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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

          Tuesday, December 7, 2021, Vol. 22, No. 238

                           Headlines



B R A Z I L

BRAZIL: Confirms Reduced 10% Share for Biodiesel in 2022
BRAZIL: Hits Record in Gas Purchases From U.S. After Water Crisis
MARFRIG GLOBAL: S&P Upgrades ICR to 'BB', Outlook Stable


C H I L E

LATAM AIRLINES: Creditors Committee Balks at Ch.11 Plan


D O M I N I C A N   R E P U B L I C

AES ANDRES: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
DOMINICAN REPUBLIC: Gets IDB Loan for Sto. Domingo Revitalization


J A M A I C A

WATA LAND: Adventure Park on Sale For US$2 Million


M E X I C O

AXTEL SAB: S&P Affirms 'BB' Issuer Credit Rating, Outlook Stable
INTERJET: Plans to Restart Operations in 2022 With 10 Airplanes


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Inflationary Pressures May Increase


X X X X X X X X

LATAM: Goes Back 2 Decades in Terms of Poverty After Pandemic

                           - - - - -


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B R A Z I L
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BRAZIL: Confirms Reduced 10% Share for Biodiesel in 2022
--------------------------------------------------------
Rio Times Online reports that Brazil, like Argentina, has decreed a
reduction in the share of biofuels in fossil fuels.  The
announcement was supposed to be for a short time, but the National
Council for Energy Policy confirmed that the decision will be
upheld until 2022, according to Rio Times Online.

This measure implies that the minimum share will be 10%, against
13% before, the report notes.  At the time, the Bolsonaro
government argued that the price of the raw material was too high,
the report relays.  However, the biodiesel industry associations
say that there is no justification for this measure, the report
discloses.

The industry associations are criticizing the Government's
decision, 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).


BRAZIL: Hits Record in Gas Purchases From U.S. After Water Crisis
-----------------------------------------------------------------
Rio Times Online reports that the water crisis has caused Brazil to
buy record volumes of gas from the United States, with the country
moving from seventh place in the ranking of the largest importers
of American liquefied natural gas (LNG) in 2020 to fourth this
year.

Analysts say that LNG imports, which account for nearly a quarter
of Brazil's gas supply today, more than doubled last year and
should remain high in the medium term, according to Rio Times
Online.

Data from the November trade balance, released by the Ministry of
Economy, show that in the year-to-date, natural gas imports,
liquefied or not, increased 273.6% in values, compared to 2020,
says the report.

                         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).


MARFRIG GLOBAL: S&P Upgrades ICR to 'BB', Outlook Stable
--------------------------------------------------------
S&P Global Ratings raised its global scale issuer credit and
issue-level ratings on Brazilian protein company Marfrig Global
Foods S.A. (Marfrig) to 'BB' from 'BB-' and national scale issuer
credit rating to 'brAAA' from 'brAA+'. S&P also affirmed its '3'
recovery ratings on the notes, indicating a recovery expectation
between 50%-70%.

The outlook is stable and reflects S&P's view that although Marfrig
will keep leverage controlled despite the normalization of the
cycle in the U.S., further acquisitions and countercyclical
measures--including adherence to more conservative financial policy
decisions--will be the main ratings driver.

In the U.S., high beef demand is driving price hikes that far
outpace the recent cattle price increases in the country, because
there's high cattle availability in U.S. Cutout ratios are at
record-high levels, but we expect them to gradually decrease in
2022 to reach margins at about 7%-8% in the following year at U.S.
subsidiary National Beef--still above the industry's historical
average (about 5%). In Brazil, feeble economic recovery and falling
beef consumption due to high inflation, combined with high cattle
prices, have been driving margins downward. S&P said, "We expect
about 5% margins in Brazil in fiscal year 2021, especially because
the Chinese export market is still closed to Brazilian beef and
there is very limited room to continue adjusting prices amid higher
domestic supply. However, we also expect some recovery, with the
potential reopening of China boosting export profits, rising cattle
availability, and softening costs." The cattle arroba increased
18.5% year-to-date in Brazil and has stabilized at a high price,
but the improved overview for the cattle cycle should allow
Marfrig's South American operations to gradually approach 8%-9%
margins in 2023.

Marfrig is increasing investments--mainly in its Iowa and
Bataguassu plants--and will reach consolidated capex of about R$1.7
billion in 2021. Nevertheless, because of the record EBITDA, which
S&P expects to reach about R$13.5 billion by year-end, Marfrig's
FOCF should be strong; close to R$7 billion in 2021. The company
partially used this to reduce debt, but it has also increased
shareholder remuneration and acquired a 33% stake in BRF S.A.
(BB-/Positive/--) for close to R$6.5 billion. It also made minor
acquisitions such as Sol Cuisine and Hillary's through its Plant
Plus subsidiary for $100 million (about R$550 million). Adjusted
debt to EBITDA reached 1.8x in the third quarter of 2021 and S&P
expects it to reach 1.6x by year-end. This ratio doesn't consider
BRF's shares as short-term investments, which could drive leverage
further down to 0.4x-0.5x.

Marfrig's management states that the investment in BRF is passive,
but if the company pursues full acquisition of BRF (its stake is
currently near the "poison pill" threshold), we would evaluate the
impact on the business, capital structure, and leverage profile of
the combined companies. S&P said, "We don't include the acquisition
of BRF in our base case, and the companies already have some
commercial agreements involving sales in Brazil, but other large
mergers and acquisitions (M&As) could prompt us to negatively
reevaluate our assessment of Marfrig's financial policy if metrics
significantly deviate from our expectations. Marfrig has a long
history of aggressive acquisitions that have leveraged its balance
sheet, but we expect it to keep some cushion in metrics and balance
sheet in order to face industry downturns."

Marfrig's liquidity continues to be strong, despite the acquisition
of the stake in BRF and some short-term debt concentration. Its
South American operation is working capital-intensive, especially
if the Chinese market opens, while in the U.S. operations have
shorter-term receivables. S&P doesn't stress test the company to
rate it above Brazil (BB-/Stable/B) because it generates less than
10% of consolidated EBITDA in the country. Even with more normal
margins in the U.S. and South America, it would not expect EBITDA
generation in Brazil to exceed 25%.




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C H I L E
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LATAM AIRLINES: Creditors Committee Balks at Ch.11 Plan
-------------------------------------------------------
Vince Sullivan of Law360 reports that unsecured creditors of
Chilean air carrier LATAM Airlines Group SA voiced their
displeasure with the company's recently proposed Chapter 11 plan
on November 30, 2021, in New York bankruptcy court, saying it gives
insiders an unfair share of the reorganized entity.

During a teleconference hearing, Allan S. Brilliant of Dechert LLP,
an attorney for the committee of unsecured creditors, told the
court that he reviewed the Chapter 11 documents for LATAM's plan
after they hit the docket on November 26, 2021, and argued that the
plan was unconfirmable by a court because it did not treat all
unsecured creditors the same.

                    About LATAM Airlines Group

LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.

Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.

LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254)on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.

The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.

The Hon. James L. Garrity, Jr., is the case judge.

The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel.  The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.

The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.

The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.

Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.





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D O M I N I C A N   R E P U B L I C
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AES ANDRES: S&P Alters Outlook to Stable, Affirms 'BB-' ICR
-----------------------------------------------------------
S&P Global Ratings revised the outlook on Dominican Republic-based
power generation company AES Andres B.V. to stable from negative
and affirmed its 'BB-' ratings on the company.

The stable outlook reflects S&P's view that due to its contracted
structure, the company will continue to post debt to EBITDA
consistently below 3x in the next 12-18 months while sources of
cash will continue to exceed uses in the same timeframe, despite
possible delays in receivables due to delays in government
subsidies' collections.

On Dec. 2, 2021, S&P Global Ratings revised the outlook on the
Dominican Republic to stable from negative and affirmed its 'BB-'
foreign currency (FC) and local currency (LC) ratings on the
country.

S&P's outlook revision on the Dominican Republic to stable from
negative reflects the country's impressive economic growth and
ability to quickly rebound from external shocks, but also its weak
public finances and shortcomings in its institutional assessment,
as shown by repeated delays in passing meaningful tax reforms. The
stable outlook on the country indicates we expect continued
favorable GDP growth and policy continuity over the next 12 to 18
months that will likely stabilize the government's debt burden,
despite lack of progress with broader tax reforms. A rapid economic
recovery from the pandemic-related downturn should mitigate
external and fiscal risks.

S&P said, "In line with the rating action at the sovereign level,
we revised AES Andres' outlook to stable from negative because we
don't consider that we could rate the company above the sovereign,
given the sector's reliance on government subsidies to compensate
for electricity losses and low tariffs. Consequently, in a
sovereign stress scenario, we believe AES Andres could suffer from
heavier regulation and higher working capital needs that would
impair its capacity to generate or maintain sufficient cash to
honor its financial obligations in a timely manner.

"Our ratings on AES Andres continue to reflect the underlying risk
associated with the Dominican Republic generation segment's high
dependence on subsidies. In our view, operating in the Dominican
Republic electricity sector exposes AES Andres to some risk because
the sector depends on government subsidies that are directed to the
distribution segment through a securitization program. In our view,
the sector's dependence on the government's ability to continue
subsidizing it makes the Dominican Republic's regulatory framework
compare negatively with other jurisdictions in Latin America.
Despite their dependence on the subsidies, AES Andres and its
sister company Dominican Power Partners (DPP; not rated) thermal
plants are some of the first to be dispatched in Dominican Republic
because they're within the first quartile of production costs,
behind only renewable sources. Both companies are part of the
baseload dispatch, meaning that they dispatch not only to fulfill
the demand during peak periods, but also during times of lower
demand, which supports their ability to maintain long-term
contracts for 90% of capacity.

"Considering the company's contracted structure--with about 90% of
output contracted via power purchase agreements that incorporate
fuel pass-through clauses--the company's operating metrics and
leverage ratios have been relatively stable. We expect debt to
EBITDA to remain close to 2.2x-2.5x for the next 12-18 months."


DOMINICAN REPUBLIC: Gets IDB Loan for Sto. Domingo Revitalization
-----------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a $3.37
million (EU2.95 million operation with resources from a European
Union grant to revitalize the Colonial City of Santo Domingo in the
Dominican Republic. The funds will complement the Integrated
Tourism and Urban Development Program for the Colonial City of
Santo Domingo, carried out by the Ministry of Tourism in
collaboration with the National District Government and the
Ministry of Culture.

The grant will help revitalize the city's urban areas, economy, and
cultural tourism through the recovery of public spaces and historic
monuments, as well as promote measures to improve livability
standards for its residents.

The EU contribution will support the implementation of a
sustainable urban mobility plan, a housing improvement project, and
the launch of an electromobility pilot program. The loan will also
help boost the number of homes that will benefit from the
initiative by incorporating new improvement criteria, including
climate change, gender, and diversity.

This operation is in line with Vision 2025 - Reinvesting in the
Americas: A Decade of Opportunities, the IDB Group's plan to
promote economic recovery and inclusive growth in Latin America and
the Caribbean in the areas of digital economy, gender and
inclusion, and climate change.

The Colonial City of Santo Domingo was designated a World Heritage
site by the United Nations Educational, Scientific and Cultural
Organization (UNESCO) in 1990. It is a strategic site for the
tourism industry, featuring a concentration of major heritage and
cultural assets. The city has the largest number of museums in
Santo Domingo, and offers a creative economy cluster, with art,
music, and local cuisine. An estimated 28% of its businesses belong
to the creative industries.

The $3.37 million operation has a disbursement and implementation
term of 3.5 years.

                 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
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WATA LAND: Adventure Park on Sale For US$2 Million
--------------------------------------------------
RJR News reports that adventure park Wata Land Limited in St. Mary,
along with its assets, are up for sale for US$2 million.

The property spanning 40 acres, half of which is used for the water
park, has been on the market for more than a month, according to
RJR News.

Talks are advancing with a potential buyer, the report notes.

Up to March 2020, Wata Land was being operated under a lease
arrangement, but the facility was temporarily closed due to
COVID-19, the report adds.




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M E X I C O
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AXTEL SAB: S&P Affirms 'BB' Issuer Credit Rating, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' issuer credit rating on
Mexican integrated telecommunication company (ITC) Axtel S.A.B. de
C.V. (Axtel). The outlook is stable.

S&P said, "At the same time, we affirmed our 'BB' issue-level
rating on the company's 6.375% senior unsecured notes due 2024. The
'3' recovery rating is unchanged, reflecting our expectation for
meaningful (50%-70%; rounded estimate: 50%) recovery in the event
of a payment default.

"The stable outlook reflects our view that Axtel will continue to
focus on finding alternatives for the supply of semiconductors to
attract new customers and strengthen its EBITDA. We continue to
expect Axtel to maintain a debt-to-EBITDA ratio of close to 3.0x
over the next 12-18 months. Our base case doesn't yet consider the
potential divestment of any of its business units."

In the last 12 months, Axtel suffered from the negative effects of
the supply chain disruptions in semiconductors, so the company
failed to sign new customers so far during the second half of 2021.
Based on public information from the company, this loss of
customers represented approximately MXN50 million in losses in the
third quarter of 2021. Our base-case scenario considers that this
effect will continue into the first half of 2022. In addition, S&P
assumes that voice service revenues lost during the pandemic will
no longer return because we think corporate and government entities
no longer require the same volume of voice services given the
implementation of other communication channels via broadband.
Therefore, S&P now forecasts a slower deleveraging compared to its
previous expectations, with debt to EBITDA ratios close to 3.0x in
the next 12-18 months--still in line with our financial risk
assessment.

During March 2021, Axtel partially repaid $60 million of its 6.375%
senior unsecured notes due 2024, reducing the outstanding amount to
$440 million. Axtel funded this transaction with the proceeds from
last year's sale of three data center facilities to Equinix Inc.
(BBB/Stable/--). Axtel previously held the proceeds as cash on hand
to reduce liquidity risks during the pandemic.

Moreover, during the third quarter of 2021, Axtel also repaid about
$20 million from its outstanding amount on committed credit lines
($40 million remaining), which also served as liquidity cushion
during the pandemic. S&P notes that its adjusted leveraged metrics
deduct accessible cash from total debt; therefore, there is no
material influence in our debt-to-EBITDA ratios from decreases in
cash. For the last 12 months ended Sept. 30, 2021, Axtel's debt to
EBITDA was constant at 3.1x (versus 3.0x in 2020).

As of Sept. 30, 2021, Axtel was in active discussions with
potential investors for the divestment of its infrastructure and
service business units, either as a whole company or in two parts,
as stated by its holding company, Alfa S.A.B. de C.V.
(BBB-/Stable/--) on July 31, 2020. However, the company continues
evaluating different proposals that would maximize the value of its
assets. S&P assumes that Axtel will continue, but will not be
limited to, exploring divestiture alternatives during the next six
months, or, if applicable, extending the timing process before
finalizing such a transaction. Thus, S&P continues to view its
group status as nonstrategic to Alfa.


INTERJET: Plans to Restart Operations in 2022 With 10 Airplanes
---------------------------------------------------------------
Sharay Angulo at Reuters reports that Mexican budget airline
Interjet plans to resume flights in 2022 with 10 leased Airbus SE
(AIR.PA) airplanes after shutting down a year ago when its
already-suffering finances were hit by the COVID-19 pandemic,
company representatives said.

The pandemic's toll on the global tourism industry had exacerbated
operational and debt problems at Interjet, putting the company on
the brink of bankruptcy, according to Reuters.

"The plan is to restart operations with 10 Airbus 320 (planes),"
Luis Bertrand, the newly appointed chief executive, said in an
interview, adding that the company "is alive, is viable, and we're
going to get it ahead," the report notes.

Interjet must first wrap up negotiations with creditors through a
judicial process that has been slowed by a strike by the airline's
union, comprising 5,000 employees, that began in January, the
report discloses.

Ivan Romo, managing partner at SOELI Consulting, the firm managing
Interjet's restructuring, said the company is working with
creditors to reach agreements that can be formalized once the legal
process begins, the report relays.

Romo said the goal is to "start again in the coming year," aiming
for forgiveness between 90% and 99% per creditor, the report
notes.

Interjet is set to lease the Airbus planes, with six slated to
depart from Mexico City, two from Toluca and two from the partially
built airport at Santa Lucia, just outside Mexico City, the report
relays.

Bertrand, who previously ran the Toluca International Airport near
Mexico City, said work is moving ahead to restart operations while
negotiations are underway on the financial, legal and labor side,
the report relates.  Part of that includes a plan to give 22 Sukhoi
aircraft back to Sukhoi in exchange for cancelling 6.3 billion
pesos ($296.28 million) in debt, Bertrand said, the report notes.

"We have already signed the respective agreements so that they can
start rehabilitating these aircraft again," Bertrand added.

                          About Interjet

Interjet is an international airline based in Mexico City carrying
almost 14 million passengers annually within Mexico and between
Mexico, the United States, Canada, Central, and South America.  In
all, it provides air service to 54 destinations in 10 countries
offering its passengers greater connections and travel options
through agreements with major airlines such as Alitalia, All Nippon
Airways (ANA), American Airlines, British Airways, Emirates, Air
Canada, LATAM Group, EVA Air, Iberia, Lufthansa, Hainan
Airlines,Hahn Air, Qatar Airlines and Japan Airlines.

As reported in the Troubled Company Reporter-Latin America on April
29, 2021, Interjet SA's board voted on April 26, 2021, to seek
bankruptcy protection in Mexico and is considering whether or not
to also file for Chapter 11 in the U.S., a company spokesman told
Bloomberg News. Interjet stopped flying on December 11, 2020. Prior
to the COVID-19 pandemic, the Mexican airline had three years of
continuous net losses. Then, the worldwide crisis served as the
final nail in the coffin, and Interjet lost its fleet, its market
share, and even its reputation.




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T R I N I D A D   A N D   T O B A G O
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TRINIDAD & TOBAGO: Inflationary Pressures May Increase
------------------------------------------------------
Trinidad Express reports that the Central Bank said that food
inflation in T&T jumped to 5.8 per cent in September 2021, up from
3.2 per cent in January 2021, as it warned of the possibility that
the higher prices could carry over to 2022 as a result of external
factors.

In its Monetary Policy Report for November 2021, the Central Bank
noted that as the domestic economy reopens and aggregate demand
recovers, "inflationary pressures may increase, especially if
supply constraints reduce the utilisation of the spare capacity
within the economy, according to Trinidad Express.  Therefore,
prolonged international supply chain disruptions are likely to
significantly influence domestic inflationary pressures," the
report notes.

In the report, the Central Bank said inflation is "expected to
maintain an upward trend in the short term", especially in light of
the announced price hikes for maxi and taxi fares, air-conditioning
units, newspapers, bread, and local confectionery, Trinidad Express
relays.

The bank added: "Concerning food inflation, the sustained increases
in international food prices in 2021 may continue to pass through
to local food prices, albeit with a lag, Trinidad Express
discloses.

"Additionally, local food importers' costs may continue to be
impacted by the international shortage of shipping containers and
higher shipping costs (freight and insurance)," Trinidad Express
relays.

The Central Bank report noted that the expansion of the zero-rated
Value Added Tax (VAT) list last month can help contain food price
inflation if retailers reduce prices in tune with the tax policy
measure, Trinidad Express notes.

In the 2022 budget, Minister of Finance, Colm Imbert, announced the
zero-rating of goods-on items such as biscuits, cooking oil, canned
vegetables, cornflakes, canned fish, canned meat, curry, juice,
sausages, ham, ketchup, bottled water and pigtail-which was
implemented on November 1, Trinidad Express notes.

However, the Central Bank pointed out: "The possible dampening
effect on food inflation can be offset if the current surge in
international food prices and global logistical challenges, such as
the critical shortage of shipping containers, carries over into
2022," Trinidad Express adds.

In the report, the Central Bank said: "The external environment has
heavily affected domestic food prices, including the ongoing surge
in international food prices, Covid-19-related shipping delays, and
higher shipping costs (freight and insurance)," Trinidad Express
relays.

According to the Central Bank report, price movements over the
period January to September 2021 reflected faster price increases
in all but three sub-indices-meat, fish and fruit; these prices
slowed to 5.3 per cent, 2.2 per cent, and 3.0 per cent,
respectively in September 2021 (from 6.0 per cent, 6.1 per cent and
9.7 per cent, respectively, in January), Trinidad Express notes.

"Faster price increases were recorded in September for the milk,
cheese and eggs (5.5 per cent), butter, margarine and edible oils
(10.0 per cent), sugar, jam and confectionery (7.5 per cent), and
bread and cereals (4.8 per cent) sub-categories compared to
January, due in part, to the pass-through effects of higher global
prices for these imported food items.

"The vegetable sub-index accelerated to 6.8 per cent in September.
Increased vegetable prices were likely due to supply disruptions
brought on by above-average rainfall and associated flooding in
some areas," the Central Bank added, Trinidad Express says.

The Bank-whose monetary policy framework has as one of its three
primary objectives the maintenance of low and stable inflation-said
core inflation, which omits the volatile food component, increased
over the period, moving from 0.5 per cent in January 2021 to 1.6
per cent in September 2021, Trinidad Express notes.

The bank said further supply shocks to inflation may force major
central banks to tighten monetary policy earlier than anticipated
in 2022, Trinidad Express relays.

In the report, the Central Bank said domestic rates are expected to
respond if inflation expectations in T&T drift upwards, Trinidad
Express discloses.

"The key domestic monetary policy considerations will oscillate
around how to appropriately balance between support for the
recovery of the local economy while staving off an inflationary
spiral," said the Central Bank,  adds the report.




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X X X X X X X X
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LATAM: Goes Back 2 Decades in Terms of Poverty After Pandemic
-------------------------------------------------------------
Dominican Today reports that GDP per capita levels in Latin America
and the Caribbean will not return to pre-pandemic levels until 2023
or 2024, according to a new report prepared by several
international organizations, which warns that poverty and extreme
poverty have reached levels not observed in the region in the last
12 and 20 years, respectively.

The text prepared jointly by the OECD, ECLAC, the European Union,
and the Development Bank of Latin America (CAF) warns that the
crisis derived from the pandemic has caused damage to an "extremely
vulnerable social fabric, resulting in a significant increase in
poverty and inequality," according to Dominican Today.

All this considers that the demand policies promoted by governments
served to avoid loss of life and increases in poverty, the report
notes.  Without these transfers, the Gini index - a measure of
inequality - would have increased by 5.6% compared to 2019, instead
of the 2.9% recorded, the report relays.

Much of this inequality is explained by the region's strong
presence of labor informality. For example, when the pandemic broke
out in Latin America, 50% of workers had a social security job or
were not recognized by informal employment records, the report
says.

Households that earn their income exclusively from the informal
economy have been the hardest hit by the crisis, losing their jobs
and the income they earned from them, the report notes.  On
average, 45% of the Latin American population lives in households
that depend on this type of employment, 22% live in mixed homes,
and 33% live in families that rely on the formal economy, the
report discloses.

Likewise, the phenomenon of informality affects the region's
economies asymmetrically, since while Chile or Uruguay have less
than an impact of less than 20%, in Bolivia, Honduras, or
Nicaragua, it exceeds 60%, the report says.

In this context, the organizations recommend that Latin American
economies promote innovative options for labor formalization and
reduce social coverage gaps to protect women, youth, migrants, and
other vulnerable groups, the report relays.

No solution guarantees a solid recovery.

The agencies warn that no approach or solution guarantees a solid,
sustainable, and inclusive recovery, the report relates.  However,
a common feature for recovery is the need to adopt a clearly
defined sequence of fiscal policy measures in spending, taxation,
and public debt management the report discloses.

"Mobilizing resources for recovery will require efforts at the
national level and better cooperation and coordination at the
international level, especially concerning the public debt, the
report says.

The document advises that Latin American governments use fiscal,
social, and productive transformation policies to build a new
social contract at the national level, the report relates.  In
particular, the elements of intra- and intergenerational mobility
and equity and the challenges associated with climate change and
the transition to a low-carbon development model should be duly
considered, the report discloses.

In regional matters, the report stresses that Latin America is
lagging in integration since only 14% of its exports remained
within the region in 2019, the report notes.  Moreover, the
proportion has been declining at a steady pace since 2014, the
report relays.

Thus, the promotion of intraregional trade, creating regional value
chains, and improving the region's participation in global value
chains through the connection of micro, small and medium-sized
enterprises with international trade are critical public policy
objectives in the context of the coronavirus, the report adds.



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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.

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