 181

                           Headlines



A R G E N T I N A

ARGENTINA: Exits Default After US$65-billion Debt Deal
ARGENTINA: S&P Upgrades LT Sovereign Credit Rating to CCC+


B R A Z I L

BRAZIL: Hands Out so much Covid Cash that Poverty Nears a Low


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Declares Emergency to Buy Goods and Services
DOMINICAN REPUBLIC: Economy Shrunk Around 8.5% in July


J A M A I C A

JAMAICA: UK Tour Operator Cancels Flights


P U E R T O   R I C O

ASCENA RETAIL: Closes All Stores in Puerto Rico


V E N E Z U E L A

[*] VENEZUELA: Regime Pardons Scores of Political Opponents


X X X X X X X X

CARIBBEAN: IDB Launches Pivot Movement to Strengthen Innovation

                           - - - - -


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A R G E N T I N A
=================

ARGENTINA: Exits Default After US$65-billion Debt Deal
------------------------------------------------------
Scott Squires, writing for Bloomberg News, reports that Argentina
has officially emerged from its ninth default after Standard &
Poor's Global raised its credit rating following the restructuring
of US$65 billion of overseas debt.

Bloomberg News says S&P Global lifted the rating to CCC+ with a
stable outlook from "selective default" after the country issued
new bonds September 4 to replace securities that had been in
default since May. The ratings agency raised Argentina's long-term
foreign and local currency rating on both international and local
law debt.

The report relates that Argentina's upgrade out of default is the
culmination of more than four months of negotiations with the
country's largest creditors which resulted in a deal worth roughly
55 cents on the dollar. That was enough for bondholders to exchange
99 percent of the nation’s international debt, granting about
US$38 billion in debt relief over the next 10 years.

"This important step forward provides the opportunity for the
government to articulate a broader plan to tackle various
post-pandemic macroeconomic challenges, negotiate a new programme
with the IMF, and work to clear arrears with the Paris Club," S&P
Global wrote in statement, notes Bloomberg News.

Still, traders bid Sept. 7 on Argentina's new dollar bonds due 2029
with yields of about 10.9 percent, in line with where the notes
were trading last week in unofficial, over-the-counter
transactions, the report relays. The high yields signal
expectations that Argentina may default again in the future. The
economy is expected to contract about 13.5 percent this year,
according to JP Morgan.

"Argentina still has to address a major credibility gap," the
report qouted Ramiro Blazquez, head of research at BancTrust & Co
in Buenos Aires, as saying. The government "will need to deliver on
the policy front. The first litmus test will be regaining
macroeconomic consistency by reaching an agreement with the IMF."

Argentina said it would seek to reduce the bonds' yields in the
coming months through consistent macroeconomic management, and
won't return to international debt markets for a while, Economy
Minister Martin Guzman said Sept. 4 in an interview with Bloomberg
TV last week.

Argentina will also continue to work with the retail bondholders in
Europe who hold the one percent of debt that didn’t make it into
the agreement, Guzman said during the interview, adds the report.

"The remaining one percent, we will continue working on it, it's
mostly a technical issue," Guzman said of the holdouts, says
Bloomberg. "There were some retail bondholders that were registered
in Europe that did not get a chance to vote, but we don't see that
as a problem."

ARGENTINA: S&P Upgrades LT Sovereign Credit Rating to CCC+
----------------------------------------------------------
On Sept. 7, 2020, S&P Global Ratings raised its long-term foreign
and local currency sovereign credit ratings on Argentina to 'CCC+'
from 'SD'. The outlook on the long-term ratings is stable. S&P also
raised its short-term foreign and local currency sovereign credit
ratings to 'C' from 'SD'. S&P raised the national scale rating to
'raBBB-' from 'SD'. The transfer and convertibility assessment
remains at 'CCC+'.

In addition S&P took the following rating actions:

-- S&P withdrew its ratings on Argentina's bond issues included in
the foreign law, foreign currency exchange.

-- S&P assigned a 'CCC+' rating to the 12 new bonds (foreign
currency, foreign law).

-- S&P raised its rating on yen-denominated foreign law bonds not
included in the restructuring to 'CCC+' from 'CC'.

-- S&P withdrew its ratings on the bond issues under the Argentine
law restructuring.

-- S&P assigned a 'CCC+' rating to the new bonds issued under
Argentine law as part of the local law exchange.

-- S&P raised its rating on various local law peso-denominated
debt issues to 'CCC+' from 'CC'.

Outlook

S&P said, "The stable outlook on our 'CCC+' ratings reflects the
challenges facing the Argentine authorities to strengthen weak
fundamentals and imbalances in the economy against the fiscal space
provided by the various debt restructurings. With the complex
restructuring completed, we expect the government to pivot its
focus fully to initiatives to bolster growth, lower inflation,
finance a still-high fiscal deficit, and manage exchange-rate
pressures, among various prevailing macroeconomic distortions." The
government has just initiated discussions with the IMF for a
revised Stand By Arrangement (or other program) ahead of important
payments due to the fund beginning 2021. This dialogue provides the
opportunity to devise an overall economic strategy and move closer
to clearing arrears with the Paris Club of bilateral creditors as
well.

Downside scenario

S&P could lower the ratings over the next 12 months if unexpected
negative political developments undermine prospects for economic
recovery and for some reversal of the fiscal deterioration in 2020.
This scenario could damage fragile local investor confidence in
particular and hamper access to peso-denominated debt markets. It
could further exacerbate expected recourse to central bank
financing amid already-high and challenging inflation dynamics and
lead to a downgrade. Setbacks in discussions with the IMF would
complicate extending repayment of $44 billion due to the
institution, potentially impair access to external financing from
other multilateral institutions (MLIs), and complicate clearing
arrears with the Paris Club. Heightened pressure in local financial
markets, including the banking system's deposit base, or
difficulties in managing central bank debt (LELIQs) could also lead
to a downgrade.

Upside scenario

S&P saidm "We could raise the ratings over the next 12 months
following successful negotiation of a new IMF program that smooths
a heavy repayment schedule--signs that fiscal and monetary policy
articulation is stabilizing inflation and exchange-rate dynamics.
We could also raise the rating if there is a more pronounced
economic recovery that supports stronger fiscal outcomes and lower
financing needs." Implementation of structural fiscal measures to
reverse the deterioration in Argentina's fiscal profile could also
support a higher rating. This could also open access to broader
market-based funding by local and external private creditors.

Rationale

Following two successful debt exchanges--under both foreign and
Argentine law--on a combined over $100 billion in debt, S&P
considers that Argentina has cured its foreign currency defaults.
Acceptance of the foreign law exchange comprised 99% of $66 billion
in eligible debt, participation was 93.5%, and collective action
clauses were triggered on all but four eligible series (with a face
value of about $650 million). Settlement of the 12 foreign law,
foreign currency new bonds occurred on Sept. 4. The Argentine law
local debt exchange comprised over $40 billion in locally issued
U.S.-dollar denominated securities; early participation in this
exchange ended Sept. 1 and achieved over 98%. (The opportunity to
participate in this exchange remains open until Sept. 15.)
Settlement of the seven new Argentine-law bonds has occurred, and
the new bonds were delivered on Sept. 7.

The ratings on Argentina reflect ongoing near-term challenges posed
by its weak fiscal and external profiles, monetary inflexibility,
and limited financing options given its small local capital
markets. Its debt burden remains high, notwithstanding various debt
restructurings over the past two decades. More than 70% of central
government debt is in foreign currency, a vulnerability that the
current administration aims to slowly reduce, though about 40% is
held by public-sector creditors, mitigating rollover risk.

Argentina has a track record of persistently high inflation,
coupled with limited monetary flexibility given the absence of a
credible local currency as a store of value. This underpins its
small domestic capital markets and heightens financing
vulnerabilities for the government and corporates. Such
shortcomings have contributed to the nation's weak external
position as Argentina has relied heavily on external funding to
finance persistent and high fiscal deficits. The ratings also
reflect a poor track record of growth, even before the significant
hit to the economy from the COVID-19 pandemic. In addition, they
reflect our assessment of weak institutional and governance
effectiveness, and a weak payment culture given the series of
sovereign defaults over the past two decades.

Institutional and economic profile: The economy remains under
pressure amid the pandemic, but a $100 billion debt restructuring
provides space to move forward

-- A history of economic instability and sharp changes in economic
policies underpin low credibility and predictability of Argentina's
governing institutions.

-- The current administration has successfully concluded a complex
foreign and local law debt restructuring that affords significant
cash flow relief over the coming decade.

-- The economy has been hit significantly by COVID-19 and a
double-digit percent contraction after two years of recession, and
S&P assumes a subpar recovery amid ongoing economic imbalances.

One of the weaknesses in Argentina's institutional assessment is
its history of major changes in economic policy following shifts in
political leadership, reinforced by last year's electoral cycle.
Argentina's democracy has been characterized by a history of
political polarization that limits the government's ability to
implement its economic agenda. This polarization does not stem from
an ethnic, religious, or racial divide, as in some similarly rated
sovereigns, but rather a socioeconomic and ideological divide. In
addition, even within longstanding traditional parties, there are
diverse views on economic policy. This generates more volatile
policy outcomes, especially considering the politicization of
governing public institutions, and reduces checks and balances.
This is in contrast to sovereigns with stronger institutional
assessments.

In the wake of widespread discontent with recession, inflation, and
market turbulence, President Alberto Fernandez led a Peronist
coalition back to office in December 2019, with former President
Cristina Fernandez de Kirchner as his vice presidential running
mate. This has led to changes in the policy approach from the prior
Mauricio Macri Administration. The new administration took office
following intense market turbulence, which already included a local
debt default and reinstatement of foreign exchange restrictions by
the Macri government to try and manage exchange-rate pressure.

The current administration's key policy priorities include a
comprehensive restructuring of Argentina's commercial debt,
reaching a revised agreement with the IMF, and restoring social
well-being amid stronger growth led by more public-sector
involvement or direction in the economy. The focus on comprehensive
debt restructuring, along with management of the COVID-19 pandemic,
took priority over articulation of a broader set of structural
policies aimed at bolstering trend GDP growth and social
conditions. With the debt deals now complete, the administration
can focus more directly on measures to enhance growth and lower
inflation--beyond the short-term measures associated with
mitigating the hit to the economy from the pandemic.

There is an opportunity to articulate a broader policy agenda with
the 2021 budget to be presented in mid-September and during
discussions with the IMF, which began on Aug. 26, on the contours
of a new program. The many policy challenges include reducing a
structurally large fiscal deficit by lowering the primary
(noninterest) deficit. In addition, better monetary and
exchange-rate policy execution would help reduce inflation; key to
that is less reliance on central bank financing of the fiscal
deficit and, more realistically, improving access to the local debt
market. Raising the medium-term GDP growth path is a key challenge
that requires both redressing macroeconomic imbalances and
alleviating microeconomic obstacles, including a complex tax burden
and rigid labor laws. Complicated foreign exchange restrictions
also contribute to dampened investor sentiment locally and abroad.
However, the government has yet to outline an explicit roadmap on
how it expects to address these material economic challenges while
it appears that diverging views exist among important
representatives of the Peronist coalition.

S&P's economic growth forecasts for 2020 and 2021 incorporate a
large hit to the economy and subpar recovery. S&P expects a 12.5%
contraction in real GDP this year and a 4.8% rebound in 2021. The
authorities' response to the pandemic has been a strict national
lockdown since mid-March. While initially successful in stemming
transmission of COVID-19, it implied a pronounced economic
contraction in the second quarter and has led to pressure to ease
lockdown restrictions, though there seems to be an uptick in
COVID-19 cases in recent weeks. The combination of ongoing COVID-19
transmission, a slow opening of the economy, and large
macroeconomic uncertainties underpins our near-term economic
projections. The subdued recovery in 2021 reflects the need to
restore investor confidence to bolster investment and household
purchasing power.

Argentina's long-term growth performance remains worse than that of
other countries at a similar level of wealth and development. S&P
said, "We calculate a real per capita GDP contraction of 1.6%
(based on combination of past and forecast growth). We estimate GDP
per capita of around $8,300 in 2020, down from around $14,500 in
2017 (reflecting a combination of real contraction and depreciation
of the currency)." Argentina's poor record of low, volatile
growth--distinct from the effects of the pandemic--weighs on our
economic assessment.

Beyond 2021, long-term trend growth is likely to be around 3%.
Policy initiatives suggest lower fiscal imbalances and inflation
are key for investor confidence. The economy also remains
relatively closed, with exports averaging only 15% of GDP over the
last decade. An innovative agricultural and agribusiness sector is
currently subject to high taxation. A competitive exchange rate,
prospects for growth in agribusiness exports, higher energy
production, and a recovery in investment would sustain higher
long-term growth. The possibility of successful development of
Argentina's nonconventional energy resources could improve GDP
growth and balance-of-payments dynamics over time. Notwithstanding
the worsening in social indicators in recent years, Argentina's
educated workforce (vis-à-vis regional peers) could support
development of a more buoyant service sector, including information
technology.

Flexibility and performance profile: Despite the restructuring,
significant external, fiscal, and monetary policy challenges
remain

-- A still-high fiscal debt burden reflects a combination of
recession, peso depreciation, and large deficits that are only
expected to improve slowly.

-- The longstanding lack of confidence in the peso as a store of
value has undermined monetary policy flexibility and price
stability for decades.

-- External debt remains high, while currently very large
estimated gross external financing metrics should benefit from cash
flow relief associated with the restructuring and potentially
smoothing of payments to the IMF.

Argentina's high external debt burden, with limited ability to
issue debt in local and external capital markets, is a pronounced
vulnerability in its credit profile. S&P projects narrow net
external debt to average 260% of current account receipts (CAR)
from 2020-2023. S&P estimates gross external financing needs to
usable reserves and CAR to average about 130% in the next several
years, and they are likely to decline thanks to debt service relief
from the restructuring. However, a smoother repayment profile with
the IMF in 2021-2023 will be key. The forecasts assume steady
international reserves beyond 2020, favorable trade and current
account balances despite higher economic growth, pressure on
capital outflows, and a slow recovery in Argentina's exports of
goods and services following the COVID-19-related hit this year.

Argentina's poor track record in containing inflation, which
averaged 32% during the last 10 years, is a significant credit
weakness. Failure to establish a consistent monetary and
exchange-rate policy framework with an independent central bank has
undermined the peso as a meaningful store of value for local
residents over past decades. Similarly, it has limited the breadth
and depth of local capital markets. The current administration
shifted away from a formal rules-based approach to monetary policy;
it neither follows a formal inflation- or monetary-base targeting
regime. The government aims to contain inflation by using monetary
policy along with some guidance or controls on prices, which have
been expanded under the pandemic. Its more discretionary approach
has focused on lowering the LELIQ overnight policy interest rate
from higher nominal levels since assuming office to 38% currently.

Consumer price inflation has moderated since earlier this year--but
remains over 40% as of July. Monetary financing of the government's
large deficit in 2020 has underpinned a rapid expansion of money
supply, with the monetary base up 78% year over year as of August.
The limited local debt market will force the government to fund its
fiscal deficit at least partially from the central bank, placing
pressure on inflation dynamics. Combined with peso depreciation
that affects price-setting behavior, S&P expects inflation to
average almost 40% during 2020-2023.

The Administration has tightened foreign exchange restrictions to
access dollars from the central bank at the official market rate
(MULC) to try to contain slippage in international reserves. As the
government moves beyond the debt restructuring, it faces the
difficult task of managing intense pressure on various nonofficial
or parallel market exchange rates and of stemming leakage across
various segmented markets amid weak confidence and policy
uncertainties.

A high debt burden and fiscal rigidities contribute to Argentina's
weak fiscal position. We expect net general government debt to
reach almost 100% of GDP in 2020, given the double-digit GDP
contraction, depreciation of the peso, and large general government
deficit this year. There was limited face value reduction
associated with the two debt restructurings. The projected decline
in debt to GDP over the forecast period reflects some deficit
reduction but assumes real appreciation of the peso, particularly
in 2022-2023.

The still-high share of foreign currency debt (over 70%) renders
the debt burden vulnerable to sharp swings in the currency. The
impact of the debt restructurings is more apparent in the projected
decline in the general government interest burden. S&P projects
interest to revenue to drop below our 10% threshold given the
reduction in coupons on the $100 billion in restructured debt.

Amid the pandemic, we expect the general government deficit to rise
to about 9.25% of GDP this year and decline slowly over the
forecast given the slow economic recovery and signals from the
government that it's planning a moderate consolidation amid weak
social conditions. S&P forecasts a deficit of 6.25% in 2021, which
is subject to revisions following the upcoming 2021 budget
announcement in mid-September. In addition, our projection of a
5.75% average deficit in 2022-2023 is subject to the pace of
recovery and the adjustment path to be negotiated with the IMF.
Interest rigidities in the budget will receive important relief.
But adjusting other spending--for payroll, pensions,
transfers/subsidies, and other social spending--entails complex
political trade-offs. On the revenue side, Argentina's formal
economy is already subject to high and distortionary taxes at the
federal and local level. How the government aims to bolster revenue
and still provide space for private investment and economic
recovery remains another complex policy challenge.

S&P estimates the change in net general government debt will
average a much higher almost 20% of GDP in 2020-2023. This largely
reflects adjustments coming from exposure to foreign currency and
indexation to inflation, compared with the lower general government
deficits.

The sovereign still faces high financing needs in light of the slow
pace of fiscal consolidation assumed in our base case. S&P doesn't
expect external market funding to be available for Argentina, and
S&P does not assume any new IMF money at this time. Closing the
financing gap will rely on local peso debt issuance, the central
bank, and potentially some multilateral financing.

About 40% of central government debt is held by creditors in the
public sector (the largest share is with the central bank), which
mitigates domestic rollover risk somewhat. S&P excludes sovereign
debt held by the pension system (ANSES), which accounts for about
8% of central government debt.

S&P saiod, "We view contingent liabilities to Argentina's debt
assessment as limited, including those posed by the banking system.
We classify the banking sector of Argentina in group '8', according
to our Banking Industry Country Risk Assessment (BICRA), with '1'
being the lowest risk category and '10' the highest. Argentina has
a small financial system, with domestic credit to the private
sector around 11% of GDP in 2020 (among the lowest in Latin
America). We estimate that the gross assets of the financial system
will be 30% of GDP in 2020--low relative to peers."

  Ratings List

  New Rating  

  Argentina
   Senior Unsecured CCC+

  Not Rated Action  
                        To    From
  Argentina
   Senior Unsecured     NR    CC
   Senior Unsecured     NR     D

  Ratings Affirmed  

  Argentina
   Transfer & Convertibility Assessment CCC+

  Upgraded  
                       To     From
  Argentina
   Senior Unsecured   CCC+     CC

  Upgraded; Outlook Action  
                                    To            From
  Argentina
   Sovereign Credit Rating    CCC+/Stable/C      SD/--/SD
   Argentina National Scale   raBBB-/Stable/--   SD/--/--




===========
B R A Z I L
===========

BRAZIL: Hands Out so much Covid Cash that Poverty Nears a Low
-------------------------------------------------------------
Buenos Aires Times reports that Brazil, which has suffered one of
the world's worst pandemic tolls, has responded to the crisis by
distributing so much cash directly to citizens that poverty and
inequality are approaching national historic lows.

Some 66 million people, 30 percent of the population, have been
getting 600 reais (US$110) a month, making it the most ambitious
social programme ever undertaken in Brazil, a shocking shift under
President Jair Bolsonaro who railed against welfare, dismissed the
virus--and now finds himself newly popular, according to Buenos
Aires Times.

The government hasn't published its own figures yet but data from
the Getulio Vargas Foundation, one of Brazil's top universities,
show that those living on less than US$1.9 a day fell to 3.3
percent in June from eight percent last year, and those below the
poverty line were at 21.7 percent compared with 25.6 percent, the
report notes.  Both represent 16-year lows.

Economist Daniel Duque, the main investigator, said poverty has, in
fact, hit the lowest rate since data collection began 40 years ago
but a shift in definitions in 2004 makes direct comparison before
then slightly complicated, the report relays.  He added that
unpublished measurements from July and August show that inequality
calculated by the so-called Gini coefficient fell below 0.5 for the
first time ever, the report discloses.

In other words, as Covid-19 has killed some 122,000 Brazilians, it
has paradoxically driven down poverty and inequality, at least in
the short term, and also placed government welfare at the heart of
political debate, like a decade ago with the "Bolsa Familia"
programme that lifted millions, the report relates.  The issue will
reverberate in November's local elections, a dry run for the
presidency in 2022, the report discloses.

Duque says it's as if Brazil had suddenly created a massive
basic-income program, the report notes.  He believes it won't be
possible to end it soon: "The population will surely demand more
types of programs like this, and we can't run the risk of a massive
drop-off," the report relays.

In fact, the government has begun paring it back.  Bolsonaro
announced that handouts would be halved for the remainder of the
year, the report discloses.  And while he promised to make some
form of stipend permanent he hasn't indicated how he will pay for
it, the report notes.

The president of Brazil's Central Bank, Roberto Campos Neto, said
the emergency subsidies have been effective but need to end rather
than turn into a new policy, the report relays.

"We had a detour," he told Bloomberg's Erik Schatzker at the
Emerging & Frontier Forum 2020.  "We were one of the emerging
market countries that spent the most money. We thought that was
important and it was very efficient. But we need to go back to the
original plan," the report notes.

He added, "In the last few days, the market has been punishing
Brazil very badly. The community understands that we need to go
back to the plan, we need to spend in a responsible way," the
report relays.

Economists agree that the approach is unsustainable. Brazil is
headed to its largest primary deficit ever of over 11 percent of
GDP this year, and "the challenge is, how do you unwind from this?"
says Christopher Garman, managing director for the Americas at
Eurasia Group, the report relays.  "There is no free lunch," he
added.

Markets agree.    Investors engaged in a massive selloff of
Brazilian assets after Bolsonaro suggested he might be willing to
exceed constitutional spending caps to finance permanent stipends,
the report discloses.  The real slid more than 2.2 percent to
5.6320 per dollar, while Brazilian stocks fell 2.7 percent, the
most in emerging markets, the report relays.  Both are still
recovering.

This is due to the astronomical price of the programme, known
commonly as the "coronavoucher," 50 billion reais (US$9.3 billion)
a month through August, the report notes.  It cost in five months
what Bolsa Familia--created by former president Luiz Inácio Lula
Da Silva--spent in eight years, the report relates.  That plan
gives out US$35 per month, reaching some 14 million families this
year, the report says.

The coronavoucher, which accounts for nearly half of Bolsonaro's
recovery package, has driven up his popularity, especially with the
poor, the report notes.

José Carlos Alves, 56, who sells souvenirs on the outskirts of
Brazil's capital, Brasilia, says the US$110 each month have shifted
his politics as he faces more months without tourists or sales.
Once loyal to Lula's long-ruling Workers' Party, he says the aid
"shows Bolsonaro cares and now has my vote in 2022," the report
relays.

Monica de Bolle, a senior fellow at the Peterson Institute for
International Economics, who advised lawmakers on the legislation
for emergency aid, said this is a wider phenomenon: "Bolsonaro has
realised the obvious: Brazil is a poor country with lots of poor
people and if you give them cash transfers you'll get their votes,"
the report discloses.

Before the pandemic, Brazil had two years of recession followed by
a very slow recovery, increasing poverty, the report relays.  More
than a third of the country is on some kind of social benefit, the
report notes.

Bolsonaro, 65, a self-described right-winger who accused past
administrations of running a "proletariat dictatorship," saw his
approval rating rise to 37 percent in a recent poll by Datafolha
from 32 percent in June, the report notes.  Among Brazil's lowest
earners, it rose to 35 percent from 22 percent, the report
discloses.

The government stimulus, which represents about seven percent of
GDP, is widely credited with saving Brazil from a grimmer outcome,
although the economy is expected to contract more than five percent
this year--less disastrous than Mexico and Argentina which could
contract by some 10 percent each, the report relays.

Even as the virus is spreading hunger from the United States to the
Saharan Desert, many governments face the same challenge: how to
pare back pandemic emergency spending without choking off fragile
economic recoveries, the report says.

The US also responded to the virus with the most generous social
benefits in its history, including a US$600-a-week top-up for
unemployment payments, that increased average incomes, the report
discloses.  That program expired in July and lawmakers are still
arguing over an extension, even as economists warn that it's too
early to withdraw budget support, the report relays.

In Europe, France, Germany, Italy and others are considering
extending payroll aid for those out of work while the United
Kingdom is planning to phase it out in October, the report notes.

The coronavoucher in Brazil has raised questions of how best to
deal with grinding economic vulnerability, whether Bolsonaro is
exploiting cash stipends to stay in office--and whether opposing
the handouts to defeat him is acceptable, the report says.

"People have a right to be concerned about Bolsonaro's populist
inclinations and his ability to blow things up if he wants to," De
Bolle said, the report notes.  "They are not right to be calling
for fiscal adjustment now. Brazil has an epidemic that's completely
out of control with a lot of people that, had they not received an
emergency basic income program, would have probably died," he
added.

Brazil is the fifth largest country in the world and third largest
in the Americas.  Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.

As reported in the Troubled Company Reporter-Latin America on May
8, 2020, Fitch Ratings affirmed Brazil's Long-Term Foreign Currency
Issuer Default Rating at 'BB-' and has revised the Rating Outlook
to Negative. The Outlook revision to Negative reflects the
deterioration of Brazil's economic and fiscal outlook, and downside
risks to both given renewed political uncertainty, including
tensions between the executive and congress, and uncertainty over
the duration and intensity of the coronavirus pandemic.

On April 10, 2020, the TCR-LA reported that S&P Global Ratings
revised on April 6, 2020, its outlook on its long-term ratings on
Brazil to stable from positive.  At the same time, S&P affirmed its
'BB-/B' long- and short-term foreign and local currency sovereign
credit ratings. S&P also affirmed its 'brAAA' national scale rating
and its transfer and convertibility assessment of 'BB+'. The
outlook on the national scale rating remains stable.




===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Declares Emergency to Buy Goods and Services
----------------------------------------------------------------
Dominican Today reports that President Luis Abinader declared an
emergency for the purchases and contracts of goods and services
essential for the execution of initiatives of preparation,
prevention and response to the entry of people affected by
COVID-19.

Meanwhile, decree number 144-20 authorizes three other contracting
institutions to make purchases and emergency contracts to respond
to the measures taken by the High Level Commission for the
Prevention and Control of Coronavirus, according to Dominican
Today.

The agencies include the Ministry of Public Health, the National
Health Service (SNS), the Central Essential Medicines Program for
Logistics Support (Promese/ al) and the Autonomous University of
Santo Domingo (UASD), the report adds.

                   About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).

DOMINICAN REPUBLIC: Economy Shrunk Around 8.5% in July
------------------------------------------------------
Dominican Today reports that the Central Bank of the Dominican
Republic ordered a 50 basis point reduction in its monetary policy
interest rate, from 3.50% to 3.00% per year, while reporting that,
according to preliminary data, the economy would have fallen around
8.5% in July.

In addition, it narrowed the interest rate corridor, by reducing
the interest rate of the permanent liquidity expansion facility
(1-day Repos) from 4.50% to 3.50% per annum, while the interest
rate of paid deposits (overnight) remains at 2.50% annually,
according to Dominican Today.  "In this way, the corridor of the
permanent liquidity facilities of the Central Bank will have a
range of ± 50 basis points with respect to the monetary policy
rate," the report notes.

The decision on the benchmark rate is based on a comprehensive
analysis of the impact of the COVID-19 pandemic on economic
activity and future inflation trends, the report relays.  "In
particular, the monthly variation of the Consumer Price Index in
July was 1.88%, while the accumulated inflation during the first
seven months of the year was 2.32%," the report adds.

                   About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported in April 2019
that the Dominican Today related that Juan Del Rosario of the UASD
Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).



=============
J A M A I C A
=============

JAMAICA: UK Tour Operator Cancels Flights
-----------------------------------------
RJR News reports that the largest tour operator in the United
Kingdom, TUI, has added Jamaica to a list of  countries where it
has cancelled holidays for its clients because of the United
Kingdom's coronavirus travel restrictions.

TUI holidays to Jamaica that were due to depart on or before
September 22 have been cancelled, according to RJR News.

It was announced that Britons who travel to Jamaica will now have
to self isolate for 14-days when they return home, the report
notes.

The UK government said the new measure will help to keep the United
Kingdom's covid-19 infection rate down, the report adds.

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings revised on April 16, 2020 its outlook on Jamaica to
negative from stable. At the same time, S&P affirmed its 'B+'
long-term foreign and local currency sovereign credit ratings, its
'B' short-term foreign and local currency sovereign credit ratings
on the country, and its 'BB-' transfer and convertibility
assessment.

The TCR-LA also reported that Fitch Ratings, in April 2020, revised
Jamaica's Outlook to Stable from Positive. The Long-Term
Foreign-Currency Issuer Default Rating is affirmed at B+. The
Outlook change reflects the shock to Jamaica from the coronavirus
pandemic, which is expected to lead to a sharp contraction in its
main sources of foreign currency revenues: tourism, remittances and
alumina exports.



=====================
P U E R T O   R I C O
=====================

ASCENA RETAIL: Closes All Stores in Puerto Rico
-----------------------------------------------
Scott Perry, writing for Pentagraph, reports that Ascena Retail
Group will close all of its stores in Canada, Puerto
Rico and Mexico.

Justice stores throughout Central Illinois are also closing as
part of the announced voluntary Chapter 11 bankruptcy by parent
company Ascena Retail Group.

Stores in Forsyth, Bloomington and Tuscola, as well as Champaign,
Springfield and Peoria, have been identified for closure.  The
Justice brand, formerly Limited Too, is geared toward girls ages 7
to 14.

The New Jersey-based company said on its website that closing
sales are underway and it could take 30 to 60 days from the filing
date for a store to close.

Ascena, which also operates retailers Ann Taylor, LOFT, Lane Bryant
and Lou & Grey, filed for bankruptcy protection on July 23, 2020.

In addition to the closing of a "significant number" of Justice
stores and some Ann Taylor, LOFT, Lane Bryant and Lou & Grey
locations, the company also announced that it is closing all
Catherine stores, which includes locations in Champaign and
Peoria.

In all, the company said in court documents that it plans to
"reduce their store fleet from approximately 2,800 stores to
approximately 1,200 stores."

"This comprehensive restructuring, as well as the actions we are
taking to optimize our brand portfolio and store fleet, mark a new
start for our company and will allow us to expand our
customer-focused strategies across her mobile, online, and store
experiences," said Gary Muto, chief executive officer.

                   About Ascena Retail Group

Ascena Retail Group, Inc. (Nasdaq: ASNA) --
http://www.ascenaretail.com/-- is a national specialty retailer
offering apparel, shoes, and accessories for women under the
Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus Fashion
(Lane Bryant, Catherines and Cacique), and Value Fashion
(Dressbarn) segments, and for tween girls under the Kids Fashion
segment (Justice).  Ascena, through its retail brands, operates
ecommerce websites and approximately 2,800 stores throughout the
United States, Canada, and Puerto Rico.

Ascena Retail reported a net loss of $661.4 million for the fiscal
year ended Aug. 3, 2019, a net loss of $39.7 million for the year
ended Aug. 4, 2018, and a net loss of $1.06 billion for the year
ended July 29, 2017.

On July 23, 2020, Ascena Retail Group and its affiliates sought
Chapter 11 protection (Bankr. E.D. Va. Case No. 20-33113).  As of
Feb. 1, 2020, Ascena Retail had $13,690,710,379 in assets and
$12,516,261,149 in total liabilities.

The Hon. Kevin R. Huennekens is the case judge.

The Debtors tapped Kirkland & Ellis LLP and Cooley LLP as
bankruptcy counsel, Guggenheim Securities, LLC as financial
advisor, and Alvarez and Marsal North America, LLC as restructuring
advisor.  Prime Clerk, LLC is the claims agent.



=================
V E N E Z U E L A
=================

[*] VENEZUELA: Regime Pardons Scores of Political Opponents
-----------------------------------------------------------
The Latin American Herald reports that Venezuela's regime said it
has pardoned scores of political opponents, including jailed or
exiled lawmakers, journalists detained on various charges and
political activists.

The announcement was made by Information Minister Jorge Rodriguez
at a press conference.

The 110 people being pardoned include lawmakers Freddy Guevara,
Freddy Superlano and Miguel Pizarro and journalist Nicmer Evans,
who is currently jailed at a General Directorate of Military
Counterintelligence lockup, according to The Latin American
Herald.

They also include Roberto Marrero, who at the time of his detention
was chief of staff to National Assembly speaker and interim head of
state Juan Guaido, the report notes.

The pardons were granted via a decree that was signed by leftist
incumbent Nicolas Maduro and expresses the regime's "supreme
commitment" to achieving "peace and reconciliation." It will take
effect on the date it is published in Venezuela's Official Gazette,
the report relays.

The Chavista leader made the decision just three days after the
granting of house arrest to opposition lawmaker Juan Requesens, who
had been jailed for more than two years for his alleged role in a
failed Aug. 4, 2018, drone attack on Maduro, the report notes.

The pardons were granted within the scope of agreements reached
between the regime and opposition prior to the Dec. 6 legislative
elections, Rodriguez said, the report discloses.

Even so, some leading opposition figures were left off of the list,
including Leopoldo Lopez, who is being housed at the Spanish
Embassy in Caracas, the report says.

However, the first vice president of the opposition-led National
Assembly (AN), Juan Pablo Guanipa; and Henry Ramos Allup, leader of
the social-democratic Democratic Action party and a leading
opposition voice, were among the beneficiaries of the pardons, the
report says.

Venezuela's court system and the Chavismo--the leftist political
movement that is named after late President Hugo Chavez, who ruled
from 1999 until his death in 2013, and is now led by Maduro--have
employed different mechanisms to arrest and politically destroy
dozens of lawmakers since December 2015, when the opposition dealt
the ruling United Socialist Party of Venezuela (PSUV) a decisive
defeat in parliamentary elections, the report relates.

Of the 112 opposition lawmakers who won seats in the 2015
legislative elections (out of a possible total of 167 seats), all
say they have faced some form of targeting or aggression, the
report says.

The chief move against the opposition was the creation of the
National Constituent Assembly, a plenipotentiary body that was
founded in 2017 to override the AN and which is made up almost
exclusively of Maduro allies, the report notes.

Venezuela's main opposition parties have vowed to boycott the Dec.
6 parliamentary election because they say Maduro is a dictator and
that conditions are not in place for a free and fair vote, the
report adds.

                            Venezuela

Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and islets
in the Caribbean sea.  The capital is the city of Caracas.

Hugo Chavez was president to Venezuela from 1999 to 2013.  The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum.  Nicolas Maduro was elected president in 2013 after the
death of Chavez.  Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.

The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis.  It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.

S&P Global Ratings, in May 2019, removed its long- and short-term
local currency sovereign credit ratings on Venezuela from
CreditWatch with negative implications and affirmed them at
'CCC-/C'. The outlook on the long-term local currency rating is
negative. At the same time, S&P affirmed its 'SD/D' long- and
short-term foreign currency sovereign credit ratings on Venezuela.

Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook in
March 2018.  Meanwhile, Fitch's long term issuer default rating for
Venezuela was last in 2017 at RD and country ceiling was CC. Fitch,
on June 27, 2019, affirmed then withdrew the ratings due to the
imposition of U.S. sanctions on Venezuela.



===============
X X X X X X X X
===============

CARIBBEAN: IDB Launches Pivot Movement to Strengthen Innovation
---------------------------------------------------------------
The Inter-American Development Bank (IDB) has launched the Pivot
Movement to harness the most innovative ideas for Caribbean
development and create a plan for the future of the region. The
Movement includes a crowdsourcing contest and an event.

Pivot Search is the crowdsourcing platform to receive new
development ideas. It runs from September 2 to September 18, with a
$5000 cash prize.

Along with partners Caribbean Climate-Smart Accelerator (CCSA),
Singularity University and Destination Experience, IDB will also
host The Pivot Event, a virtual conference, between October 15 and
30, 2020.

General Manager of the IDB's Country Department Caribbean Group
(CCB), Therese Turner-Jones said, "The Pivot Movement is a vehicle
for Caribbean transformation driven by ideas. It gives anyone
anywhere the opportunity to help shape the future of our region. We
are creating an innovative space where pioneering minds will
discuss moonshot ideas to drive a more resilient and secure future
for all Caribbean people."

The Pivot Search, which precedes the Event, is a call for ideas
from members of the public. Three ideas will be selected for the
prize and will also secure a place at The Pivot Event. The ideas in
the areas of electromobility, digital transformation and re-imaging
tourism can be submitted here .

Racquel Moses, CEO of Caribbean Climate-Smart Accelerator (CCSA)
said "In the Caribbean, we battle with the disastrous impacts of
climate change.  Innovation is urgently needed to build our
resilience to these impacts and the CCSA is delighted to be a
partner in this movement. We are excited by the application of
innovation to combat long standing challenges."

Moonshot thinking is an approach entrenched by Singularity
University, who will facilitate sessions over the five days of the
inaugural Pivot Event. Thought leaders, innovators and
entrepreneurs will be invited to plan a vision for the Caribbean in
the next decade.

It will explore three moonshot ideas under each of the three themes
for a total of nine ideas. Three of those ideas will come from the
final winners of The Pivot Search who will be given the opportunity
to attend the conference. The final outcomes of the event will be a
plan for the nine moonshot ideas and a roadmap for access to
funding.

Individuals can request an invitation to the Pivot Event and get
further details about how to submit ideas for The Pivot Search via
the website www.caribbeanpivot.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, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2020.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


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