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                 L A T I N   A M E R I C A

          Tuesday, October 11, 2022, Vol. 23, No. 197

                           Headlines



A R G E N T I N A

ARGENTINA: IMF Board OKs Review, Frees Up Add'l US$3.8BB in Funds


B R A Z I L

AZUL AIRLINES: Aims to Up Flight Routes by 30% in 2023, CEO Says


E C U A D O R

ECUADOR: IDB Approves $84MM Loan to Strengthen Tax & Customs Admin


J A M A I C A

JAMAICA: Construction Industry Records Drop in Output
PALACE AMUSEMENT: Incurs $252M Loss for 2022 Financial Year


P A R A G U A Y

PARAGUAY: Faces Turbulent Election Season


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Seizes Stake in Oil Venture From Gazprom

                           - - - - -


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A R G E N T I N A
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ARGENTINA: IMF Board OKs Review, Frees Up Add'l US$3.8BB in Funds
-----------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
completed the second review of the extended arrangement under the
Extended Fund Facility (EFF) for Argentina.  The Board's decision
enables an immediate disbursement of SDR 3 billion (about US$3.8
billion), bringing total disbursements under the arrangement to
about US$17.5 billion.

In completing the review, the Executive Board assessed that recent
decisive actions were critical to stabilizing markets, rebuilding
confidence, and to secure key quantitative targets, including the
end-September floor for net international reserves and ceiling on
monetary financing of the fiscal deficit. The Board also approved
waivers of non-observance for the continuous performance criteria
relating to exchange restrictions and multiple currency practices.
[1]

Argentina's 30-month EFF arrangement, with access of SDR31.914
billion (equivalent to US$44 billion, or about 1000 percent of
quota), was approved on March 25, 2022 (see Press Release No.
22/89).  The authorities' IMF-supported program provides Argentina
with balance of payments and budget support that is linked to the
steadfast continued implementation of program polices aimed at
strengthening public finances, tackling persistent high inflation,
boosting reserve accumulation, and setting the basis for sustained
and inclusive economic growth.

Following the Executive Board discussion on Argentina, Ms.
Kristalina Georgieva, Managing Director, issued the following
statement:

"In response to the market disruptions of mid-2022, Argentina's new
economic team adopted decisive corrective measures that are
starting to restore confidence and policy credibility. Prudent
macroeconomic policies and steadfast program implementation will be
needed to address the still fragile situation, strengthen
stability, and deliver the objectives of the authorities'
Fund-supported program, which remains a key macroeconomic anchor.

"Achieving the fiscal primary deficit targets of 2.5 percent of GDP
in 2022 and 1.9 percent of GDP in 2023 is critical to moderate
import growth, accumulate reserves, strengthen debt sustainability,
and further reduce reliance on central bank financing of the
deficit. This will require further strengthened expenditure
controls and increased efficiency of subsidies and social spending,
which in turn would create space for critical energy infrastructure
projects and targeted assistance to the vulnerable.

"Continued resolute implementation of the monetary policy framework
is essential to sustain positive real interest rates and tackle the
persistent high inflation. Doing so will also encourage demand for
peso assets, increase external competitiveness, and boost reserves.
While targeted FX measures can temporarily support the balance of
payments, they are not a substitute for sound macroeconomic policy.
As such, exchange restrictions and multiple currency practices
should be unwound as conditions permit and reserve coverage
strengthens.

"A proactive debt management approach, coupled with prudent
macroeconomic policies, remains necessary to mobilize domestic peso
financing while mitigating rollover risks. Continued good faith
efforts, on all sides, are also needed to secure a successful
restructuring of Paris Club debt. Ensuring that international
partners deliver on financing commitments is also critical to
support key program objectives.

"The structural reform agenda remains critical to address
deep-seated economic challenges. Continued progress is needed to
strengthen public financial management, monetary transmission and
central bank finances, as well as the frameworks to combat tax
evasion and money laundering. Similarly, strong and stable
regulatory frameworks can help boost Argentina's export potential
in key sectors, including energy.

"Amid the challenging global environment and ongoing domestic
risks, resolute implementation of the program and agile policy
making are critical to meet objectives and secure stability. Broad
political support for the program's policies remains essential in
the period ahead."

                        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
===========

AZUL AIRLINES: Aims to Up Flight Routes by 30% in 2023, CEO Says
----------------------------------------------------------------
Aluisio Alves at Reuters reports that Chief Executive Officer John
Rodgerson said Brazilian airline Azul expects to expand its routes
by 30% next year, with plans to add new slots at Sao Paulo's
Congonhas airport, one of the busiest in the country.

In an interview at the company's headquarters on the outskirts of
Sao Paulo, Rodgerson said Azul currently has only 26 slots in
Congonhas, whereas its rivals Gol (GOLL4.SA) and LATAM Airlines
(LTM.SN) each have around 250, according to Reuters.

"The new rules are fairer," he said, referencing national aviation
regulator ANAC's decision in July to distribute 86 slots at
Congonhas to increase competition, with 45 new slots and 41
previously used by bankrupt Avianca Brasil, the report notes.

Bradesco BBI analysts estimated last month that nearly all the new
slots - 84 of 86 - would go to Azul, allowing the company's
presence in the airport to grow fourfold, the report relays.

Rodgerson expects to start selling tickets for flights from the new
slots beginning in March, the report discloses.

He said the company is now mainly focused on its domestic
operations and in 2023 expects to increase the number of Brazilian
cities it serves to 200 from the current 154, targeting
destinations in the North, Northeast and Central-West regions, the
report notes.

Azul, which has a 164-aircraft fleet and expects to receive a new
Embraer (EMBR3.SA) plane every two months in the next few years,
expects to hit the milestone of 1,000 flights per day this month, a
10% increase from late 2019, its CEO said, the report relays.

Earlier, Azul announced a new management structure, with Chief
Revenue Officer Abhi Shah being tapped to be the company's new
president, the report relays.  He will report to Rodgerson.

Rodgerson said the move was aimed at making the company's
management more similar to that of large U.S. airlines, with the
CEO being freed to focus on strategy instead of handling some
specific day-to-day duties, the report notes.

"I'm not leaving," Rodgerson said, the report adds.

                         *    *    *

As reported in the Troubled Company Reporter-Latin America in
Troubled Company Reporter-Latin America in March 2022, Rio Times
Online reports that Brazilian airline Azul reduced its losses by
53% from BRL10.422 billion (about US$2.051 billion) in
2020 to BRL4.767 billion (US$938.5 million) during the 2021 fiscal
year.   The company closed 2021 in losses, but lower than those
recorded in 2020, this due to the fact that demand continues to
recover with a view to achieving the 2019 record, the report adds.

In July 2020, Natalia Scalzaretto at The Brazilian Report related
that Azul Airlines is said to have laid off more than 1,000 airport
maintenance workers, according to trade union sources heard by the
Brazilian press.  They estimate that the layoffs may prompt Azul to
abandon operations in 27 cities.  The company at that time didn't
confirmed how many workers was to be dismissed but says that
roughly 5,000 jobs were saved due to agreements with union,
employing changes such as reduced hours.




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E C U A D O R
=============

ECUADOR: IDB Approves $84MM Loan to Strengthen Tax & Customs Admin
------------------------------------------------------------------
Ecuador will increase its tax and customs duties to boost its
economic competitiveness and improve the climate for international
trade, with the help of an $84 million loan from the Inter-American
Development Bank (IDB).

The funds, to be disbursed over five years, will streamline the tax
and customs control operations of Ecuador's tax and customs
administrations, facilitating foreign trade.

Of the $84 million loan total, the IDB will provide $49 million and
the IDB-administered Korea Infrastructure Development Co-Financing
Facility for Latin America and the Caribbean will contribute the
remaining $35 million. The Government of Ecuador will participate
with an additional $4.53 million in local partner funds.

The financing will help digitally transform tax and customs
services, combat tax evasion, tighten foreign trade controls,
streamline the exchange of goods and services, and promote
investment.

The $49 million IDB loan has a 23-year term, a 7.5-year grace
period, and an interest rate based on the Secured Overnight
Financing Rate (SOFR). The Korea Facility funds have a 25-year
repayment term, with a 7-year grace period and a 1.3% annual
interest rate.

As reported in the Troubled Company Reporter-Latin America in
August 2022, Fitch Ratings has affirmed Ecuador's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B-'. The Rating Outlook is
Stable.




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J A M A I C A
=============

JAMAICA: Construction Industry Records Drop in Output
-----------------------------------------------------
RJR News reports that the local construction industry in Jamaica
has registered a drop in output for the second quarter.

The Statistical Institute of Jamaica (STATIN) said the industry's
GDP fell by 5.2 per cent, according to RJR News.

The decline was at a higher percentage than the 4.2 per cent dip
estimated by the Planning Institute of Jamaica, the report notes.

STATIN says the decline was mainly due to less building
construction and civil engineering activities in the quarter, the
report relays.

It says the decline in the civil engineering group resulted from
reduced expenditure on the South Coast Highway Improvement Project,
the report notes.

There was also a contracting in total sales of construction inputs,
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.


PALACE AMUSEMENT: Incurs $252M Loss for 2022 Financial Year
-----------------------------------------------------------
RJR News reports that entertainment and movie company Palace
Amusement recorded a loss in its financial year ended June.

Total losses amounted to $252.1 million compared to a profit of
$240.9 million, according to RJR News.

The company, however, raked in $543.3 million more in revenue than
last year, the report notes.

Total earnings for the year was $649 million, versus $105.8 million
in 2021, the report adds.

Palace Amusement says its performance was driven by the prolonged
closure of its cinema during the COVID-19 pandemic, when
restrictions were in place, the report relays.




===============
P A R A G U A Y
===============

PARAGUAY: Faces Turbulent Election Season
-----------------------------------------
Rocco Caldero at Rio Times Online reports that Paraguay's ruling
Colorado Party is in turmoil just ahead of April 2023 elections.

The right-wing conservative "Partido Colorado" has long dominated
Paraguayan politics and has remained in power even amid the
volatile anti-incumbent wave that has recently swept Latin America,
according to Rio Times Online.

With a brand focused on pro-business stability and traditional
values in a country often considered the most Catholic in the
region, it has held power for all but five of the last
seventy-seven years, losing only the 2008 election when two
candidates split the party's electorate, the report notes.




=================
V E N E Z U E L A
=================

PETROLEOS DE VENEZUELA: Seizes Stake in Oil Venture From Gazprom
----------------------------------------------------------------
Fabiola Zerpa at Bloomberg News reports that Venezuela's state oil
company seized a minority stake in a key joint oil venture from GPB
Global Resources, a private energy firm founded by former Gazprom
PJSC officials, taking full control of the asset.

Petroleos de Venezuela SA took over the 40% stake in the
Petrozamora venture over the past month and replaced the board of
directors after notifying GPB with a letter, according to four
people with direct knowledge of the matter, who aren't authorized
to speak publicly, according to Bloomberg News.

Neither PDVSA nor GPB returned messages seeking comment.

It's unclear if GPB was offered compensation or if it's in
negotiations with PDVSA after being notified of the changes in the
project. GPB had operational control of the venture which is rare
in Venezuela, including managing the finances of the partnership,
the report notes.

While GPB is a closely held company incorporated in the
Netherlands, it is led by Vladimir Shvarts and two former
executives at Moscow-based Gazprom PJSC, Boris Ivanov and Sergey
Tagashov, both of whom worked for the Russian government in the
past, the report relays.

PDVSA installed Erick Perez as the new head for Petrozamora and a
first board meeting was held without the GPB officials, the people
said. Perez also serves as vice president for exploration and
production, vice minister for oil and head of the government's
affiliate that partners with foreign firms in ventures, the report
discloses.

The local GPB subsidiary is known as Gazprombank Latin America
Ventures. GPB acquired the stake in Petrozamora from Russia's
Gazprombank in 2019, the report recalls.  Back in 2013, Gazprombank
said it would invest $1 billion in the project, a year after
entering into a 25 year contract with PDVSA, the report notes.

Venezuela's oil industry is struggling to stabilize production
around 700,000 barrels a day after sanctions and a string of
departures by foreign companies including Rosneft Oil Co., Equinor
SA and drillers Baker Hughes Co. and Halliburton Co, the report
says.  The South American country produced as many as 3.4 million
barrels in 1998, the report notes.

In taking over Petrozamora, PDVSA is aiming to increase supply for
its domestic market, sending production from the field to its
largest refinery, the Paraguana Refining Complex some 200 miles
north, according to one of the people, the report relays.  

The project is in Venezuela's oil cradle in the western state of
Zulia, and used to supply about 10% of the country's output using
modern rigs rarely found elsewhere in the country, the report
relays.  Production at the field dropped to around 28,000 barrels a
day from roughly 120,000 barrels a day six years ago as US
sanctions made it harder for the venture to find buyers for the
crude, the report discloses.

In its heyday, the venture supplied crude to the Nynas refinery in
Sweden, which PDVSA controlled, the report says.  After US
sanctions hit PDVSA in 2019, Nynas was targeted too, the report
relays.  A restructuring followed and PDVSA reduced its stakes and
halted shipments from Petrozamora, the report notes.

Both PDVSA and GPB are sanctioned by the U.S. Office of Foreign
Assets Control.

                     About PDVSA

Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas.  It employs around
70,000 people and reported $48 billion in revenues in 2016.

In May 2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the
time of withdrawal, the ratings were C and the outlook was stable.

Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset.  CITGO is majority-owned by PDVSA.  CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.

However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA.  The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.



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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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Information contained herein is obtained from sources believed to
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