/raid1/www/Hosts/bankrupt/TCRLA_Public/220615.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
Wednesday, June 15, 2022, Vol. 23, No. 113
Headlines
A R G E N T I N A
ARGENTINA: Approves Uala's Purchase of Eurnekian's Wilobank
ARGENTINA: Set for Worst Wheat Harvest in 12 Years
B A H A M A S
BAHAMAS: Seeking to Limit Debt Services Burden
B R A Z I L
BRAZIL: Reports Primary Surplus of $8.2 Billion in April
C H I L E
CORP GROUP: Recovery for Rejecting Classes Hiked to 9.6%
M E X I C O
CREDITO REAL: Fires Advisers, Scraps U.S. Bankruptcy Plans
MEXICO: Egan-Jones Retains B+ Sr. Unsecured Debt Ratings
P A R A G U A Y
PARAGUAY: IDB OKs $250MM Loan to Spur Fiscal Sustainability
P U E R T O R I C O
CITIZEN PROTECTION: Seeks to Hire Tamarez CPA as Accountant
[*] PUERTO RICO: Opens Opportunities for Dominicans
S T . L U C I A
ST. LUCIA: Sugar Shortage in the Country
S U R I N A M E
SURINAMESE AIRWAYS: Cancels Flights due to Financial Troubles
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Approves Uala's Purchase of Eurnekian's Wilobank
-----------------------------------------------------------
Carolina Millan & Ignacio Olivera Doll at Bloomberg News report
that Argentina's Central Bank has approved fintech Uala's purchase
of billionaire Eduardo Eurnekian's digital bank Wilobank.
The deal was finalised by the central bank's board of directors,
according to a Central Bank statement, according to Bloomberg News.
The agreement between the companies was first reached in April
2021, making Eurnekian a minority shareholder of Uala in exchange
for the latter acquiring 100 percent of Wilobank, the country's
first digital bank, the report relays. The Central Bank also
approved Uala's business plan, the report notes.
The close of the deal marks another key milestone for Uala, which
was valued at US$2.5 billion in its latest funding round, the
report discloses. For the company, which provides a slew of
financial services based on a prepaid card managed through a mobile
app, the deal will allow faster growth and access to more clients,
the report says.
The acquisition, which includes access to Wilobank's bank license,
would allow the company to target clients it couldn't fully serve
before, including pensioners and recipients of government welfare,
the report relays. Government payments are made through savings
accounts which only banks are allowed to provide, the report
notes.
"We're delighted about this opportunity because it will allow us to
greatly enhance Uala's financial ecosystem," founder and chief
executive officer Pierpaolo Barbieri said in a phone interview, the
report discloses. "This will allow us to do things in Argentina
that are reserved for bank entities," the report says.
Barbieri declined to say how soon the company would seek to launch
these products, the report notes.
With the approval, Uala can move forward from the memorandum of
understanding signed last year and looks to close the transaction
as soon as next week, Barbieri added, the report relays. The
company is not looking to raise additional capital and is fully
funded following its last US$350 million Series D round last
August, he said, the report notes.
Uala is also awaiting approval from Mexico's regulators to move
forward with the purchase of ABC Capital SA, the report relays.
The company also launched operations in Colombia in January, where
it has a license as a financing company to offer debit cards, the
report discloses.
The company declined to disclose the size of the transaction, the
report relays.
Uala has five million accounts across the region, with four million
of those in Argentina, the report relays. According to Central
Bank data, by December Wilobank had over 250,000 savings accounts
and had issued over 113,000 debit cards, the report notes.
Uala is backed by Japanese conglomerate SoftBank Group Corp. and
Chinese Internet giant Tencent Holdings Ltd., along with early
backers including the billionaire George Soros, Goldman Sachs Group
Inc., Ribbit Capital and Monashees.
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.
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. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
Argentina obtained on March 25, 2022, approval from the Executive
Board of the International Monetary Fund (IMF) of a 30-month
extended arrangement under the Extended Fund Facility (EFF)
amounting to SDR 31.914 billion (equivalent to US$44 billion).
Under the new terms, Argentina secured a much-needed grace period
that postpones repayment of its debt. However, IMF warned of
exceptionally high risks to the program.
ARGENTINA: Set for Worst Wheat Harvest in 12 Years
--------------------------------------------------
Buenos Aires Times reports that with wheat prices skyrocketing due
to Russia's invasion of Ukraine, major producer Argentina faces its
"worst planting scenario in 12 years" of the crucial grain, a major
trade forum said.
Planting area for the 2022-2023 wheat crop is a lower-than-expected
6.2 million hectares due to drought, which reduced sowing of the
crop by farmers, the Rosario Grain Exchange said, according to
Buenos Aires Times. That's 700,000 hectares smaller than the
preceding season, which yielded a record harvest of 23 million tons
of wheat, the report notes. Experts believe this year's harvest
will be closer to 18 million tons, the report relays.
Argentina, one of the world's leading wheat producers, faces "a
very complex scenario for the sowing" of the grain due to the
impact for a third consecutive year of the La Niña phenomenon,
said the report, Buenos Aires Times notes.
Argentina ranked as the world's eighth-largest wheat producer in
the 2021-2022 season, according to data from the US Department of
Agriculture, the report relays. According to the UN's Food and
Agriculture Organization (FAO), it was the seventh-largest exporter
in 2021, behind Ukraine in sixth place, the report notes.
Tthe FAO said wheat prices were up 5.6 percent in May from a month
earlier, and were 56.2 percent higher than a year ago, the report
discloses.
This was the result of Russia's war on Ukraine as well as an export
ban announced by India - the eighth-largest wheat exporter in 2021,
the report notes.
Wheat planting in Argentina began in mid-May this year, although
many producers have delayed planting as they await more rainfall,
the report relays.
"In June 2022, the water shortage situation is more severe than in
2020. To find a lower moisture situation you have to go back to
June 2009," said the Rosario-based exchange, Buenos Aires Times
says.
As a result, "sowing [wheat] is at a standstill in much of the
Pampas region (the largest producer) where planting progress is 17
percent compared to 30 percent last year" on the same date, it
explained, the report relates.
"The possibility of rain in the next fortnight is crucial to
finally sow wheat or change crops," the report said, Buenos Aires
Times notes.
However, "short-term forecasts indicate the entry of another cold
and dry air front that will cause a further drop in temperatures
and the development of frost, removing the possibility of rainfall
over the Pampas region," the report discloses.
The sowing window ends in the first 10 days of July, although
producers who decide to join in at the last minute face greater
risks of disease for their crops, the report relays.
In addition to its predominant position as a wheat producer,
Argentina is the world's leading exporter of soybean oil and meal,
a crop that is not affected by the drought, the report notes.
The soybean harvest reached 42.2 million tonnes at the end of the
2021-2022 season on 16.11 million hectares planted with the
oilseed, the South American country's star crop, the report adds.
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.
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. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
Argentina obtained on March 25, 2022, approval from the Executive
Board of the International Monetary Fund (IMF) of a 30-month
extended arrangement under the Extended Fund Facility (EFF)
amounting to SDR 31.914 billion (equivalent to US$44 billion).
Under the new terms, Argentina secured a much-needed grace period
that postpones repayment of its debt. However, IMF warned of
exceptionally high risks to the program.
=============
B A H A M A S
=============
BAHAMAS: Seeking to Limit Debt Services Burden
----------------------------------------------
RJR News reports that the Bahamas will seek to limit the debt
servicing burden for taxpayers via an Inter-American Development
Bank (IDB) guarantee that will underwrite most of its $385 million
foreign currency bond issue.
As reported in the Troubled Company Reporter-Latin America on Nov.
16, 2021, S&P Global Ratings lowered its long-term foreign and
local currency sovereign credit ratings on the Commonwealth of The
Bahamas to 'B+' from 'BB-'. At the same time, S&P Global Ratings
revised its transfer and convertibility assessment to 'BB-' from
'BB'. The outlook is stable.
===========
B R A Z I L
===========
BRAZIL: Reports Primary Surplus of $8.2 Billion in April
--------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazil's
consolidated public sector posted a primary budget surplus of 38.88
billion reais (US$8.18 billion) in April, the best result since the
central bank series started in 2002, figures showed.
In the 12 months to April, the primary surplus as a percentage of
GDP reached 1.52%, up from 1.37% in the previous month, according
to globalinsolvency.com.
The figure was boosted by gains reported in tax collection, helped
by the upturn in economic activity and a jump in fuel prices, the
report notes.
Brazil's states had a positive balance of 9.390 billion reais,
while municipalities posted an 889 million-reais surplus in the
month, the report relays.
On the other hand, state-owned companies reported a deficit of 1.04
billion reais, the report relays. The government's debt as a share
of gross domestic product fell to 78.3% in April from 78.5% in
March, the report discloses. Net debt was 57.9%, below the 58.2%
recorded in the previous month, 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.
As reported in the Troubled Company Reporter-Latin America on April
15, 2022, Moody's Investors Service affirmed the Government of
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the
stable outlook.
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. DBRS's credit rating for Brazil is BB (low) with
stable outlook (March 2018).
=========
C H I L E
=========
CORP GROUP: Recovery for Rejecting Classes Hiked to 9.6%
--------------------------------------------------------
Corp Group Banking S.A., et al., are seeking confirmation of their
Sixth Amended Joint Plan of Liquidation.
On June 10, 2022, the Debtors filed the operative Plan. The Plan
is supported by the Debtors' two key constituents: the Official
Committee of Unsecured Creditors and the Debtors' largest
creditor,
Itau. Additionally, the Debtors have resolved all limited
objections to the Plan and substantially narrowed the objection
filed by the United States Trustee.
The Plan was approved by Classes 4, 6, and 7A (the "Accepting
Classes"). Specifically, 100% in amount and 100% in number of
Holders of Claims in each of the Accepting Classes that voted on
the Plan, voted to accept the Plan; Holders of CGB Unsecured Notes
Claims in Class 7B voted to reject the Plan with 14.46% in amount
and 8.75% in number of Holders of CGB Unsecured Notes Claims voting
to accept the Plan; and no Holders of Class 8 Claims voted on the
Plan.
On June 1, 2022, the Debtors filed the Amended SP Settlement Term
Sheet, and contemporaneously, the Debtors identified the nature of
compensation of the Plan Administrator, the identity of the
Litigation Trustee, and the nature of compensation of the
Litigation Trustee, and filed the form of Litigation Trust
Agreement, the form of SP Gasa Secured Notes, the form of SP Gasa
Secured Note Security Agreement and the form of SP Short Term
Note.
The Plan (including all documents necessary to effectuate the Plan)
was negotiated extensively, at arm's-length and in good faith among
representatives of the Debtors, Itau, the Committee and Holders of
Non-Recourse Secured Claims, all of whom have worked diligently to
effectuate the Debtors' liquidation in an efficient manner to
preserve and enhance the value of the Debtors' Estates. The
Debtors, Itau (by far the largest creditor of the Debtors) and the
Committee support confirmation of the Plan, and none of the
Non-Recourse Secured Creditors with undisputed Claims have objected
to confirmation of the Plan.
As set forth in the Liquidation Analysis, Holders in each of the
Rejecting Class and Abstaining Class are expected to receive a
lower or equal recovery under a hypothetical chapter 7 liquidation
than they will receive under the Plan:
Plan Chapter 7
Recovery Liquidation
-------- ------------
SAGA itau Unsecured Claims 44.84% 44.84%
CGB Itau Deficiency CLaims 4.12% 3.45%
CGB Unsecured Notes Claims 4.12% 3.45%
CGB Interhold Interco. Payable Claim 4.12% 3.45%
Convenience Claims 10.0% 10.0%
Since the date of the Liquidation Analysis, the Debtors and the
Settling Parties have negotiated the SP Settlement. The SP
Settlement substantially increases the recoveries to Holders in
the
Rejecting Class under the Plan from 4.12% to 9.06%. Thus the
recoveries to the Holders of Claims in the Rejecting Class are 6%
percentage points (as a percentage of the face value of such
Holders' Claims) greater under the Plan than in a hypothetical
chapter 7 liquidation.
Class 7B CGB Unsecured Notes Claims are allowed in an aggregate
principal amount equal to $543,687,500.
A copy of the Disclosure Statement dated June 10, 2022, is
available at https://bit.ly/39muTMR from PacerMonitor.com.
Counsel to the Debtors:
Michael H. Torkin, Esq.
Bryce L. Friedman, Esq.
Karen M. Porter, Esq.
David R. Zylberberg, Esq.
Ashley M. Gherlone, Esq.
SIMPSON THACHER & BARTLETT LLP
425 Lexington Avenue
New York, NY 10017
Tel: (212) 455-2000
Fax: (212) 455-2502
E-mail: michael.torkin@stblaw.com
bfriedman@stblaw.com
karen.porter@stblaw.com
david.zylberberg@stblaw.com
ashley.gherlone@stblaw.com
- and -
Pauline K. Morgan, Esq.
Sean T. Greecher, Esq.
Andrew L. Magaziner, Esq.
Elizabeth S. Justison, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
E-mail: pmorgan@ycst.com
sgreecher@ycst.com
amagaziner@ycst.com
ejustison@ycst.com
About Corp Group Banking S.A.
Corp Group Banking SA, a Chilean financial holding company
controlled by billionaire Alvaro Saieh, and Inversiones CG
Financial Chile Dos SpA filed voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No.
21-10969) on June 25, 2021. At the time of the filing, Corp Group
Banking disclosed $500 million to $1 billion in assets and $1
billion to $10 billion in liabilities.
Judge J. Kate Stickles oversees the cases.
The Debtors tapped Simpson Thacher & Bartlett, LLP and Young
Conaway Stargatt & Taylor, LLP as legal counsel. Prime Clerk, LLC
is the Debtors' claims and noticing agent and administrative
advisor.
The U.S. Trustee for Region 3 appointed an official committee of
unsecured creditors on July 20, 2021. The committee tapped Morgan,
Lewis & Bockius, LLP as lead bankruptcy counsel, Robinson & Cole
LLP as Delaware counsel, and NLD Abogados as special Chilean
counsel. FTI Consulting, Inc., serves as the committee's financial
advisor.
===========
M E X I C O
===========
CREDITO REAL: Fires Advisers, Scraps U.S. Bankruptcy Plans
----------------------------------------------------------
Jeremy Hill and Dale Quinn of Bloomberg News report that Credito
Real SAB, Mexico's largest payroll lender, fired legal and
financial advisers who had been preparing to guide it through a
Chapter 11 bankruptcy filing in the US.
The Mexican payroll lender had been weighing a Chapter 11 filing
after defaulting on a repayment of a Swiss franc bond.
But according to Bloomberg's sources, Credito Real SAB has scrapped
its U.S. bankruptcy plans and is instead planning to pursue
insolvency proceedings in Mexico known as concurso mercantil.
Credito Real fell into default earlier this year after it failed to
repay holders of a maturing Swiss franc bond. It had been looking
to line up financing from existing creditors.
Creditor Real has $1.9 billion in global notes out of a total debt
of MXN53.3b ($2.72 billion). Creto is Mexico's biggest payroll
lender and second largest non-bank lender after Real Unifin.
About Credito Real SAB
Credito Real SAB de CV SOFOM ENR is a Mexico-based company that
provides consumer financing. Credito Real provides loans, either
by providing direct financing to consumers or by establishing
financing programs with consumer financing dealers that sell to
Credito Real the collection rights from consumer financing
products. It also provides financing directly to individuals that
are employed by corporations with payroll deduction agreements with
consumer financing dealers authorized by Credito Real. Credito
Real operates through a number of subsidiaries, including AFS
Acceptance LLC.
MEXICO: Egan-Jones Retains B+ Sr. Unsecured Debt Ratings
--------------------------------------------------------
Egan-Jones Ratings Company on May 20, 2022, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by United Mexican States.
Mexico is a country of southern North America and the third-largest
country in Latin America, after Brazil and Argentina.
===============
P A R A G U A Y
===============
PARAGUAY: IDB OKs $250MM Loan to Spur Fiscal Sustainability
-----------------------------------------------------------
Paraguay will buoy its post-pandemic economy recovery and fiscal
sustainability through a $250 million loan from the Inter-American
Development Bank (IDB) for more effective and efficient public
policies and public resource management.
This operation is the second of two contractually independent but
technically linked loans for policy reform to support Paraguay
during and after the pandemic. The first $210 million loan was
approved in 2020.
The new operation supports the country's ongoing reforms to build
health capacity, accelerate social inclusion for poor and
vulnerable people, and promote a sustainable post-pandemic fiscal
and economic recovery.
The program also aims to enhance public resource availability and
streamline spending to address the impact of the health crisis and
strengthen countercyclical fiscal policy effects with temporary
measures to protect the income of vulnerable households and the
liquidity of micro, small and medium enterprises.
This operation aligns with the IDB's Vision 2025 - Reinvesting in
the Americas: A Decade of Opportunities, which lays out a path to
achieving recovery and inclusive growth in Latin America and the
Caribbean. It especially contributes to the pillars of micro, small
and medium enterprises, digital economy, gender and inclusion, and
climate change.
The $250 million loan has a 20-year term, a five-and-a-half-year
grace period, and an interest rate based on SOFR
=====================
P U E R T O R I C O
=====================
CITIZEN PROTECTION: Seeks to Hire Tamarez CPA as Accountant
-----------------------------------------------------------
Citizen Protection Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire Albert
Tamarez-Vasquez, CPA, CIRA and his accounting firm Tamarez CPA, LLC
as its accountant.
The firm's services include:
(a) reconciling financial information to assist the Debtor in
the preparation of monthly operating reports;
(b) assisting in the reconciliation and clarification of proof
of claims filed and amount due to creditors;
(c) providing general accounting and tax services to prepare
year-end reports and income tax preparation; and
(d) assisting the Debtor and its counsel in the preparation of
the supporting documents for the Chapter 11 reorganization
plan, including negotiation with creditors.
The hourly rates charged by the firm for its services are as
follows:
Albert Tamarez-Vasquez, CPA, CIRA $165 per hour
CPA Supervisor $110 per hour
Senior Accountant $900 per hour
Staff Accountant $70 per hour
The firm received a retainer in the amount of $5,000.
As disclosed in court filings, Tamarez CPA is a "disinterested
person" within the meaning of Section 101(14) of the Bankruptcy
Code.
The firm can be reached through:
Albert Tamarez Vasquez, CPA, CIRA
Tamarez CPA, LLC
First Federal Saving Building
1519 Ave. Ponce De Leon Suite 412
San Juan, PR 00909-1713.
Tel: (787) 795-2855
Fax: (787) 200-7912
Email: atamarez@tamarezcpa.com
About Citizen Protection
Citizen Protection Inc. provides strategic leadership for the
company by working with the Board of Directors and other
management
to establish long-range goals, strategies, plans and policies.
Citizen Protection sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 22-01475) on May 24, 2022,
listing between $50,000 and $100,000 in both assets and
liabilities. Edwin Ayala Figueroa, president of Citizen Protection,
signed the petition.
Javier Vilarino, Esq., at Vilarino & Associates, LLC and Tamarez
CPA, LLC serve as the Debtor's legal counsel and accountant,
respectively.
[*] PUERTO RICO: Opens Opportunities for Dominicans
---------------------------------------------------
Dominican Today reports that the interest of the Puerto Rican and
Dominican governments in promoting business alliances between both
countries as an open the door to new opportunities and incentives
that allow improving the economic quality of the nations was
ratified in the forum "Puerto Rico: Opportunities and Incentives."
High representatives of the Puerto Rican economic sector presented
Law 60 of the Incentives Code as an economic development tool with
possible opportunities for economic empowerment that Dominican
national companies could achieve in a commercial association with
Puerto Rico, according to Dominican Today.
"The Dominican Republic is our friend, our neighbor, so we decided
to come here first and present all the opportunities and incentives
that Puerto Rico can offer," said the director of the Commercial
Office of Puerto Rico in the Dominican Republic, Nelson Torres
Martinez, the report notes.
Puerto Rico offers Dominican and regional entrepreneurs development
opportunities in creative, manufacturing, tourism, and agricultural
industries, as well as in biosciences, technology, renewable
energy, entrepreneurship, and export services, the report
discloses.
As stated in the panel by Carlos Fontan, director of the Office of
Business Incentives, and Victor Merced, director of the Office of
Specialized Services for Industry and Customer Service in Puerto
Rico, Law 60 defines incentives that support not only large
companies but also small and medium businesses in the same way as
emerging sectors, eSports and entertainment that are eligible under
the statutes of this law, the report relays.
At the beginning of the assembly, the secretary of the Department
of Economic Development and Commerce of Puerto Rico, Manuel Cidre
Miranda, stated that the presentation of the Incentives Code is
only the continuation of a saga that began with the signing of the
agreement between the governor of Puerto Rico, Pedro Pierluisi and
the Dominican president, Luis Abinader, of a strategic alliance to
promote exchange and cooperation between both countries, the report
notes.
Dominican Labor
Both the secretary of the Department of Economic Development and
Commerce of Puerto Rico, as well as the representative of the
Commercial Office of Puerto Rico in the Dominican Republic,
established that the Puerto Rican Government has approximately
US$50,000 million for the reconstruction of the country in the name
of deterioration in force since 2017 with the passage of several
hurricanes, earthquakes, and the Covid 19 pandemic, for which
labor, equipment, and technology are needed, which has propelled
the increase in job opportunities, the report notes.
"Puerto Rico offers many opportunities and incentives, in all
areas. The Dominican Republic is our friend, our neighbor, so we
decided to come here first and present the opportunities and
incentives that Puerto Rico can offer in manufacturing industries,
creative industries, tourism, opportunities for individuals, and
many others," said Nelson Torres Martinez, the report relays.
Also, Cidre Miranda that "we can combine both and be successful (RD
and PR), why both go hungry if we can share the plate?" she stated
while exposing a personal perception that between the Dominican
Republic and the Isla del Encanto there should be no visa
limitations, instead of a "green card" that allows you to visit
each other whenever you want, the report discloses.
Manuel Cidre Miranda indicated that "it is clear" that there is an
excellent commercial relationship between the Dominican Republic
and Puerto Rico based essentially on food and agricultural
products; from his nation's priorities, chemical elements,
technology, and services are gaining strength and tourism, the
report relays.
"Looking ahead, there are a large number of businessmen who are
very interested in participating in the economic development of the
Dominican Republic, which is an example in the region, and many
Dominican businessmen willing to enter Puerto Rico in light of the
recovery as a result of the different events and the entry of over
US$50,000 million for the reconstruction of the country," the
report adds.
=================
S T . L U C I A
=================
ST. LUCIA: Sugar Shortage in the Country
----------------------------------------
Jamaica Observer relays that the Caribbean News Global (CNG) is
reporting that there has been a shipping delay of brown and refined
sugar in St Lucia due to supply chain issues.
According to the 'update on sugar supplies' from the minister of
commerce, CNG Media noted that "Global supply chain disruptions are
causing consumers to struggle with shortages in a variety of basic
goods," the report notes.
However, "brown sugar will be available from the Government Supply
Warehouse on June 15 and an update will be provided on the regular
supply of refined (white) sugar at the soonest," according to
Jamaica Observer
The ministry of commerce said the shortages and challenges were ".
. . . severely impacted due to adverse weather conditions from the
source markets," the report relays.
CNG Media has further noted that while the hurricane season has
begun, no severe and/or adverse weather condition has been
registered in the Caribbean to date; therefore, there is no
magnitude of concern in the source markets of Barbados, Guyana and
Jamaica, the report says.
Additionally, the 'update on sugar supplies' report highlighted
"the container shortages, specifically 20ft containers are becoming
increasingly difficult to source due to congestion at ports and
rising demand," the report relays.
Other Issues
CNG Media disclosed that the results from the survey run by YouGov
suggest that following two years of a pandemic where retailers and
suppliers worked closely together and improved their relationships,
the pressure from rising prices has strained relationships, and
code-related issues between the two have also risen, the report
notes.
The report relays that a number of other issues were also raised by
suppliers, including:
1. Delays in payments: 12 per cent of suppliers raised delays in or
not receiving payment when there are disagreements about deliveries
(up from eight per cent in 2021).
2. Invoice discrepancies: 18 per cent of suppliers highlighted that
processes and procedures in place to enable invoice discrepancies
to be resolved promptly were inadequate (up from 14 per cent in
2021).
3. Forecasting errors: 18 per cent of suppliers said they had been
affected by incurring significant costs because of inaccurate
forecasting by retailers (up from 16 per cent in 2021).
Next Steps
The concern is such that economic and management pressures have
impaired relationships and created wider problems, the report
relays. And the plea for "patience in challenging times" is
incompatible for use as pacifiers to basic communities in a country
rich in the natural resource of land, once the bread basket of the
Caribbean, the report notes.
The Government of Saint Lucia may very well consider a review of
State control enterprises, in particular the supply of basic
commodities, that have become "very complicated" relative to modern
business tools, contingency planning and requisite skills beyond
the political apparatus, the report relays. In addition, there are
difficulties that developing countries face providing for their
people, the report discloses.
"Food insecurity and high prices can become a trigger for
instability," said Qu Dongyu, director general of the UN Food and
Agriculture Organization. Addressing the"Mediterranean Dialogue on
Food Crisis" in Rome, Qu insisted that "we must keep the global
food trade system open and ensure that agrifood exports are not
restricted or taxed," the report adds.
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S U R I N A M E
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SURINAMESE AIRWAYS: Cancels Flights due to Financial Troubles
-------------------------------------------------------------
RJR News reports that financially troubled state-owned carrier,
Surinamese Airways (SLM), has cancelled several flights leaving
hundreds of passengers stranded at several destinations including
Aruba, Curacao, the Netherlands and Miami.
The decision by the airline to cancel the flights comes even as the
Suriname government says it is doing everything it can to save the
airline, according to RJR News.
Surinamese Airways is in debt of approximately US$75 million, the
report notes.
The Chan Santokhi government has blamed the financial state of the
airline on years of mismanagement by the board and wrong investment
decisions by previous governments, the report relays.
The government, which is the airline's sole shareholder, wants to
declare the company bankrupt, the report adds.
*********
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
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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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