/raid1/www/Hosts/bankrupt/TCRLA_Public/210802.mbx
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
Monday, August 2, 2021, Vol. 22, No. 147
Headlines
B R A Z I L
CEMIG: Radix Deploys Project that Improves Customer Experience
D O M I N I C A N R E P U B L I C
BANCO DE RESERVAS: Moody's Affirms Ba3 Bank Deposit Ratings
DOMINICAN REPUBLIC: Calm Returns to Haiti Border Market
DOMINICAN REPUBLIC: Economy Rebounds But Not Jobs
E C U A D O R
ECUADOR: IDB OKs $300M Loan for Improvement on Quality of Life
M E X I C O
POINSETTIA FINANCE: Moody's Cuts Sr. Secured Notes Due 2031 to Ba3
T R I N I D A D A N D T O B A G O
CL FIN'L: Professional Fee Costs at $611.3MM and Counting
TRINIDAD & TOBAGO: Retailers Beg For Reopening
X X X X X X X X
LATAM: Recovering Stronger but 3rd Covid Spike Could Spell Disaster
[*] BOND PRICING: For the Week July 26 to July 30, 2021
- - - - -
===========
B R A Z I L
===========
CEMIG: Radix Deploys Project that Improves Customer Experience
--------------------------------------------------------------
An Artificial Intelligence (AI) project developed by Radix
Engineering and Software is helping power giant CEMIG (Companhia
Energetica de Minas Gerais) improve its' customer experience by
integrating all of its interaction channels. The CEMIG Virtual
Assistant project combines technologies such as Omnichannel,
Chatbot, AI, and Big Data to yield greater agility, autonomy, and
automation of CEMIG's customer service.
The Virtual Assistant's features include:
An AI Chatbot that utilizes sophisticated techniques for
understanding the user's text. It also offers two distinct and
integrated dialog flows to make the end-user conversation more
fluid. The first, transactional flow resolves service issues. A
second conversational flow maintains a fluid conversation that
helps clarify users' issues.
A tool that evaluates the services provided by the Chatbot in the
various channels in real-time. This tool delivers known metrics for
evaluating systems, and a computational learning model capable of
generating groups of texts not recognized by the Chatbot. These
texts are then presented graphically in a word cloud model.
The project features a hybrid architecture, which can be deployed
both on-premises and in the Cloud, or entirely in the Cloud to
allow scalability and replication of services used in the Chatbot.
Expedited by the new demands generated by the Covid-19 pandemic,
the deployment of CEMIG's Chatbot began in April 2020. Usage
quickly accelerated. CEMIG reports that at the end of two months of
deployment, the Chatbot had an average of 350 daily hits. As of
January 2021, the Chatbot was receiving approximately two thousand
daily hits.
There were some peaks in this growth curve: the first in September
2020, when CEMIG redesigned its homepage, giving greater visibility
to the webchat. The growth in the number of accesses reached 75%
that month. The second peak was in November 2020, when the service
started using Telegram and Facebook channels, with a 25% growth in
the number of accesses.
The project's final phase was transferring the entire ecosystem
developed in R&D to CEMIG's environment, including the Omnichannel
platform, the Chatbot with various communication channels,
intelligent agents that operate according to passive, active, and
proactive communication flows, and a real-time monitoring system of
the Chatbot's usages.
"The project's goal was to improve the customer experience by going
beyond just offering requested services. Using AI, the Virtual
Assistant anticipates customer needs by offering other products or
services, exceeding their expectations using our service channels.
Now CEMIG can have active and proactive communication with our
customers, as the Virtual Assistant facilitates interaction and use
of our digital channels," commented William Evans, CEMIG's project
manager.
About Cemig
Headquartered in Belo Horizonte in the State of Minas Gerais,
Companhia Energetica de Minas Gerais - CEMIG is a leading Brazilian
integrated utility operating in the sectors
of electricity distribution, generation and transmission, with
4,800 megawatts (MW) in installed capacity and around 8,200 km of
transmission lines across the country. The company also owns
controlling equity participation in the electricity utility Light
S.A. and the transmission company Transmissora Alianca de Energia
Eletrica (TAESA, Ba1/Aaa.br stable).
Cemig is controlled by the State of Minas Gerais, which owns 50.96%
of the company's voting capital.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 2, 2021, Moody's Investors Service has affirmed the corporate
family rating of Companhia Energetica de Minas Gerais - CEMIG at
Ba3 and its baseline credit assessment at ba3, and the issuer
ratings of its subsidiaries Cemig Geracao e Transmissao S.A. and
Cemig Distribuicao S.A. also at Ba3. The outlook for all the
ratings remain positive.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO DE RESERVAS: Moody's Affirms Ba3 Bank Deposit Ratings
-----------------------------------------------------------
Moody's Investors Service has upgraded the baseline credit
assessment of state-owned Banco de Reservas de la Republica
Dominicana (Banreservas) to b1 from b2. In addition, the rating
agency affirmed the bank's local and foreign currency deposit
ratings of Ba3 and Not Prime, long and short-term. The outlook on
ratings remain stable.
RATINGS RATIONALE
In upgrading Banreservas' BCA to b1 from b2, Moody's acknowledges
the consistent track record of good asset quality and profitability
metrics the bank has reported in the past two years, including
during the weak economic activity in 2020 triggered by the
coronavirus pandemic. The BCA upgrade also reflects Banreservas'
access to low-cost, granular retail deposits, supported by its
franchise as the largest bank by assets in the Dominican Republic
(DR, Ba3 stable), which enhances the bank's strong liquidity
position. However, these credit strengths are counterbalanced by
Banreserava's weak adjusted capital position as measured by
Moody's.
Despite the challenges to the banking system derived from the
Covid-19 pandemic, Banreservas reported a stable ratio of problem
loans to gross loans of 1.71% in March 2021, relative to the year
prior at the outset of the Covid-19 pandemic. The bank's asset
quality benefited from loan deferral programs unveiled by the DR's
banking regulator that provided relief to households and commercial
borrowers in 2020 in response to the pandemic. In addition,
Banreservas' exposure to low-risk residential mortgage, which
accounted for 15% of gross loans in March 2021, partially helped to
contain loan delinquency.
Although Banreservas' asset quality remained steady in the
twelve-month period up to March 2021, Moody's expect continued
asset quality pressure in the second half of 2021 as its loan book
fully captures the effects from the end of government relief
measures and loan deferrals. Despite that, Banreservas maintains
high levels of loan loss reserves, at roughly 3.5 times problem
loans as of March 2021, which will be adequate to absorb potential
increase in credit losses in the second half of 2021.
Banreservas reported good profitability in 2020 with net income to
tangible assets increasing to 1.95% in March 2021, compared to
1.67% the year prior, which allowed the bank to absorb higher
credit cost in the period. Loan loss provisions increased 257.6% in
the last 12 months ended in March 2021. For the next 12 months,
Moody's expect Banreservas' profitability to benefit partially from
economic recovery in the DR, although consistent strengthening in
earnings will likely rely on a sustainable improvement of business
activity. Banreservas' ample access to low-cost deposits, stemming
from its government-owned status and position as largest bank in
the DR, also supports its profitability and results in low reliance
on market funds. In addition, the bank's liquidity has benefited
from banking regulator's measures in 2020, with liquid assets to
tangible banking asset reaching 52.8% in March 2021.
At the same time, due to the large holdings of government
securities (that are risk-weighted at 100% in Moody's capital
metric), Banreservas' capitalization remains the main negative
driver for the bank's BCA, at 6.76% in March 2021 as measured by
Moody´s preferred ratio of tangible common equity to adjusted risk
weighted assets, also showing a modest cushion to absorb unexpected
credit or investment losses. However, on a regulatory basis, the
bank reported a Tier 1 capital ratio of 13.4%, which benefits from
government's past capital injections in the bank in the form of
non-tradable government bonds and the zero risk-weight
classification assigned to holding of government securities and to
loans to the public sector, as per authorization of the DR's
banking regulator.
Banreservas' Ba3 deposit ratings are at the same level as the DR's
government bond rating, which reflects an one-notch uplift from its
b1 BCA stemming from systemic support. As a result, the stable
outlook on the long-term deposit ratings is also in line with the
stable outlook on the DR's government bond rating. Moody's
considers Banreservas' deposits and senior obligations to be
effectively backed by the government because the bank is 100%-owned
by the federal government. In addition, the government-backed
support status is also underpinned by the close financial and
business links between the bank and the government, as well as
Banreservas' important deposit and lending franchises in the DR.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade in Banreservas' standalone BCA would stem from a steady
improvement in the bank's capital position, combined with
sustainably superior asset quality fundamentals during the recovery
of economic activity in the country. In addition, a strengthening
in profitability metrics would also affect the bank's BCA
positively. Finally, deposit ratings would go up depending on an
upgrade of the DR´s sovereign rating.
The bank's BCA could be downgraded in case of consistent
deterioration in asset risks and profitability that would have a
negative impact to capitalization. Additionally, a significant
increase in the transfers of earnings to the government would also
affect the bank's capacity to replenish capital, factors that would
have downward pressure on its BCA. A downgrade in the sovereign
rating would result in a downgrade in Banreservas' deposit
ratings.
METHODOLOGY USED
The principal methodology used in these ratings was Banks
Methodology published in July 2021.
LIST OF AFFECTED RATINGS AND ASSESSMENTS
The following assessments of Banco de Reservas de la Republica
Dominicana were upgraded:
Baseline credit assessment, to b1 from b2
Adjusted baseline credit assessment, to b1 from b2
The following ratings and assessments of Banco de Reservas de la
Republica Dominicana were affirmed:
Long-term local currency deposit rating of Ba3, stable outlook
Short-term local currency deposit rating of Not Prime
Long-term foreign currency deposit rating of Ba3, stable outlook
Short-term foreign currency deposit rating of Not Prime
Foreign currency subordinated debt rating of B2
Long-term local currency counterparty risk rating of Ba3
Short-term local currency counterparty risk rating of Not Prime
Long-term foreign currency counterparty risk rating of Ba3
Short-term foreign currency counterparty risk rating of Not Prime
Long-term counterparty risk assessment of Ba3(cr)
Short-term counterparty risk assessment of Not Prime(cr)
Outlook Actions:
Outlook, Remains Stable
DOMINICAN REPUBLIC: Calm Returns to Haiti Border Market
-------------------------------------------------------
Dominican Today reports that more than a week after the
assassination of the president of Haiti, Jovenel Moise, tranquility
prevailed in the towns and communities on both sides of the
border.
Meanwhile, hundreds of Haitians returned en masse to the binational
market of Dajabon to buy products that are scarce in their country
and trade with Dominicans, according to Dominican Today.
The entry of buyers and sellers from the neighboring country was
done in the midst strict protocol by Dominican authorities, the
report relays.
Border Corp soldiers, immigration inspectors and agents of the
Haitian Border Police are in charge of guaranteeing the orderly
entry of Haitians, the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. 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).
DOMINICAN REPUBLIC: Economy Rebounds But Not Jobs
-------------------------------------------------
Dominican Today reports that in a context of favorable growth
projections for the national and world economy, not all sectors
achieve the same rate of rebound expected after the setback caused
by the pandemic in the productivity of the countries.
Employment is one of those cases, the report says.
The Dominican Republic shows positive figures at the macroeconomic
level, with a year-on-year expansion of its economic activity of
21.2% as of May 2021 and 4.7% compared to May 2019, according to
Dominican Today.
This is stated by the Ministry of Economy, Planning and Development
(MEPyD) in its Macroeconomic Situation Report, June 2021
Monitoring, in which it highlights that "the Dominican economy
continues to demonstrate high resilience and the ability to recover
from adverse effects," 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).
=============
E C U A D O R
=============
ECUADOR: IDB OKs $300M Loan for Improvement on Quality of Life
--------------------------------------------------------------
The Inter-American Development Bank (IDB) approved a $300 million
project to support Ecuador's response to the economic impact of
COVID-19. The project will expand the coverage of the Bono de
Desarrollo Humano (Human Development Bond in Spanish), the
country's main transfer program, during the recovery period and
thus ensure minimum income levels for people affected by the
coronavirus.
The operation responds to the inclusive approach of Vision 2025 -
Reinvesting in the Americas, the IDB Group's guide to achieve
sustainable and inclusive growth and recovery in the region. To do
this, it will focus on using cash-transfers as a tool to ensure a
minimum income in those households most affected by the economic
effects of the pandemic, to reduce inequality and increase
inclusion. In addition, it will strengthen the focus on gender and
diversity, by prioritizing vulnerable populations such as women,
indigenous peoples and Afro-descendants.
This operation complements the activities of the investment program
"Support for the Provision of Health and Social Protection Services
in the Framework of the Coronavirus COVID-19 Pandemic", approved in
May 2020 for a total of $250 million and currently under
execution.
This initiative is expected to improve the lives of approximately
one million households in the three poorest deciles, of which
270,000 are new beneficiaries of their cash transfer program.
As reported in the Troubled Company Reporter-Latin America on
July 14, 2021, Moody's Investors Service has withdrawn the C rating
of the foreign currency senior unsecured rating and the Caa3
foreign currency senior unsecured rating of the Government of
Ecuador.
Moody's has decided to withdraw the ratings for its own business
reasons.
===========
M E X I C O
===========
POINSETTIA FINANCE: Moody's Cuts Sr. Secured Notes Due 2031 to Ba3
------------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of Poinsettia
Finance Limited's senior secured notes due 2031 to Ba3 (global
scale) from Ba2 (global scale). The action follows the downgrade to
Petroleos Mexicanos' (PEMEX) senior unsecured ratings on the
company's existing notes, as well as the ratings based on PEMEX's
guarantee, to Ba3 (negative outlook) from Ba2 announced on July 27,
2021.
Rating action:
Issuer: Poinsettia Finance Limited
Senior Secured Notes, Downgraded to Ba3; previously on April 23,
2020 Rating Downgraded to Ba2
RATINGS RATIONALE
The downgrade of the notes' ratings to Ba3 (global scale) is
because the notes are secured by a pro-rata first-ranking security
interest on the rights of payment of the lease payments, related to
certain oil and gas infrastructure assets, under a hell or
high-water lease agreement between PEP, a subsidiary of Petróleos
Mexicanos. The lease payments are backed by the underlying oil and
gas infrastructure assets, which are of critical and highly
strategic importance for PEP's production in the Bay of Campeche.
PEP's obligations under the lease agreement are guaranteed by
Pemex.
The ratings are based mainly on the willingness and ability of
Pemex, as guarantor of PEP's obligations under the lease agreements
to honor the payments as defined in the transaction documents. Any
changes in Pemex's senior unsecured foreign currency ratings during
the life of the transaction would lead to a change in the ratings
of the notes.
Factors that would lead to an upgrade or downgrade of the rating:
Any changes in the senior unsecured foreign currency rating of
Pemex, as guarantor under the lease agreement, could lead to a
change in the ratings on the notes.
The principal methodology used in this rating was "Moody's Approach
to Rating Repackaged Securities" published in June 2020.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
CL FIN'L: Professional Fee Costs at $611.3MM and Counting
---------------------------------------------------------
Asha Javeed at Trinidad Express reports that it is more that 12
years since Lawrence Duprey, former chairman of CL Financial (CLF),
went cap in hand to the Government for a bailout for the Group's
then insurance company, CLICO.
From publicly available figures, the Sunday Express has tabulated
the cost to taxpayers at $611.3 million and counting.
Some figures, like the fees provided by the Central Bank are dated
by 2012, nine years ago, they totalled $218.3 million. The combined
audit figures, limited to figures from the Attorney General's
office, and not the Ministry of Finance or the CLF Liquidators, are
$253 million, according to Trinidad Express. The amount of money
spent on the commission of enquiry, without the costs of individual
counsel for each witness or company, or costs provided by the
Central Bank and the Ministry of Finance, is $78 million, the
report relates. The Joint Liquidators, up until December 2020,
drew $62 million in fees duties at CLF, which is exclusive of
monies they earn as directors of subsidiaries, the report notes.
In that period, billions were spent on the bailout, billions have
since been repaid and it's costing hundreds of millions in fees to
liquidators and lawyers to resolve the company's complexities, the
report discloses.
While the Government seeks to recover the sums expended on the
bailout, two groups have earned significant sums in the process:
attorneys and accounting firms, the report says.
Attorneys
Attorney General Faris Al Rawi laid in Parliament fees paid by the
Attorney General's office for the period 2010 to 2021, the report
notes. It was done in two batches from October 2010 to September
2015 and from October 2015 to June 2021, the report says.
But the lawyers' fees for the entire CLICO/CLF matter span the
Office of the Attorney General, the Ministry of Finance and the
Central Bank, the report relays.
Al Rawi only released his Ministry's fees, some of which carried
code names for parties he could not identify such as Alpha, Beta,
Omega, Delta and Gamma, the report discloses.
The Sunday Express understands that the Ministry of Finance's
expenditure on CLICO is significant as it would cover the legal,
accounting and liquidator fees (CLICO, British American Trinidad,
Clico Investment Bank (CIB) and CLF), the fees for the Depositors
Insurance Corporation (DIC), the legal actions during the proposed
CLF liquidation by the CLICO policyholders group actions and the
claims against CLICO, British American (Trinidad), CIB, CLF and
Methanol Holdings (Trinidad) Ltd, the report says.
The Central Bank's fees would also include advice from accountants
and lawyers for claims against CLF's principal officers: Duprey and
former executive director Andre Monteil, the report notes.
On October 17, 2012, former Attorney General Anand Ramlogan had
revealed a portion of CBTT's legal costs with regard to CLF in a
statement to Parliament, the report relays.
Ramlogan said total legal fees paid to local and foreign counsel by
the Central Bank in relation to CLF during the period October 2008
to July 2012 was $103 million; a total of $82.8 million in fees
were to Canadian forensic investigator Bob Lindquist; and total
legal fees paid to local and foreign counsel by the Central Bank in
relation to the Commission of Inquiry into CLICO and the Hindu
Credit Union (HCU) during the period Oct 2010 to July 2012 was
$32.5 million, the report notes.
On April 19, 2021, the Central Bank controlled CIB won a judgement
against two former executives Monteil and its former chief
executive officer, Richard Trotman after it sued the former
executives to recover money from a loan transaction by Monteil in
2007, the report relays.
They were ordered by High Court Judge Avason Quinlan-Williams to
pay back $78 million plus $20 million in interest, the report
says.
Accounting Firms
In addition to lawyers, AlRawi's office handled the cost of
auditors.
The documents showed the auditing firm Deloitte & Touche Trinidad
earned $225,733,665.06 over the total period, the report relays.
It earned $91,438,119.83 from 2012 to 2015 and $134,295,545.23 from
2015 to 2021, the report says.
The firm was retained to support the work of the Director of Public
Prosecutions (DPP) in the CLICO investigation, which is now in its
ninth year, the report notes.
The company declined to comment to the Sunday Express.
Professional services firm Ernst & Young Services Limited earned
$28,772,805.83 for the period 2010 to 2015 a $2,300 from 2015 to
2021, the report discloses.
Since their appointment four years ago, the joint liquidators (JLs)
in charge of CLF, international accounting firm Grant Thornton's
Hugh Dickson and David Holukoff have submitted claims for payment
of fees and expenses totalling over $61.8 million (US$9.11 million)
, the report notes.
In the seventh report to the court, dated December 18, 2020, and
signed by Holukoff, the liquidators said that up to October 2020,
the JLs have drawn total fees US$8,318,856 ($56,441,635) , the
report says.
But the payments to Grant Thornton include fees of $2,494,513 for
the period of their appointment as provisional liquidators from
July to September 2017 while under liquidator expenses, there is a
sum of $2,921,553, the report relates.
In total, for the period July 2017 to October 2020, Grant Thornton
has invoiced the Government for a total of $61,827,701, which is
equal to about 55 per cent of the $112,976,056 identified as
payments by the liquidators, the report discloses. The second
largest CLF liquidators' expense for the period is for legal fees,
which totalled $18,751,897, the report notes.
The liquidators also serve on several of the conglomerate's boards,
the report relates.
In their report, they noted the fees earned are a discounted sum.
Commission of Enquiry
Some of the biggest fees earned by lawyers were during Sir Anthony
Colman's Commission of Enquiry (COE), the report discloses.
In a statement to Parliament on July 1, 2016, Prime Minister Dr
Keith Rowley had said the cost of the Commission of Enquiry was $78
million, the report says.
Dr Rowley said the fee breakdown, as at May 2016, was as follows:
-- Shankar Bidaisee $7,192,000
-- Gerald Ramdeen $5,855,468
-- Varun Debideen $4,955,000
-- Celeste Jules $2,155,500
-- Israel Khan SC $989,000
-- Wayne Sturge $567,600
-- Lemuel Murphy $250,000
-- Anthony Colman QC $9,130,618.02
-- Peter Carter QC $23,393,808.54
-- International Ltd $2,712,213.48
-- Edwin Glasgow QC $12,147,007.20
-- Ian Marshall $827,239.73
-- Marion Smith McGregor QC $8,313,488.40
The 24-month-long COE had 85 sitting days, 23 parties, 77 lawyers,
57 witnesses, 50 subpoenas and five million pages of documents, the
report notes.
All parties to the COE, who were mostly represented by Senior
Counsel, would have paid separate legal bills, the report says.
The cost of the Commission was exclusive of the Government's
bailout, the report discloses.
Prime Minister Rowley sent Director of Public Prosecutions, Roger
Gaspard, a sealed copy of the Colman report on June 23, 2016 at
4.47 p.m with a covering letter requesting the DPP "to give the
matter his urgent attention" given the sensitive nature of the
document, the report relays. After more than five years, charges
are yet to be laid.
The Prime Minister told Parliament in July 2016: "Having perused
the report myself, I can advise the population that it contains
very serious allegations of criminal misconduct on the part of a
handful of privileged individuals who were associated with the
CLICO/ CLF group of companies," the report notes.
Active Police Investigation
Commissioner of Police Gary Griffith told the Sunday Express that
there remains an active police investigation in CLICO and
acknowledged that hundreds of millions of taxpayers dollars have
already been spent on the investigation.
The investigation began during Colman's COE which nearly derailed
the Commission, the report relates.
Colman's terms of reference had included: "whether there are any
grounds for criminal and civil proceedings against any person or
entity; whether criminal proceedings should therefore be
recommended to the Director of Public Prosecutions for his
consideration; and whether civil proceedings should be recommended
to the Attorney General for his consideration," the report notes.
During the COE, DPP Gaspard announced that a criminal investigation
against former CLICO executives and several corporate entities
aligned to the collapsed insurance giant had begun, then it was
almost three years after the Government had stepped in to bail out
the company to protect the country's financial system from systemic
risk, the report discloses.
Gaspard had written to Colman expressing concern about how the
public enquiry, which had been 19 months old at the time, could
impact on the criminal investigation by the police, the report
relays.
"I am particularly concerned that an otherwise credible prosecution
might be stopped by the court on the grounds that a defendant's
right to a fair trial had been fatally compromised by the publicity
attendant upon your enquiry, the report notes.
"As such, I shall be issuing a press release warning the media
against the publication of any material which may jeopardise the
police investigation and any potential criminal proceedings,"
Gaspard had said, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on Aug.
6, 2015, Trinidad Express reports that the Constitution Reform
Forum (CRF) has called on Finance Minister Larry Howai to refrain
from embarking on an "unnecessary drain on the Treasury" by
appealing the decision of a High Court judge, who ordered that the
Minister fulfil a request by president of the Joint Consultative
Council (JCC) Afra Raymond for financial details relating to the
bailout of CL Financial Limited. The CRF issued a release stating
that if the decision is appealed, not only will it be a waste of
finance but such a course of action will also demonstrate a "lack
of commitment by the Government to the spirit and intent of the
Freedom of Information Act FOIA", under which the request was
made, according to Trinidad Express.
On July 7, 2014, Trinidad Express said that the Central Bank has
placed the responsibility of voluntary separation package (VSEP)
negotiations for workers at insurance giant Colonial Life
Insurance Company Ltd. (CLICO) with the company's board, after
which it will review accordingly, the bank said in a statement.
The bank's statement follows protest action by CLICO workers,
supported by their union, the Banking, Insurance and General
Workers' Union (BIGWU), outside the Central Bank in Port of Spain,
according to Trinidad Express.
In a separate TCRLA report on June 26, 2014, Caribbean360.com said
that the Trinidad and Tobago government has welcomed an Appeal
Court ruling that the Attorney General Anand Ramlogan said saves
the country from paying out more than TT$1 billion (TT$1 = US$0.16
cents) to policyholders of the cash-strapped CLICO. The Appeal
Court overturned the ruling of a High Court that ruled members of
the United Policyholders Group (UPG) were entitled to be paid the
full sums of their polices. CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.
On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that
over TT$8 billion worth of CLICO's profitable business will be
transferred to Atruis, a new company that will be owned by the
state. The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat.
At its annual general meeting in Sept. 2013, CL Financial
shareholders voted to extend the agreement with Government until
August 25, 2014, while Cabinet decides on a new framework accord
to recover the debt owed to Government through divestment of CL
subsidiaries, including Methanol Holdings, Republic Bank,
Angostura Holdings, CL World Brands and Home Construction Ltd.,
Caribbean360.com related. Proceeds from the divestment of these
assets will go toward Government's recovery of the billions it
pumped into CLICO.
TCRLA reported on Sep 22, 2011, Caribbean News Now, citing
Reuters, said that the cost of the Trinidad and Tobago
government bailout of CL Financial Limited is likely to rise to
more than TT$3 billion.
TRINIDAD & TOBAGO: Retailers Beg For Reopening
----------------------------------------------
Andrea Perez-Sobers at Trinidad Express reports that members of the
retail sector are making an "urgent and desperate" plea to the
Government for all malls and retail outlets to be reopened by the
end of July as vaccination availability continues to expand.
At post-Cabinet news briefing in Tobago, Prime Minister Dr Keith
Rowley said retail stores are in the next large group to be
targeted in the reopening of the local economy, according to
Trinidad Express. However, he did not give a timeline on when that
could potentially be, the report notes.
Stakeholders identified the importance of the retail sector as it
contributes significantly to the economy, the report relays. They
said all efforts must be taken to preserve the survival of the
sector in the coming days as many are now on the verge of permanent
closure as they enter a fourth month of shutdown, the report says.
Omar Hadeed, managing director of First Retail Inc, told the
Express yesterday that lockdowns are only a temporary fix, as they
result in extreme social and economic damage, and that a flexible
approach to managing the pandemic must be undertaken, the report
notes.
Hadeed said that T&T must accept that Covid-19 will remain a part
of our lives and we must move forward as the country cannot afford
to remain closed for prolonged periods, the report discloses. That
will lead to many underlying effects including significant job
losses, the report says.
"If we do not reopen soon, the industry may never recover and will
eventually drastically impact other components in the supply chain
and the entire retail ecosystem," Hadeed said, the report relays.
He explained that thousands of retailers are hurting as expenses
have been accumulating now for three months as landlords are still
charging between 20-50 per cent of rent with retailers having zero
income, the report notes.
These costs will continue to compound the longer they remain closed
and eventually would make it almost impossible to repay debts
putting additional pressure on landlords, financial institutions
and other suppliers, the report discloses.
"All malls and most retailers in the country have adhered to strict
protocols with very few related cases in the past year linked to
the sector. The industry was already suffering as it was going
through a transformational shift to compete with online platforms.
Foot traffic in malls and through street stores across the country
had already fallen before this pandemic arrived," Hadeed said, the
report relays.
According to the businessman the country experienced the
anticipated reopening of the restaurant industry, and from all
reports, it has been well below expectations, the report notes.
"This is a clear indication of the economic impact already suffered
from months of closure and the retail sector will be no different.
"We know that whichever day we are allowed to reopen, that day will
simply be the start of another long journey to the recovery of our
businesses. We are hopeful for a successful vaccine programme that
will eventually allow us to get back to normal. But for now, we
must all play our part to begin that journey," said Hadeed, the
report relays.
Retailers' Cash Low
Downtown Owners and Merchants Association (DOMA) president Gregory
Aboud said it has been a solid three months that the retail sector
has had zero income, but it still has overhead expenses and
interest on loans, the report says.
Aboud said this country is at a critical juncture in terms of the
economy and it is important to get vaccinated, the report notes.
"I am making a plea to citizens, that if you do not get vaccinated,
it shows that you do not care for your country, as all the science
has proven how effective it is to receive your two jabs especially
with Delta variant making its rounds in various countries," the
report relays.
The businessman also noted that many mall tenants in Port of Spain
have thrown in the towel as they have indicated that they can no
longer rally out as cash has run out, the report says.
"It is also rumoured that big retail outlets in the capital city
are either packing up shop for good or downsizing the amount of
outlets they currently own. This is a serious state of affairs and
it must be addressed," Aboud added, the report notes.
Chief executive officer of the Home Construction Ltd (HCL) group of
companies, Richard Le Blanc, told the Express that some tenants at
Long Circular Mall, Trincity Mall and OneWoodbrook Place, which HCL
manages, have already moved out, as the owners indicated that the
going got tough since the first lockdown, the report says.
"These lockdowns have been extremely difficult on us and when the
retail sector is allowed to open it will take between three and six
months for the owners to catch themselves as consumers' spending
power is not the same as it was pre-Covid," the report discloses.
Questioned how HCL was dealing with no income from tenants for the
past three months, Le Blanc said it has been very challenging and
tough decisions would have to be made soon, the report relays.
"It's going to come to that point in time, where to survive your
cash balances must be looked at carefully. Operating a business you
have to take drastic measures in order to stop the cash burn," Le
Blanc noted, the report adds.
===============
X X X X X X X X
===============
LATAM: Recovering Stronger but 3rd Covid Spike Could Spell Disaster
-------------------------------------------------------------------
Dashan Hendricks at Jamaica Observer reports that the pace of
economic recovery in Jamaica and the rest of the Latin America and
Caribbean (LAC) region is expected to be faster than originally
anticipated. However, Carlos Felipe Jaramillo, the World Bank's
regional vice-president for Latin America and the Caribbean, warns
that a third spike in infections from the novel coronavirus could
spell disaster, especially with the presence of a number of
variants, according to Jamaica Observer.
Jaramillo, in an interview with the Jamaica Observer at the end of
a three-day visit to the island, pointing to revised forecast from
the World Bank for the LAC region, said the expectation is that
growth this year will reach 5.2 per cent, the report notes. That
is up from the 3.8 per cent growth that was projected for the
regional economy when the original forecast was made in January,
the report relays. "What I can tell you with some certainty is
that we started the year with fairly low growth projections for
most of the region, thinking that the crisis will last longer and
have a longer impact," the report discloses.
He, however, said that "in the last three or four months" economic
activity has been picking up as countries reopen after undergoing
various levels of lockdown to contain the novel coronavirus
pandemic, the report says. "In Jamaica and many other countries in
the region, [we are seeing] a certain level of normalisation of
economic activity. We see tourism gradually recovering, we see tax
revenues [increasing], we see people getting back to work
gradually. At the rate we are going, in the next three months, we
may have to do yet another upward revision," he added, the report
relays.
For Jamaica, he said that could mean faster growth than originally
forecast as well, the report notes. "In Jamaica, we are projecting
above the average of the region, somewhere between 5 and 7 per
cent, which is good," the report relays. The original forecast for
Jamaica was for growth in the region of 3 per cent. Jaramillo,
however, added that "all countries will need to continue growing
because at this rate we won't get back to pre-pandemic income
levels until about 2024," the report discloses. But, the Bank of
Jamaica has forecast that Jamaica's economy will return to
pre-pandemic levels by 2023, the report says.
Jaramillo was, however, quick to point out to the Caribbean
Business Report that uncertainties, chiefly the impact of
COVID-19-induced lockdowns and the possibility of a third wave of
coronavirus infections as countries reopen, still remain, which
could derail the growth forecast, the report relays. He called on
regional governments to boost vaccination programs to prevent a
slowdown, the report notes. "Vaccines are protecting people and
its very hard to have a fully sustained recovery until the majority
of the population is vaccinated. It is very encouraging to see
what Jamaica looks like in the next few weeks, there will be
plentiful supply it has taken awhile. Unfortunately, globally
there's been a shortage, but it looks like it's now being resolved
and that's good. It is critical that people can get out again and
go to work and do their thing," the report relays.
Jamaica has already signalled that considerations are being made to
revise COVID-19 protocols if infection rates start rising rapidly
again, the report notes. Prime Minister Andrew Holness told
Jamaica's Parliament that the COVID-19 subcommittee of Cabinet will
meet "to consider whether there may be a need to tighten some of
the measures in advance of August," the report discloses.
Still, for Jaramillo, the hope is that China and the United States
will continue to pull the global economy forward, the report
relays. "The US is in the process of passing a very large
stimulus package, meaning the US is stimulating its own economy and
imports into the US. This will have a spillover effect into the
region. It will also stimulate tourism. And, then, at the same
time, China is recovering. It is a big buyer of agricultural goods,
mining goods and other things and so global trade is picking up in
a big way, the report adds.
[*] BOND PRICING: For the Week July 26 to July 30, 2021
-------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Esval SA 3.5 49.9 2/15/2026 CL CLP
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
YPF SA 16.5 67.3 5/9/2022 AR ARS
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
*********
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.
.
* * * End of Transmission * * *