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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 10, 2022, Vol. 23, No. 87
Headlines
C O L O M B I A
COLOMBIA: Gutierrez Seeks to Fund Growth Plan While Curbing Debt
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Government Freezes Fuel Prices Again
DOMINICAN REPUBLIC: Tourism Sector Has Recovered, Asonahores Says
J A M A I C A
JAMAICA: Net Remittances Declined in March, BOJ Says
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C O L O M B I A
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COLOMBIA: Gutierrez Seeks to Fund Growth Plan While Curbing Debt
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globalinsolvency.com, citing Bloomberg News, reports that Colombian
presidential candidate Federico "Fico" Gutierrez, the main
challenger to leftist Gustavo Petro, is planning a tax reform to
gradually increase revenue over 10 years, according to one of his
top advisers.
That will help fund an ambitious plan to boost growth, tackle
infrastructure bottlenecks and build a million homes for low-income
families, but without running up unsustainable debts that would
scare off investors, said Manuel Fernando Castro, who is helping
formulate the candidate's economic program, according to
globalinsolvency.com.
Tax increases are an explosive topic in the Andean nation after an
attempt by President Ivan Duque to raise revenue triggered weeks of
rioting last year, the report notes.
Gutierrez would seek a broad consensus before sending a bill to
congress, and would ensure that it doesn't hurt vulnerable
households or the middle class, Castro said in a video interview,
the report discloses.
By tripling spending on country roads, Colombia can boost
productivity and integrate rural districts into the national
economy, Castro said, the report says.
The nation's major cities are generally served by large,
well-maintained highways, while remote towns are connected by dust
tracks that turn to mud when it rains, the report notes. That
makes life misery for farmers trying to get their produce to
market, and hinders the development of swathes of the national
territory, the report adds.
As reported in the Troubled Company Reporter-Latin America on May
9, 2022, S&P Global Ratings affirmed its 'BB+' long-term foreign
currency and 'BBB-' long-term local currency sovereign credit
ratings on Colombia. The outlook on its long-term ratings
remains stable. S&P also affirmed its 'B' short-term foreign
currency and 'A-3' short-term local currency ratings.
Fitch Ratings has affirmed Colombia's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'BB+', with a stable
outlook on in Dec. 2021.
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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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DOMINICAN REPUBLIC: Government Freezes Fuel Prices Again
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Dominican Today reports that with more than 1.4 billion pesos, the
Dominican government stopped the increases in fuel prices for the
week of May 7 to 13 as part of the measures to face the
international price crisis, avoiding increases in the local market
by up to 120 pesos.
The measure was announced by the deputy minister of domestic trade,
Ramon Perez Fermin, who explained that the average oil price rose
significantly, according to Dominican Today. As of Wednesday,
April 27, the international price of WTI averaged US$105.09, an
increase of 3.4% compared to the average of the previous week,
which amounted to US$101.62, the report notes.
"The global situation is obviously not giving up. The conflict in
Ukraine is spreading without an apparent end, and everything
indicates that there will be no peace agreement for several weeks
or months. In view of this, we must be properly prepared, with
constant communication to the population, and, above all, adjusting
public finances to prevent market increases from having a direct
impact on the pockets of all Dominicans," he said, the report
discloses.
He assured that the government is constantly monitoring the
situation of international markets to resist the global effects on
the local economy, the report says.
He mentioned that if the subsidies were not maintained, the country
would see increases that had never occurred in the case of LPG; it
should have increased by 12.80 pesos per gallon, Premium Gasoline
should have increased by more than 54 pesos per gallon, Regular
Gasoline should have increased by more than 62 pesos per gallon and
in the case of diesel 120 pesos, the report notes.
The report discloses that these are the fuel prices:
Premium gasoline will be sold at RD$293.60 per gallon, maintaining
its price.
Regular Gasoline RD$274.50 per gallon maintains its price.
Regular Diesel RD$221.60 per gallon maintains its price.
Optimum Diesel RD$241.10 per gallon maintains its price.
Avtur RD$298.91 per gallon rises RD$21.68.
Kerosene RD$338.10 per gallon rises RD$23.50.
Fuel Oil #6 RD$192.11 per gallon maintains its price.
Fuel Oil 1%S RD$211.77 per gallon maintains its price.
Liquefied Petroleum Gas (LPG) RD$147.60 per gallon maintains its
price.
Natural Gas RD$28.97 per m3 maintains its price.
The average weekly exchange rate is RD$55.22 from the daily
publications of the Central Bank.
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.
DOMINICAN REPUBLIC: Tourism Sector Has Recovered, Asonahores Says
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Dominican Today reports that the president of the Association of
Hotels and Tourism of the Dominican Republic (Asonahores), Rafael
Blanco Tejera, praised the pace of tourism recovery.
He expressed that the country has been recognized nationally and
internationally by different institutions of the stature of the
World Tourism Organization as the country leading the recovery of
the sector in the world, according to Dominican Today.
"We can say that we have a recovered tourism sector and that is
very positive for the economy," said Blanco Tejera, after giving
details about the celebration of the twenty-first edition of the
Dominican Annual Tourism Exchange (DATE), to be held from May 11 to
13 at the Barcelo Bavaro Convention Center in Punta Cana, the
report notes.
Tejera said that this new edition of DATE would bring together the
industry's main issuing markets with the hotel sector and the local
complementary offer, strengthening confidence in the Dominican
tourism product to increase the flow of tourists and continue
contributing to the recovery of the economy, the report relays.
"We are going to have a strong participation in DATE, more than 800
delegates have already confirmed, so this is going to be the
edition with the largest presence of both national exhibitors, the
international press, and international tour operators, so we are
convinced that it will be a success," he added, notes the report.
DATE 2022 will host 25 countries from the 40 primary markets that
send tourists to the country, the report discloses.
The businessman highlighted that this new edition of DATE would
promote the elimination of paper use, develop the event with
digital elements according to international protocols, and promote
environmental sustainability as an important initiative of the
local tourism sector to contribute to the care of our natural
resources, the report relays.
DATE 2022 will be held at a time when tourism once again reached
record levels in April, 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.
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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J A M A I C A
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JAMAICA: Net Remittances Declined in March, BOJ Says
----------------------------------------------------
RJR News reports that net remittances to Jamaica declined in
March.
Inflows were at US$276.5 million down from US$305 million the same
period in 2022, according to RJR News.
The Bank of Jamaica says this was partly due to the earlier timing
of Easter in 2021 and increased cash in hand remittances as travel
recovers, the report notes.
Increased cost of living in the main source markets was also a
factor, the report relays.
However, net remittances for the 2021/2022 fiscal year were 11%
higher at US$3.24 billion, the report discloses.
The US remained the largest source market contributing 71% of
remittances, the report adds.
As reported in the Troubled Company Reporter-Latin America on March
11, 2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.
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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.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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