/raid1/www/Hosts/bankrupt/TCRLA_Public/210923.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
Thursday, September 23, 2021, Vol. 22, No. 185
Headlines
B R A Z I L
AMASZONAS: Bolivia Charges Brazil's Nella for Debt
BRAZIL: Inflation to End 2022 Within Target, Says Guedes
GOL LINHAS: 2026 Secured Notes Add-on No Impact on Moody's B3 CFR
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Inflation at 5.41% in First 8 Mos. of Year
DOMINICAN REPUBLIC: Interest Rates Are at Historic Lows
J A M A I C A
JAMAICA: Clarke Hopes Mgmt. Approach to be Institutionalized
P U E R T O R I C O
AMADO AMADO: Seeks to Hire Kreston PR as Accountant
CB REAL ESTATE: Seeks to Hire Correa Acevedo as Special Counsel
T R I N I D A D A N D T O B A G O
ROCK HARD CEMENT: Closes for Good in Trinidad and Tobago
TRINIDAD & TOBAGO: Updates on Employment Conditions
U R U G U A Y
URUGUAY: IDB Approves $40MM to Support Educational Transformation
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B R A Z I L
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AMASZONAS: Bolivia Charges Brazil's Nella for Debt
--------------------------------------------------
Rio Times Online reports that after Latin American aviation was
surprised last month by the sale of Amaszonas to Nella Airlines for
an amount close to US$50 million, the Bolivian government rushed to
complain to the new owners about a multi-million dollar debt the
airline owes to several government agencies.
Bolivia's Minister of Public Works, Services and Housing Edgar
Montano stated that Amaszonas owes 129 million Bolivian pesos,
equivalent to some US$18 million, according to Rio Times Online.
Of this total, Bs 11.9 million correspond to the Telecommunications
and Transport Regulation and Inspection Authority, the report
notes.
BRAZIL: Inflation to End 2022 Within Target, Says Guedes
--------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazilian
Economy Minister Paulo Guedes outlined a rosier outlook for Latin
America's largest economy in 2022, predicting a "robust" GDP growth
and inflation meeting its target.
"I have a constructive and positive view that we're going to post a
robust growth next year," he said, according to
globalinsolvency.com.
Market participants see GDP growth at mere 1.93%, according to a
central bank survey released, the report discloses. In an event
hosted by Credit Suisse, Guedes said inflation is likely to be at
5% next year, the upper part of a range, globalinsolvency.com
notes.
This year, he said it should be at between 7.5% and 8%, adding he
thinks price adjustments will decelerate by year-end, the report
relays.
Guedes said the government is likely to resume negotiations about
court-ordered debts, an issue which threaten to blow a hole in
2022's budget, the report notes.
He said President Jair Bolsonaro's decision to publish an open
letter seeking to smooth over his tussle with the Supreme Court
will ease negotiations with the top court about legally mandated
debts, the report adds.
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.
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). S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 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).
GOL LINHAS: 2026 Secured Notes Add-on No Impact on Moody's B3 CFR
-----------------------------------------------------------------
Moody's Investors Service comments that Gol Linhas Aereas
Inteligentes S.A.'s B3 corporate family rating, the B2 rating of
the senior secured notes issued by Gol Finance (LuxCo), the Caa1
rating of the senior unsecured notes issued by Gol Finance and Gol
Equity Finance and stable outlook remain unchanged following the
company's announcement that it plans to issue an $100 million
add-on to its senior secured notes due 2026. This transaction will
be the second add-on to the original $200 million notes issued in
December 2020 by Gol Finance (LuxCo) and unconditionally guaranteed
by Gol and Gol Linhas Aereas S.A. and upsized to $500 million in
May 2021.
The senior secured notes are rated B2, one notch above Gol's CFR,
primarily reflecting the current pool of collateral appraised at
around $1.4 billion that comprises a first priority security
interest in Gol's intellectual property including patents,
trademarks, brand names, trade dress, know how, copyrights'
secrets, domain names, and social media accounts. The collateral
package also includes Gol's aircraft spare parts located in Brazil,
including rotable, repairable and expendable parts. Moody's
understands that the notes rank at least on a pari passu basis with
Gol's other secured indebtedness that pro-forma for the add-on will
account for around 63% of the company's indebtedness.
Pro forma to the add-on, Gol's secured notes program will have a
loan-to-value (LTV) ratio of around 44% and collateral coverage of
around 2.4x, still within the established limits of maximum LTV of
65% and minimum coverage of 1.5x. The program includes other
eligible collateral that could be added to the existing security
package if needed, such as spare engines, flight simulators, first
or second lien on incremental aircraft purchases, non-credit card
backed receivables and a first lien on Smiles Fidelidade S.A.
(Smiles)'s revenues, intellectual property and brand.
The notes proceeds will bolster the company's liquidity and help
financing working capital to support the growth in passenger demand
in Brazil through 2022 and the replacement of the Boing 737-800 NG
aircrafts for the 737 MAX 8 as part of Gol's fleet transformation
efforts. Gol's total debt will increase with the proposed add-on,
but liquidity will improve. On September 15, Gol also announced the
expansion of its commercial cooperation with American Airlines,
Inc.(Ba3 negative), through which American Airlines will provide
$200 million (BRL1.05 billion) for Gol through a 5.2% stake in
Gol's equity (about 22.2 million preferred shares with an unit
price of $9) in exchange for a 3-year exclusive codeshare
agreement. Finally, on September 17, Gol announced the issuance of
BRL1.2 billion in debentures due in 2024 that will be used to
refinance the company's short-term debt. The transactions add to
several liquidity-enhancing initiatives carried-out by Gol since
the beginning of 2021, including a BRL423 million equity increase,
and will help restore its cash position after the BRL744 million
cash requirement for the full take-in of Smiles in June 2021.
Pro forma for the transactions, Gol's cash position will remain at
around BRL1.2 billion and total available liquidity, including
trade receivables, will amount to BRL2.1 billion, while short-term
financial debt will decline to about BRL500 million from BRL1.8
billion at the end of June 2021. Liquidity will gradually improve
in the next quarters with the recovery in forward bookings and
on-balance sheet receivables, and the company will continue to have
access to the capital markets to bridge future liquidity gaps. Gol
has been generating break even cash flows and Moody's expects the
company to maintain its conservative approach toward liquidity amid
the recovery in travel demand in Brazil.
The acceleration of vaccinations in Brazil since mid-2021 is
supporting a fast recovery in domestic leisure travels and will
support a gradual normalization of Gol's EBITDA and leverage ratios
through 2022. Gol's passenger revenue fell sequentially from
January through April 2021, returning to only 35% of 2019's level
in April and reverting the recovery trajectory seen through
December 2020, when passenger revenue peaked at 68% of 2019's
level. However, passenger revenue started to pick up again in May,
returning to 53% of 2019's level in August 2021. Moody's expects
that the travel demand recovery will gain traction in the upcoming
months on continued vaccination and summer vacation plans, and that
domestic RPKs will return to close to full 2019 level already in
early 2022, absent of any new waves or variants of the virus.
A more rational competition and flight offering in the Brazilian
market after the exit of Avianca Brasil in 2019 and LATAM Airlines
filing for bankruptcy in 2020 will support continued increases in
load factors and air fares, although overall profitability for
domestic carriers will be hurt by a lower share of the higher
yields corporate passengers. As well, rising aviation fuel and
dollar-denominated costs will add pressure to profitability, and
the gradual return of aircrafts' expenses that were deferred during
the pandemic, such as pay-by-hour lease agreements containing cost
step-up clauses will require more working capital. Such hazards add
to rising macroeconomic headwinds in Brazil coming from rising
inflation, interest rates and political noises ahead of the October
2022 presidential elections, all of which can impair disposable
income and consumer confidence and slow the recovery.
Gol's B3 CFR is primarily constrained by the uncertainties ahead of
the airline industry as a result of the coronavirus pandemic that
could lead to slower economic recovery or another round of
restrictions for travel and tourism reducing the speed of the
rebound in the industry. The ability to raise liquidity and control
cash burn will still be a key aspect in Gol's ratings assessment.
Gol's B3 rating reflects the company's strong operating performance
during 2020 versus Moody's expectation at the beginning of the
coronavirus outbreak. The B3 rating also reflects a lower risk of
default in the short term, especially after the repayment of the
term loan guaranteed by Delta and the successful refinancing of
other debt instruments such as working capital facilities and local
market debentures that resulted in a more comfortable debt
amortization profile. Gol's ability to reduce costs through
agreements reached with employees and lessors that resulted in
lower than anticipated cash burn is also reflected in the B3
rating.
The stable outlook reflects Moody's expectations that Gol will
experience a strong recovery in demand going forward while keeping
its conservativeness observed so far during the pandemic towards
liquidity, costs and capacity management.
The ratings could be upgraded if risks and uncertainties are
reduced significantly, and passenger demand begins a sustainable
recovery towards pre-coronavirus levels. An upgrade would also
require Gol to maintain an adequate liquidity profile, with cash
consistently above 20% of revenues, and an improvement in key
metrics, with Moody's-adjusted debt / EBITDA declining to below
6.0x and interest coverage (measured by (funds from operations +
interest) / interest) sustainably above 3.0x.
Gol's ratings could be downgraded if the pace of recovery of
passenger demand is slower than Moody's expects or if liquidity
concerns increase, translating into an increased expectation of a
default in the company's financial obligations. A downgrade could
also occur if the company is unable to strengthen credit metrics
through the recovery phase.
Founded in 2000 and based in Sao Paulo, Brazil, Gol is the largest
low-cost carrier in Latin America, offering over 750 daily
passenger flights to connect Brazil's major cities and various
destinations in South America, North America and the Caribbean,
along with cargo and charter flight services. Gol also owns 100% of
Smiles, a loyalty program company with more than 18.5 million
participants that allows members to accumulate miles and redeem
tickets in more than 900 destinations around the world and offer
non-ticket reward products and services. In the twelve months ended
June 2021, Gol reported consolidated net revenues of BRL5.5
billion.
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Inflation at 5.41% in First 8 Mos. of Year
--------------------------------------------------------------
Dominican Today reports that the Central Bank reported that the
monthly variation of the Consumer Price Index (CPI) was 0.80% in
August, which places the accumulated inflation for the Dominican
Republic for the first eight months of the year at 5.41%, while the
inter-annual inflation, measured from August 2020 to August 2021,
was at 7.90%.
It further explained that the result of the August CPI was
significantly affected by the price increase registered in fresh
chicken, which contributed more than a quarter of the month's
inflation, due to the migration in consumer demand from pork to
chicken, causing a substitution effect, after cases of swine fever
occurred in the country, according to Dominican Today.
Finally, the price report indicates that monthly core inflation
stood at 0.51%. This last indicator excludes some items whose
prices tend to be volatile, 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).
DOMINICAN REPUBLIC: Interest Rates Are at Historic Lows
-------------------------------------------------------
Dominican Today reports that the the financial system of the
Dominican Republic continues to reflect low active interest rates,
which is applied to loans, behavior that is also maintained in
passive ones, which are the returns that are paid for deposits and
placements of financial certificates and other instruments in the
banking sector and savings and loan associations.
The downward trend is maintained in commercial, personal, consumer
loans, preferential loans, and mortgage financing, according to
Dominican Today. As a result, this last line rose very little on
September 7 of this year compared to 2020, although it is still
well below 2019, the year in which the rate was at 11.12%, the
report notes.
The decline in mortgage and development loans was reflected in the
years 2019 and 2020, with average rates of 9.01%; and 9.36%,
respectively, and although it contrasts with the average 10.31% of
the 7th of this month, official data reveal that this month
negotiations were closed with 9.22%, the lowest rate since 2020,
the report notes.
In January to August 2021, the closing of the mortgage rate was
9.36% and, on average, 9.68% in the first week of September, the
report relays. Therefore, in the case of mortgage loans, the great
boom of the construction sector is inferred, which has been the
most dynamic activity in the economy, the report discloses.
In addition, financial intermediation entities maintain low-rate
offers depending on the durability of the new financing and have
fixed rates of six months, one and three or more years, the report
relays. Furthermore, some entities have offered to eliminate
closing expenses, especially in affordable housing and fixed rates
for the duration of the life of the loan, the report says.
Banks now have rates at historic lows since 2000, even below
savings and loan associations, the report notes. In August of this
year, the weighted average rate closed at 8.46%, and to date, it is
at 9.68%, according to commercial banks, with data from the Central
Bank, the report relays.
Another reason why there is a slight increase in new loans arranged
in September may be due to the use of the resources allocated for
these purposes from liquidity facilities, which are channeled with
their own resources, the report notes.
However, banks such as Reservas have taken offers from 5.8% to six
months, 7.50%, 7.80%, 9.80%, and 11.80%, with one, three, five, and
ten years of the term, the report relays. In addition, other banks
will come out with new offerings, the report says.
According to statistics from the Central Bank, loans granted this
year by financial institutions until the first week of September in
progress remained at an average of 8.67% for the trade sector, a
behavior of six points less if compared to the rate of 15.45% that
had reached in all of 2020 and 11.43% in 2019, the report
discloses.
Commerce
On the 7th of this month, the trade loan rate closed at 8.95%. At
the same time, rates for consumer and personal loans have also
fallen. From 18.11% in 2019, they fell to 10.89% in 2020, and
already at the end of August 2021, it was at 15.30%, the report
relays.
In the first seven days of this month, the average closed at 16.03,
although on the 7th, negotiations were closed at 15.69%, the report
relays. In trade, the drop is highly significant, due to the one
that in 2019 it was 11.43%, in 2020 it was 15.45%, and until August
2021 it was at 8.67%, closing in the first seven days of September
at 7.78%, the report discloses.
The weighted average rate for preferential customers has also
fallen from 10.34% in 2019 to 9.0% in 2020 and 7.18% in August
2021, the report relays. In the first week of this September, it
closed at 6.82%, the report notes.
September 7
Loans to the commercial sector closed on Sept. 7 with rates of
8.95%, mortgages at 10.31%, consumer loans at 15.69%, and
preferential loans at 7.19%, the report discloses.
Passive. The active rate for savings closed an average of 0.1968%
this month, 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).
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J A M A I C A
=============
JAMAICA: Clarke Hopes Mgmt. Approach to be Institutionalized
------------------------------------------------------------
Jamaica Observer reports that Jamaica Finance Minister Dr. Nigel
Clarke says he is hoping the "multi-layered risk management
approach" that is now being implemented to financing recoveries
after natural disasters will be institutionalized.
Dr. Clarke was responding to the Jamaica Observer about non-ratings
commentary from Fitch Ratings about the World Bank-issued
catastrophe bond (Cat bond) for US$185 million which is equivalent
to approximately 1.3 per cent of gross domestic product (GDP).
Fitch, in the commentary, said the bonds which were issued in July
"benefits Jamaica's Government as it significantly strengthens its
natural disaster risk-mitigation strategy," according to Jamaica
Observer. The purpose of the Cat bond is to insure the Government
against named storms and hurricanes. The bond expires on December
29, 2023 and does not add to Jamaica's national debt, the report
notes.
"We have to take account of our vulnerability to natural disasters.
We have to plan for today as well as for tomorrow. That is what we
are doing with the US$185-million Cat bond issue," Dr Clarke told
Sunday Finance, the report relays. "Together with our
US$285-million Credit Contingent Claim from the IDB (Inter-American
Development Bank), the Contigency Fund, (US$29 million), our
National Disaster Fund and the Caribbean Catastrophe Reinsurance
Facility (US$82 million for tropical cyclone), we are implementing
a multilayered risk management approach with the aim of being able
to finance the emergency costs of natural disaster and thereby
preserve macro-economic stability through the worst kinds of
tropical cyclone and hurricane, allowing for a quick recovery. It
is important that this is institutionalized and continued over the
long term for the good of Jamaica", he added, the report
discloses.
The latest major hurricane that could've seen Jamaica calling on
the bond was Sandy in 2012, which had an estimated total
destruction of 0.8 per cent of GDP. Fitch estimates on average
Jamaica will record an annual loss due to hurricanes and flooding
of 0.9 per cent of GDP which is equivalent to about US$125 million
or J$18.75 billion. It is estimated that a one-in-50 years weather
event could cost roughly 10 times that amount. Fitch Ratings,
citing a 2014 IDB loss distribution publication, showing such a
weather event could cost US$1.3 billion or about 8.8 per cent of
GDP.
"Recent hurricanes show how disruptive they can be to the public
finances of small island economies," Fitch remarked. It also
pointed to data which showed that Maria which hit Puerto Rico as a
category 4 hurricane where the estimated destruction was equivalent
to 78 per cent of gdp in 2016.
The US$185 million bond is currently financed by donors led by the
UK, US and Germany. Fitch estimates that the annual cost of the
monthly coupon payment is US$8.3 million. Clarke had stated before
that once Jamaica's debt is down, the country will pay for the
renewal without outside help. Fitch says it expects that to start
in 2024.
=====================
P U E R T O R I C O
=====================
AMADO AMADO: Seeks to Hire Kreston PR as Accountant
---------------------------------------------------
Amado Amado Salon & Body Corp. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Kreston
PR, LLC as its accountant.
The firm's services include:
(a) providing assistance to the Debtor in preparing monthly
reports of operation;
(b) preparing financial statements;
(c) assisting the Debtor in preparing cash flow projections
or any other projections needed for cash collateral
purposes, disclosure statement and plan of
reorganization;
(d) assisting the Debtor in all financial aspects in
connection with the administration of its estate;
(e) assisting the Debtor in the preparation and filing of
federal, state and municipal tax returns; and
(f) assisting the Debtor in any other assignment that
might be properly delegated by the management.
The firm's hourly rates are as follows:
Partner $180 per hour
Tax Consultant $160 per hour
Managers $120 per hour
Supervisors $100 per hour
Auditors $80 per hour
Accountant $55 per hour
Clerical $35 per hour
Frank Sanchez Ruiz, the firm's managing member, disclosed in a
court filing that his firm is a "disinterested person" as the term
is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Frank Sanchez Ruiz, C.P.A.
Kreston PR, LLC
P.O. Box 193488
San Juan, Puerto Rico 00919-348
Tel: (787) 641-4611
Fax: 1-800-808-1459
About Amado Amado Salon
San Juan, P.R.-based Amado Amado Salon & Body Corp. sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D. P.R.
Case No. 21-02630) on Aug. 31, 2021, disclosing up to $500,000 in
assets and up to $10 million in liabilities. Amado Navarro
Elizalde, president of Amado Amado Salon, signed the petition.
Gloria Justiniano Irizarry, Esq., an attorney practicing in
Mayaguez, P.R., and Kreston PR, LLC serve as the Debtor's
bankruptcy counsel and accountant, respectively.
CB REAL ESTATE: Seeks to Hire Correa Acevedo as Special Counsel
---------------------------------------------------------------
CB Real Estate, LLC seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to hire Correa Acevedo & Abesada
Law Offices, P.S.C. as special counsel.
The Debtor needs the firm's legal assistance in the case styled CB
Real Estate v. Lilly del Caribe before the Court of First Instance
of Puerto Rico and the appellate cases involving the same
respondent.
The firm's hourly rates are as follows:
Sergio Criado, Esq. $175 per hour
Associates $125 per hour
Paralegals and law clerks $75 per hour
Sergio Criado, Esq., the firm's attorney who will be providing the
services, disclosed in a court filing that he is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code.
The firm can be reached at:
Sergio Criado, Esq.
Correa Acevedo & Abesada Law Offices, P.S.C.
Centro Internacional de Mercadeo, Torre II
90 Carr. 165, Suite 407
Guaynabo, P.R. 00968
Tel.: (787) 273-8300
Fax:(787) 273-8379
Email: scriado@calopsc.com
About CB Real Estate
San Juan, P.R.-based CB Real Estate, LLC is a fee simple owner of
two commercial buildings located in Puerto Rico and a residential
property in New York, valued at $8.9 million in the aggregate.
CB Real Estate sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 21-01849) on June 16, 2021, listing
total assets of $10,147,500 and total liabilities of $3,407,130.
Horacio Campolieto Bielicki, president of CB Real Estate, signed
the petition.
Judge Mildred Caban Flores oversees the case.
The Debtor tapped Charles A. Cuprill, PSC Law Offices as bankruptcy
counsel and Correa Acevedo & Abesada Law Offices, P.S.C. as special
counsel. Luis R. Carrasquillo & Co. P.S.C. and Vicente Garcia CPA
& Co., P.S.C. serve as the Debtor's financial consultant and
accountant, respectively.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
ROCK HARD CEMENT: Closes for Good in Trinidad and Tobago
--------------------------------------------------------
Trinidad Express reports that Rock Hard Cement said it had closed
its business in Trinidad, and will seek opportunities elsewhere in
the Caribbean "until such time as we are afforded equal treatment
in our home country".
In a post on its Facebook page, the cement-importing company blamed
its closure on the imposition by the Government of "continuous
challenges" to its doing business in T&T, according to Trinidad
Express.
The company, which is owned by the Ramhit family of contractors,
said the initial challenge was in the form of misclassification of
its imported cement, which meant it was charged a higher rate of
duty than was legally allowed for the cement, the report notes.
The company said: "We fought this and were again successful, only
for the Government to increase the rate of duty by 900 per cent to
50 per cent at the end of 2020 whilst at the same time imposing a
quota limiting us to importing only 55,000 tonnes of cement for
2021, the report relays.
"Unfortunately, the combination of a limit on imports of 55,000
tonnes combined with an import duty of 50 per cent means that Rock
Hard Distribution Inc simply cannot operate in Trinidad," the
report relates.
Rock Hard said that it was "with extreme sadness and
disappointment", therefore, that it has closed the business in
Trinidad and will now pursue opportunities in other Caribbean
countries until such time as it is afforded equal treatment in T&T,
the report notes.
"We recognise the immense challenge we took on in entering the
cement markets in the Caribbean and in particular Trinidad, but we
believe the citizens of Caricom deserve to be treated fairly and to
have access to world-class products at affordable prices. We can,
however, only continue to operate in those countries across the
Caribbean that uphold the principles of fair trade and equality and
recognize the rights of all business owners and consumers," it
ended, the report notes.
The company, which announced earlier this year that it was closing
down on July 1, maintained that it was established in order to
provide Caribbean consumers with high quality and affordable
cement. It added that it is grateful that for the past five years,
it had been able to achieve this goal, the report says.
TRINIDAD & TOBAGO: Updates on Employment Conditions
---------------------------------------------------
Asha Javeed at Trinidad Express reports that in the 2021 Budget,
Finance Minister Colm Imbert had said the goal of the Trinidad &
Tobago government was to boost jobs. But what exactly is the state
of unemployment in Trinidad and Tobago? And if this figure is not
readily available, how does a Government adequately plan for it to
create opportunities for the unemployed?
Finance Minister Colm Imbert said the Government had screened
21,656 applications for salary relief grants in 2021, according to
Trinidad Express.
The salary relief grants, valued at $1,500, were to support workers
in the private sector whose jobs were affected by public health
measures imposed by the Government in its management of the
Covid-19 pandemic in T&T, the report notes.
The grant covered the period May to July.
"As at September 10, 2021, payments have been made to 6,560
eligible applicants. The process continues," Imbert said in
Parliament, the report notes.
The difference between the number of people applying for the grant
and those receiving payments is 15,096 people - all from the
private sector in service industries, the report relays.
There is little data or research to give an accurate picture on
these applicants: if they do not receive financial support from the
State, how do they meet living expenses? Also suffering from a lack
of data and research is the impact the lockdowns have had, or the
actual number of people who have lost their jobs or of how many
businesses closed their doors and left workers without jobs, the
report discloses.
The proposed National Statistical Institute, a proposal in the
works for years, is still before a Joint Select Committee of
Parliament, the report relays.
As it stands, the Central Statistical Office (CSO) is the official
source of data in T&T, the report notes.
The last data it posted had unemployment at 5.1 per cent for the
second quarter of 2020, the report discloses.
With the country's total labour force at 604,100, the CSO data has
31,100 unemployed and 21,300 identified as people without jobs and
seeing work, the report relates.
In the category "Other unemployed" in the chart, the figure stands
at 9,000, the report says.
Sourcing Data
In September 2020, the Sunday Express had sent questions to the
Ministry of Labour to determine if it had any data on how the
pandemic had affected jobs in the country, the report discloses.
The report relays that in December 2020, they responded: "The
ministry is currently preparing a report focusing on the impact of
Covid-19 on jobs in the country. Data extracted from the social
grant applications lodged at the NIB and the Ministry of Social
Development will be utilised in the report. Additionally, reports
of the same nature prepared by other stakeholders will be utilized
to supplement this report," Trinidad Express relays.
In response to a question from the Sunday Express, Labour
Minister Stephen McClashie said: "The Ministry of Labour is not
the source of truth on the unemployment statistics in T&T. That is
the CSO," the report relays.
He said what the ministry does is capture information on job
vacancies in the public services and retrenchment notices.
The Central Bank of T&T gathers data based on companies being
closed. For example, when Petrotrin was closed, there was a
specific figure on jobs that were cut and retrenchment notices in
the daily newspapers.
Central Bank's May Monetary Policy Report, published on July 16,
observed that "labour market slack continues to pervade the economy
despite the partial reopening," the report discloses.
"Constraints on economic activity were also reflected in the labour
market as retrenchments climbed to 2,744 persons in 2020 compared
to 1,530 persons in 2019," the bank said in its 2020 Financial
Stability Report, which was published on August 3, the report
notes.
That report noted there was a significant exposure of financial
institutions to the household sector, the report notes.
"Household debt levels contracted for the first time since its
compilation (2003) on account of pandemic-related containment
measures and the resultant slowdown in economic activity.
Nevertheless, the stock remained high at just about 48 per cent of
the banking sector's loan portfolio, the report relays.
"Rising unemployment and depressed income levels, exacerbated by
renewed restrictions, may have increased the financial sector's
vulnerability to households. While extended loan deferral
programmes have helped cushion the immediate shock to banks'
financial soundness indicators, asset quality and profitability may
become compromised as loan obligations become due following the end
of moratoria," it said, the report notes.
In a Newsday interview in 2019, director of the CSO Sean O'Brien
had said labor force statistics are notoriously late because of the
difficulty to get data, the report relays.
"If the non-response rate is too low, we have to replace that
sample because the quality of the data is unreliable. We have to
replace that district with another and then start over," he had
said, the report notes.
Labour force statistics, for example, are supposed to come out
every quarter—at most, two quarters late. In T&T, they are four
quarters behind, the report says.
"People think that if the labour statistics are late, it's just
that the CSO isn't bringing it out. But the CSO can't just invent
the data. We have to collect it from the source and if the source
isn't co-operating, you're going to have these delays. We can't
give you data that's not accurate. As you can imagine, accuracy
and timeliness war against each other in this business," the report
notes.
Public Sector
So how does the public sector employment compare?
Public sector workers have been paid their full salaries throughout
the pandemic. In his Budget 2021, Imbert said the Government would
look to fill all vacancies in the Public Service, the report
relays.
"Madam Speaker, in this post-pandemic era, we are improving the
efficiency of the public sector apparatus. With increasing
technology, digitisation and digitalisation, we are improving
public sector performance while, at the same time, containing the
growth in expenditure, the report notes.
"As we undertake diverse approaches to reform key institutional
arrangements, utilising an e-governance ecosystem, we will
transform workforce human resource management arrangements, we will
change budget practices and procedures and we will introduce
results-oriented approaches to policy execution, the report
discloses.
"Madam Speaker, we have been able to reduce our annual public
expenditure to approximately $50 billion, with $10 billion being
channelled to the direct Public Service of approximately 62,300
individuals. Furthermore, transfers to statutory authorities and
State enterprises account for another 12,000-plus employees, the
report notes.
"As an initial step, and in the context of our constrained revenue
situation, we are freezing the filling of all vacancies in the
public sector," he had added.
Imbert, in his Spotlight on the 2020 Budget contribution, said
public sector salaries and wages cost taxpayers at least $20
billion a year, or about $1.5 to $1.7 billion a month, the report
notes.
That includes direct charges, appropriated funds, transfers and
subsidies, and statutory boards, and excludes the Tobago House of
Assembly (THA), the report relays.
IDB Report
In the Inter-American Development Bank's (IDB) second Caribbean
Quarterly Bulletin for 2020, an article titled "The Pandemic
Continues" noted severe pressures on T&T's labour market because of
Covid-19, with conditions especially difficult for lower-income
households, the report discloses), the report relays.
The IDB gathered data from an online survey, in collaboration with
Cornell University, which showed 67 per cent of low-income survey
participants suffered a job loss during the Covid-19 lockdown,
compared to only 23 per cent of high-income households and 49 per
cent of middle-income households, the report notes.
The survey also mapped business closures, with 60 per cent and 59
per cent of low and middle-income businesses closing, compared to
45 per cent among high-income, the report relates.
The report noted that labor supply was also heavily affected,
observing that over the period January to May 2020, only 180 daily
vacancy announcements were advertised in the non-energy sector, or
half the number for the same period last year when 340 daily
advertisements were recorded, the report relays.
The report noted, however, that recent, high-frequency unemployment
data is "unfortunately lacking", so it is not straightforward to
estimate the employment impacts of the Covid-19 crisis, Trinidad
Express notes.
The survey also showed that Government's social programs have
expanded, with more people being able to access the measures put in
place to respond to the Covid-19 crisis, including food cards,
salary relief grants and unemployment and rental assistance, the
report discloses. But, the IDB said, there's also potential to
improve targeting as middle and high-income households received
social benefits, the report says.
The report concluded that the Covid-19 crisis will likely have
medium-term economic consequences, which could involve sluggish
economic growth, increased unemployment, rising public debt and
sustained pressure on the country's external accounts, Trinidad
Express notes.
"While Trinidad and Tobago has substantial financial buffers—the
Heritage and Stabilization Fund, large public sector assets, liquid
sinking funds—to maintain macro-economic stability in the short
term, these policies are no longer affordable in the medium term,
Trinidad Express says.
"Engaging in economic diversification, enhancing the ease of doing
business, improving public sector governance, mobilizing non-energy
revenue and streamlining government expenditures will be required
going forward. At the same time, there is a need to protect the
poor and vulnerable from the negative economic consequences of the
Covid-19 crisis," it said Trinidad Express adds.
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U R U G U A Y
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URUGUAY: IDB Approves $40MM to Support Educational Transformation
-----------------------------------------------------------------
Uruguay will improve access and quality of education with the
support of a US$40 million loan from the Inter-American Development
Bank (IDB).
The project aims to increase the rates of permanence and graduation
in basic and higher secondary education by accompanying students
with greater difficulties or who have disengaged from the
educational system. It also seeks to improve the quality of the
educational offer, updating the curricula to prioritize the core
content, cross-reflect the development of skills, incorporate a
vision of climate change, gender and diversity, and include the use
of digital tools.
The program focuses on three pillars: improving the quality of the
educational offer; transforming of management, processes, and
systems; and the financing of new green infrastructure for academic
improvement.
Uruguay faced the challenge of emergency remote teaching due to the
pandemic in better conditions than other countries in the region,
thanks to its previous progress in digital educational
transformation. However, in Uruguay, as in other countries in Latin
America and the Caribbean, educational exclusion will worsen due to
high dropout rates. Estimates predict an increase of 17%,
equivalent to 4 thousand young people between 6-17 years old who
will not return to the classroom after the pandemic, affecting
mainly the poor sectors and the vulnerable middle class.
The initiative seeks to increase the percentage of young people
between the ages of 15 and 17 who attend some educational offer,
and the graduation from Basic Secondary Education for 16-year-olds
and from Upper Secondary Education for 19-year-olds. Also, the
project expects to support teachers and families of high school
students in protecting their educational trajectories through
innovative early warning, accompaniment, and school reinforcement
systems.
The project aligns with the priorities of the IDB's "Vision 2025"
in terms of gender, digitization, and climate change, to achieve
the recovery and inclusive growth of Latin America and the
Caribbean.
The $40 million loan has a 5-year disbursement period, a 6-year
grace period, and an interest rate based on LIBOR.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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