/raid1/www/Hosts/bankrupt/TCRLA_Public/230329.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, March 29, 2023, Vol. 24, No. 64
Headlines
A R G E N T I N A
ARGENTINA: 100% Inflation Wearing Down Top Companies
ARGENTINA: Sells US$2B in Peso Debt After Ordering Bond Swap
B R A Z I L
AMERICANAS SA: Submits Reorganization Plan to Brazilian Court
BANCO DAYCOVAL: Moody's Affirms Ba2 Deposit Rating, Outlook Stable
BRAZIL: Calls for Automotive Industry to Produce More
C O S T A R I C A
COSTA RICA: S&P Assigns 'B+' Rating on US$1.5BB Global Bonds
P E R U
PERU: IMF Says Outlook is Very Uncertain, Downside Risks Prevail
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Ministry Defends Flood Grant Relief
X X X X X X X X
CARIBBEAN: Caricom Ministers Warn of More Drought Spells
- - - - -
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A R G E N T I N A
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ARGENTINA: 100% Inflation Wearing Down Top Companies
----------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that inflation
of more than 100% in Argentina is erasing the advantage the
country's top companies used to have by booking revenue in US
dollars.
Investor darlings in the energy sector - natural gas and power
producer Pampa Energia SA, pipeline operator TGS SA, and state-run
oil driller and refiner YPF SA - are struggling with costs that are
coming under pressure from rising prices, which surpassed 100% on
an annual basis last month, according to globalinsolvency.com.
In the past, Argentine energy companies could compensate for
inflation on their balance sheets through revenues linked to the US
dollar, the report notes. But with the national peso currency
strongly controlled by the government these days, depreciation of
the exchange rate is no match for the pace of price increases
affecting everything from machinery to wages, the report relays.
"We do see dollar inflation in our costs and there's not much that
we can do against these movements of the macro environment," Pampa
CEO Gustavo Mariani said on a March 13 earnings call, the report
notes. The company's adjusted earnings in the fourth quarter were
$183 million, down 26% from the previous quarter, in part because
of the inflation trend, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
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.
Fitch Ratings, on March 24, 2023, downgraded Argentina's Long-Term
Foreign Currency
Issuer Default Rating (IDR) to 'C' from 'CCC-', and has affirmed
the Long-Term Local Currency IDR at 'CCC-'.
Fitch's downgrade of Argentina's rating to 'C' from
'CCC-' follows an executive decree that forces domestic
public-sector entities into operations involving their holdings of
sovereign debt securities, which would involve unilateral
exchanges
and forced currency conversion that constitute default events
under
Fitch's criteria. The 'C' rating reflects Fitch's view that
default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted
Default' (RD) upon execution of the exchanges.
S&P Global Ratings, on the other hand, affirmed its 'CCC+/C'
foreign currency and 'CCC-/C' local currency sovereign credit
ratings on Argentina on Jan. 20, 2023. The outlook on the long-term
ratings remains negative. S&P's 'CCC+' transfer and convertibility
assessment is unchanged. The negative outlook on the long-term
ratings reflects risks surrounding pronounced economic imbalances
and policy uncertainties before and after the 2023 national
elections. Global capital markets are closed to Argentina.
Moreover, disagreement within the government coalition and
infighting among the opposition constrains the sovereign's ability
to implement timely changes in economic policy.
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS 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.
ARGENTINA: Sells US$2B in Peso Debt After Ordering Bond Swap
------------------------------------------------------------
Scott Squires at Bloomberg News reports that Argentina sold around
417 billion pesos (US$2 billion) in peso-denominated notes and
bonds via auction, the latest step in managing a massive local debt
pile as the government seeks to extend maturities until after
presidential elections in October.
The Treasury sold the securities after receiving offers for around
664 billion pesos, according to an emailed statement from the
Economy Ministry, according to Bloomberg News.
Argentina sold inflation-linked notes, discount notes,
dollar-linked bonds and "dual" bonds due in 2024, and received
fresh financing of around 50 billion pesos, according to a separate
Economy Ministry statement sent by text message, Bloomberg News
relays.
The country has relied on local auctions and debt swaps in a bid to
buy time and manage a US$174-billion pile of peso securities, the
vast majority of which are indexed to inflation, Bloomberg News
notes. Still, private investors like banks and mutual funds have
become increasingly reticent to participate amid fears of a default
ahead of the October vote, Bloomberg News discloses.
It wasn't immediately clear how many participants in the auction
belonged to private sector institutions, notes the report.
Earlier, President Alberto Fernandez's government said it would
force public sector institutions to sell their holdings of dollar
bonds for peso-denominated notes, Bloomberg News says. It's a move
aimed at preserving the Central Bank's dwindling cash reserves and
easing pressure on Argentina's parallel exchange rate as officials
try to avoid a sharp currency devaluation that would fuel inflation
already running at more than 100 percent, Bloomberg News notes.
The nation still faces maturities of around one trillion pesos per
month between April and June, Bloomberg News relays. Argentina is
also mulling a sale of new peso bonds maturing in 2026 to public
sector creditors in a bid to swap around US$20 billion in debt
coming due in the second half of this year, Bloomberg News notes.
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.
Fitch Ratings, on March 24, 2023, downgraded Argentina's Long-Term
Foreign Currency
Issuer Default Rating (IDR) to 'C' from 'CCC-', and has affirmed
the Long-Term Local Currency IDR at 'CCC-'.
Fitch's downgrade of Argentina's rating to 'C' from
'CCC-' follows an executive decree that forces domestic
public-sector entities into operations involving their holdings of
sovereign debt securities, which would involve unilateral
exchanges
and forced currency conversion that constitute default events
under
Fitch's criteria. The 'C' rating reflects Fitch's view that
default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted
Default' (RD) upon execution of the exchanges.
S&P Global Ratings, on the other hand, affirmed its 'CCC+/C'
foreign currency and 'CCC-/C' local currency sovereign credit
ratings on Argentina on Jan. 20, 2023. The outlook on the long-term
ratings remains negative. S&P's 'CCC+' transfer and convertibility
assessment is unchanged. The negative outlook on the long-term
ratings reflects risks surrounding pronounced economic imbalances
and policy uncertainties before and after the 2023 national
elections. Global capital markets are closed to Argentina.
Moreover, disagreement within the government coalition and
infighting among the opposition constrains the sovereign's ability
to implement timely changes in economic policy.
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS 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.
===========
B R A Z I L
===========
AMERICANAS SA: Submits Reorganization Plan to Brazilian Court
-------------------------------------------------------------
Reuters reports that Brazilian retailer Americanas SA (AMER3.SA)
has presented to a court its post-bankruptcy reorganization plan,
it said marking potential progress to recovery after disclosing
billions of dollars in accounting irregularities.
Americanas, which entered bankruptcy protection after disclosing
accounting "inconsistencies" worth 20 billion reais ($3.78
billion), presented the first draft of a legal recovery plan to a
court in Rio de Janeiro state.
Under the plan, the retailer's 'reference shareholders', the
billionaire trio that founded 3G Capital, would inject 10 billion
reais into the company through a capital increase, a measure
Americanas had confirmed in early March.
Within 60 days of the capital increase, the retailer would hold a
reverse auction to settle debts with unsecured and financial
creditors who "opt to receive full settlement of all or part of
their claims at a discount of not less than 70% of the claim
amount," it said.
The firm also proposed a repurchase of unsecured credits, as well
as the issuance of simple debentures, among other debt
restructuring options.
Americanas will put up for sale assets including
Hortifruti/Natural
da Terra, Grupo Uni.co as well as its airplane, aiming to use at
least 2 billion reais from the proceeds to reduce its remaining
debt.
"With this the company intends to reduce its market debt,
post-restructuring, to 4.9 billion reais," it said, far below the
42 billion reais previously acknowledged during the bankruptcy
proceedings.
About Americanas SA
Americanas was one of the largest diversified retail chains in
Brazil, with a wide platform of physical stores, robust e-commerce,
fintech, and has just entered into the niche food retail. It is
listed on B3, being indirectly controlled by billionaire Jorge
Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles.
The retailer nosedived in January 2023 after becoming mired in an
accounting scandal. The firm filed for bankruptcy at a court in
Rio de Janeiro on Jan. 19, 2023.
Americanas sought protection under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25,
2023. White & Case LLP, led by John K. Cunningham, is the U.S.
counsel.
BANCO DAYCOVAL: Moody's Affirms Ba2 Deposit Rating, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service has affirmed all ratings and assessments
assigned to Banco Daycoval S.A., including the Ba2 and Not Prime
local and foreign currency deposit ratings, long- and short-term,
respectively, the Ba2 foreign currency senior unsecured debt rating
as well as the (P)Ba2 senior unsecured rating assigned to its $2
billion Global Medium Term Note Program. At the same time, Moody's
also affirmed Daycoval's Ba1 and Not Prime local and foreign
currency counterparty risk ratings, long and short-term,
respectively. The bank's baseline credit assessment (BCA) and
adjusted BCA of ba2 were affirmed as well as its counterparty risks
assessments of Ba1(cr) and Not Prime(cr), long- and short-term,
respectively. The outlook on the long-term bank deposits and senior
unsecured rating remains stable.
RATINGS RATIONALE
The affirmation of Daycoval's ba2 BCA reflects the bank's
long-track record of a solid business franchise as a middle-market
lender in Brazil, reporting adequate performance over the past two
years supported by a disciplined business and risk profile.
Between 2019 and 2022, Daycoval reported a relatively stable
problem loan ratio, averaging 1.9% in the period and attesting to
the bank's conservative risk guidelines and credits standards. In
2022, the bank's loan book comprised 75% of short-term loans with
small and midsize companies (SMEs), 19% of payroll loans to public
servants and retirees, and 4% of vehicle financing to individuals.
The high share of secured credit products will help Daycoval to
mitigate heightened asset risks in 2023 stemming from high interest
rates and weakened economic activity in Brazil, which will affect
SMEs' loan repayment capacity. Daycoval has historically maintained
conservative provisioning buffers, with loan loss reserves
representing 4% of gross loans and 1.9x problem loans as of
December 2022.
Despite Daycoval's recurring earnings generation, the bank's net
income to tangible assets ratio declined to 1.6% in December 2022
from 2.3% in December 2021, affected by higher funding costs in the
period, an increase in operating expenses resulting from the bank's
business expansion and inflationary pressures. Bottom-line result
performance in 2022 was also impacted negatively by higher loan
loss provisions expenses, up 52% in the year, reflecting a strong
loan growth of 18.7%. Asset under management and custody services
also had a higher contribution for non-interest income, which went
up 38.6% in the 12 months ended in December 2022 and reached 10% of
total revenues.
The ba2 BCA incorporates Daycoval's consistent capital
replenishment and strong commitment from its shareholders through
different economic cycles. Moody's capital ratio of tangible common
equity to risk-weighted assets dropped to 7.85% in December 2022,
from 10.93% in December 2019. This decline reflected the
accelerated loan book expansion in the past two years and
shareholders' strategic decision to replace core capital by an
additional BRL953.9 million Tier 1 instruments issued in 2020 and
2021 and fully acquired by shareholders, resulting in enhanced
capital efficiency. On a regulatory basis, the bank had a common
equity tier 1 ratio of 10.9% in December 2022. In the next 12-18
months, Moody's expect a moderation in lending activities will ease
pressures on capital, while a more conservative dividend policy
will provide higher internal capital generation and improve the
bank's capitalization ratio.
Conversely, the ba2 BCA also considers Daycoval's reliance on
institutional resources, similarly to its equally-sized peers.
Despite that, the bank has good access to both local and foreign
capital markets, which has long supported its diversified funding
mix and the medium- to long-term duration of its liabilities. In
December 2022, market funds represented 52.6% of tangible banking
assets, in line with historical levels. The bank's refinancing risk
is counterbalanced by its conservative liquidity management,
supported by a positive gap between short-term assets and long-term
funding that reduces tenor mismatches.
The stable outlook on Daycoval's Ba2 deposit ratings reflects
Moody's expectation that the bank will maintain good asset quality
and profitability over the next 12-18 months and will improve
capitalization as it moderates loan origination amid weak macro
conditions in Brazil.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
At the moment there is no upward pressure on Daycoval's ratings
because they are constrained by the Government of Brazil's
sovereign bonds rating of Ba2, with stable outlook.
Downward pressure on Daycoval's BCA and ratings could emerge from a
sizable deterioration in Daycoval's asset quality, combined with a
significant reduction in its earnings, which could arise from a
rapid deterioration in the bank's SME loan book or from increasing
borrower-concentration risk. Significant loan growth could
particularly compromise the bank's capital structure and
asset-quality indicators, whose preservation is key at this rating
level.
METHODOLOGY USED
The principal methodology used in these ratings was Banks
Methodology published in July 2021.
BRAZIL: Calls for Automotive Industry to Produce More
-----------------------------------------------------
Richard Mann at Rio Times Online reports that Brazilian President
Luiz Inacio Lula da Silva said that he wants the automotive
industry, one of the leading industries in the country and the most
important in Latin America, to produce more in the country and
import fewer vehicles.
"We must stop importing and manufacturing so many cars in Brazil.
If we have 30 automotive industries in Brazil, we have to produce
cars here", said Lula in an interview with TV 247, according to Rio
Times Online.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022
Brazilian general election. He was sworn in on January 1, 2023, as
the 39th president of Brazil, succeeding Jair Bolsonaro.
As recently reported in the Troubled Company Reporter-Latin
America, Fitch Ratings, in December 2022, affirmed Brazil's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook. The ratings are constrained by high
government indebtedness, a rigid fiscal structure, weak economic
growth potential, and a record of governability challenges that
have hampered efforts to address these fiscal and economic issues
and clouded policy predictability. The Stable Outlook reflects
Fitch's expectation that growth will slow in the coming year and
that recent fiscal improvement will erode under a new government,
but within a margin consistent with the current rating, and from a
better starting point than previously expected. Uncertainty is
elevated regarding the plans of the incoming government and the
extent to which these could ease or aggravate fiscal and economic
challenges. However, Fitch does not expect policies that
jeopardize broad economic stability.
Standard & Poor's affirmed its 'BB-/B' long- and short-term
foreign and local currency sovereign credit ratings on Brazil, and
the outlook remains stable (June 2022). The stable outlook
reflects S&P's base-case assumption that Brazil will maintain its
fiscal anchors over the next two years despite an increasing
interest burden, preventing significant fiscal slippage and
limiting the rise in its already high debt burden.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
DBRS's credit rating for Brazil is BB (low) with stable outlook
(March 2018).
===================
C O S T A R I C A
===================
COSTA RICA: S&P Assigns 'B+' Rating on US$1.5BB Global Bonds
------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue rating to Costa Rica's
US$1.5 billion global bond issuance. The rating is the same as the
long-term foreign currency sovereign credit rating on Costa Rica
(B+/Stable/B). The sovereign last tapped global markets in 2019,
and it will use the issuance proceeds for general budgetary
purposes and debt management.
S&P said, "The stable outlook indicates our expectation that fiscal
execution will remain on track this year despite slower growth and
potential changes to the 2018 fiscal spending rule, supporting
access to official and private external financing. We believe
maintaining access to official financing amid uncertain global
economic conditions is key to funding flexibility and confidence in
the local and global capital markets." Official financing includes
disbursements under the IMF's Extended Fund Facility (EFF) and
newly created Resiliency and Sustainability Fund (RSF). Costa Rica
is the first country approved for access to the RSF, which is
designed to bolster resilience to climate change.
The ratings on Costa Rica reflect improved fiscal execution
beginning in 2021. Debt peaked in 2020, and the turnaround in
fiscal performance in 2021 extended into 2022, despite slower
growth, a cyberattack on some government systems, and change in
administration. Costa Rica has a long-established democracy, which
has brought political stability amid solid checks and balances, and
a generally prosperous economy and favorable standards of living
compared with regional peers.
Weaknesses to the ratings include a trend of political
fragmentation--which implies the need for coalition building that,
in our view, has at times complicated timely legislative action. In
addition, the country's fiscal and external profiles include
rigidities and vulnerabilities in the government's debt management
procedures.
=======
P E R U
=======
PERU: IMF Says Outlook is Very Uncertain, Downside Risks Prevail
----------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
concluded the Article IV consultation [1] with Peru on March 22,
2023.
Against the background of a strong economic performance over the
last quarter of a century, Peru has been hit by multiple shocks in
the last several years. Adequate policies and very strong
macroeconomic policy frameworks have made the economy resilient.
Following a steep decline in 2020 at the outset of the pandemic and
a rapid recovery in 2021, growth slowed significantly in 2022 as
the policy stimulus was withdrawn and external and financial
conditions deteriorated, while road blockades and strikes at major
mining sites adversely affected copper production and exports.
Inflation has declined recently but remains well above the target
range. The unemployment rate and poverty continue falling but are
still above the pre-COVID-19 pandemic levels. While volatility in
financial markets has recently increased in line with global
trends, the Peruvian banking system remains well-capitalized, and
its profitability continues to recover from the impact of the
pandemic. Recent developments suggest that the government needs to
work across the political spectrum to restore confidence, preserve
stability, accelerate structural reforms to boost economic
activity, and tackle inequality, poverty, and weaknesses in the
education, health, and pension systems.
The outlook is very uncertain, and downside risks prevail. Growth
is expected to slow to 2.4 percent in 2023 as external conditions
tighten and political uncertainty remains high. Inflation is
expected to decline to the target range at end-2023-early-2024. The
main external risks to this outlook include an intensification of
spillovers from Russia's war in Ukraine, an abrupt global slowdown
with an associated commodity price volatility, and a possible
de-anchoring of inflation expectations forcing a further tightening
in the global financial conditions. Key domestic risks include an
intensification of political uncertainty, social unrest over
political developments, and natural disasters, which could hinder
economic activity and risk the planned medium-term fiscal
consolidation. New COVID-19 outbreaks may also significantly affect
economic activity. Upside risks include a "soft landing" in key
trade partner countries and an acceleration of structural reforms
at home, which could increase Peru's medium-term growth potential.
Peru's very strong policy frameworks and macroeconomic buffers,
further complemented by an FCL arrangement, will help shield the
economy from downside risks. Public debt remains the lowest in the
region. Sizable international reserves (about 30 percent of GDP),
access to international capital markets, and a robust financial
sector mitigate macroeconomic risks and support the country's
capacity to cope with additional adverse shocks. These buffers are
complemented by a two-year Flexible Credit Line (FCL) arrangement
for about US$ 5½ billion, approved by the IMF Executive Board in
May 2022.
Executive Board Assessment
Executive Directors noted that Peru's very strong economic
fundamentals and policy frameworks, and sustained track record of
implementing very strong macroeconomic policies have helped the
country absorb large adverse shocks in recent years. The current
FCL arrangement with the Fund has helped bolster these strong
buffers. However, the pandemic's adverse effects on employment and
poverty persist in an environment of slow growth and still‑high
inflation. Against the backdrop of increased downside risks,
Directors urged the authorities to continue implementing prudent
policies while working to create greater social cohesion and
consensus for accelerating structural reforms to achieve more
broad‑based and inclusive growth.
Directors commended the authorities for their decisive response to
high inflation and advised continuing to implement monetary policy
in a flexible and well‑communicated manner. Directors supported
the authorities' resolve to stand ready to take further measures,
if needed, to bring inflation to the target range. In addition,
they considered that a deeper and more developed forward foreign
exchange market, combined with further reductions in financial
dollarization, would limit the need for frequent interventions,
allowing the exchange rate to play a larger role as a shock
absorber.
Directors noted that the banking system remains resilient. They
urged the authorities to maintain a tightening bias in financial
sector policies to create space for renewed support, if needed, in
a deteriorating financial environment. Directors welcomed the
significant steps taken by the authorities to strengthen financial
sector oversight, and also stressed the importance of closing
regulatory and supervisory gaps, including related to AML/CFT.
Directors agreed that the fiscal policy stance is appropriate, with
a temporary, targeted, and small fiscal impulse supporting a weaker
economy in the short term while avoiding adding to inflationary
pressures. They underscored the need to identify specific measures,
particularly in the areas of tax administration and expenditure
rationalization, to support the announced fiscal consolidation in
2025‑26 aimed at preserving fiscal sustainability while creating
space for priority social and infrastructure spending. Directors
agreed with the need to prioritize pension reform. They welcomed
the recent reforms to enhance the effectiveness of the Fiscal
Council and called for additional enhancements, including to
strengthen its operational independence.
Directors encouraged the authorities to use the OECD accession
process to promote social consensus around a well‑articulated
structural reform agenda to deal with the scarring effects of the
pandemic and support green and inclusive growth. Priority should be
given to boosting productivity, enhancing human capital and
reducing informality, further improving governance, and reducing
climate risks.
[1] Under Article IV of the IMF's Articles of Agreement, the IMF
holds bilateral discussions with members, usually every year. A
staff team visits the country, collects economic and financial
information, and discusses with officials the country's economic
developments and policies. On return to headquarters, the staff
prepares a report, which forms the basis for discussion by the
Executive Board.
[2] At the conclusion of the discussion, the Managing Director, as
Chairman of the Board, summarizes the views of Executive Directors,
and this summary is transmitted to the country's authorities. An
explanation of any qualifiers used in summings up can be found
here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: Ministry Defends Flood Grant Relief
------------------------------------------------------
Kim Boodram at Trinidad Express reports that the Ministry of Social
Development and Family Services has defended its process in issuing
grants for relief, saying that claims had to be verified and there
had been some fraudulent applications, while some had lacked
critical information.
The ministry's issued a statement following claims made by Member
of Parliament for St Augustine Khadijah Ameen that some flood
victims were still waiting for grants that were promised by the
State, shortly after last November's massive flooding that
persisted for up to a fortnight in some parts of Bamboo No.2 and
south Trinidad, according to Trinidad Express.
In a statement, the ministry said it "cautions that these
statements are somewhat erroneous and inaccurate, and therefore
will attempt to clear the air on the issue," the report notes.
It advised "as the second responder in all instances of natural and
or man-made disasters, it continues to pursue a systematic response
to all claims received from disaster victims," the report relays.
It also "assures the public that in order to remain fair,
accountable and transparent in its operations and response,
guidelines were developed to process disaster relief claims and to
ensure that relief amounts provided for each of the damaged items
identified during the assessment stage are standardized," the
report says.
The release offered a breakdown of the financial assistance offered
for the replacement of various household items, stating that while
the grants may not match the original costs of some items, the
funds were intended to offer relief, the report notes.
The release stated that, "In the case of the adverse weather
conditions which occurred during the final months (Oct – Dec) of
2022, which resulted in the residents of many regions throughout
Trinidad being adversely affected, including Bamboo#2 and St
Augustine South, the Ministry received 5,889 claims of which 3,268
were examined and to date 1,260 flood relief cheques have been
printed and are being collected," the report relays.
The report notes that it also stated: "To date, expenditure related
to flood relief amounts to $10 million."
The release said people "received relief to assist with the
replacement of lost or damaged household items such as; fridges,
beds, mattresses, wardrobes, washing machines, kitchen cupboard,
chest of drawers, dining room sets, living room sets and school
supplies such as books and school uniforms for children," the
report discloses.
The ministry also stated: "It must be noted that there is a maximum
payment for household items which, according to the existing
policy, amounts to $10,000. While this amount may not replace the
items in terms of its original value, the grant aims to bring some
level of relief. Based on the circumstances, payments may vary,
for instance, if a person loses a stove only a total average of
$2,500 is paid, while for a washing machine only, persons receive
an average of $3,500. Payments are made in accordance with the
items lost," the report relays.
Funds, Food Cards
The ministry said it was "fervent in treating with situations of
natural disasters in a professional and expeditious manner," the
report relays. "This is evident by the numerous cases in the past,
of floods, fires and landslides, where residents received
counselling and psychosocial support immediately, as well as food
cards to ensure that households' immediate food needs were met,"
the release stated, the report notes.
The ministry said in processing the applications for disaster
relief for the areas in question "encountered a number of
challenges which have delayed some persons from receiving their
relief payments," the report discloses.
These included assessments being received from the MRDLG that
"lacked critical information necessary for effective processing of
the application, such as inaccurate or incomplete address
information, missing household member information, copies of ID for
the applicant, missing photographic evidence of damages and limited
information on the damages impact," the report says.
In some instances there was also an "inability to contact the
applicant due to change in contact information and in the case of
persons who were renting, relocation out of the disaster area, with
no forthcoming information on their new place of residence," the
report relays.
"Multiple claims for the same household have also been received,"
the ministry said.
It said claims were received by people who were "either not
impacted directly or do not reside in the area that was impacted.
These claims upon discovery, are being forwarded for the necessary
further investigation by the relevant authority," the report
discloses.
There was also the "use of the same photographic evidence of damage
by more than one claimant, indicating that some persons were
attempting to make fraudulent claims," the report relays.
"The above situations resulted in several instances of verification
and rechecking which could have been avoided if correct information
was received at the onset," the ministry said, the report adds.
===============
X X X X X X X X
===============
CARIBBEAN: Caricom Ministers Warn of More Drought Spells
--------------------------------------------------------
Marshelle Haseley at Trinidad Express Newsday reports that
stakeholders - government and non-government alike - across the
region say the Caribbean must tackle issues of land management as
the effects of climate change, especially drought conditions,
continue to intensify.
They said the region has been plagued by soil mismanagement for
over 60 years, according to Trinidad Express Newsday .
Minister of Planning and Development Pennelope Beckles said
climate-change trends indicate that spells of drought will become
more frequent, extended and severe, the report notes. "This
jeopardises regional food security and potable water supplies, not
to mention the stability of the terrains," she said, the report
relays.
The forum which brought together ministers and other delegates from
across the region was organised by the Partnership Initiative for
Sustainable Land Management (PISLM) - the UN's global registry of
voluntary commitments and multi-stakeholder partnerships made in
support of sustainable development and the 17 Sustainable
Development Goals (SDGs), the report discloses.
The entity is currently working to finalise its access to
approximately US$90 million for the execution of sustainable
land-management projects across the region, the report says.
The UN says the platform is open to all stakeholders, including
member states, civil society, local authorities, the private
sector, the scientific and technological community, academia, and
others, to register a voluntary commitment or multi-stakeholder
partnership which aims to drive the implementation of the 2030
Agenda and the SDGs, the report notes.
The 5th high-level forum on regional sustainable land management
forum held at The Brix Autograph Collection, Port of Spain,
stressed the importance of addressing issues related to soil
management, land degradation, combatting desertification and the
implementation of sustainable land use across the region, the
report relays.
The forum supports TT's national development strategy, Vision 2030,
under theme five which places the environment at the centre of
social and economic development, the report says.
Executive director at PISLM Calvin James said, "We are combatting
climate change and trying to put procedures, processes, policies
and programmes in place to treat with biodiversity but we are, in
my view, tarrying of sorts," the report notes.
James said the Caribbean is slow to observe the bigger picture of
land and soil degradation, the report says.
He said it is only after accepting that the region continues to
poorly manage land, can it move toward "healing" the land, after
which the next step of reinforcing and implementing standard
policies and practices to tend to the biodiversity and the effects
may be taken effectively, the report notes.
"If we fix our lands and our soils then we will truly have a
big-picture view of how we can reverse degraded biodiversity areas
and increase tree cover to assist in decreasing carbon
sequestration," he said, the report discloses.
Carbon sequestration is one method of reducing the amount of carbon
dioxide in the atmosphere to reduce global climate change, the
report says.
Minister in the Ministry of Agriculture, Grenada, Adrian Thomas
said much progress has been made by partnering entities that form
PISLM over the years, following its first meeting in 2011, the
report notes.
"Through its regional programmes, projects and plans, the
partnership if fulfilling its mandate of promoting land-degradation
neutrality and sustainable land and soil management," he added, the
report relays.
He said the Caribbean must know when its time has come to forge new
pathways that will support the visions of countries, the report
notes.
Thomas said, "PISLM will help us achieve our visions related to
sustainable use, management and development of our lands and
natural resources, and build resilience against climate change and
its hazards," the report relays.
Beckles said the Caribbean has a unique mix of land-management
challenges and the changes being faced vary in type and scale, the
report notes.
"I cannot emphasise enough the importance of meetings such as
these, especially for the Caricom subregion," she said, the report
discloses.
She said the region is particularly vulnerable to extreme weather,
seismic events and the impacts of climate change, the report says.
"This high-level session is the starting point of implementation,
since it may be seen as the catalyst for the necessary political
momentum required to turn policy into action," she adds, the report
notes.
She said reducing land degradation and desertification, where lands
such as grasslands or shrublands decrease and eventually disappear,
will go a long way toward addressing pollution and biological
extinction while fortifying the environment against extreme weather
events caused by climate change, the report relays.
"While it is obvious that land must be utilised for
infrastructural, commercial, industrial and civil purposes, a
wholly consumptive use of land resources is detrimental," she
notes, the report relays.
Beckles said TT has established its targets in the sectors of
forestry, quarrying and agriculture which align with the national
development strategy, the report says.
"Our approach will be an integrated one, which marries work already
being done in the establishment and management of protected areas
with the promotion of agroecological land restoration," the report
notes.
Agroecology is an integrated approach that simultaneously applies
ecological and social concepts and principles to the design and
management of food and agricultural systems, the report relays.
"TT's model includes the potential for land restoration and the
improvement of land productivity to be promoted in the energy
sector, the overall reduction of landfill acreages and for the
enhancement of the tourism sector," said Beckles.
She said it could be argued that the effects of climate change and
land degradation which affect the terrain and food security may be
addressed with engineering and economic solutions where food may be
imported, retaining reinforcement structures built and the
desalination of water, the report discloses.
She said, however, this approach creates a reliance on expensive
technologies.
Beckles said a nature-based solutions approach will minimise
potentially high national expenditure, providing economic
flexibility to allow allocations for other purposes, the report
relays. She said the potential of utilising a nature-based
approach is only now being understood, the report says.
"It is a long-term approach, the solutions of which require
patience and consistency if efforts should bear fruit," the report
adds.
*********
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