/raid1/www/Hosts/bankrupt/TCRLA_Public/220921.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, September 21, 2022, Vol. 23, No. 183

                           Headlines



A R G E N T I N A

ARGENTINA: Budget Bill Forecasts 60% Inflation in 2023


B R A Z I L

BRAZIL: Rio Climbs 6 Positions in Competitiveness State Ranking


J A M A I C A

DIGICEL GROUP: Confident of Effectively Handling Bond Challenge
JAMAICA: BoJ Denounces Hike in Unauthorized Microcredit Service


P E R U

PERU: IDB Lab Finances Startup Focused on Loans SMEs

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A R G E N T I N A
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ARGENTINA: Budget Bill Forecasts 60% Inflation in 2023
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Buenos Aires Times reports that Argentina's government projects
prices rising 60 percent next year, a much lower rate than private
economists estimates of over 100 percent, according to Economy
Ministry officials who asked not to be named to discuss the 2023
budget proposal before it's published.

The budget, the first under Economy Minister Sergio Massa, offers a
view into his economic vision during an election year and a test of
his political capital as a veteran lawmaker. Congress rejected the
2022 budget draft on the grounds it wasn't realistic, a setback for
President Alberto Fernandez that forced his government to muddle
through this year with an extended version of the budget from 2021,
according to Buenos Aires.

Officials warned that if this budget proposal wasn't passed by
congress, it would create a government shutdown as the 2021 budget
would be insufficient for next year considering higher inflation
levels, the report notes.

Projecting 60 percent inflation by the end of next year contrasts
with private economists forecasts of 84 percent during the same
period, according to the Central Bank's monthly survey, the report
relays.  Many economists see inflation surpassing 100 percent by
the end of this year or early next year too, the report notes.

Beyond inflation, the budget forecasts two percent economic growth
and an official exchange rate at 269 per US dollar by the of 2023.
Economists surveyed by the Central Bank see the official rate at
298 per dollar over that time, the report says.  

The key fiscal deficit projection in the draft - 1.9 percent of
gross domestic product - coincides with targets already established
in Argentina's US$44.5-billion agreement with the International
Monetary Fund. Massa concluded a week-long trip to Washington,
earning praise from IMF Managing Director Kristalina Georgieva, the
report discloses.  

Officials anticipate that the government will lower the primary
deficit to 1.9 percent from this year's target of 2.5 percent via
further reducing subsidies on transportation and utilities, as well
as more domestic sourcing of energy to ween off costly imported
natural gas, the report notes.

Both the government and Argentina intend to conclude the second
review of the program in the coming days to unlock an IMF
disbursement to Argentina that will cover a US$2-billion payment
the nation owes the creditor from a previous loan, the report
relays.

Argentina's 2023 budget projections:

- Economic growth: two percent

- Primary fiscal deficit: 1.9 percent of gross domestic product

- Inflation: 60 percent

- Official exchange rate: 269 pesos per dollar by December 2023

                      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
Aug. 12, 2022, S&P Global Ratings affirmed its foreign and
local-currency sovereign credit ratings of 'CCC+/C' on the
Republic of Argentina. The outlook remains stable. S&P also
affirmed its national scale 'raBBB-' rating and its 'CCC+' transfer
and convertibility assessment. S&P said the stable outlook reflects
the challenges in managing pronounced economic imbalances ahead of
the 2023 national elections given disagreement on policy within the
government coalition and financing pressures in the local market.

Last 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.
On July 19, 2022, Fitch Ratings placed Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) and Long-Term Local
Currency IDR Under Criteria Observation (UCO) following the
conversion of the agency's Exposure Draft: Sovereign Rating
Criteria to final criteria. The UCO assignment indicates that
ratings may change as a direct result of the final criteria. It
does not indicate a change in the underlying credit profile, nor
does it affect existing Rating Outlooks.

Moody's credit rating for Argentina was last set at Ca on
Sept. 28, 2020.

DBRS has also confirmed Argentina's Long-Term Foreign Currency
Issuer Rating at CCC and Long-Term Local Currency Issuer Rating at
CCC (high) on July 21, 2022.




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B R A Z I L
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BRAZIL: Rio Climbs 6 Positions in Competitiveness State Ranking
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Richard Mann at Rio Times Online reports that Rio de Janeiro has
climbed six positions in the competitiveness rankings of states
compiled by the CLP (Center for Public Leadership).

From 17th place in 2021, it moved up to 11th place in 2022,
according to Rio Times Online.

In practice, the state has returned to the position it held in 2020
before the ouster of Governor Wilson Witzel, the report notes.

At that time, scandals and government data disarray affected Rio's
performance, the report relays.

This year, there have been improvements in fiscal policy, the civil
service efficiency pillar, and the judiciary's work, which has
increase end by seven positions, 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
July 18, 2022, Fitch Ratings has affirmed Brazil's Long-Term
Foreign Currency Issuer Default Rating at 'BB-' and revised the
Rating Outlook to Stable from Negative.

On June 17, 2022, S&P Global Ratings affirmed its 'BB-/B' long-
and short-term foreign and local currency sovereign credit
ratings on Brazil.

Moody's Investors Service also affirmed on April 15, 2022,
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the
stable outlook.

DBRS Inc. confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low) on Aug 12, 2022. At the same time,
DBRS Morningstar confirmed the Federative Republic of Brazil's
Short-term Foreign and Local Currency Issuer Ratings.




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J A M A I C A
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DIGICEL GROUP: Confident of Effectively Handling Bond Challenge
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RJR News reports that Telecommunications group Digicel Group has
declared that it is well positioned to deal with US$925 million
worth of  bonds that fall due in less than six months, even as
unfavorable foreign-exchange movements drag on earnings while
credit rating agency Fitch has issued a fresh warning of  a
potential debt default.

A report in The Irish Times says Digicel told bondholders in recent
weeks that its earnings before interest, tax, depreciation and
amortization dipped two per cent to US$241 million in the three
months through June, according to RJR News.

It took a $16 million hit from currency weakness in some of its
main markets, led by Haiti, the report notes.

However, there was a nine per cent increase in service revenues for
the quarter, to $585 million, which translated into a four per cent
rise in reported earnings, the report relays.

The market value of $925 million of  bonds that mature in March
2023 has fallen to less than 64 cents on the dollar from a near-par
value of  more than 98 cents in January, on mounting concerns about
the telecom group's ability to refinance the debt amid turbulent
global debt markets, the report discloses.

Fitch, one of  the world's leading credit ratings agencies,
recently downgraded Digicel's creditworthiness to triple CCC-,
very risky rating that is nine rungs deep into what is considered
non-investment grade, or junk status, the report says.

Fitch warned that even though Digicel used US$1.1 billion of the
net $1.3 billion of  initial proceeds from the sale of  its Pacific
operations to redeem bonds due in 2024, there are elevated risks
that it will not be able to refinance the 2023 bonds without a debt
restructuring, the report adds.

                   About Digicel Group

Digicel Group is a mobile phone network provider operating in 33
markets across the Caribbean, Central America, and Oceania
regions.

The company is owned by the Irish billionaire Denis O'Brien, is
incorporated in Bermuda, and based in Jamaica.

As reported in the Troubled Company Reporter-Latin America in April
2020, Moody's Investors Service downgraded Digicel Group Limited's
probability of default rating to Caa3-PD from Caa2-PD. At the same
time, Moody's downgraded the senior secured rating of Digicel
International Finance Limited to Caa1 from B3. All other ratings
within the group remain unchanged. The outlook is negative.

Also in April 2020, the TCR-LA reported that Fitch Ratings has
downgraded Digicel Limited to 'C' from 'CCC', and its outstanding
debt instruments, including the 2021 and 2023 notes to 'C'/'RR4'
from 'CCC'/'RR4'. Fitch has also downgraded Digicel International
Finance Limited to 'CCC+' from 'B-'/Negative, and its outstanding
debt instruments, including the 2024 notes and the 2025 credit
facility, to 'CCC+'/'RR4' from 'B-'/'RR4'. Fitch has removed the
Negative Rating Outlook from DIFL.


JAMAICA: BoJ Denounces Hike in Unauthorized Microcredit Service
---------------------------------------------------------------
RJR News reports that the Bank of Jamaica has denounced the
increase in unauthorized persons offering loans and microcredit
services across the island.

In a notice, the BOJ said the law requires all parties engaging in
microcredit services or business as a microcredit institution to
hold a license, according to RJR News.

Entities and individuals conducting business without a license are
liable to prosecution, the report notes.  

A microcredit business includes the granting of credit facilities
to individuals or micro, small and medium enterprises, the report
relays.

The Microcredit Act took effect on July 30, 2021, the report adds.

As reported in the Troubled Company Reporter-Latin America in March
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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P E R U
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PERU: IDB Lab Finances Startup Focused on Loans SMEs
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IDB Lab, the innovation laboratory of the Inter-American
Development Bank (IDB), will finance the fintech Prestamype with $2
million to improve access to credit for micro and small enterprises
in Peru. The loan will drive the financial inclusion of a spectrum
of underserved businesses that, in many cases, lack the credit
history or level of formality needed to access financing.

Prestamype offers a financing solution that combines mortgage
guarantees with technology to optimize the process. This allows the
fintech to lend micro and small businesses more significant amounts
than those provided by the market, at lower interest rates than
traditional financing and with shorter times for the approval and
disbursement of the loan. Its clients, 43% of which are women, are
primarily engaged in services, commerce, leasing, manufacturing,
and construction and mainly request loans for the purchase of
merchandise, raw materials, and machinery or to support the
construction or remodeling of their business.

IDB Lab's loan will allow the Peruvian fintech to increase its
supply of financing, strengthen its lending capacity, improve loan
conditions, and increase the number of companies that receive a
first formal loan. Likewise, it will expand its geographical
coverage by beginning to serve small and medium-sized enterprises
outside Lima.

"When we put technology at the service of inclusion, we advance the
development of our region. Facilitating access to finance for micro
and small businesses in Peru by leveraging innovation and
entrepreneurship favors the sustainable and inclusive growth we
seek at IDB Lab for Latin America and the Caribbean. Moreover, this
type of initiative allows for the reactivation of the productive
sector embodied as a priority objective in the Vision 2025 mandate
of the Inter-American Development Bank," said Irene Arias Hofman,
CEO of IDB Lab.



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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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delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
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