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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

          Thursday, April 1, 2021, Vol. 22, No. 60

                           Headlines



B A R B A D O S

BARBADOS: Phasing Out Importation of Gas And Diesel Vehicles


B E R M U D A

FLY LEASING: Moody's Puts B1 CFR Under Review for Upgrade
TRITON INT'L: Fitch Assigns First-Time 'BB+' IDR, Outlook Stable


B R A Z I L

BANCO FORD: Moody's Affirms Ba2 Deposit Ratings, Outlook to Stable


C O L O M B I A

AVIANCA HOLDINGS: Net Losses Up 22% in 2020


T R I N I D A D   A N D   T O B A G O

CARIBBEAN AIRLINES: Passengers May Book COVID-19 Tests on Website
TRINIDAD & TOBAGO: Food Prices Under Upward Pressure
TRINIDAD & TOBAGO: Retailers Feel Squeezed by Landlords, Customers

                           - - - - -


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B A R B A D O S
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BARBADOS: Phasing Out Importation of Gas And Diesel Vehicles
------------------------------------------------------------
RJR News reports that this month, the Barbados Government will be
looking to phase out the importation of gasoline and diesel
vehicles.

Minister of Energy Kerrie Symmonds said it was part of the effort
to eliminate dependence on fossil fuels by 2030, according to RJR
News.

He added that the Government was leading by example, with the fuel
import bill ranging from $450 million to $800 million a year, the
report notes.

                   About Barbados

Barbados is an eastern Caribbean island and an independent British
Commonwealth nation.  Standard & Poor's credit rating for Barbados
stands at B- with stable outlook (January 2020).  Moody's credit
rating for Barbados was last set at Caa1 with stable outlook (July
2019).  



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B E R M U D A
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FLY LEASING: Moody's Puts B1 CFR Under Review for Upgrade
---------------------------------------------------------
Moody's Investors Service placed on review for upgrade the ratings
of Fly Leasing Limited, including its B1 Corporate Family Rating,
as well as the ratings of its subsidiaries. This follows the
announcement that an affiliate of Carlyle Aviation Partners, the
commercial aviation investment and servicing arm within The Carlyle
Group's Global Credit platform, will acquire all of the outstanding
shares of FLY for $17.05 per share in cash. This represents an
enterprise value of approximately $2.4 billion, including debt.

In its ratings review, Moody's will consider the benefits to FLY's
creditors from ownership by Carlyle Aviation as well as the
structural position and guarantees of FLY's debt should any remain
outstanding after the transaction closes. Currently, the Fly Willow
Funding Limited's $180 million term loan due 2025 as well as the
Fly Funding II S.a.r.l.'s term loan due 2025 (outstanding amount of
$363 million at December 31, 2020) do not contain a change of
control provision.

Actions that trigger the change of control provision in FLY's 2024
note indenture provide bondholders some downside protection in the
event that would increase leverage. In line with its policy,
Moody's would withdraw FLY's ratings if this transaction resulted
in the redemption of its existing debt obligations.

On Review for Upgrade:

Issuer: Fly Funding II S.a.r.l.

Backed Senior Secured Bank Credit Facility, Placed on Review for
Upgrade, currently Ba3

Issuer: Fly Leasing Limited

Corporate Family Rating, Placed on Review for Upgrade, currently
B1

Senior Unsecured Regular Bond/Debenture, Placed on Review for
Upgrade, currently B3

Issuer: Fly Willow Funding Limited

Backed Senior Secured Bank Credit Facility, Placed on Review for
Upgrade, currently Ba3

Outlook Actions:

Issuer: Fly Funding II S.a.r.l.

Outlook, Changed To Rating Under Review From Negative

Issuer: Fly Leasing Limited

Outlook, Changed To Rating Under Review From Negative

Issuer: Fly Willow Funding Limited

Outlook, Changed To Rating Under Review From Negative

RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS

FLY's current B1 Corporate Family Rating reflects Moody's
expectations of better profitability and more stable fleet
utilization, both of which are likely to benefit from improved air
travel prospects. The majority of FLY's fleet is comprised of
narrow-body aircraft used primarily in domestic and regional
travel, which, Moody's believes, has better prospects of improved
volumes as air travel demand recovers. Moody's currently expects
that air passenger demand will be at about 50% of 2019 levels in
2021 and recover strongly toward 2019 levels during 2023.
Nonetheless, the company does have a fair amount of aircraft
(approximately 17% of the entire fleet at December 31, 2020) coming
up for lease renewal by the end of 2021, creating uncertainty
around the company's ability to re-lease some of its older
aircraft.

FLY's ratings also reflect its high airline lessee concentrations
and greater reliance than Moody's had previously anticipated on
confidence-sensitive secured funding that encumbers its assets,
leaving the company with fewer funding alternatives. At December
31, 2020, FLY's top ten airline customers comprised approximately
61% of the carrying value of its fleet, whereas its larger rated
competitors' customer concentration ranged more favorably from 30%
to 45%, as at the same reporting date.

FLY has a weak liquidity position supported primarily by existing
cash ($132 million as of December 31, 2020). Moody's anticipates
free cash flow after mandatory amortization will be in the range of
$10 million (excluding approximately $160 million in mandatory
amortization) over the next 12 months. This free cash flow
projection incorporates an assumption of the repayment of rent
deferrals in the amount of approximately $15 million by the end of
2021 as anticipated by FLY. The company does not currently have any
external committed revolving facilities.

Moody's regards the coronavirus outbreak as a social risk under its
environmental, social and governance (ESG) framework, given the
substantial implications for public health and safety. The rating
action reflect the negative effects on FLY of the breadth and
severity of the downturn in aviation, and the deterioration in
FLY's credit quality, profitability, capital and liquidity that
have led to the announcement of the acquisition by Carlyle Aviation
Partners.

Moody's review for upgrade will focus on the potential benefits to
FLY's creditors of the proposed transaction, which may include
improved liquidity, better cost of capital, and sponsor support.
The review will also consider the impact of trends in global air
travel on the company's performance. The ratings could be confirmed
if the liquidity continues to be supported by free cash flow
generation in excess of 2% of total debt as well as if the company
maintains access to external liquidity.

Given the direction of the ratings review, rating downgrades are
unlikely upon completion of the review.

However, the ratings could be downgraded if the transaction does
not close and /or if: 1) profitability continues to deteriorate
beyond Moody's current expectations; 2) liquidity deteriorates due
to higher than expected loans' capital calls, further payment
deferrals or other cash needs; or 3) other key financial metrics
deteriorate, including a tangible equity / tangible assets decline
to less than 20%, stemming from challenging economic conditions or
financing changes.

The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.

Incorporated in Bermuda (A2 stable), FLY Leasing Limited (FLY) is a
publicly traded lessor of commercial aircraft and engines. As of
December 31, 2020, the company had 79 aircraft on lease and 5
aircraft off-lease and had total assets of $3.2 billion. Carlyle
Aviation is a multi-strategy aviation investment manager with
assets under management of $6.1 billion which owns and manages a
fleet of 246 aircraft. BBAM Limited Partnership (BBAM), one of the
largest aircraft servicers, is current FLY's manager.

TRITON INT'L: Fitch Assigns First-Time 'BB+' IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has assigned a first-time Issuer Default Rating (IDR)
of 'BB+' to Triton International Limited and its wholly owned
subsidiary Triton Container International Limited (TCIL). Fitch has
also assigned a 'BBB-' rating to TCIL's senior secured credit
facility and senior secured term loans, and a rating of 'BB-' to
all of Triton's perpetual cumulative redeemable preferred shares.
The preferred shares represent unsecured obligations, ranking
junior to and subordinated in right of payment to Triton's secured
debt. The Rating Outlook is Stable.

KEY RATING DRIVERS

Triton's ratings reflect its well-established market position as
the largest global maritime container lessor, experienced
management team, solid operating track record through various
cycles, predictable cash flows generated predominantly from
longer-term leases, robust risk controls and lease terms, the
standardized nature and relatively long useful life of containers
which moderates residual value risk, adequate liquidity and
appropriate leverage.

The ratings are constrained by Triton's secured, wholesale funding
profile; its monoline business model that is exposed to swings in
steel prices and global trade levels; and a concentrated, low
credit quality shipping line customer base. Fitch's global shipping
sector outlook is stable.

Triton is a market leader in the container leasing sector, with a
28% leasing market share and a fleet totaling 6.2 million 20-foot
equivalent units of dry, refrigerated, special and tank containers,
as well as chassis at YE 2020. Triton has a long track record in
container leasing, and a solid management team, averaging 19 years
of industry experience.

Triton's customer base is highly concentrated, with the top-five
customers accounting for 58% of revenues in 2020. Therefore, a
negative credit event of an individual lessee can have a material
impact on Triton's financial performance. For example, the
bankruptcy of Hanjin Shipping Co. in 2016 resulted in a $22.9
million loss, net of insurance proceeds, representing 9.2% of the
company's quarterly revenue in 3Q16.

Fitch believes residual value risk is moderate relative to other
equipment lessors, as containers are exposed to lower technological
obsolescence when compared with other leased transportation assets,
and orders can be placed relatively quickly to meet demand. Triton
generated gains on equipment sales in nine of the past 10 years,
despite fluctuating spot prices for the used containers, given a
conservative depreciation policy.

Triton's business model is highly cash flow generative. At YE 2020,
Triton's long-term and finance leases had an average remaining
contract term of 49 months, which provides stability of utilization
rates throughout the business cycle and predictable cash flows.
From 2017-2020, Triton's pre-tax return on assets was 3.7%, which
is consistent with Fitch's 'bb' category earnings and profitability
benchmark range of 1% to 4% for finance and leasing companies with
an operating environment score in the 'bbb' category. Fitch expects
Triton's earnings to remain relatively stable over the horizon,
absent lessee defaults, given the contractual nature of cash flows,
although utilization rates could moderate from recent highs.

The company has deleveraged significantly over the past five years,
with Fitch-calculated leverage (gross debt over tangible equity
assuming 50% equity credit for preferred shares) at 3.3x at YE
2020, down from 4.8x at YE16. Fitch believes the company's leverage
will remain below 4x over the horizon and within the 'bbb'
quantitative leverage benchmark range of 0.75x-4.0x for balance
sheet intensive finance and leasing companies with an operating
environment score in the 'bbb' category.

At YE 2020, all of Triton's debt was secured, which Fitch believes
constrains the company's financial flexibility. Triton's current
funding sources include private institutional notes, asset-backed
term notes and warehouse facilities, and revolving and bank term
loan facilities.

At YE 2020, Triton had $61 million in cash, $1.6 billion of
revolver capacity, generated over $940 million in cash flows from
operating activities and collected $255 million in proceeds from
the sale of used equipment. Fitch estimates Triton's liquidity
sources (secured revolver capacity, unrestricted cash and next 12
months of operating cash flow) covered uses (next 12 months of debt
maturities, capex and dividends) by approximately 1.4x at Dec. 31,
2020, which is adequate for rating. Fitch believes the company has
a relatively aggressive dividend policy, as distributions on
preferred and common shares represented approximately 52% of
adjusted net income in 2020. Triton repurchased $158.3 million of
shares in 2020, but Fitch expects Triton will moderate repurchases
near-term given planned capex.

The Stable Outlook reflects Fitch's expectation that Triton's
leverage will remain below 4.0x over the rating horizon, its strong
market position, and improving credit quality of the company's
lessee.

PREFERRED SECURITIES

Fitch rates the preferred shares two notches below Triton's IDR, in
accordance with Fitch's 'Corporate Hybrids Treatment and Notching
Criteria' dated Nov. 12, 2020. The preferred share rating includes
two notches for loss severity, reflecting the preferred shares'
deep subordination and heightened risk of nonperformance relative
to other obligations. Fitch has afforded the issuance 50% equity
credit given the cumulative nature of the distributions, the fact
that the preferred shares are perpetual, and the lack of change of
control provisions and events of default.

SUBSIDIARY RATINGS

TCIL is a wholly owned operating and debt-issuing subsidiary of
Triton. The IDRs of Triton and TCIL are equalized because of strong
operating ties between them, as TCIL is the main operating
subsidiary of Triton and is consolidated in the parent's financial
statements.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- The addition of an unsecured funding component, with unsecured
    debt/total debt approaching or exceeding 35%, which would
    enhance the firm's funding flexibility;

-- Improved lessee diversification and/or credit quality,
    sustained improvements in profitability, and maintenance of
    leverage at-or-below 4.0x, would also be viewed positively.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Sustained leverage above 4.0x, which could be driven by
    material impairments or losses on asset sales and would result
    in a significant loss of equity;

-- A weakening of the liquidity profile; the bankruptcy and/or
    material credit deterioration of a top lessee relationship;
    and material long-term declines in utilization rates and/or
    deterioration in the container leasing industry beyond
    cyclical norms, which leads to sustained weakness in
    profitability;

The senior secured term loan rating and revolving credit facility
rating are primarily sensitive to changes in TCIL's long-term IDR
and secondarily to the relative recovery prospects of the
instruments. A meaningful decrease in asset values pledged to the
secured debt could result in the secured debt rating being
equalized with the IDR.

The rating on the preferred shares is primarily sensitive to
changes in Triton's long-term IDR and is expected to move in
tandem. However, the preferred share rating could be downgraded by
an additional notch to reflect further structural subordination
should the firm consider issuances of other subordinated debt or
hybrid securities.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.



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B R A Z I L
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BANCO FORD: Moody's Affirms Ba2 Deposit Ratings, Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service has affirmed all ratings and assessments
of Banco Ford S.A.'s, except its Baseline Credit Assessment, which
remains on review for downgrade. Moody's affirmed the bank's
long-term global local and foreign currency deposit ratings at Ba2,
the long-term counterparty risk assessment at Ba1(cr), and the
long-term counterparty risk ratings at Ba1. The long-and short-term
Brazilian national scale ratings were also affirmed. At the same
time, Moody's changed to stable, from negative, the outlook on the
bank's long-term global deposits ratings.

The change in outlook of Banco Ford's deposit ratings was prompted
by similar action taken on the ratings of its immediate parent,
Ford Motor Credit Company LLC (FMCC, Ba2 long-term senior unsecured
rating, stable), which, in turn, followed the rating action on Ford
Motor Company (Ford, Ba2 corporate family rating, stable).

The following ratings and assessments were affirmed:

Long-term global local -currency deposit rating at Ba2, outlook
changed to stable, from negative

Long-term global foreign-currency deposit rating at Ba2, outlook
changed to stable, from negative

Long-term global local-currency counterparty risk rating at Ba1

Long-term Brazilian national scale deposit rating at Aa3.br

Long-term counterparty risk assessment at Ba1(cr)

Long-term global foreign-currency counterparty risk rating at Ba1

Long-term Brazilian national scale counterparty risk rating at
Aaa.br

Short-term Brazilian Counterparty Risk Rating at BR-1

Short-term counterparty risk assessment at NP(cr)

Short-term global local-currency counterparty risk rating at NP

Short-term global foreign-currency counterparty risk rating at NP

Short-term global foreign-currency deposit rating at NP

Short-term global local -currency deposit rating at NP

Short-term Brazilian national scale deposit rating at BR-1

Adjusted baseline credit assessment at ba2

Outlook changed to stable, from negative

RATINGS RATIONALE

Banco Ford's Ba2 local currency deposit rating and ba2 adjusted BCA
incorporate one-notch of uplift from its ba3 BCA to reflect our
assessment of a very high likelihood of support from its parent,
FMCC, based on the strategic focus shared between the parent and
the bank. As a result of the change in outlook on FMCC's ratings to
stable, from negative, the outlook on Banco Ford's ratings was also
changed to stable, from negative.

Banco Ford's Baseline Credit Assessment at ba3, on the other hand,
remains on review for downgrade to reflect the expectation of
declining profitability and more volatile asset risk coming from
lower business after the announcement that Ford Motors will cease
its car manufacturing in Brazil. Moody's notes that the bank's
ratings reflect its role as a captive financing arm of the auto
manufacturing company, being solely engaged in financing sales of
vehicles of Ford Motor do Brasil to car dealers.

During the review period, Moody's will assess Banco Ford's ability
and timing needed to right-size its balance sheet, including its
loan book and funding arrangements, as well as capital adequacy.
Moody's review will focus on the strategic repositioning of Banco
Ford's operations and expectation of lower sales volumes going
forward, which could have material effect on its profitability.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The review for downgrade of Banco Ford's BCA indicates that rating
upgrades are unlikely over the next 12-18 months.

A material decline in Banco Ford's asset quality and profitability
beyond Moody's expectations could put pressure on the bank's BCA. A
significant decline in the bank's capitalization could also lead to
lower stand-alone credit profile for Banco Ford.

METHODOLOGY USED

The principal methodology used in these ratings was Banks
Methodology published in March 2021.

Banco Ford is indirectly owned by Ford Motor Credit Company LLC
(USA), which, on its turn, is 100% controlled by Ford Motor Company
(USA). Banco Ford has a mono-line operation that is closely tied to
the volume of cars sold by Ford in Brazil. The bank's core business
is to provide floor plan financing to authorized Ford car dealers
for the acquisition of new vehicles from the automaker.
Headquartered in Sao Paulo, in November 2020, it had total assets
of BRL840 million and equity of BRL227 million.



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C O L O M B I A
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AVIANCA HOLDINGS: Net Losses Up 22% in 2020
-------------------------------------------
Nelson Bocanegra at Reuters reports that net losses at airline
Avianca Holdings increased 22% to $1.09 billion in 2020, due to the
near-paralysis of global air travel because of COVID-19, the
company said.

The airline, which is carrying out a restructuring process under
the U.S. Chapter 11 bankruptcy law, had losses of $894 million in
2019, according to Reuters.

Operations contracted 74% year-on-year, the airline said in a
filing to Colombia's financial regulator, while operating income
was down to $1.71 billion, from $4.62 billion in 2019, the report
relays.

Keeping passenger planes grounded due to coronavirus meant Avianca
reduced its costs to $2.3 billion in 2020 from $5.17 billion the
year before, the statement said, the report relates.

The report discloses that passenger numbers fell 74% to 7.9
million, the company said, and 33% of income was provided by $556
million in earnings from its cargo business, the report discloses.

In October, a U.S. bankruptcy court approved a proposed financing
plan of over $2 billion to help the carrier exit Chapter 11
restructuring, the report relays.

The report discloses that the company had $911 million in cash at
the close of last year and still-available financing commitment of
$350 million.

"This reflects our solid liquidity, after successfully acquiring
about $2 billion in Debtor-in-Possession -- DIP -- financing last
year, including more than $1.2 billion in new resources, all of
which is private capital," Avianca said, the report relays.

Colombia's flagship airline has a fleet of 158 planes and 19,000
employees, the report adds.

                        About Avianca

Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A.  Avianca has been flying
uninterrupted for 100 years.  With a fleet of 158 aircraft, Avianca
serves 76 destinations in 27 countries within the Americas and
Europe.

Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.  

Judge Martin Glenn oversees the cases.

The Debtors tapped Milbank LLP as general bankruptcy counsel;
Urdaneta, Velez, Pearl & Abdallah Abogados and Gomez-Pinzon
Abogados S.A.S. as restructuring counsel; Smith Gambrell and
Russell, LLP as aviation counsel; Seabury Securities LLC as
financial restructuring advisor and investment banker; FTI
Consulting, Inc. as financial restructuring advisor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.

The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtors' bankruptcy cases on May 22, 2020.

As reported in the Troubled Company Reporter-Latin America on March
24, 2021, Fitch Ratings has affirmed the ratings of Avianca
Holdings S.A.'s (Avianca) Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'D'. Avianca's bond issuances have also been
affirmed at 'C'/'RR6'.



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CARIBBEAN AIRLINES: Passengers May Book COVID-19 Tests on Website
-----------------------------------------------------------------
RJR News reports that Caribbean Airlines Limited, has announced
plans to allow passengers the opportunity to book and pay for
COVID-19 tests via the airline's website.

According to CAL, it has partnered with Ink Aviation to facilitate
this service in which passengers can book tests up to seven days in
advance but no less than 48 hours prior to their flight departure
date, the report notes.

CAL chief operations officer, Steve Azevdo says the platform is
compatible with all digital and paper COVID-19 test certificates
including results from PCR and Antigen tests, according to RJR
News.

Customers can input their booking reference code and a list of
approved testing laboratories in the country where their flight
originates, along with available appointment dates and times, will
appear, the report relays.

                    About Caribbean Airlines

Caribbean Airlines Limited - http://www.caribbean-airlines.com/-  

provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty free
store in Trinidad.  Caribbean Airlines Limited was founded in 2006
and is based in Piarco, Trinidad and Tobago.

Caribbean Airlines is among many airlines whose business has been
greatly affected in 2020 by the slowdown of international travel
caused by the COVID-19 pandemic.  The government of Trinidad &
Tobago guaranteed a US$65 million loan for the airline, and that
funding has helped with the airlines' cash flow shortfall since May
2020.  In September 2020, the airline related it will be taking
cost-cutting measures to help keep it afloat.  The measures, which
was to affect some 1,700 employees, included salary deductions,
no-pay leaves and lay-offs.

TRINIDAD & TOBAGO: Food Prices Under Upward Pressure
----------------------------------------------------
Trinidad Express reports that Trinidad and Tobago's Central Bank
warned that domestic food prices may be under upward pressure, even
as the institution sees indicators that suggest a slow recovery in
the non-energy sector.

The comments came in the Central Bank's quarterly Monetary Policy
Announcement (MPA), in which the Bank provides a snapshot of the
current state of credit and price pressures, while outlining its
key policy rate, the repo rate. The Central Bank maintained the
repo or repurchase, rate at 3.50 per cent, according to Trinidad
Express.  The repo rate is the rate at which the commercial banks
repurchase securities from the Central Bank, the report notes.

Discussing price pressures in the economy, the Central Bank said
headline inflation remained contained at 0.8 per cent
(year-on-year) in February 2021, with food inflation decelerating
to 2.3 per cent after surging to 5.1 per cent in November 2020, the
report relays.

"However, the recent increase in animal feed costs and unseasonal
weather patterns may provide some upward impetus for prices in the
coming months," according to the Bank, the report relays.

On the issue of the domestic economy, the Bank said conditions are
yet to fully stabilise from the Covid-19 shock, the report
discloses.

It said that during the fourth quarter of 2020, the energy sector
experienced significant year-on-year production fall-offs for
natural gas, liquefied natural gas and petrochemicals, the report
says.

But, on the other hand, it noted: "Indicators monitored by the
Central Bank suggest that non-energy sector activity is slowly
recovering, fuelled by the construction and finance and insurance
sectors," the report notes.

                      Declining Loan Demand

The Central Bank pointed out that its monetary policy actions of
March 2020-when it cut the repo rate from five per cent to 3.5 per
cent and reduced its primary reserve requirement from 17 per cent
to 14 per cent-have had a year to work their way through the
financial system, the report relays.

"Liquidity remains elevated, but has come down to a daily average
of around $8 billion in March 2021 from record high levels of close
to $15 billion in late 2020, mainly on account of government
borrowing operations," the report discloses.

The Bank noted that interest rates in T&T have continued to
decline, with the commercial banks' weighted average lending rate
falling to 7.29 per cent by December 2020, the report relays.

"However, lower interest rates and ample liquidity have not
elicited a very strong private sector credit response. Credit
granted by the consolidated banking system declined by 0.9 per cent
(year-on-year) in December 2020, with business and consumer credit
contracting by 4.7 per cent and 2.1 per cent, respectively. Within
the rubric of business credit however, there was evidence of
heightened loan activity in the construction sector and food, drink
and tobacco manufacturing," according to the Bank, the report
discloses.

It noted that real estate mortgage loans have remained resilient,
growing by 3.7 per cent, but that "overall, many individuals and
businesses seem reluctant to increase their debt commitments in an
economic climate still marked by uncertainty, while on the supply
side banks remain cautious in assessing clients' repayment
capacity," the report adds.

                        Foreign Reserves Slip

According to the Central Bank: "With respect to the country's
external accounts, the level of official international reserves
slipped from US$6.95 billion at the end of 2020 to US$6.66 billion
in mid-March 2021 (about eight months of import cover).

"In the context of an improving international outlook, the Monetary
Policy Committee (MPC) retained the view that the deep declines
experienced by the domestic energy sector in 2020 were not expected
to persist in 2021 and the non-energy sector appears to be in an
early phase of correction.  The Committee's assessment was that
current financial conditions allowed further room for credit
expansion without undue demand pressures on inflation.

"At the same time, Trinidad and Tobago's external balance situation
was also carefully considered, as reflected in some foreign
exchange tightness and low interest rate differentials-16 basis
points between domestic and US three-month treasuries," the report
notes.

Taking all factors into account, the MPC agreed to maintain the
repo rate at 3.50 per cent.  The next Monetary Policy Announcement
is scheduled for June 25, 2021.

                           Covid Response

The Central Bank said: "The global economy is on a recovery path in
2021 as the deep shocks precipitated by the Covid-19 pandemic
gradually subside. Updated projections from the International
Monetary Fund point to a global economic contraction of 3.5 per
cent in 2020 followed by an estimated 5.5 per cent expansion in
2021, the report says.

"Within this setting, the pace of implementation of national
Covid-19 vaccination programmes is expected to have a strong
influence on growth rates in individual territories. "Strong fiscal
support has continued worldwide in order to deal with the health
and economic challenges brought about by the pandemic-the medium
term effects of such expenditure on public sector debt dynamics are
already engaging the international financial community.

"Central Banks in developed countries have maintained extraordinary
monetary policy support, mainly through sizeable asset purchase
operations. In emerging markets, a few monetary authorities raised
their policy rates in March 2021 amidst concerns about looming
inflation," the report adds.

TRINIDAD & TOBAGO: Retailers Feel Squeezed by Landlords, Customers
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Trinidad Express reports that it's been a year since Covid-19
landed in Trinidad and Tobago, wreaking havoc on the economy and
forcing many businesses to close their doors permanently, while
other owners who remain open have observed a drastic fall in
sales.

Express Business visited a few malls over the weekend and several
stores have shuttered their doors due to the dire economic impact
of the pandemic, according to Trinidad Express.

At Gulf City Mall in San Fernando, 25 outlets comprising retail
stores and outlets in the food court have permanently closed,
because of reduced economic activity, the report notes.

The report relays that Hard Rock Cafe, which was located in the
mall, and only opened up to the public early last year, closed its
doors in the middle of 2020.

Several stores on the ground and top floors were just plastered
with colorful paper with the "For Rent" signs on the front glass
door, the report discloses.

One tenant, who did not wish to be named, said it has been rough
for him to meet his commitment to pay rent, as his sales have
decreased by 70 per cent, the report notes.

Another factor that the tenant said could deter customers from
visiting the shopping centre is a parking fee, which is expected to
be implemented soon by the management, the report says.

Speaking on the hardship being experienced by business owners was
Greater San Fernando Business Chamber president Kiran Singh, who
said the last year was extremely difficult for store owners, the
report discloses.

He indicated that in downtown San Fernando, the Chamber estimated
that business closures stood at 25 per cent, the report relays.

"The chamber has been working with the small-and medium-sized
enterprises (SMEs) to pay a reduced rent to landlords, while
negotiating with the banks to reduce mortgage rates.  However, this
has not materialized.  We had hoped for some leniency from the
banking sector with respect to loans for businesses, but that has
not happened," the report relays.

Singh said the retail sector will feel the impact more than others
since, unlike commodities like food and pharmaceuticals, clothes
and shoes are not regarded as essentials, the report discloses.

                                Forex

Foreign exchange is still a major challenge for businesses and some
owners are forced to turn to the black market in order to purchase
their shipment of goods, the report notes.

"Something needs to be done as this problem has been plaguing the
business sector for over five years. The Central Bank needs to
intervene in this matter as the lack of foreign exchange can cause
further closure of stores," the report discloses.

Singh also believes the relief grants for the small-and
medium-suzed businesses should have been extended as it would have
assisted owners greatly, the report relays.

Across at Trincity Mall, Trincity Central Road, about 25 stores
have "For Rent" signs displayed on their front glass doors, the
report notes.

Several tenants said many owners packed up their shops because the
decrease in foot traffic to the stores has led to a drop in sales
which made it difficult for them to come up with their rent
payment, the report discloses.

The report says that one tenant said while some people gathered at
the mall space, this does not equate to money being spent at the
various stores.

"The consumer spending power has dropped as some would have been
laid off from their jobs or received a pay cut, so persons are not
buying luxurious items, they are just concentrating on the
important items that are needed for the household," the report
notes.

The tenant said big stores like Francis Fashion and Wonderful World
have reduced their store space because of less sales, while other
stores closed their branch in the mall and remained with one or two
other store locations elsewhere, the report relays.

At Long Circular Mall, about five stores including retail and
accessories stores are now closed.  These figures were confirmed by
Richard Le Blanc, chief executive officer of the Home Construction
Ltd (HCL) group of companies, which owns both Long Circular and
Trincity malls, the report discloses.

Le Blanc said, however, he is confident the economy will bounce
back, the report says.

At the Falls of West Mall, about 15 stores have shuttered their
doors, however, tenants informed Express Business that new tenants
are expected to occupy some of the empty spaces, the report notes.

Reval Chattergoon president of the Arima Business Association said
earlier this year the association did an audit on the number of
businesses in Arima proper that closed their doors, the report
discloses.  It was estimated at around 150. He believes the number
has since increased, the report says.

Chattergoon also said the upsurge in crime along the corridor did
not help as business owners became fearful for their lives, and
customers frequented the establishments less and less, the report
relays.

"The worst is not over yet until we start getting the vaccines and
that would take some time to start to yield results. It is going to
be tough for businesses to rally out," Chattergoon added, says the
report.

Also weighing in on the matter was Trinidad and Tobago Chamber of
Industry and Commerce president, Reyaz Ahamad, who said the small-
and medium-sized businesses are the ones feeling the impact the
most, given the lack of activity in the economy and some businesses
that require foreign exchange to operate, are also feeling the
effects, the report says.

"The only way out of Covid is a vaccination programme, which has
not yet been rolled out in T&T, so businesses will be challenged
for the foreseeable future. We all knew with a vaccination
procurement it would have taken some time," he said, the report
notes.

According to Ahamad, once vaccinations begin and the Government
hopefully has plans to incentivise the economy, businesses can once
again see some spending activity once, the report adds.


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