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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 9, 2021, Vol. 22, No. 109

                           Headlines



A N T I G U A   A N D   B A R B U D A

ANTIGUA & BARBUDA: In Talks With IMF for Pandemic Related Funding


B E R M U D A

TEEKAY TANKERS: Incurs $21.4MM Net Loss in First Quarter 2021


B R A Z I L

BRAZIL: More Deforestation & Less Rain Threaten Agribusiness
RUMO SA: Fitch Affirms 'BB/BB+' Issuer Default Ratings, Outlook Neg


C O L O M B I A

BANCO GNB: Fitch Affirms 'BB+' LT IDRs, Outlook Negative
ITAU CORPBANCA: Fitch Lowers LT IDRs to 'BB+', Outlook Negative


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Manufacturing Activity Declines in April


M E X I C O

UNIFIN FINANCIERA: Fitch Affirms 'BB' LT IDRs, Outlook Negative
UNIFIN FINANCIERA: S&P Affirms 'BB-' ICR, Outlook Negative


T R I N I D A D   A N D   T O B A G O

[*] TRINIDAD & TOBAGO: Removing Five Notes by Jan. 1


X X X X X X X X

LATAM: Trade Recovers From Pandemic Impacts

                           - - - - -


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A N T I G U A   A N D   B A R B U D A
=====================================

ANTIGUA & BARBUDA: In Talks With IMF for Pandemic Related Funding
-----------------------------------------------------------------
RJR News reports that the Antigua and Barbuda Government said it is
holding talks with the International Monetary Fund (IMF) as it
explores its options in the event that it should require funding to
deal with the impact of the COVID-19 pandemic.

However, Prime Minister and Minister of Finance, Gaston Browne,
said his administration has already made it clear to the
Washington-based financial institution that the country wants to
introduce its own program, according to RJR News.

Mr. Browne further explained that the Government would be
interested in long term funding of at least 15 years, the report
notes.

The Government has said the pandemic has impacted revenue, reducing
it by as much as 40 per cent, the report relays.




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B E R M U D A
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TEEKAY TANKERS: Incurs $21.4MM Net Loss in First Quarter 2021
-------------------------------------------------------------
Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE: TNK)
reported the Company's results for the quarter ended March 31,
2021:

Highlights

   -- Reported GAAP net loss of $21.4 million, or $0.63 per share;
and adjusted net loss(1) of $22.0 million, or $0.65 per share, in
the first quarter of 2021 (excluding items listed in Appendix A to
this release).

   -- As part of further reducing Teekay Tankers' cost of capital,
in March 2021, the Company declared additional options to
repurchase six vessels that are currently on long-term
sale-leaseback financings for $129 million, which are expected to
close in September 2021.

   -- In March 2021, closed the previously-announced sale of two
unencumbered Aframax tankers for a total of approximately $32
million.

   -- Maintained a strong balance sheet with a liquidity position
of approximately $372 million and net debt to capitalization(3) of
32 percent as at March 31, 2021.

A full text copy of the company's financial results is available
free at: https://bit.ly/2TLCvQN

As reported in the Troubled Company Latin-America on June 8, 2021,
Egan-Jones Ratings Company, on May 26, 2021, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Teekay Tankers Ltd.




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B R A Z I L
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BRAZIL: More Deforestation & Less Rain Threaten Agribusiness
------------------------------------------------------------
Rio Times Online reports that Brazilian agribusiness is losing up
to US$1 billion dollars a year as rising deforestation cuts
rainfall in the southern Amazon -- a problem set to expand if
forest loss continues, a group of Brazilian and German researchers
have warned.

In a study published in the journal Nature Communications in May,
they found that smaller-scale forest losses can enhance rainfall on
adjoining agricultural land -- but once losses pass 55-60%,
rainfall plunges, according to Rio Times Online.

Losses of tree cover, in particular, seem to delay the start and
shorten the length of the rainy season, they found, the report
relays.

                           About Brazil

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.

S&P Global Ratings affirmed its 'BB-/B' long- and short-term
foreign and local currency sovereign credit ratings on Brazil (June
2021).  Fitch Ratings' credit rating for Brazil stands at 'BB-'
with a negative outlook (November 2020).  Fitch's 'BB-' Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) has been
affirmed in May 2021.  Standard & Poor's credit rating for Brazil
stands at BB- with stable outlook (April 2020).  Moody's credit
rating for Brazil was last set at Ba2 with stable outlook (April
2018).  DBRS's credit rating for Brazil is BB (low) with stable
outlook (March 2018).


RUMO SA: Fitch Affirms 'BB/BB+' Issuer Default Ratings, Outlook Neg
-------------------------------------------------------------------
Fitch Ratings has affirmed Rumo S.A.'s Local Currency (LC) Issuer
Default Rating (IDR) at 'BB+', Foreign Currency (FC) IDR at 'BB',
unsecured bonds issued by Rumo Luxembourg S.a.r.l. at 'BB',
National Long-Term Ratings and unsecured debentures at 'AAA(bra)'.
The Rating Outlook for the LC IDR and the National long-term
ratings is Stable and the FC IDR is Negative.

The rating actions reflect Rumo's solid business position as one of
the largest railroad operators in Brazil, its consistently solid
operating margins, healthy operating cash flow, strong liquidity,
and low net leverage of 3.0x. Rumo should continue benefiting from
agricultural expansion in Brazil as the company captures additional
volumes, mainly coming from its newest Malha Central network.
Rumo's ownership by Cosan S.A. (LC IDR BB+/Stable), which also owns
leading companies in several sectors, is also a key credit
consideration.

KEY RATING DRIVERS

Solid Business Fundamentals: Rumo's operations benefit from the
strong international trade flow associated with Brazil's growing
agricultural sector as well as the diverse export market the sector
serves. The company and the rail transportation sector have not
been negatively impacted by the coronavirus pandemic. Further, Rumo
continues to maintain its competitive advantage due to its low cost
of transportation and despite increasing competition with the
highway service. Fitch expects Rumo to transport 70 billion revenue
ton kilometer (RTK) in 2021, increasing to 80 billion RTK in 2022
as the new Malha Central line ramps up; Rumo transported 62 billion
RTK in 2020. Volume should increase by approximately 10% to 17%
annually from 2021 onwards, driven by the opening of Malha Central,
which became operational in 1Q21. Rumo's main cargo is comprised of
agricultural products that are predominately exported, mainly
soybean and soymeal (40.0%), corn (27.5%), and sugar (8.0%), based
on 2020 figures.

Capex Pressures FCF: Rumo's EBITDA margins is expected to improve
to 41%-48% over the rating horizon, while the company gains scale,
after falling to 40% in 2020. Margin weakness in 2020 was due to
pre-operating expenses related to Rumo Malha Central's new
concession contract, and the concession renewal fee for Rumo Malha
Paulista. Fitch's rating case forecasts EBITDA and funds from
operation (FFO) of BRL3.3 billion and BRL2.0 billion in 2021, and
BRL4.0 billion and BRL2.6 billion in 2022, respectively. The new
capex requirements from the concession renewal at Rumo Malha
Paulista should put pressure on the company's FCF. Fitch projects
elevated capex of around BRL15 billion from 2021 to 2024.to result
in negative FCF of approximately BRL4.0 billion for the period.

Leverage Remains Conservative: Rumo is expected to have low net
leverage, from 2.5x to 3.0x, during the high levels of investment
over the next four years. Fitch's baseline scenario considers net
leverage ratio, as measured by net debt/EBITDA, to peak at 3.0x in
2021. Improvements in Rumo's operating cash flow generation, led by
gains of scale coming from the investments, should result in net
leverage between 2.5x and 3.0x from 2022 onwards.

Business Profile Remains Strong: The railroad sector risks are low,
supported by consistent demand, high barriers to entry and low
competition. Rumo benefits from its market position as the sole
rail transportation company in the South and Midwest regions of the
country, with five concessions to operate more than 13 thousand
kilometers of tracks and access to Brazil's three main ports. Due
to a low cost structure, the company enjoys solid competitive
advantages over truck transportation, which support stable demand
and limits volume volatilities over cycles. The recently added Rumo
Malha Central line and renewed the Rumo Malha Paulista concession,
are credit positives as both rail lines offer opportunities for
capturing greater grain volumes in the covered regions.

FC IDR capped by Country Ceiling: Rumo's FC IDR is constrained by
Brazil's 'BB' Country Ceiling, as the company's operations are
essentially in Brazil and the company does not have assets or cash
held abroad. The FC Negative Outlook reflects the sovereign's
Negative Rating Outlook.

Credit Linkage Incorporated: The ratings of Rumo and its
subsidiaries are equalized due to strong operational and legal ties
among them. The strong operating synergies, the centralized cash
management and the shared management permit the credit profile to
be analyzed in a consolidated basis and the ratings for all
subsidiaries to be the same.

DERIVATION SUMMARY

Rumo's ratings reflect its strong business profile in the railroad
industry in Brazil. The railroad's low cost structure and Rumo's
position as the sole railroad provider in its covered region
provide important competitive advantages, allowing it to have
consistent volume growth and increasing operating cash flows as it
expands operational capacity. The rating is constrained by Rumo's
business concentration in one country, as it only serves Brazil's
agribusiness and industrial sectors, like most of its Brazilian
peers but different from other railroads worldwide, which have a
more diversified region. The company's record of strong cash
generation and its ability to improve its credit metrics over the
last three years are important credit factors.

Rumo's LC IDR is below Brazilian peer MRS S.A.'s LC IDR
(BBB-/Negative). MRS is the best-positioned railroad in the
country, due to its more resilient cargo profile, record of
positive FCF, captive customer base (also shareholders), and lower
net leverage. Additionally, Rumo faces an expectation of negative
FCF during the rating horizon. Rumo's and MRS's LC ratings are
below those of other mature, more geographically diversified and
less leveraged rail companies in Mexico, the U.S. and Canada, such
as Kansas City Southern (BBB/Negative). Rumo's LC IDR is above that
of Hidrovias do Brasil S.A. (HdB; BB/Negative), due to Rumo's
ability to generate more stable operating cash flows and to finance
its large investment to increase volumes. HdB's net leverage is
higher than Rumo's, consistent with its still immature profile, but
it has predictable cash flows and faces low competition.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for Rumo:

-- Agricultural volumes increase 10% annually;

-- Industrial volumes increase per GDP annually;

-- Additional 2 billion RTK and 8 billion RTK in 2021 and 2022,
    respectively, from Rumo Malha Central;

-- Average tariffs increase by the inflation rate in 2021-2024;

-- Total capex of BRL15.3 billion in 2021-2024, with BRL7.4
    billion expected to be invested in 2021-2022.

RATING SENSITIVITIES

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

-- Upgrades in Rumo's LC IDR depends on positive FCF trends and
    maintenance of net leverage below 3.0x;

-- Positive actions toward the sovereign rating may lead to
    positive actions regarding Rumo's FC IDR, currently limited by
    the Brazilian Country Celling;

-- Positive actions on National Long-Term Rating do not apply, as
    the rating is at the top of the national scale category.

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

-- An inability to finance capex with long-term and low cost
    debt, pressuring Rumo's debt amortization schedule;

-- Substantial weakening of its EBITDA margin;

-- Net adjusted leverage trends above 3.5x, on a sustained basis.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
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.

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Rumo's liquidity is expected to remain healthy
over the next several years and throughout the investment cycle.
Short-term debt coverage has remained above 2.8x since 2018, and is
expected to be remain above 1.0x over the rating horizon. Rumo's
ability to raise long-term funds to finance negative FCF and
preserve its liquidity is a positive credit consideration. On March
31, 2021, Rumo had a cash of BRL5.5 billion and consolidated total
debt of BRL14.0 billion, mainly composed of senior notes of BRL6.0
billion, debt with Banco Nacional de Desenvolvimento Economico e
Social (BNDES) of BRL3.7 billion and debentures of BRL4.5 billion.
Debts due through 2023 totaled BRL3.2 billion. The company raised a
significant amount of debt over the last three months and has
additional approved credit lines to finance investments, which
enhanced its liquidity.

SUMMARY OF FINANCIAL ADJUSTMENTS

-- Principal and Interest on the concession asset (resulted from
    IFRS-16) are considered as "rental expense" and impacts
    EBITDA;

-- Confirming (reverse factoring) are considered as debt;

-- Fitch considers restricted cash (including long term) as
    readily available liquidity;

-- Net derivatives are considered as debt;

-- Dividends from associates and minorities are adjusting EBITDA.

ESG CONSIDERATIONS

Fitch has revised the ESG Relevance score for Social Labor
Relations & Practices to '3' from '4', considering that the
disbursement of the liability under litigation is unlikely, as,
supported by the opinion of the company's lawyers, the chance of
success in the lawsuits is probable.

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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C O L O M B I A
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BANCO GNB: Fitch Affirms 'BB+' LT IDRs, Outlook Negative
--------------------------------------------------------
Fitch Ratings has affirmed Banco GNB Sudameris S.A.'s (GNB)
Long-term Local and Foreign Currency Issuer Default Ratings (IDRs)
at 'BB+' and Viability Rating (VR) at 'bb+'. Fitch also has
affirmed Gilex Holding S.A.'s (GH) Long-term IDRs at 'BB'. The
Rating Outlook for GNB and GH is Negative.

KEY RATING DRIVERS

GNB VR and IDRs

GNB's IDRs are driven by the bank's VR, which is highly influenced
by the challenging operating environments (OEs) in Colombia, Peru
and Paraguay that deteriorated since early 2020, following the
spread of Covid-19. In addition, the bank's capitalization metric
is a high influence factor as the bank's capital adequacy has been
tight although its overall loss absorption capacity is partially
enhanced by its ample loan loss reserves, low risk appetite and
sound asset quality. The bank's pressured profitability is also a
high-influence factor on the ratings.

The Negative Outlook reflects Fitch's view that downside risks from
the economic implications of the Covid 19 pandemic and current
social unrest will remain throughout 2021, which is expected to
continue pressuring performance, especially profitability and, to a
lesser extent, asset quality, once the relief programs expire. The
Negative Outlook also signals downside risks from very limited
capital ratios almost reaching the trigger for a downgrade set by
the Fitch at 8%.

Capitalization is the weakest link of the ratings. Although common
equity Tier 1 (CET1) improved at YE2020 to nearly 8.3% from 7.0% a
year earlier, metrics continue to compare well below LatAm peers in
the BB category. The increase was part of the strategy to support
growth mainly in Paraguay. The bank started publishing its capital
ratios under Basel III guidance, presenting a CET1 of 8.17% as
expected by Fitch which include the risk-weighted assets (RWA) of
the merged entity in Paraguay and the correspondent increase in the
minority stake. Fitch expects capital ratio to remain tight but
above the agency's trigger.

Full year 2020 profitability was weaker than the previous year as
it was affected by GNB's response to the COVID-19 pandemic which
increased credit and operating expenses while lowering revenues.
Management gave priority to ensuring strong asset quality and
liquidity. Operating revenues over RWAs had recently weakened to
1.1% at YE 2020 from 1.5% a year earlier, however, first quarter
2021 profitability metrics showed an improvement to 1.3%.

Historical profitability had also been affected by the bank's
conservative risk appetite that existed prior to the pandemic. An
improved operating environment which provides sustainable earnings
diversification and further efficiency improvements are expected to
support the bank's future performance.

Asset quality remains strong and compares very well to domestic and
regional peers. Fitch expects the bank's conservative policies,
relatively robust underwriting standards, and adequate risk
controls to contribute toward maintaining solid asset quality in
the foreseeable future. As of March 31, 2021, the 90-day past due
loan (PDL) ratio remains strong at 2.3% and was covered by loan
loss reserves representing 165% of PDLs. The bank's asset quality
ratios in all three markets compare well to local peers. The bank's
Peruvian subsidiary was affected by impairments in its mortgage
portfolio but the underlying guarantees, loan loss reserves and the
expected improvement in that economy should mitigate potential
charge-offs.

GNB is amply funded by customer deposits. The moderate franchise
limits the bank's competitive advantages and generally influences
the funding cost. Deposits come primarily from institutional and
public investors, resulting in higher funding costs and higher
concentrations by depositors, compared to banks with a wider retail
deposit base. Slightly over half of GNB's consolidated assets are
in the form of cash and liquid securities, as the bank is a market
maker of government securities in Colombia.

These holdings also contribute toward fulfilling the treasury
services the bank provides to institutional customers, while
further enhancing its overall funding and liquidity strategy. The
bank's liquidity ratios are among the strongest top three in the
industry (LCR stood at 204% as of December 2020). The loan to
customer deposits ratio was at a very conservative level of 60% at
YE 2020 and 63% at March 2021.

SUPPORT RATING AND SUPPORT RATING FLOOR

The bank's Support Rating (SR) of '4' and Support Rating Floor
(SRF) of 'B+' are driven by its moderate systemic importance as a
market maker, its payroll lending Colombian market share of 9% and
the growing share of retail deposits, although still modest at 4%
when compared to local systemically important banks. Fitch believes
there is limited probability that the bank would receive sovereign
support if needed, which underpins its SR and SRF. SRFs indicate
the minimum level to which the entity's long-term IDRs could fall
if Fitch does not change its view on potential sovereign support.

SUBORDINATED DEBT

GNB's subordinated debt and Tier 2 subordinated debt are rated two
notches below its VR to reflect their subordinated status and
expected high loss severity. The rating on the Tier 2 notes does
not incorporate incremental non-performance risk, given the
relatively low write-off trigger (Regulatory CET1 ratio at or below
4.5%) and also considering the fact that coupons are not deferrable
or cancellable before the principal write-off trigger is
activated.

Gilex Holding S.A. IDRs and SENIOR DEBT

GH ratings are driven by the business and financial profile of its
main operating subsidiary, (GNB, BB+/Negative). GH acts as a
non-operating holding company reliant on dividend income from GNB,
owing 94.72% of the bank's shares.

GH's long-term IDRs are one notch below those of GNB, reflecting
GH's double leverage which is at a moderate level (1.21x at
December 2020) and would increase only slightly to approximately
1.23x in 2021 (including the BBVA Paraguay merger with GNB
Paraguay), and also considers the entity's different jurisdiction
(Panama) relative to its main subsidiary (Colombia). GH will
maintain a cash buffer in excess of $220 million at the holding
level, reflecting ownership commitment to support GH and GNB's
business growth.

Debt servicing on its liabilities is heavily reliant on dividend
upstreaming from its operating subsidiaries (Dividends to interest
expenses ratio at 1.3x for December 2020), which include a covenant
of at least a dividend pay-out ratio of 50% of GNB net income.
Conglomerate regulation in the Colombian banking system regarding
consolidated regulatory focus in GH will support the capacity of
its operating subsidiaries to upstream dividends once regulatory
requirements are fulfilled at both the subsidiary and holding
level.

The rating assigned to GH's issuance is aligned to the company's
Foreign Currency IDR, as despite being senior secured and
unsubordinated obligations, in Fitch's view the amount pledged
would have not have a significant impact on recovery rates.

RATING SENSITIVITIES

GNB VR, IDRs, and Subordinated Debt

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

-- Downside pressure for the VR and IDRs would arise from further
    deterioration of the CET1 ratio (consistently below 8%),
    especially if accompanied by negative trends in its
    profitability and/or asset quality metrics.

-- Ratings are sensitive to an OE Downgrade.

-- As the subordinated debt rating is two notches below GNB's VR
    anchor, the rating is sensitive to a downgrade in the VR. The
    rating is also sensitive to a wider notching from the VR if
    there is a change in Fitch's view on the non-performance risk
    of these instruments on a going-concern basis, which is not
    the baseline scenario.

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

-- A rating upgrade on the IDRs and VR is unlikely in the near
    future, as reflected by the Negative Outlook;

-- Ratings could be revised to Stable if the OE stabilizes and if
    the bank is able to sustain or rebuild its profitability
    metrics;

-- Upside potential for the international ratings is heavily
    contingent on a material improvement on capitalization levels,
    which is currently one of the high influence rating factors
    under Fitch's rating approach. An upgrade of the VR and IDRs
    could arise if the bank is able to reach and sustain a capital
    ratio greater than 12%, while avoiding material deterioration
    of its other financial and qualitative credit fundamentals,
    with consistently better results, in the form of operating
    earnings over risk weighted assets greater than 2%.

As the subordinated debt rating is two notches below GNB's VR
anchor, the rating is sensitive to an upgrade in the VR.

SR AND SRF

Upside potential for the SR and SRF is limited, as a significant
growth of market share in Colombia is unlikely in the near and
medium term. Should the bank's role as a market maker, or the
market share of retail deposits decrease, the SR and SRF rating
might eventually be revised downward.

Gilex Holding IDRs and SENIOR DEBT

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

-- GH's ratings are sensitive to a change in GNB's ratings, and
    the rating of the former will likely move in line with
    potential rating changes in the latter. However, a material
    and consistent increase in GH's double leverage (above 120%),
    or deterioration in its debt servicing ability, could
    negatively impact GH's rating and widen the difference
    relative to GNB's ratings;

-- The ratings for GH's senior debt would move in line with GH's
    Long-Term IDR.

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

-- An upgrade or change in Outlook to Stable in GNB's rating will
    mirror in GH's ratings.

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

Banco GNB Sudameris S.A. has an ESG Relevance Score of '4' for
Governance Structure due to key person risk, which has a negative
impact on the credit profile, and is relevant to the rating[s] in
conjunction with other factors.

Gilex Holding S.A. has an ESG Relevance Score of '4' for Group
Structure due to key person risk, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.

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.


ITAU CORPBANCA: Fitch Lowers LT IDRs to 'BB+', Outlook Negative
---------------------------------------------------------------
Fitch Ratings has downgraded Itau Corpbanca Colombia S.A.'s (Itau
Colombia) Long Term Local and Foreign Currency Issuer Default
Ratings (IDRs) to 'BB+' from 'BBB-'. Fitch has also downgraded Itau
Colombia's Viability Rating (VR) to 'bb+' from 'bbb-', Short-Term
IDRs to 'B' from 'F3', Support Rating (SR) to '4' from '3' and
revised the Support Rating Floor (SRF) to 'B+' from 'BB+'. The
Rating Outlook is Negative.

The downgrade of Itau Colombia's VR and IDRs is driven by the
material deterioration of the sustained weak operating
profitability and limited internal capital generation. The most
recent negative results reported as of YE20 were exacerbated by the
pandemic and the challenging operating environment due to higher
sensitivity to interest margins, a reduction in business volumes,
higher loan impairment charges from asset quality deterioration and
relevantly by a goodwill impairment. Fitch believes historical and
expected profitability are no longer commensurate with the previous
rating category, which also poses challenges for the capital
metrics sustainability.

KEY RATING DRIVERS

VR and IDRs

Itau Colombia's IDRs are driven by the bank's VR and primarily
reflect the relevant change in the operating environment, brought
on by the spread of coronavirus, and is also highly explained by
its low profitability and limited capitalization.

Itau Colombia's ratings are higher than those implied by the
potential for support from its ultimate parent (Itau Unibanco
Holding, BB/Negative) in consideration of its own intrinsic credit
profile, given Colombia's stronger operating environment relative
to Brazil's.

The Negative Outlook reflects Fitch's view that downside risks from
the economic implications of the coronavirus pandemic and the
social unrest will remain in 2021, which is expected to continue
pressuring performance, especially asset quality and profitability
once relief programs expire, due to low business dynamism and the
deterioration of the debtors' payment capacity.

Itau Colombia corporate focus with low and sensitive margins and
comparatively higher cost structure explained its low
profitability. However, during 2020 goodwill impairment decision
and higher loan impairment charges sharply impacted the
profitability. Operating profit to risk-weighted assets (RWA) fell
to -2.76% at YE2020 from an average of 0.3% from 2016-2019 and
below the 0.97% of the Colombian banking system. Profits during the
first quarter of 2021 improved reporting an operating profit to RWA
of 1.37% benefited by resumed loan growth, fees related with the
retail segment, cost control and treasury activities.

Fitch views the bank's capital as relatively tight when compared to
other institutions reviewed in similar operating environments
(universal commercial banks in a 'bb+' OE), although there is some
comfort when considering its ample loan loss reserves and the
possibility to receive capital injections (ordinary support) if
required from its ultimate parent (Itau Holding, BB/Negative).
However, the common equity Tier 1 (CET1) of 10.33% at March 2021 is
impacted by its limited internal capital generation. Although as a
result of the goodwill impairment equity decreased by 25% during
2020, the effect of the CET1 ratio was neutral as goodwill and
intangibles were already not considered.

The bank has continued working extensively to implement its
parent's expansion strategy and business model which is considered
by Fitch of strategic importance to consolidate the bank's presence
in Colombia. The Colombian franchise has already benefitted from
Itau Group's strong risk management culture and adoption of the
Itau brand. Itau Colombia has a local market share of approximately
4% of total assets and deposits as of December 2020.

Limited loan growth and increased delinquency levels due to
pandemic impacted asset quality during 2020. Impaired loans (90+)
and stage-three loans stood at 3.74% and 4.6% respectively at March
2021. Past due levels compare in line with the average of banking
system of 3.7% at the same date and adherence to forbearance
programs ended at a 9.0% at March 2021; however impaired loans
compare above the 2.3% of its regional peers in the 'BB+' rating.
Individually, all top 10 exposures by economic group represent more
than 10% of the equity which Fitch believes increases risks.

The bank maintains good liquidity levels that provide some relief
from managing the concentrated liability structure. The moderate
franchise gives a limited competitive advantage and generally
influences funding costs. However, the deposit structure is heading
toward a composition of stable resources, in line with the more
conservative liquidity policies and liquidity coverage ratios which
stood at 116.7% as of March 2021 above regulatory minimums; this
includes mid- to long-term time deposits, domestic and overseas
bond issuances, and increased retail funding.

SR AND SRF FLOOR

The downgrade in the bank's SR and SRF to '4' and 'B+' respectively
are driven by its moderate systemic importance and its low share of
retail deposits, which is still modest when compared to domestic
systemically important banks. Fitch believes that there is some
probability the bank would receive sovereign support if needed, and
this underpins its SR and SRF. SRFs indicate the minimum level to
which the entity's Long-Term (LT) IDRs could fall as long as Fitch
does not change its view on potential sovereign support.

RATING SENSITIVITIES

VR and IDRS

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

-- Itau Colombia's ratings could be downgraded if the operating
    profit to RWA ratio falls consistently below 0.5%, especially
    considering the sensitive margins and additional loan
    impairment charges;

-- The ratings could also be pressured by a material
    deterioration of asset quality and CET1 ratios to below 9% due
    to the disruption of economic activity and financial markets
    from the coronavirus pandemic and challenging operating
    environment.

-- Ratings are also sensitive to an OE downgrade.

-- Additionally, although Fitch considers the subsidiary's credit
    profile to be mostly independent from that of its ultimate
    parent, the VR and IDRs may be pressured in a scenario of
    further downgrades of Itau Unibanco Holding (BB/Negative),
    because, under Fitch's criteria, the intrinsic credit profile
    of a subsidiary bank cannot be completely delinked from that
    of its parent.

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

-- A rating upgrade on the IDRs and VR is unlikely in the near
    future, as reflected by the Negative Outlook;

-- Ratings could be revised to Stable if the OE stabilizes
    reducing the pressures on asset quality and if the bank is
    able to sustain or rebuild its profitability metrics;

-- While unlikely in the current operating environment, positive
    rating actions could occur over the medium term if the bank
    demonstrates a capacity to relevantly improve earnings and
    asset quality metrics, while reaches and sustains a CET1 ratio
    greater than 12% amid the relatively faster loan growth that
    the bank could have within a better operating environment.

SR AND SRF

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

-- Upside potential for the SR and SRF is limited and can only
    occur over time with material growth of the bank's systemic
    importance;

-- Upside potential on the SR could also occur over time from a
    material improvement of the parent company's ratings.

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

-- The SR and SRF could be downgraded if the bank loses material
    market share in terms of loans and customer deposits.

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.




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

DOMINICAN REPUBLIC: Manufacturing Activity Declines in April
------------------------------------------------------------
Dominican Today reports that Monthly Manufacturing Activity Index
(IMAM) of the Association of Industries of the Dominican Republic
(AIRD) fell in April 2021 compared to March of the same year, from
66.8 to 53.6.

The index is a portrait of the manufacturing activity of one month
in relation to the previous one, the report relays.  All its
components were down last month, compared to March, according to
Dominican Today.

It specified that when the IMAM is below the 50-point threshold, it
reflects that the economic conditions and prospects of the
manufacturing sector are considered unfavorable. By standing at
53.6 in April, its behavior is located as positive in relation to
March 2021, the report discloses.

To conform the IMAN, the balance of opinion of five variables is
established: the volume of sales, that of production, the behavior
of employment, the delivery time taken by suppliers and the
behavior of inventories of item lines and raw materials of a month
with respect to the others, the report notes.

                  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. Luis Rodolfo
Abinader Corona is the current president of the nation.

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.

Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to
Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.

Standard & Poor's, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings. The negative
outlook reflects S&P's view that it could lower the ratings on the
Dominican Republic over the next six to 18 months, given the severe
impact of the COVID-19 pandemic on the sovereign's already
vulnerable fiscal and external profiles, as well as the potential
for a weaker-than-expected economic recovery.

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).

Exports from Mesoamerica increased an estimated 4 percent
year-on-year in the first quarter of 2021, after falling 8.5
percent in 2020. In Mexico, export values experienced a modest
recovery, as external sales increased by 3.1 percent in
January–March 2021 compared to the same period in 2020. Shipments
from Central America grew by 11.3 percent over the same months. The
United States explained two-thirds of the total increase in exports
from Mesoamerica, although sales to the northern market were less
dynamic than to other destinations.

Total imports from Latin America increased by an estimated 8.7
percent year-on-year in the first quarter of 2021, after falling by
15.1 percent in 2020.

The report was prepared by the IDB's Integration and Trade Sector
and its Institute for the Integration of Latin America and the
Caribbean (INTAL).




===========
M E X I C O
===========

UNIFIN FINANCIERA: Fitch Affirms 'BB' LT IDRs, Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed Unifin Financiera, S.A.B. de C.V.'s
(Unifin) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'BB' and Short-Term Foreign and Local Currency
IDRs at 'B'. The Rating Outlook on the Long-Term IDRs is Negative.
Fitch has affirmed Unifin's global senior unsecured debt and
perpetual bonds ratings at 'BB' and 'B+', respectively.

Fitch has also affirmed Unifin's Long- and Short-Term National
Scale ratings at 'A(mex)'/'F1(mex)'. The Rating Outlook on the
Long-Term National Rating is Negative.

KEY RATING DRIVERS

The Negative Outlook reflects with "high importance" Fitch's
assessment of the challenging operating environment (OE) marked by
downside risks that will continue to pressure Unifin's company and
financial profiles, due to its concentration on small and medium
sized enterprises (SME). If Fitch were to lower the OE score, it
would continue to maintain the rating relativities between the OE
score and Unifin because the company is a mid-sized and
less-diversified NBFI. Fitch's assessment of the OE is 'bb+' with a
negative trend.

The ratings also factor in with high importance Unifin's company
profile, which is characterized by a strong local market position
in the leasing industry, as it is the market leader among
independent entities and specialized bank subsidiaries. Unifin is
gradually diversifying its consistent business model by including
new credit products through digital channels and cross selling.
However, its size remains moderate when compared to the overall
financial industry.

Unifin's ratings also consider as high importance, capitalization
and leverage, which continue to be the weakest factors of its
financial profile. In Fitch's view, leverage metrics remain
sensitive to Unifin's financial performance and growth strategy.
However, Fitch expects the company's tangible leverage metrics to
remain below 7x due to the headroom provided by a capital injection
in 2020, full earnings retention in 2021, better profitability
prospects and lower balance sheet growth compared to pre-pandemic
levels.

As of 1Q21, Fitch's total debt-to-tangible equity ratio declined to
6.5x from 7.7x at YE19, which is still high for the rating
category. However, Unifin's adjusted tangible leverage metrics was
6x as of 1Q21. Fitch applies a 70% haircut to the revaluation
surplus related to an asset in leasing (oil platform) and adjusts
the temporary impacts from derivative valuations on the balance
sheet and capital through other comprehensive income items. These
adjustments result in a tangible leverage ratio below Fitch's
trigger of 7x.

Fitch expects Unifin's asset quality to remain pressured in 2021 by
a still challenging OE and the deferred effects from aid programs.
However, the agency expects deterioration to be lower than in 2020
as a result of the company's more prudential growth strategy,
reduced exposure to risker credit products, better collection
process, lower participation of credits under deferrals than peers,
as well as, low exposure by borrower. At 1Q21, Unifin's NPL ratio
increased to 4.9% (7.6% plus foreclosed assets and charge- offs),
above the 3.9% average of 2017-2020.

Fitch believes Unifin's profitability will improve in 2021 when
compared with low earnings in 2020, underpinned by resumed loan
growth and cross-selling, better asset quality and controlled
financing costs. However, profitability ratios will not return to
pre-pandemic levels in the medium term as challenges from the OE
remain.

Unifin's pre-tax income to average assets decreased to 0.8% from 3%
average of 2017-2020. Its YE20 and 1Q21 profitability ratios have
been affected by increased impairment charges, substantially lower
credit originations, deferred loans and interest payments of the
perpetual bond as defined by Fitch's criteria. These effects in
2020 were highly offset by FX gains from cancellation of
derivatives related to the repurchase of bonds during the 3Q20 and
optimization of hedging strategies.

In Fitch's view, Unifin's more diversified and unsecured funding
structure places the company in a good position to manage the
challenging OE relative to its peers. The unsecured debt to total
debt ratio was 79% (average 2017-2020: 63%). In 2020 and early
2021, Unifin obtained new financing and rolled-over some existing
funds. At 1Q21, its debt maturities over the next 12 months
represented about 23% of its total funding. Cash on hand and
available credit lines accounted for about 79% of such short-term
maturities. Cash collection has been better than Fitch's
expectations, and liquidity metrics also benefited from the global
note issued in January 2021, which provided further financing
flexibility.

Unifin's ratings also considers its aggressive strategy
characterized by ample balance sheet growth with less prudent
capital management and questions about the robustness of its
corporate governance due to non-core strategies to sustain
financial metrics such as the acquisition of complex assets (oil
platform) and still weaknesses on third party disclosure. This has
a moderately negative impact on the ratings.

SENIOR DEBT

The senior global debt rating is at the same level as Unifin's 'BB'
rating, as the likelihood of a default of the notes is the same as
for the company.

HYBRID SECURITIES

Unifin's hybrids securities are rated two notches below its
Long-Term IDR. The two-notch differential represents incremental
risk relative to the entity's IDRs, reflecting the increased loss
severity due to its deep subordination and heightened risk of
non-performance relative to existing senior obligations.

Based on Fitch's analysis, the hybrid qualifies for 50% equity as
it meets Fitch's criteria with regard to the ability to defer
coupon payments, the existence of a coupon step-up of 500 basis
points (bps) in the event of a change of control and its perpetual
nature.

RATING SENSITIVITIES

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

-- A material deterioration in asset quality and profitability or
    aggressive balance sheet growth that results in a sustained
    increase in Unifin's total debt-to-tangible equity ratio after
    assets and derivatives valuation adjustments above 7x;

-- A substantial deterioration of its funding and liquidity
    profiles;

-- A lower OE score.

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

-- The Negative Outlook makes an upgrade highly unlikely in the
    near term;

-- The Negative Outlook could be revised back to Stable if the
    impact of the pandemic on the company's credit profile is well
    contained, which will also depend on Unifin's ability to
    confront current challenges and minimize the impact on
    liquidity, asset quality and profitability, while leverage
    ratios are sustained at levels commensurate to its current
    rating;

-- The ratings could be affirmed and the Outlook revised to
    Stable if the operating environment stabilizes and economic
    prospects improve;

-- Over the medium term, the ratings could be upgraded by the
    confluence of an improvement of the operating environment and
    the financial profile of Unifin, specifically, if the company
    significantly improves its tangible leverage metric, after
    assets and derivatives valuation adjustments, towards a level
    consistently below 5.5x, while preserving its other financial
    fundamentals and a strong competitive position.

SENIOR DEBT and HYBRID SECURITIES

-- Although the company's debt ratings do not have an explicit
    Rating Outlook, rating actions would mirror those of Unifin's
    IDRs. The senior unsecured debt ratings would continue to be
    aligned with the company's IDRs, while the hybrid securities
    would remain two notches below.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch reclassified pre-paid expenses as intangibles and deducted
from total equity due to low loss absorption capacity under
stress.

ESG CONSIDERATIONS

Fitch has revised Unifin's Governance Structure ESG Relevance Score
to '4' from '3' due to concerns regarding non-core strategies to
sustain financial metrics such as the acquisition of complex assets
(oil platform), which have a negative impact on Fitch's assessment
of company's credit profile, and are relevant to the ratings in
conjunction with other factors.

Unifin has an ESG Relevance Score of '4' for Management Strategy.
Unifin's ample balance sheet growth with less prudential capital
management that underpin its high risk appetite, which have a
negative impact on the credit profile, and are relevant to the
ratings in conjunction with other factors.

Unifin has an ESG Relevance Score of '4' for or Financial
Transparency. Unifin's third party disclosure weaker than
international best practices', which have a negative impact on the
credit profile, and are relevant to the ratings in conjunction with
other factors.

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.


UNIFIN FINANCIERA: S&P Affirms 'BB-' ICR, Outlook Negative
----------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' global and 'mxA-/mxA-2'
national scale issuer credit ratings on Unifin Financiera, S.A.B.
de C.V. (Unifin). At the same time, S&P affirmed its 'BB-' and 'B-'
issue-level ratings on Unifin's senior unsecured notes and
subordinated perpetual notes, respectively. The outlook remains
negative on both rating scales.

Unifin provided relief to about 13% of its total borrowers and
adjusted its origination process, preventing a steep erosion of its
total portfolio as of March 2021. The nonperforming asset (NPA)
ratio, which includes foreclosed assets, rose to 7.44% in the first
quarter of 2021 from 6.47% for a year-earlier period, while NPA
coverage metric increased to 55.6% from 34%. In addition, slightly
more than 90% of Unifin's borrowers that are under the moratorium
programs have resumed loan payments as of March 2021. However about
7.2% of such borrowers, which total about MXN46 million in terms of
outstanding balances, have yet to do so, while about 13% of the
total loans are 30-90 days past due, compared with 8.7% as of March
2020. In S&P's opinion, loans to these borrowers are vulnerable
turning into nonperforming ones, which could widen credit losses
and act as a drag on profitability if difficult conditions
persist.

S&P said, "We also consider that gradual economic recovery should
alleviate pressure on the borrowers' operating conditions, but
uncertainty about the recovery pace, structural economic
bottlenecks in Mexico, and Unifin's exposure to SMEs loans could
weaken further its asset quality. Therefore, we forecast the NPA
ratio to be 8.5%-9.0% in 2021 and the coverage metric at about 50%.
If these metrics deteriorate further than our expectations due to
defaults among large or troubled borrowers, we could downgrade
Unifin by one notch. Finally, the client concentration has remained
consistent with our assessment of Unifin's risk position. Its top
20 credit exposures represented about 18% of total portfolio as of
the first quarter of 2021. However, we'll monitor Unifin's rising
exposure to business lines apart from its core leasing products,
such as working capital loans through its digital platform,
Uniclick, and structured finance credits. The latter now represents
about 24% of total portfolio with a 2.3x larger average loan size
than leasing, which in our opinion, could increase the
concentration risks.

"Unifin's 2020 results were above our expectations, although still
way below the pre-pandemic levels. Despite lower internal capital
generation, our risk-adjusted capital (RAC) ratio remained
relatively stable at 9.1% at year-end thanks to the capital
increase of MXN2.52 billion in the third quarter of 2020, which
also supported liquidity and reflected the shareholder's commitment
to support the company during stressed market conditions. We expect
profitability in 2021 to still remain below the pre-pandemic levels
with return on average assets (ROAA) at about 1.6%, compared with
2.8% in 2019. Net income will continue to suffer mainly because of
lower-than-historical net interest margin and still high cost of
risk. However, we believe that internal capital generation will be
sufficient to support a RAC ratio above 7%, despite a likely
double-digit loan growth in 2021 and about MXN250 million in share
repurchases. On the other hand, we continue to view Unifin's
quality of capital as low, because hybrid instruments compose about
25% of total adjusted capital. Therefore, adjusted capital remains
highly sensitive to changes in the capital base, revaluations, or
an increase in intangible assets, which we adjust under our capital
framework." S&P's base-case scenario for its 8.3% forecasted RAC
ratio in the next 12-24 months incorporates the following factors:

-- Mexico's real GDP growth of 4.9% for 2021 and 2.7% for 2022.

-- Portfolio loan growth of 15% for 2021 and 20% for 2022,
supported by loans originated through the Uniclick platform.

-- Net interest margin at about 6.4% in 2021.

-- ROAA at about 1.6% for 2021 and 2.4% for 2022.

-- NPAs near 9% in 2021 and reserve coverage at about 50%, in line
with the historical average.

-- Cost of risk at about 1.6% for 2021 and 0.9% for 2022.

-- Noninterest expenses growing about 13% in 2021 and 16% in 2022

-- MXN250 million in additional share repurchases in 2021 and
2022.

-- MXN15 million Treasury shares distributed to shareholders as a
non-cash dividend in 2021 without impact to the capital base. S&P
doesn't expect additional dividend payout, except for the interest
payment of the perpetual bond in 2021.

-- Deferred tax assets at about MXN2.6 billion for the next couple
of years.

S&P said, "We expect Unifin will keep a similar funding mix
consisting of several international bond issuances (63%),
securitizations (12%), and bank loans from Mexican development, and
from domestic and foreign commercial and investment banks (25%).
Given the prepayment of some credit lines the proceeds from the
January 2021 notes issuance, Unifin's maturity profile for the next
12 months is fairly comfortable. The majority of debt due in the
upcoming year consists of credit lines, while Unifin doesn't have
market debt maturities for the remainder of 2021. We also expect
Unifin to continue using private securitizations as a funding
source, and we'll monitor the refinancing of the notes due 2022 in
the next few months. We consider Unifin's liquidity to be
sufficient to run daily operations, with a cash flow analysis as
positive in the next 12 months (base- and stress-case scenarios).
According to our estimates, Unifin could cope with a 30% reduction
in collections, although we consider that collections should remain
above 80% despite the expected loan deterioration."




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

[*] TRINIDAD & TOBAGO: Removing Five Notes by Jan. 1
----------------------------------------------------
Andrea Perez-Sobers at Trinidad Express reports that Trinidad and
Tobago Central Bank said from January 1, 2022 banknotes in the
denominations of $1, $5, $10, $20 and $50 bearing series dates
prior to 2020 shall cease to be legal tender for cash payment
within Trinidad and Tobago.

A statement on the bank's website said it's in the final phases of
the transition towards the new polymer notes, according to Trinidad
Express.

"Since earlier this year, polymer notes of all denominations are in
circulation, alongside the cotton notes, as legal tender in
Trinidad and Tobago.  This will continue for the rest of this year,
but to complete the move to a full polymer suite of banknotes, the
other (cotton) notes will no longer be legal tender from January 1,
2022," the statement said, the report notes.

Nonetheless, the Central Bank will continue to exchange these notes
indefinitely after January 1, the report relays.

The bank added it will also work to facilitate exchanges where
people have difficulty in coming to their Port of Spain office, the
report relays.

In 2019, the new $100 polymer notes came into circulation followed
by the $50, $20, $10, $5 and $1 quantities in 2020, the report
notes.

The Central Bank had said at a conference last year that polymer
notes are more durable, cleaner options to cotton-based notes and
offer increased levels of security as it is more difficult for
counterfeiters to forge, the report says.

In a notice issued on June 1, the Central Bank said: "With effect
from July 1, 2021, it shall call in the notes in the denominations
of $1, $5, $10 $20 and $50 bearing series dates before 2020 "for
the purpose of withdrawing them from circulation," the report
discloses.

Like the June 4 notice, the June 1 notice also indicated that the
notes would cease to be legal tender for cash payment within T&T as
of January 1, 2022, the report says.

The June 1 notice was signed by both Central Bank Governor Dr Alvin
Hilaire and Minister of Finance Colm Imbert.  The notice indicated
it was "issued by the Central Bank with the approval of the
Minister of Finance under section 27 (1) of the Central Bank Act,"
the report relays

Section 27 (1) states: "The bank, with the approval of the
minister, may on giving three months' notice published in the
Gazette call in any of its notes and coins on payment of the face
value thereof and any such notes or coins with respect to which a
notice has been given under this section shall, on the expiration
of the notice, cease to be legal tender, but shall be redeemed at
face value by the Bank upon such conditions as may be prescribed,"
the report notes

In the process of the December 2019 removal of the $100 cotton note
from circulation and as legal tender, a process called
demonetisation, the Government amended section 27 of the Central
Bank Act to add a new section that allows the Minister of Finance
to direct the Central Bank to cancel any note with a minimum of 14
days' notice, the report discloses.

The objective of the December 2019 demonetization was to address
financial crimes conducted through the hoarding of cash, the report
relays.

In a Central Bank working paper on the rapid demonetisation
published in June 2020, the bank said the estimate of the number of
$100 cotton notes in circulation on December 6, 2019 was
81,695,206, the report relays.

The paper, which was co-authored by Governor Hilaire, estimated
that 94.2 per cent of the $100 notes had been converted by April
24, the report notes.

"The value of 'missing money' is therefore on the order of TT$476.5
million or 5.8 per cent of the value of $100 cotton notes in
circulation at the start of December 2019, which is a relatively
significant proportion," according to the working paper, the report
adds.




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

LATAM: Trade Recovers From Pandemic Impacts
-------------------------------------------
The value of exports from Latin America grew 8.9 percent in the
first quarter of 2021 compared to the same period in the previous
year, consolidating a change in trend after the contraction caused
by the COVID-19 pandemic, a new report from the Inter-American
Development Bank has found.

The drop in the value of exports in 2020 was 9.0 percent.

Exports are estimated to remain on a growth path for the next few
months, according to the latest edition of the Trade Trends
Estimates: Latin America and the Caribbean  series, which analyzes
the trade performance of 18 countries in the region.

However, the recovery remains fragile as it has been driven
exclusively by higher export prices.

"The pandemic will continue to affect domestic markets in the
coming months," said Principal Economist at the IDB's Integration
and Trade Sector, Paolo Giordano, who coordinated the study.
"Importing growth from the rest of the world through international
trade will be crucial to overcoming the worst economic crisis in a
century."

The incipient trade recovery was driven by improvements in export
prices, as real flows continued to decline. The volume of exports
from the region fell by an estimated 2.2 percent year-on-year in
the first quarter of 2021, after contracting by 7.8 percent the
previous year. However, a rebound is underway since March in some
countries.

Exports from Latin America to China increased by an estimated 34.7
percent year-on-year in the first quarter. Sales to the United
States and the European Union also increased, albeit at a slower
pace (3.9 percent and 4.0 percent, respectively). Intraregional
purchases from Latin America rose 11.6 percent.

                       Export Prices

In the first four months of 2021, the prices of various commodities
exported by Latin America rose close to historic highs. The upward
trend in the price of extractive products was more pronounced,
particularly in the case of iron ore (93.6 percent), copper (57.9
percent), and oil (41.7 percent). The performance of agricultural
products was more varied: exports of soybeans grew by 60 percent,
sugar by 27 percent, and coffee by 11.9 percent.

A key factor in the evolution of prices has been the global
economic recovery, driven in part by massive fiscal and monetary
stimuli in several countries and the depreciation of the US
dollar.

                    Performance by Subregion

In South America, exports are estimated to have grown by 14.4
percent in the first quarter of 2021 after falling by 9.5 percent
in 2020. The subregion has particularly benefited from increased
demand from China.



                           *********


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 2021.  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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