/raid1/www/Hosts/bankrupt/TCRLA_Public/221012.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, October 12, 2022, Vol. 23, No. 198

                           Headlines



A R G E N T I N A

CAPEX SA: Fitch Affirms 'CCC+' Issuer Default Ratings


B E R M U D A

GENTING HONG KONG: Bermuda Court Enters Wind Up Order
HIGHLANDS HOLDINGS: Fitch Affirms 'BB' on $521MM PIK Toggle Notes


B R A Z I L

JBS SA: To Close U.S. Plant-Based Foods Business


C A Y M A N   I S L A N D S

CIFI HOLDINGS: Moody's Lowers CFR to B3 & Sr. Unsec. Notes to Caa1


C O L O M B I A

COLOMBIA: President Proposes Tax on Capital Outflows


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Central Bank Raises Interest Rate 25 Points


M E X I C O

MEXICO: Faces a Challenging Environment, IMF Says


P U E R T O   R I C O

PUERTO RICO: Supreme Court to Hear Finance Docs Appeal


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Let Guyana Replace Country in Caricom Fund


V E N E Z U E L A

VENEZUELA: US Looks to Ease Sanction, Enabling Chevron to Pump Oil


X X X X X X X X

LATAM: Caribbean Dev't Bank Promotes MSMEs With IDB Support

                           - - - - -


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A R G E N T I N A
=================

CAPEX SA: Fitch Affirms 'CCC+' Issuer Default Ratings
-----------------------------------------------------
Fitch Ratings affirmed Capex S.A.'s (Capex) Long-Term (LT) Foreign
Currency (FC) Issuer Default Rating (IDR) at 'CCC+' and Local
Currency (LC) IDR at 'CCC+'. Fitch has also affirmed the company's
USD300 million senior unsecured bonds due 2024 at 'CCC+'/'RR4'.

Capex is rated one notch higher than the sovereign of Argentina
(CCC) due to its diversified cash flow profile, as the oil business
offsets the company's exposure to CAMMESA (Compania Administradora
del Mercado Mayorista Electrico S.A.). Given its reliance on
subsidies from the government, CAMMESA's credit quality is strongly
related to Argentina's sovereign. The company's oil business
accounts for more than 60% of its revenue and between 20% and 30%
of EBITDA.

The recovery rating on the USD300 million senior unsecured notes
due 2024 is capped at 'RR4' since per its "Country-Specific
Treatment of Recovery Ratings Criteria". The expected recovery for
'RR4' is 31% to 50%.

KEY RATING DRIVERS

Weak Operating Environment: Capex's ratings reflect regulatory risk
given strong government influence in the energy sectors. Capex
operates in a highly strategic sector where the government both has
a role as the price/tariff regulator and also controls subsidies
for industry players. Fitch estimates that oil and gas production
comprised 70% of 2022 EBITDA followed by approximately 23% from the
electric business. Over the rating horizon, oil and gas business
will remain a key contributor to cash flow generation, representing
approximately 70% of the company's consolidated EBITDA.

Impact of Capital Controls: Argentina's central bank A-7490 states
that corporates with FC debts maturing before Dec. 31 2022 would
need to present a refinancing plan to the central bank, where their
access to the foreign exchange market limited to 40% of the
maturing debt and refinancings would need an average life of 2+
years.

Approximately 98% of Capex's USD-denominated debt is in the form of
a bullet bond due in 2024, of which Capex has bought back nearly
USD60 million. As of July 2022, the company had no short-term
dollar-based debt, and had available cash of USD59 million, of
which approximately USD40 million is held offshore in U.S. dollar
accounts.

Advantageous Vertical Integration: Capex is an integrated
thermoelectric generation company whose vertically integrated
business model gives it an advantage over other Argentine
generation companies, especially given existing gas limitations in
the country. Capex benefits from operating efficiencies as an
integrated thermoelectric generation company and the flexibility
from having its own natural gas reserves to supply the plant.
Capex's generating units are efficient and the proximity to its
natural gas reserves in the Agua del Cajon field coupled with gas
transportation restrictions from Neuquen basin to the main
consumption area in Buenos Aires reduces its gas supply risk.

Small Production Profile: Capex has a small and concentrated
production profile, and its asset base as well as all of the
company's proved (1P) reserves and production are concentrated in
Argentina. This limited diversification exposes the company to
operational and macroeconomic risks associated with small-scale oil
and gas production. Fitch expects the company's production to be on
average roughly 18,500 boe per day (boed) from FY 2023 to FY 2026,
with gas production representing approximately 53% of total output.
As of July 2022, 35% of the company's gas reserves and 52% of its
oil reserves were developed.

As of July 2022, Capex had 1P reserves of 55.8 million boe with 60%
related to gas. The company has strong concession life that exceeds
the life of its 2024 bond, with Agua del Cajon concession expiring
in 2052, and recently acquired blocks: Pampa del Castillo O&G Field
expiring in 2046, La Yesera in 2037, Loma Negra (RN Norte) in
December 2034 and Bella Vista Oeste in 2045. La Yesera's and Loma
Negra's concessions each include recently signed 10-year
extensions.

Moderate Medium-term Leverage: Fitch expects Capex's FY 2023 gross
leverage (defined as total debt to EBITDA) to be close to 1.3x due
to higher oil prices and demand as well as the inflation adjustment
to Energia Base, but is expected to rise to 2.6x by 2026 due to
lower oil prices assumptions. Fitch expects average EBITDA interest
coverage to be strong at an average of roughly 6.0x over the rating
horizon. Net leverage should be close to 1.1x in FY 2023 due the
Capex's high cash balance and rising to 2.0x by FY 2026.

DERIVATION SUMMARY

As a vertically integrated energy and electricity company, Capex
S.A.'s LT FC and LC ratings of 'CCC+' reflect its exposure to
CAMMESA as an offtaker for its electricity and gas revenues as well
as private offtakers for its oil revenues. It is rated one notch
below Petroquimica Comodoro Rivadavia S.A (PCR; B-/Stable), which
has a notable percentage of its EBITDA from exports, offshore
EBITDA from Colombia (BB+/Stable) and offshore hard currency. Pampa
Energia S.A. (B-/Stable), MSU Energy (CCC) and Generacion
Mediterranea S.A. (CCC) are rated one notch lower due to their
operational exposure to Argentina and overall regulatory risk.

Capex S.A. is a small oil & gas producer with operation exclusively
in Argentina. Capex's production is expected to stay at an average
of 18,500boed through fiscal years 2023-2026, which is less than
its peers CGC with an average of 58,000boed and PCR with an average
of 20,000boed. Capex has a strong 1P reserve life of 12.4 years
compared PCR reserve life of 7.2 years and CGC reserve life of 5.0
years.

Capex's gross leverage is expected to fall to 1.3x in FY 2023 due
to higher oil prices and demand as well as the inflation adjustment
to Energia Base but is expected to rise to 2.6x by FY 2026. Capex's
expected medium-term leverage is slightly higher than that of oil
and gas peers CGC (1.3x in 2022 and 2023), PCR (1.7x in 2022 and
1.4x in 2023) and Pampa Energia (2.2x in 2022 and 2.3x in 2023).
Unlike most of its oil & gas peers, Capex does have a more
diversified business model with its power generation segment. As an
integrated energy company, Capex compares best with Pampa Energia.

KEY ASSUMPTIONS

- Natural gas production of approximately 9,800boed between
   fiscal years 2023-2026;

- Realized natural gas prices at USD2.4/MMBTU during fiscal years

   2023-2026;

- Oil production reaching approximately 8,700boed between fiscal
   years 2023-2026;

- Fitch's Price deck for Brent oil prices adjusted for Capex's
   FYE of April 30 at $93.67/barrel during 2023, $78.33 in 2024,
   $61 in 2025 and $53 2025;

- Annual electricity production of approximately 3,800GWh;

- Electricity prices denominated in Argentine pesos around
   USD12.00/MWh;

- Diadema Wind Farm average availability factor from fiscal
   years 2023-2026 at 96% and average load factor of 49%
   with an average PPA price of USD103/MWh;

- Total capex of approximately USD400 million between fiscal
   years 2023-2026, mostly concentrated in the fields of Pampa
   del Castillo and Agua del Cajon;

- No dividends payments between FY 2024 through FY 2026.

Key Recovery Rating (RR) Assumptions:

- The recovery analysis assumes that Capex would be going concern

   in bankruptcy;

- Fitch has assumed a 10% administrative claim;

- The 50% advance rate is typical of inventory liquidations for
   the oil and gas industry;

- 30% EBITDA decline during bankruptcy;

- 6.0x going concern EV/EBITDA multiple;

- The Recovery Rating is limited to 'RR4' and the bond's rating
   is limited to its issuer's IDR of 'CCC+' since Argentina is
   classified as a Group D country in Fitch's Country-Specific
   Treatment of Recovery Ratings Rating Criteria.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to a
positive rating action/upgrade:

- An upgrade to the ratings of Argentina could result in a
   positive rating action;

- Net production rising on a sustainable basis to 35,000boed;

- Increase in reserve size and diversification and maintaining a
   minimum 1P reserve life of at close to 10 years.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- A downgrade by more than one notch of Argentina's country
   ceiling;

- A reversal of government policies that result in a significant
   increase in subsidies coupled with a delay in payments for
   electricity sales;

- Sustainable production size decreased to below 10,000boed;

- Reserve life decreased to below seven years on a sustained
   basis;

- A significant deterioration of credit metrics to total
   debt/EBITDA of 4.5x or more.

- Heightened refinancing risk pertaining to the bond due in May
   2024 due to the capital constrains impeding the ability to
   refinance.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As of July 2022, Capex S.A. had available cash
of USD59 million, of which approximately USD40 million is held
offshore in U.S. dollar accounts. The company also has available
USD111 million in approved credit facilities. Capex's main
financial obligation is a USD300 million bond due in 2024 and it
has no near-term maturities. Fitch expects the company to maintain
adequate liquidity position over the rating horizon.

ISSUER PROFILE

Capex is an integrated Argentine company dedicated to the
exploration and exploitation of hydrocarbons and the generation of
electric, thermal and renewable energy.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

   Entity/Debt                Rating         Recovery Prior
   -----------                ------         -------- -----
Capex S.A.          LT IDR     CCC+  Affirmed         CCC+
      
                    LC LT IDR  CCC+  Affirmed         CCC+

   senior unsecured LT         CCC+  Affirmed   RR4   CCC+




=============
B E R M U D A
=============

GENTING HONG KONG: Bermuda Court Enters Wind Up Order
-----------------------------------------------------
South China Morning Post reports that debt-laden Genting Hong Kong
has been ordered by a Bermuda Court to be wound up, marking the
start of the last chapter in the history of Asia's largest cruise
operator as an independent business entity.

"The company and [subsidiary] Dream Cruises were ordered to be
wound up by the Bermuda Court on October 7 in accordance with
section 161 of the Companies Act," Genting said in a filing to the
Hong Kong stock exchange on Oct. 10.

Edward Middleton and Tiffany Wong Wing-sze of Alvarez & Marsal
Asia, and Edward Whittaker of R&H Services will continue to be the
joint provisional liquidators of Genting Hong Kong and Dream
Cruises, it added, the report relays.

Trading of the company's shares will remain suspended, the Post
notes. They have not been allowed to change hands since January 18
and last traded at 41.5 HK cents.

In January this year, the company filed a winding-up petition in
Bermuda, after the bankruptcy of its shipyard in northeastern
Germany triggered US$2.78 billion of debt repayment demands from
creditors, the report recalls. A bailout by the German government
fell through.

It is one of the biggest casualties in Asia's tourism industry,
which has been bruised by more than two years of social-distancing
measures designed to contain wave after wave of the Covid-19
pandemic, the Post states.

According to the Post, the company's stock has lost nearly half of
its value since the start of 2020, when the coronavirus first
emerged, wiping out US$386 million of capitalisation.

Genting Hong Kong, 76 per cent-owned by the Malaysian tycoon Lim
Kok Thay, operates three cruise lines: Dream Cruises, Crystal
Cruises and Star Cruises.

It also owns and operates the Resorts World Manila casino and
resort in the Philippines, and reported a US$238.3 million net loss
in the first half of 2021 on revenues of US$182 million. It booked
a net loss of US$1.72 billion in 2020, the Post discloses.

Stranded by travel restrictions, the cruise liner had been
operating what it called Cruise to Nowhere packages since last
summer, sailing the waters of Hong Kong without calling at any
other port. This gave passengers the opportunity to enjoy meals,
entertainment and amenities on board as substitutes for going on a
destination cruise.

The Post says Genting Hong Kong has not published financial results
for the whole of last year or for the first half of 2022. It cited
changes in personnel, liquidity issues and the lack of an audit
committee for the failure.

                      About Genting Hong Kong

Genting Hong Kong Limited is a Hong Kong-based investment holding
company principally engaged in cruise businesses. The Company
operates through two segments. Cruise and Cruise-related Activities
segment is engaged in the sales of passenger tickets, the sales of
foods and beverages onboard, shore excursion, as well as the
provision of onboard entertainment and other onboard services.
Non-cruise Activities segment is engaged in onshore hotel
businesses, travel agency, aviation businesses, entertainment
businesses and shipyard businesses, among others. The Company
operates businesses in Asia Pacific, North America and Europe,
among others.

As reported in the Troubled Company Reporter-Asia Pacific on Jan.
20, 2022, Genting Hong Kong has filed a winding-up petition in
Bermuda, after the bankruptcy of its shipyard in Germany triggered
US$2.78 billion of debt and forced Asia's largest operator of sea
cruises to be liquidated.

The owner of Dream Cruise Holding appointed Alvarez & Marsal's
Edward Simon Middleton and Tiffany Wong Wing-sze as provisional
liquidators, South China Morning Post disclosed citing a filing on
Jan. 19 to the Hong Kong stock exchange.

Dream Cruises Holding Ltd., an indirect non-wholly owned unit of
Genting Hong Kong that has also filed a winding up petition, will
continue to operate its fleet in the region, the company said.


HIGHLANDS HOLDINGS: Fitch Affirms 'BB' on $521MM PIK Toggle Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed the 'BB' rating on the $521 million
7.625% cash interest/8.375% PIK interest senior secured PIK toggle
notes due 2025 issued by Highlands Holdings Bond Issuer, Ltd.
(HHBI).

KEY RATING DRIVERS

Apollo Ownership: HHBI is a Bermuda-exempted company formed by
Apollo Global Management, Inc. to issue the notes in October 2020
($500 million original issue amount). HHBI is a sister company of
Highlands Bermuda Holdco, Ltd. (HBH), with both companies owned by
AP Highlands Holdings, L.P. (62.1% ownership of HBH and HHBI)/AP
Highlands Co-Invest, L.P. (37.9% ownership of HBH and HHBI)
(collectively APH). APH are the Apollo investment funds that own
Aspen Insurance Holdings Limited (AIHL) through HBH. HHBI on-lent
the net proceeds from the offering to APH, with $313 million
contributed to HBH to provide additional capital to the AIHL
operating group.

Elevated Default Risk: The 'BB' rating is set at the implied HBH
Issuer Default Rating (IDR), which reflects an Average recovery
assumption. Fitch considers the default risk for HHBI and HBH to be
the same given the security interest collateral that HHBI has in
APH's shareholdings in HBH. The 'BB' rating is three notches below
an implied AIHL IDR to reflect elevated default risk due to the
remoteness from AIHL's operating company cash flows and the
relatively short-term tenor of the notes (2025) that creates
refinancing risk.

Structural Subordination: The notes are general senior secured
obligations of HHBI and rank structurally subordinated to all
existing and future obligations of HBH and AIHL (and its
subsidiaries), including AIHL's $300 million 4.65% senior notes due
2023 and its $775 million of perpetual preferred equity. The notes
are structured to be isolated from AIHL's regulated group, with
cross defaults not applicable to AIHL and its subsidiaries. In
addition, a breach of the covenants by HBH and AIHL (and its
subsidiaries) will not constitute a default of HHBI to the extent
doing so would materially and substantially negatively affect the
management and business of AIHL and its subsidiaries or if it is
necessary in order for AIHL and its subsidiaries to comply with
applicable laws or a request from a relevant regulator.

Interest is Cash or PIK: As a payment in kind (PIK) toggle, HHBI
has discretion to pay interest entirely in cash, entirely through
issuing additional notes or a split of cash and additional notes.
The PIK feature adds risk with interest deferrals that increase
HHBI's indebtedness. HHBI paid the first April 2021 interest
payment in cash, with PIK interest in October 2021 and cash
interest in April 2022. Future payments could be either cash or
PIK.

Dividends from Aspen: HHBI is a holding company with no
revenue-generating operations and no independent operations. Thus,
in order to satisfy the cash payment obligations under the notes,
HHBI primarily relies on dividends provided by the AIHL operating
subsidiaries to AIHL that flow through HBH and then APH. The AIHL
operating subsidiaries have no obligation to make such funds
available and they may be prohibited from doing so by regulators
under certain circumstances. Aspen Bermuda Limited serves as the
main source of dividend capacity, with $326.4 million available at
Dec. 31, 2021.

Security Interest in Aspen: The notes' security interests include
APH's shares in HHBI and HBH. However, AIHL maintains the first
claim on its operating companies and HHBI has no recourse to AIHL
or its subsidiaries. Enforcement of the share pledges and charges
that make up the substantial portion of the collateral will require
prior approval from regulatory bodies and may not result in any
recovery. The notes are not guaranteed by HBH or its subsidiaries.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to a
negative rating action/downgrade:

- A lowering of the underlying implied ratings of AIHL and/or its

   subsidiaries;

- Breaching the terms of the indenture governing the notes;

- Heighted concerns regarding HHBI's ability and/or willingness
   to execute on a refinancing or repayment of the notes.

Factors that could, individually or collectively, lead to a
positive rating action/upgrade:

- An increase in the underlying implied ratings of AIHL and/or
   its subsidiaries.

Criteria Variation

HHBI's rating reflects an adjustment of the application of criteria
where the default risk and the methodology applied to it are both
included within the scope of the criteria, but where the analysis
described in the criteria requires modification to address factors
specific to HHBI.

Under Fitch's Insurance Rating Criteria, higher default risk
results in additional IDR notching. Specific to HHBI, the implied
HBH IDR is set 1 rating category (3 notches) below an implied AIHL
IDR to reflect elevated default risk at HBH due to the remoteness
from AIHL's cash flows and the relatively short-term five-year
tenor of the notes that creates refinancing risk.

ESG CONSIDERATIONS

HHBI has an ESG Relevance Score of '4' for Group Structure due to a
more complex structure than market norms given its relationship and
related party transactions with HBH and AIHL (and its
subsidiaries). This has a negative impact on the credit profile and
is relevant to the ratings in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

   Debt               Rating          Prior
   ----               ------          -----
Highlands Holdings
Bond Issuer, Ltd.

   senior secured   LT   BB  Affirmed    BB




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

JBS SA: To Close U.S. Plant-Based Foods Business
------------------------------------------------
Tom Polansek at Reuters report that Brazilian meatpacker JBS SA
(JBSS3.SA) is closing its U.S. plant-based foods business,
Planterra Foods, after about two years, the company said.

The closure signals increasing troubles in the plant-based protein
sector, where U.S. sales are flattening, according to Reuters.

Colorado-based Planterra sold fake meat under the Ozo brand, but
JBS will now focus on its plant-based operations in Brazil and
Europe, said Nikki Richardson, spokesperson for JBS USA, the report
notes.  European and Brazilian operations "continue to gain market
share and expand their respective customer bases," she said, the
report relays.

The sector has come under pressure because meat alternatives do not
taste good enough and prices are too high, said Gary Stibel, chief
executive of the New England Consulting Group, which works on
consumer products, the report discloses.  He said JBS made a good
decision to shut Planterra, the report notes.

"Everybody and her sister thinks they can make money in this
business and they can't," Stibel said, the report says.
"Eventually it will be a good business for a few players, the
report discloses.  Today, it is a sinkhole for many folks that are
throwing good money after bad, chasing too little demand with way
too much supply," the report notes.

This summer, Beyond Meat Inc (BYND.O) lowered its revenue forecast
for the year and announced job cuts as rising inflation hurt
efforts to make its pricier plant-based meat more affordable, the
report relays.

Separately, Canadian pork processor Maple Leaf Foods (MFI.TO) has
reduced the size of its plant-based business, Greenleaf Foods, by
25%, the report discloses.

The value of all meat alternatives sold in the United States -
including fresh and fully cooked products and faux seafood - rose
by 1.1% in the year ending Aug. 27 to about $963 million, NielsenIQ
said, the report notes.  That compared to growth of 8.1% over the
same period in 2021 and 44.8% in that period in 2020, the report
says.

For fresh meat alternatives, U.S. sales dropped by 6.8% in the year
ending Aug. 27 to about $254 million, compared to a year earlier,
NielsenIQ said, the report relays.  Sales in the category climbed
28.9% over that same period from 2020 to 2021, the report adds.

                        About JBS SA

As reported in the Troubled Company Reporter-Latin America in
August 2021, S&P Global Ratings revised the global scale outlook on
JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A. (JBS
USA) to positive from stable and affirmed its 'BB+' issuer credit
rating. The recovery expectations remain unchanged, and S&P
affirmed the 'BB+' ratings on the senior unsecured notes and the
'BBB' ratings on the secured term loans.




===========================
C A Y M A N   I S L A N D S
===========================

CIFI HOLDINGS: Moody's Lowers CFR to B3 & Sr. Unsec. Notes to Caa1
------------------------------------------------------------------
Moody's Investors Service has downgraded CIFI Holdings (Group) Co.
Ltd.'s corporate family rating to B3 from B1 and senior unsecured
rating to Caa1 from B2.

The outlook remains negative.

"The rating downgrade reflects CIFI's elevated refinancing risks
over the next 6-12 months, driven by its weakened access to funding
and weaker-than-expected contracted sales," says Cedric Lai, a
Moody's Vice President and Senior Analyst.

"The negative outlook reflects the uncertainty over the company's
ability to generate new funds, through new borrowings or asset
disposals, to manage its refinancing needs and restore its
liquidity over the coming 6-12 months," adds Lai.

RATINGS RATIONALE

Moody's has changed its assessment of CIFI's liquidity to weak from
adequate in view of the deterioration in the company's operations
and access to funding amid weak market conditions.

In particular, Moody's forecasts the company's contracted sales
will decline significantly to around RMB135 billion in 2022 and
RMB120 billion in 2023, from around RMB247 billion in 2021, driven
by the weak market conditions and lower homebuyers' confidence in
the company's products. CIFI's contracted sales significantly
decreased by 47% during the first eight months in 2022 to RMB94.3
billion compared with the same period in 2021.

Moody's notes that CIFI has made a clarification announcement on
September 29, 2022 following recent negative news around the
company's investment trust products. However, Moody's expects
CIFI's access to various funding channels will remain weak, given
creditors' cautious appetite towards the company. Consequently,
Moody's believes CIFI will unlikely be able to raise sizable new
funds at a reasonable cost to refinance all of its maturing debt,
including puttable onshore and offshore bonds of around RMB8.0
billion by the end of 2023. CIFI will likely need to rely on
internal cash sources to cover its maturing debt. This will weaken
the company's cash on hand and further stress its liquidity
profile. CIFI's unrestricted cash balance reduced to RMB31.1
billion as of the end of June 2022 from RMB46.5 billion as of the
end of 2021, due to lower sales and repayment of some maturing debt
using internal cash.

Moody's also expects the company to offer price discounts to
accelerate sales and cash flow, which will lead to a squeeze in its
profit margins.

Consequently, Moody's expects CIFI's credit metrics to deteriorate.
Its EBIT/interest coverage will fall to 2.3x-2.6x from 3.6x for the
12 months ended June 2022, and its debt leverage, as measured by
revenue/adjusted debt, will reduce to around 55%-60% over the next
12-18 months from 78% for the 12 months ended June 2022.

In terms of environmental, social and governance (ESG) factors,
Moody's has considered CIFI's concentrated ownership as its
controlling shareholders, Lin Zhong and his family members,
collectively held a 53.2% stake in the company as of August 31,
2022. Moody's considers that CIFI's financial strategy and risk
management have deteriorated, demonstrated by the significant
decline in cash during the first half of 2022, as well as its
payment of final dividend at a time when preserving liquidity is
critical, indicating the company's prioritization of the interest
of shareholders over creditors. This weakening governance practice
also drives the rating action.

CIFI's B3 CFR reflects the company's strategic focus on catering to
mass-market housing demand, as well as its diversified geographic
coverage.

On the other hand, CIFI's credit profile is constrained by the
company's weakened operating performance, deteriorating credit
metrics and liquidity profile, and material exposure to its joint
venture (JV) businesses, which hinders the transparency of its
credit metrics.

The Caa1 senior unsecured debt rating is one notch lower than the
CFR due to structural subordination risk. The majority of CIFI's
claims are at its operating subsidiaries and have priority over
claims at the holding company in a liquidation scenario. In
addition, the holding company lacks significant mitigating factors
for structural subordination. Consequently, the expected recovery
rate for claims at the holding company will be lower.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade of the ratings is unlikely over the next 12 months,
given the negative outlook.

However, positive rating momentum could emerge if CIFI improves its
liquidity and access to funding; repays its maturing debt without
sacrificing its balance sheet liquidity; and maintains stable
credit metrics through the next 12-18 months.

On the other hand, Moody's could downgrade CIFI's ratings if the
company's access to funding and liquidity deteriorate further, and
in turn, further increases its refinancing risks.

Downward pressure could also increase if CIFI's contingent
liabilities associated with its JVs or the likelihood of CIFI
providing funding support to the JVs increases significantly.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.

CIFI Holdings (Group) Co. Ltd. (CIFI) was founded in 2000 and
incorporated in the Cayman Islands in May 2011. It listed on the
Hong Kong Stock Exchange in November 2012. As of August 31, 2022,
it was 53.2% owned by the Lin family.



===============
C O L O M B I A
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COLOMBIA: President Proposes Tax on Capital Outflows
----------------------------------------------------
Juan Martinez at Rio Times Online reports that Colombia's President
Gustavo Petro rattled markets on Oct. 6.

The peso weakened against the U.S. dollar after Petro proposed
introducing a temporary tax to prevent speculative capital outflows
and questioned the central bank's recent interest rate hike,
according to Rio Times Online.

The Colombian currency closed down 0.68 percent at 4,613.50 to the
U.S. dollar on Oct. 6 after falling 1.89 percent the previous day,
the report notes.

The national currency has depreciated 14.26 percent so far this
year, the report relays.

Analysts attributed the currency's performance to remarks made, the
report relays.

Petro took to "Twitter" to question the central bank's decision a
week ago to raise interest rates by 100 basis points to 10 percent,
the highest level since July 2008, the report notes.

Petro's remarks came after the National Statistics Office announced
that inflation was 0.93 percent in September, above market
expectations, bringing the cumulative annual rate to 11.44 percent,
the report says.

"Food prices continue to drive inflation in Colombia, this time
less because of international inflation and more because of the
floods," the report discloses.

"Does it help to raise the interest rate to contain inflation: No,"
the head of state said on "Twitter," the report relays.

Petro argued that the decision would only transfer the global
recession to the Colombian economy and affect economic growth and
employment, the report notes.

He also proposed a temporary tax on capital flowing from Colombia
to foreign countries, the report discloses.

"The real intention of raising domestic interest rates, contrary to
what we are proposing, has to do with avoiding capital outflows due
to the rise in interest rates in the United States,' the report
says.

"That could be avoided with a temporary tax on remittances to
swallow capital," Petro asserted, the report notes.

He also announced that his government would deepen its
anti-inflation policy with structural measures such as tax reform
for large fortunes, fertilizer subsidies, agrarian reform, food for
poor neighborhoods, and a change in the energy tariff formula, the
report discloses.

At least five former finance ministers questioned Petro's remarks,
saying they would unsettle the market and investors, the report
relays.

"This is causing astonishment and confusion in the markets," said
former Finance Minister Juan Camilo Restrepo, the report notes.

"A president who questions the Bank of the Republic in this way
does not go down well in the markets because it undermines the
credibility of the country's economic institutions," the report
relays.

After the hike, the central bank's board acknowledged that more
rate hikes might be needed in the coming months to bring inflation
back to the annual target of 3.0 percent, the report notes.

Former Finance Minister Juan Carlos Echeverry reiterated that
raising interest rates is the only way to fight inflation in the
current international environment, the report discloses.

"Let the Banco de la República do what it does; all central banks
raise interest rates to bring down inflation. This is painful in
the short term, but this is the recipe," the report says.

Analyst and founder of Colombia Risk Analysis, Sergio Guzman,
stressed that while Petro can only change the composition of the
central bank board in his second year in office, his remarks pose
some political risk in terms of his future decisions, the report
adds.




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

DOMINICAN REPUBLIC: Central Bank Raises Interest Rate 25 Points
---------------------------------------------------------------
Dominican Today reports that the Central Bank (BCRD), at its
September 2022 policy meeting, decided last night to increase its
monetary policy interest rate (TPM) by 25 basis points, from 8.00 %
to 8.25 % per annum.

Thus, the rate on the standing liquidity expansion facility (1-day
Repos) goes from 8.50 % to 8.75 % p.a. and the rate on
interest-bearing deposits (Overnight) from 7.50 % to 7.75 % p.a,
according to Dominican Today.

"This decision is based on a thorough evaluation of the recent
behavior of the economy, especially inflationary pressures," says
the monetary entity, the report relays.

With regard to external factors, there has recently been a
moderation in commodity prices, particularly oil and food; as well
as in container shipping costs, which have gone from a peak of
about US$20,000 per container from ports on the Asian continent in
2021 to a global average of about US$4,000 per container at
present, the report notes.

                        Inflation Falls

The monthly variation of the consumer price index (CPI) stood at
0.21% during August 2022, the lowest in the last 27 months, says
the BCRD, 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.




===========
M E X I C O
===========

MEXICO: Faces a Challenging Environment, IMF Says
-------------------------------------------------
Mexico faces a challenging environment as global inflation has
surged. Even though the post-pandemic recovery has been relatively
gradual, domestic inflation has accelerated to levels not observed
in two decades. Near-term growth prospects for the United States
have weakened, as real incomes are eroded by inflation and both
fiscal and monetary policy are tightening. In general, global
financial conditions have tightened as central banks have responded
to high inflation, increasing the risks of capital flow reversals
in emerging market economies.

Mexico is well placed to navigate this potentially turbulent
environment, given prudence in macroeconomic policy and solid
fiscal and monetary policy frameworks . Nevertheless, scarring from
the pandemic and the more difficult global environment could
compound the long-standing problems of low growth and high
inequality. As a result, despite strong outturns in the first half
of 2022, growth is projected to decline in the next few quarters.
Inflation is expected to plateau in the second half of 2022 and
then decline gradually, as higher raw food prices and other
cost-push factors continue to feed into prices. The balance of
risks to the growth outlook is tilted to the downside while
inflation risks are skewed to the upside. More persistent global or
domestic inflation, another spike in international oil or food
prices, a greater-than-expected tightening of global financial
conditions, or a sharper slowdown in U.S. growth are the main
downsides that Mexico may need to contend with. On the upside, an
acceleration in nearshoring of economic activity for better access
to the North American market could moderate the impact of lower
U.S. growth.

                   Tackling High Inflation

Banco de México (Banxico) has taken a proactive approach to
addressing increasingly broad-based inflation. Successive and
gradually larger increases in the reference rate have brought the
ex ante real policy rate (i.e., the nominal rate adjusted for
one-year ahead inflation expectations) to restrictive levels. This
has been an appropriately calibrated response to the upward
surprises to inflation. Banxico has also rightly indicated its
intention to further increase the policy rate.

Returning to low and stable inflation will likely require some
further increases in the policy rate by the end of the year and
maintaining it there for some time. The proactive policy tightening
already put in place, alongside some further hikes broadly
consistent with market expectations as well as incoming data,
should lead to a decline in inflation. However, there is
significant uncertainty about the timing, speed, and durability of
the downward path for inflation in 2023. Further, there are
important upsides to inflation from commodity prices, supply chain
constraints, local food prices, a feed through to prices from the
increase in the minimum wage, inertia in wage and price formation,
and increases in near-term inflation expectations. As such, a risk
management approach would argue for policy rates to be clearly
restrictive for some time to mitigate these upside risks and firm
up near-term inflation expectations around Banxico's 3 percent
target.

Particularly in the current environment of uncertainty, clear
monetary policy communication will increase policy effectiveness.
Banxico has begun publishing inflation forecasts and an indication
of the likely direction of future rate changes with each monetary
policy decision. These efforts will help the public better
understand how the Governing Board sees the current economic
environment and the policy decisions they have taken. To further
strengthen this understanding, Banxico could start publishing
information on the policy rate path that underpins its macro
forecast, including the expected terminal rate in the tightening
cycle and its duration. This path should be viewed as guidance and
not a policy commitment. However, even as this expected path
changes over time it would provide valuable information on the
central bank's policy reaction function. A broader review of the
experience with Banxico's inflation targeting framework in due time
could also provide useful suggestions for further improvements to
the policy framework and the communications toolkit, building on
recent improvements.

Continued large minimum wage increases could create upside risks to
inflation. Minimum wages are now close to the formal sector median
wage, which creates risks of adverse employment effects and an
increase in informality. The large minimum wage increases envisaged
for the next two years could further add to inflationary pressures
at a time when it is critical to return to low and stable levels of
inflation.

Many of the fiscal measures put in place to mitigate the impact of
the rising cost of living have been untargeted. Retail fuel price
stabilization has reduced cost pressures for the economy, likely
lowering inflation by close to 2 percentage points around the
recent peak of global oil prices peaked. However, this has come at
a sizeable budgetary cost (estimated at 1.4 percent of GDP in 2022)
and has also benefited higher income households. Furthermore, by
diluting price signals, the policy has short-circuited the needed
adjustment in fuel demand. The budgetary cost of measures to
mitigate the impact of higher food prices have been smaller,
although they have sought to address multiple objectives and their
overall economic impact is difficult to assess. In addition, the
large increases in social (noncontributory) pensions in the past
few years have also contributed to cushion the rising cost of
living.

However, these fiscal measures and the increases in the minimum
wage-alongside the post-pandemic rebound in the broader
economy-have helped support real incomes. CONEVAL data suggests
that real per capita labor income increased by 4 percent as of
mid-2022, while labor income poverty decreased further (to around
40 percent of the population from a peak of 46 percent in late
2020). Primarily, these achievements reflect the economic recovery,
improving labor market conditions, and a continued high level of
remittance inflows. However, higher minimum wages and untargeted
fiscal support have also helped protect the vulnerable. With global
oil prices falling, the budgetary costs of the fuel pricing
mechanism should be declining.

The neutral fiscal stance in 2022 and 2023, underpinning the
proposed budget, balances well the need to support monetary policy
in disinflating the economy while not creating a material drag on
activity. With the economy currently operating at close to
potential and a priority to restore low and stable inflation, a
restrictive monetary stance and broadly neutral fiscal stance
appears to be an appropriate policy mix. However, contingency plans
should be developed so as to have ready targeted support strategies
that could be deployed in the event that downside risks to activity
were to materialize.

            Policies to Manage Downside Risks

There is scope to make the fiscal position more responsive to
demand conditions while maintaining a prudent overall framework .
Mexico's fiscal framework includes both a balanced budget rule and
constraints on debt issuance, which significantly constrains the
ability of fiscal policy to play a countercyclical role in the
event of a downturn. Modest steps could, however, increase the
ability of fiscal policy to provide support in the event that
downside risks materialize:

Changes to the domestic fuel pricing regime would enhance fiscal
flexibility. Higher oil revenues are typically able to cover the
higher cost of the retail fuel price stabilization mechanism when
global oil prices increase. However, some greater passthrough of
global fuel price changes to domestic retail prices would create
fiscal space in the budget when oil prices are high that could be
used for increased spending on existing social safety net programs
that would provide targeted support to those most affected by the
increase in retail prices.
Further adjustments to Pemex's business strategy would insulate the
budget from the risk of having to absorb losses if oil prices fell
substantially. It would also increase the profits when prices are
high. Adjustments could involve encouraging greater private sector
participation or sales of non-core assets, which could be used to
lower Pemex's debt burden.
• Rebuilding fiscal buffers soon would allow fiscal policy to
respond quickly in the event of a negative shock. The stabilization
fund ( Fondo de Estabilización de los Ingresos Presupuestarios)
has less than 0.1 percent of GDP in resources available to respond
in the event that downside risks are realized-rebuilding these
reserves to around 0.3 to 0.5 percent of GDP would increase the
ability to respond at a relatively small fiscal cost.

A more comprehensive assessment of the institutional framework for
fiscal policy may prove useful. Such a reform could include an
explicit debt anchor with narrowly defined escape clauses and a
clear mechanism to return to the debt path following periods of
deviation. This would help increase transparency and guide market
expectations for the medium-term fiscal path, while providing
flexibility to respond to unanticipated shocks.
In the event of an unexpected tightening of global financial
conditions and larger capital outflows, peso depreciation would act
as a shock absorber . With deep foreign exchange (FX) markets and
contained FX mismatches in balance sheets, the economy is expected
to remain resilient if downward pressure on the peso materialized.
Policy rate hikes could be used to counter any marked inflation
passthrough or a rise in inflation expectations, while FX
intervention could be considered in the case of disorderly market
conditions.

Mexico has a robust financial system but with low levels of
financial inclusion. Systemic vulnerabilities appear broadly
contained and the financial system is emerging from the pandemic
with higher capital buffers, lower private sector leverage, and no
sign of stretched asset prices. However, the system provides less
finance to the real economy than in peer countries although digital
finance, while still embryonic, holds the promise of increasing
financial access.

The FSAP found that the financial system appears resilient. Under
the adverse scenario, with low growth and high inflation in major
economies and disruptive global financial tightening, high initial
levels of capital and strong profitability would help banks absorb
most credit and market losses. Liquidity risks for individual banks
and other financial institutions are expected to be well-contained.
However, some areas-contingent credit lines and concentration
risks-merit supervisory attention. System-wide liquidity risks also
appear contained, but global liquidity shocks could generate
tail-risks. Overall liquidity conditions should continue to be
monitored carefully and the high reliance on short-term funding by
development banks merits a closer look, though risks are mitigated
by the sovereign guarantee for their liabilities. Risks from cyber
and climate events are important additional concerns. Climate risk
analysis, while uncertain, points to long-term adaptation needs, as
in other parts of the globe.

Additional measures would help Mexico remain resilient in a
changing financial and regulatory landscape . Good progress has
been made in rolling out critical Basel reforms, improving
supervisory approaches, building cybersecurity capacity, and
enhancing recovery and resolution planning of commercial banks. The
evolving risk environment flags the need for upgrading the
financial sector oversight and crisis management frameworks to
close identified gaps and address emerging challenges. The FSAP
highlights the following recommendations:

(i) Strengthen the autonomy of regulatory government agencies and
the legal protection of supervisors. The evolving risk environment
(e.g., climate and cyber risk) points to the need for increasing
the resources and skills in the regulatory agencies;

(ii) The framework for, and application of, consolidated
supervision needs significant enhancement. CNBV could strengthen
supervisory techniques by simplifying and using more
principle-based methodologies. Consideration could be given to
integrating climate risks into prudential supervision and
introducing disclosure requirements for firms and investors;

(iii) Plans for finalizing and publishing a guideline for the
countercyclical capital buffer are welcome. Action on the process
to introduce limits on loan-to-value and debt-service-to-income
ratios would help to build resilience to housing risks in the
medium term as the current early stage of the financial cycle
evolves;

(iv) Banxico and CNBV have made significant progress in
strengthening the cyber resilience of the financial system, but
further enhancements are needed on strategy, oversight,
implementation, and information sharing. Continued careful
consideration in the design phases of Banxico's central bank
digital currency project will be needed;

(v) Banxico's approach to liquidity management demonstrated
flexibility and resilience during the pandemic but some refinement
of the Emergency Liquidity Assistance could be considered; and

(vi) There is a need to grant power to the resolution authority to
remove impediments to banks' resolvability and to eliminate
barriers to the effective use of purchase and assumption and bridge
bank tools.

Policies to encourage financial inclusion should be deepened in
order to combat inequality and support growth. Recent efforts
remain relevant to promote access to financial services including
to broaden access to digital connectivity; and improve the
transparency of financial services. The authorities should continue
to foster entry and expansion of new participants, in particular
fintech, to increase competition in the financial sector, encourage
financial institutions to seek a wider base of customers, and
reduce intermediation costs while maintaining safeguards to ensure
financial stability.

Enhancing the effectiveness of the AML/CFT framework is the next
step in strengthening the regime. Mexico has made good progress in
aligning its legal and regulatory framework with Financial Action
Task Force standards. The challenge is now to strengthen
enforcement of the AML/CFT regime, including through adequate
resourcing. Efforts should also continue to ensure the availability
of high-quality beneficial ownership information, strengthen
consolidated supervision, and monitor emerging financial integrity
risks related to fintech.

       Policies for Higher and More Equitable Growth

A broader structural policy agenda would enable Mexico to raise
prospects for growth and job creation. Despite increased trade
openness and macroeconomic stability since the 1990s, productivity
growth has been weak with the growth in output per worker averaging
close to zero over the past 15 years. In response, the authorities
are seeking to promote trade (including in poorer Southern regions
through infrastructure projects that support trade integration) and
to reduce inequality (through increases in the social pension and
the minimum wage). This agenda will address some obstacles to
higher productivity and growth but additional efforts are needed
on: (i) addressing corruption, crime, and the weak rule of law;
(ii) fiscal reforms to raise human capital and address
infrastructure bottlenecks; and (iii) reducing labor and product
market rigidities.

Determined implementation of the anticorruption framework would
enhance its effectiveness. A new law treating corruption and fraud
as felony offenses is expected to enable more comprehensive
investigations of corruption. With an anticorruption framework in
place, implementation and assessing effectiveness of the policies
are now the priority. Strengthening prevention, facilitating
reporting including whistleblower protection, and further
empowering institutions in charge of investigation, prosecution,
and oversight can improve implementation. IMF staff encourages
Mexico to participate in the IMF's voluntary assessment of
transnational aspects of corruption in the next Article IV.
Furthermore, strengthening the enforcement of contracts by the
judiciary would support business investment and job creation.

A gradual increase in productive government spending, financed by
policy reforms to raise tax revenues, would promote growth and
equity. Higher spending on education, health, public investment,
and social protection is critical for improving human capital and
infrastructure and narrowing the significant variation in social
outcomes across states. A gradual, permanent increase in public
spending of 2 to 3 percent of GDP, would be a feasible step towards
achieving Mexico's Sustainable Development Goals. To be effective,
this higher spending would need to be accompanied by increased
program and public investment efficiency, building on recent steps
taken by the authorities to improve spending control and program
design. For example, the efficiency of social assistance programs
could be strengthened by lowering the sizable leakage of benefits
to high-income groups and reducing overlaps and coverage gaps
across multiple programs (e.g., by creating a single beneficiary
registry).

There are a range of options to raise tax revenues. Before the
pandemic, Mexico's non-oil revenues were nearly 6 percent of GDP
below Latin American peers and only about half the OECD average.
Recent tax administration reforms, including through OECD Base
Erosion and Profit Shifting actions, have helped buoy revenues.
However, a credible and well-designed medium-term tax policy reform
could generate additional revenues of 3 to 4 percentage points of
GDP without having a deleterious growth impact. Reforms could draw
on the following menu of options:

Value added tax (VAT). Eliminating zero-ratings (except for a few
essential foodstuffs), rationalizing exemptions and differences in
rates, and further reducing compliance gaps. This should be
accompanied by increases in targeted benefits to offset the impact
of such changes on the poor.
Personal income tax. Eliminating exclusions (e.g., of income on
personal business activities and independent services), reducing
tax expenditures, and widening the top personal income tax bracket
would increase revenues while making the system more equitable and
progressive.

Subnational taxes. Property tax collections could be increased by
updating the cadaster, enhancing policy coordination between the
federal and subnational governments, and simplifying and better
enforcing the local vehicle tax.

Carbon tax. The carbon tax introduced by Mexico in 2014 remains
relatively narrow in scope (natural gas is de facto exempt). The
tax rate of USD 3 per ton of CO2 could be raised gradually to USD
50 per ton of CO2 by 2030. Doing so would be consistent with the
global carbon tax floor proposed by the IMF for G20 economies. As
with changes in the VAT, increases in the carbon tax should be
combined with targeted compensation to offset the impact on poor
households.

Together, such budget reforms would increase growth and help to
maintain a sound fiscal position ( IMF Staff Report 2021 ).

Recent labor market reforms should be adapted to lessen their
negative effects on formal sector employment. Reductions in the
number of qualifying weeks for pension eligibility risk reducing
labor supply incentives for older workers. Meanwhile, informality
remains high at 55 percent of the working population. Based on
current policy intentions and adjusted for expected inflation,
minimum wages could increase to the current median wage levels in
the formal sector by 2024, increasing the incentives for
informality. Changes to the current strategy could include: (i)
continuing to improve labor dispute resolution mechanisms, building
on the experience of the 21 states that have already implemented
it; (ii) lowering firing restrictions; (iii) reducing the
regulatory costs of formalizing a business; and (iv) aligning
increases in the minimum wage more closely with expected inflation
plus the increase in productivity of lower wage workers.

The implementation of the USMCA trade agreement will help bolster
growth. The agreement with the U.S. and Canada reduces regulatory
divergence, complementing the elimination of many tariffs under
NAFTA. An important challenge for Mexico will be to increase the
domestic value-added content of exports to meet the tighter rules
of origin included in the USMCA (particularly in the automotive and
textile sectors). Strengthening education and training and
fostering greater competition among suppliers would help increase
the attractiveness of Mexico as a supply chain location, raising
the value added of local manufacturing.

Putting in place a more predictable energy policy that is more open
to private sector participation would boost competitiveness and
investment. Reestablishing more market-oriented regulatory
frameworks would leverage Mexico's large and diverse renewable
energy resource base. It would also incentivize investments that
would ultimately create a cheaper, more reliable, sustainable, and
competitive energy supply.

Further steps toward carbon pricing would reduce greenhouse
emissions. The expansion in 2023 of the emission trading system
(ETS), which is currently in pilot phase covering a small number of
large entities, will be an important step towards comprehensively
pricing emissions. But ensuring adequate coverage, enforcement, and
monitoring of polluting activity, introducing legally binding
emissions caps, and introducing the planned auction system for
allowances are key to making the ETS fully functional. Further,
sectoral measures, such as feebates, public investment in clean
energy infrastructure networks, and regulatory reforms in the
energy sector could increase the impact of carbon pricing.




=====================
P U E R T O   R I C O
=====================

PUERTO RICO: Supreme Court to Hear Finance Docs Appeal
------------------------------------------------------
As widely reported, the U.S. Supreme Court will hear whether the
federal board overseeing Puerto Rico's financial restructuring has
sovereign immunity that would shield it from a news organization's
lawsuit seeking public records.

The U.S. Supreme Court on Monday, October 3, 2022, agreed to hear
the appeal by the Financial Oversight and Management Board of
Puerto Rico of a First Circuit ruling that it does not have
immunity to a lawsuit.  

According to Periodismo Investigativo, in an attempt to prevent the
disclosure of documents to the Center for Investigative Journalism
(CPI, in Spanish), the Oversight Board petitioned the U.S. Supreme
Court after the U.S. Court of Appeals for the First Circuit ruled,
in a split panel decision, that the board isn't immune from
litigation and thus should provide those documents.

"The decision, which holds that the Board has no immunity to a
claim under territorial law seeking the disclosure of a broad array
of internal and sensitive documents, will create grave difficulties
for the Board in carrying out its statutory mission," reads the
petition filed by Proskauer Rose, the Board's lead law firm.

The Board created under the federal law PROMESA argues that
disclosing communications between officials of the government of
Puerto Rico and the Board, among other documents, "will interfere
with Puerto Rico's recovery" and will prevent the making of
"sensitive decisions," over concerns about putting their
discussions in writing and having them published.

As its main defense, the Board's lawyers try to argue --
unsuccessfully so far -- that the entity enjoys "sovereign
immunity" under the U.S. Constitution, so it is exempt and immune
from claims under state laws.  This includes claims under the right
of access to public information recognized in the Puerto Rico
Constitution, such as the lawsuit that the CPI filed against the
Board in June 2017.

Over the past five years, the U.S. District Court for the District
of Puerto Rico and the U.S. Court of Appeals for the First Circuit
have rejected the Board's arguments, deciding against it in this
case.

"The CPI has requested crucial documents to understand the Board's
formation process, oversee the decisions it has made, and have
details of its relationship with the government, which until now
have been out of the public eye. The fact that they have gone to
the U.S. Supreme Court is conclusive proof that there is
information there that the people of Puerto Rico need and have the
right to know," said Judith Berkan, the CPI's attorney.

                        About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                          *     *     *

The two Title III plans of adjustment have been confirmed to date,
for the Commonwealth and COFINA debtors.




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD & TOBAGO: Let Guyana Replace Country in Caricom Fund
-------------------------------------------------------------
Ria Taitt at Trinidad Express reports that Minister of Finance Colm
Imbert says Trinidad and Tobago could not sustain its contributions
to the Caricom Development Fund because it no longer had the
revenues.  Instead, he suggested it might be feasible for Caricom
countries to ask Guyana to take a more dominant role in this Fund,
according to Trinidad Express.

Responding to questions from Pointe-a-Pierre MP David Lee during
the Standing Finance Committee in Parliament on whether the $105
million increase in the Caricom Development Fund represented
arrears, Imbert said the Fund was established in a time of plenty
in 2006 and 2005, when oil was US$140 a barrel and gas US$13, and
there was a view that T&T, because it was in a good economic
position, should assist the less fortunate member states within
Caricom, the report notes.

"But that has not been sustainable and from time to time we provide
funding for this Fund.  But there are questions about it and
whether the T&T Government should continue to provide funding of
this magnitude. It is the subject of discussion," he said, the
report adds.




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

VENEZUELA: US Looks to Ease Sanction, Enabling Chevron to Pump Oil
------------------------------------------------------------------
globalinsolvency.com, citing the Wall Street Journal, reports that

the Biden administration is preparing to scale down sanctions on
Venezuela's authoritarian regime to allow Chevron Corp. to resume
pumping oil there, paving the way for a potential reopening of U.S.
and European markets to oil exports from Venezuela.

In exchange for the significant sanctions relief, the government of
Venezuelan President Nicolas Maduro would resume long-suspended
talks with the country's opposition to discuss conditions needed to
hold free and fair presidential elections in 2024, the people said,
according to globalinsolvency.com.

The U.S., Venezuela's government and some Venezuelan opposition
figures have also worked out a deal that would free up hundreds of
millions of dollars in Venezuelan state funds frozen in American
banks to pay for imports of food, medicine and equipment for the
country's battered electricity grid and municipal water systems,
the report notes.

U.S. officials said details are still under discussion and
cautioned that the deal could fall through, because it is
contingent on Mr. Maduro's top aides resuming talks with the
opposition in good faith, the report relays.

"There are no plans to change our sanctions policy without
constructive steps from the Maduro regime," Adrienne Watson,
spokeswoman for the National Security Council, said, the report
says.  

If the deal goes through and Chevron, along with U.S. oil-service
companies, are allowed to work in Venezuela again, it would put
only a limited amount of new oil on the world market in the short
term, the report adds.

As recently reported in the Troubled Company Reporter-Latin
America, Moody's Investors Service has withdrawn Venezuela's C
local currency and foreign currency ceilings.




===============
X X X X X X X X
===============

LATAM: Caribbean Dev't Bank Promotes MSMEs With IDB Support
-----------------------------------------------------------
The Inter-American Development Bank (IDB) approved a US$20 million
loan to the Caribbean Development Bank to bolster private-sector
development and boost the productivity of micro, small and
medium-sized enterprises (MSMEs) in Antigua and Barbuda, Dominica,
Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the
Grenadines, which are all eligible members of the Organization of
Eastern Caribbean States.

The Global Credit Loan was granted to the Caribbean Development Ban
to spur environmental and other innovation at the companies. It
will also fund grants channeled to MSMEs through business support
organizations in order to strengthen the market for services that
help businesses adopt climate and digital technologies.

The program will also urge MSMEs to adopt climate technologies and
digitalize their processes through lines of credit for working
capital and capital investments that will be brokered by financial
institutions. A minimum of 30% of the loans will be earmarked for
buying equipment, software, consulting services, and other
investments related to using technology to modernize and digitally
transform the businesses, and to projects at eligible business to
mitigate and adapt to climate change. Qualifying projects include
solar panel installations.

The program will finance campaigns that specifically target
businesses run or owned by women , thus promoting gender equality
and women's empowerment. The objective is to raise awareness about
both grant programs for innovation and technology adoption programs
in industries that affect female employment. Part of the resources
will also be used to analyze and design policy frameworks that
promote or enhance gender diversity in the workplace.

The program will directly benefit approximately 596 legally
established MSMEs, regardless of their industry. At least 17% of
these businesses will be owned by women. The loan will also
indirectly aid business support organizations and financial
intermediaries in eligible Organization of Eastern Caribbean States
member countries, which will develop the measures to support
innovation and uptake of climate and digital technologies.

The US$20 million IDB loan has a 23.5-year repayment term, a
seven-year grace period, and an interest rate based on the Secured
Overnight Financing Rate (SOFR).

                        About the IDB

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.



                           *********


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
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,
contact Peter A. Chapman at 215-945-7000.
.


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