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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, May 3, 2022, Vol. 23, No. 82

                           Headlines



A R G E N T I N A

ARGENTINA: Bond Chaos Sparks Traders' Rush to Provincial Notes


B A R B A D O S

BARBADOS: Bank Governor Warns Against Public Sector Wage Increase


B R A Z I L

BRAZIL: Unemployment Rate to be Among the Highest by 2022
PETROLEO BRASILEIRO: Discloses Increase in Oil And Gas Production


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Puts Zero Tax on Staples


E C U A D O R

ECUADOR: Egan-Jones Hikes Sr. Unsecured Ratings to BB
ECUADOR: IDB OKs $250M Loan to Promote Sustainable Employment

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Bond Chaos Sparks Traders' Rush to Provincial Notes
--------------------------------------------------------------
Buenos Aires Times reports that just two years after Argentina's
latest default, traders are all but sure the country is heading
toward another debt disaster.  But amid all the doom-and-gloom, a
surprising trade has popped up that's produced rich rewards,
according to Buenos Aires Times.

Investors are snapping up securities issued by the provinces of
Cordoba, Neuquen, Mendoza and Chubut, turning them into the
nation's top performers this month, the report notes.  The rally
has extended this year's returns on some of the notes to as high as
13%, a somewhat remarkable feat given that dollar bonds globally
suffered their worst quarter in almost six years, the report
discloses. Sovereign debt has dropped 2.4% this month and 4.8% this
year, the report says.

After the gains for the provinces, the securities now yield less
than the sovereign, implying they're less risky, Buenos Aires Times
notes.  That's the opposite of most countries, where federal
government bonds are usually seen as the safest option, the report
relays.  But junk-rated Argentina has dodgy finances and a track
record of three defaults since the turn of the century, and
investors are signaling they expect a fourth, the report notes.

Another factor driving interest in the provinces is that their
bonds amortize - that is, begin paying back principal before the
final maturity, the report notes.  The theory is that if
bondholders can hold on for just a few payments, they'll be able to
make their money back much faster than they could have with
sovereign notes, the report discloses.

"Investors will get value from the cash flows," said Juan Manuel
Pazos, an analyst at TPCG Valores in Buenos Aires, the report
relays.  "History shows that provincial defaults only happen after
the sovereign defaults, not before. So it made no sense for
provinces to have a higher, steeper probability of default than the
sovereign," the report relates.

To be sure, buying the junk-rated provincial bonds isn't for the
faint of heart given the high probability the federal government
will default over the next few years, the report discloses.
Sovereign defaults in the past have been followed by missed
payments by many of the provinces months later, the report says.

"The risk is still skewed to the downside," said Ezequiel
Zambaglione, an analyst at Balanz Capital Valores in Buenos Aires.
"Revenue is almost 100 percent correlated with the sovereign, and
spending or potential restructuring decisions are highly affected
by politics."

Investors seem all but certain that Argentina will default after
2024, when its debt payments are set to increase significantly, the
report notes.  Despite a program with the International Monetary
Fund to reduce a yawning fiscal deficit and reduce money printing
from the Central Bank, they see inflation and a weakening currency
eroding the country's ability to pay and impeding its return to
international markets, the report discloses.

But even if a default will be hard to avoid, the provinces have a
track record of offering better restructuring terms than the
sovereign, the report says.  While the federal government's
US$65-billion debt workout two years ago left investors with about
55 cents on the dollar, some provinces offered deals worth as much
as 80 cents, the report relays.


                        Outperformance

Mendoza's 2029 bonds, which begin amortizing in March, have climbed
3.6 cents this month to 70.2 cents on the dollar, while oil-backed
notes from the southern province of Chubut that begin paying
principal this month have jumped 4.4 cents to 81.5 cents on the
dollar, the report notes.

Bonds from Cordoba Province due in 2027 have also climbed more than
4 cents in April to 70 cents on the dollar, the report notes.  The
province, which restructured its notes last year without missing
payments, also boasts the nation's top performing government notes,
according to Bloomberg's Emerging Markets Index, returning 13% year
to date, the report relays.

The outperformance is a result of provinces like Cordoba and
Mendoza being more fiscally sound than the national government,
according to Nathalie Marshik, a managing director for fixed income
at Stifel Nicolaus & Co, the report discloses.

"It's a combination of the sovereign being a mess and the provinces
having better balance sheets," Marshik said, the report says.
"It's creating some demand," he added.

                     About Argentina

Argentina is a country located mostly in the southern half of
South
America.  Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal
year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Last March 25, 2022, Argentina finalized agreement with the IMF
for a new USD44 billion Extended Funding Facility (EFF) intended
to fund USD40 billion in looming repayments of the defunct
Stand-By Arrangement (SBA), with an extra USD4 billion in
up-front net financing. This has averted the risk of a default to
the IMF and is facilitating a parallel rescheduling of Paris
Club debt.

As reported by The Troubled Company Reporter - Latin America on
April 14, 2022, Fitch Ratings affirmed Argentina's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'CCC'.
Fitch said Argentina's 'CCC' ratings reflect weak external
liquidity and pronounced macroeconomic imbalances that undermine
debt repayment capacity, and uncertainty regarding how much
progress can be made on these issues under a new IMF program.
Fitch added that it is uncertain whether the EFF will be a
strong anchor for macroeconomic stabilization. Its policy
requirements are fairly unambitious relative to other IMF
programs and in light of the economy's deep imbalances, but it
faces heightened risk nonetheless from weak political support and
spill-overs from the Russia-Ukraine war, says Fitch.

Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept.
28,
2020.  DBRS' credit rating for Argentina is CCC, given on Sept.
11,
2020.



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B A R B A D O S
===============

BARBADOS: Bank Governor Warns Against Public Sector Wage Increase
-----------------------------------------------------------------
RJR News reports that Barbados Central Bank Governor Cleviston
Haynes has warned that any increase in public servants' salaries
now would force cuts in other areas of Government expenditure.

While acknowledging that commodity prices continue to rise, putting
strain on households, Mr. Haynes said granting a salary increase to
public servants at this time would require a delicate balancing
act, according to RJR News.

Earlier this month, the National Union of Public Workers, the
largest public sector labor representative, served notice that in
light of the increased cost of living, its top brass would be
lobbying Government for an undisclosed amount increase in salary to
help public servants live more comfortably, the report notes.




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B R A Z I L
===========

BRAZIL: Unemployment Rate to be Among the Highest by 2022
---------------------------------------------------------
Rio Times Online reports that based on the latest IMF report
projections, Austin Rating's survey shows that unemployment in
Brazil should be well above the global average, the emerging
economies, and the G20.

Brazil's unemployment rate is expected to be among the highest in
the world in 2022, according to a survey by the risk rating agency,
according to Rio Times Online.

In the ranking, which includes IMF projections for a group of 102
countries, Brazil appears with the 9th worst estimate of
unemployment in the year (13.7%), well above the global average
forecast for the year (7.7%), the emerging countries rate (8.7%)
and is the second-highest among G20 members -- behind only South
Africa (35.2%), the report notes.

                        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.

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 2021 with stable outlook.  
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 December 2021.  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).


PETROLEO BRASILEIRO: Discloses Increase in Oil And Gas Production
-----------------------------------------------------------------
Rio Times Online reports that Petroleo Brasileiro S.A. (Petrobras)
discloses a 3.4% increase in the average production of oil, natural
gas liquids (NGL), and natural gas in the first quarter of this
year compared to the fourth quarter of 2021.

The company reached 2.8 million barrels of oil equivalent per day
(boed) in the first quarter of 2022, according to Rio Times Online.


The data are part of the Production and Sales Report, released on
April 27, the report notes.

Headquartered in Rio de Janeiro, State of Rio de Janeiro, Brazil,
Petroleo Brasileiro S.A. - Petrobras explores for and produces oil
and natural gas.

As reported in the Troubled Company Reporter-Latin America on April
28, 2022, Egan-Jones Ratings Company on April 4, 2022, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Petroleo Brasileiro S.A. - Petrobras to BB from
BB-.




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

DOMINICAN REPUBLIC: Puts Zero Tax on Staples
--------------------------------------------
Dominican Today reports that while representatives of the merchants
support the approval in the Senate of the bill that taxes food
products at a zero rate for six months, with a new paragraph that
empowers a commission to limit the items to be imported with
quantitative limits, the business sector remains dissatisfied and
so do the opposition parties.

The Minister of Agriculture, Limber Cruz, explained that an import
commission for agricultural products, made up of the entity he
represents, the Ministries of Industry, Commerce and MSMEs, and the
Treasury, and Customs, among others, will filter the articles that
will be imported with the tariff cessation rate to only bring what
"the country needs and requires and has a deficit, not to bring
what is abundant and what is in production."

Ivan Garcia, president of the Dominican Federation of Merchants
(FDC), agrees with the existence of a commission. "Because in this
way the necessary amounts of agricultural products that do not
affect local production will enter, specifically in the case of
chickens," he said. "In addition, the import of garlic from China
and pinto beans must be limited, so that an exorbitant amount is
not imported."

                   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.

TCRLA 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, in December 2021, revised the Outlook on Dominican
Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR)
to Stable from Negative and affirmed the IDRs at 'BB-'.  The
revision of the Outlook to Stable reflects the narrowing of
Dominican Republic's government deficit and financing needs since
Fitch's last review resulting in the stabilization of the
government debt/GDP ratio, as well as the investment-driven
economic momentum, reflected in the faster-than-expected economic
recovery in 2021 that Fitch expects to carry into above-potential
GDP growth during 2022 and 2023.

Standard & Poor's, also in December 2021, revised its outlook on
the Dominican Republic to stable from negative.  S&P also affirmed
its 'BB-' long-term foreign and local currency sovereign credit
ratings and its 'B' short-term sovereign credit ratings.  The
stable outlook reflects S&P's expectation of 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, S&P said.  A rapid economic
recovery from the downturn because of the pandemic should mitigate
external and fiscal risks.

Moody's affirmed the Dominican Republic's long-term issuer and
senior unsecured ratings at Ba3 and maintained the stable outlook
in March 2021.




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E C U A D O R
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ECUADOR: Egan-Jones Hikes Sr. Unsecured Ratings to BB
-----------------------------------------------------
Egan-Jones Ratings Company on April 22, 2020, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by the Republic of Ecuador to BB from CCC.

Ecuador is a country straddling the equator on South America's west
coast.


ECUADOR: IDB OKs $250M Loan to Promote Sustainable Employment
-------------------------------------------------------------
The Inter-American Development Bank (IDB) approved a $250 million
loan to support economic recovery in Ecuador, focusing on
strengthening the social protection system, female employment, and
labor sectors linked to environmental objectives, also called
"green jobs."

Supporting the equal integration of women in the economy is one of
the operation's priorities. The project will implement an Action
Plan to increase female labor participation, reduce the salary gap,
and promote female leadership in the country.

Another objective is to help Ecuador develop an institutional
framework to take advantage of the potential for job creation
within its transition to a low-carbon and sustainable economy. The
project will support the development of a strategy by the Ministry
of Labor to promote jobs in sectors linked to the country's
environmental objectives, or green jobs, thus contributing to a
sustainable and resilient recovery of the economy. Ecuador is the
first country in the region to have this type of institutionality.

In social protection, the operation will support the expansion of
cash transfers for families whose income has been affected by the
pandemic. The project includes the implementation of the
Nutritional Support Bond (BAN, for its denomination in Spanish) and
the incorporation of eligible BAN beneficiaries into the regular
Non-Contributory Monetary Transfers (TMNC) of the Ministry of
Economic and Social Inclusion (MIES). In addition, the operation
will support the strengthening of the social registry system.

The loan will support the expansion of MIES child development
services to guarantee quality care for children between 0 and 36
months and pregnant women.

In the health sector, the loan will support the implementation of
the National Immunization Strategy, which includes vaccination
efforts against COVID-19.

In Ecuador, the drop in employment due to the pandemic was
especially pronounced in the informal sector and among women. These
measures seek to reduce poverty and promote social equity. The IDB
loan seeks to benefit recipients with eligible bonuses and pensions
from MIES. It also aims to improve the coverage of the TMNC among
the most vulnerable populations, mainly among the 30% of the people
with the lowest income.

Promoting the recovery of employment, supporting vulnerable
populations, and working for gender equality are objectives that
the IDB Group sets out in its Vision 2025, a roadmap to achieve
inclusive and sustainable growth in Latin America and the
Caribbean.

The Inter-American Development Bank is devoted to improving lives.
Established in 1959, the IDB is a leading source of long-term
financing for economic, social, and institutional development in
Latin America and the Caribbean. The IDB also conducts cutting-edge
research and provides policy advice, technical assistance and
training to public and private sector clients throughout the
region.




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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.

Copyright 2022.  All rights reserved.  ISSN 1529-2746.

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