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       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

          Friday, April 28, 2023, Vol. 24, No. 86

                           Headlines



A R G E N T I N A

ARGENTINA: Central Bank Hikes Interest Rate
BLOCKFI INC: Intends to File Restructuring Plan by May 15


B R A Z I L

OI SA: Postpones Release of 2022 Financial Statements
PETROBRAS: Banks Invested US$26B From 2016 to 2022
TUPY SA: S&P Raises Issuer Credit Rating to 'BB+', Outlook Stable


C H I L E

EMPRESA NACIONAL: S&P Rates New Senior Unsecured Notes 'BB+'


D O M I N I C A N   R E P U B L I C

[*] Dominicans Emigrate From Puerto Rico Due to Poverty


S U R I N A M E

SURINAME: Nears Key Restructuring Deal After Years in Default


U R U G U A Y

URUGUAY: Leads Latin America with First Rate Reduction


X X X X X X X X

LATAM: Mayors to Seek New Financing Sources for Cities

                           - - - - -


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

ARGENTINA: Central Bank Hikes Interest Rate
-------------------------------------------
RJR News reports that the benchmark interest rate offered by
Argentina's central bank increased by a sharper-than-expected 300
basis points.

The move comes as inflation soared past expectations in March to
hit 104 per cent on an annual basis, according to RJR News.

Inflation for the month of March alone stood at 7.7 per cent, the
highest monthly level in two decades, the report notes.

The hike extends a new round of tightening by Argentina's central
bank, which is fighting soaring prices and dwindling foreign
currency reserves, while the peso currency has hit record lows
against the dollar in parallel markets, the report relays.

Drought conditions have battered exports of the country's main cash
crops, soy and corn, the report says.

The raise was the first since September, at the end of a vicious
tightening cycle through most of 2022, the report discloses.

The bank had wanted to cut rates this year on hopes inflation would
cool, 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.

S&P Global Ratings, on March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina. The outlook on the long-term ratings is negative. S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.

The negative outlook on the long-term ratings reflects risks
surrounding pronounced economic imbalances and policy uncertainties
before and after the 2023 national elections. Divisions across the
political spectrum constrain the sovereign's ability to implement
timely changes in economic policy. Global capital markets are
closed to Argentina. In the local market, swaps are being deployed
to manage large maturities before placing debt through traditional
auctions. The central bank continues to play a key role as a
backstop for local debt management in the secondary market. The
ongoing severe drought has exacerbated pressures in the already
disrupted foreign exchange (FX) market.

Fitch Ratings, on the other hand, 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-' on March 24, 2023.
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.

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, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.

BLOCKFI INC: Intends to File Restructuring Plan by May 15
---------------------------------------------------------
Jonathan Randles of Bloomberg Law reports that BlockFi Inc.
lawyer Joshua Sussberg said in a hearing that the company
intends to file a bankruptcy-exit plan by May 15, 2023.

BlockFi won a few more weeks to finalize a plan to get out
of Chapter 11 bankruptcy, overcoming disgruntled customers
who say they should be repaid more quickly, notes Bloomberg
News.

According to the report, Mr. Sussberg said the cryptocurrency
lender is exploring a potential sale of company assets or
the possibility of getting an outside backer to support
a restructuring deal.

                       About BlockFi Inc.

BlockFi is building a bridge between digital assets and traditional
financial and wealth management products to advance the overall
digital asset ecosystem for individual and institutional
investors.

BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in
its early days had backing from influential Wall Street investors
like Mike Novogratz and, later on, Valar Ventures, a Peter
Thiel-backed venture fund as well as Winklevoss Capital, among
others. BlockFi made waves in 2019 when it began providing
interest-bearing accounts with returns paid in Bitcoin and Ether,
with its program attracting millions of dollars in deposits right
away.

BlockFi grew during the pandemic years and had offices in New York,
New Jersey, Singapore, Poland and Argentina.

BlockFi worked with FTX US after it took an $80 million hit from
the bad debt of crypto hedge fund Three Arrows Capital, which
imploded after the TerraUSD stablecoin wipeout in May 2022.

BlockFi had significant exposure to the companies founded by former
FTX Chief Executive Officer Sam Bankman-Fried.  BlockFi received a
$400 million credit line from FTX US in an agreement that also gave
FTX the option to acquire BlockFi through a bailout orchestrated by
Bankman-Fried over the summer. BlockFi also had collateralized
loans to Alameda Research, the trading firm co-founded by
Bankman-Fried.

BlockFi is the latest crypto firm to seek bankruptcy amid a
prolonged slump in digital asset prices. Lenders Celsius Network
LLC and Voyager Digital Holdings Inc. also filed for court
protection this year. Kirkland & Ellis is also advising Celsius and
Voyager in their separate Chapter 11 cases.

BlockFi Inc. and eight affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on
Nov. 28, 2022. In the petitions signed by their chief executive
officer, Zachary Prince, the Debtors reported $1 billion to $10
billion in both assets and liabilities.

Judge Michael B. Kaplan oversees the cases.

The Debtors taped Kirkland & Ellis and Haynes and Boone, LLP as
general bankruptcy counsels; Walkers (Bermuda) Limited as special
Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley
Research Group, LLC as financial advisor; Moelis & Company as
investment banker; and Street Advisory Group, LLC as strategic and
communications advisor.  Kroll Restructuring Administration, LLC is
the notice and claims agent.



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B R A Z I L
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OI SA: Postpones Release of 2022 Financial Statements
-----------------------------------------------------
Peter Frontini at Reuters reports that Brazilian telecom firm Oi SA
said it decided to postpone the release of its 2022 financial
statements to May 22, after an expected presentation of its
judicial reorganization plan.

The company, which entered into a second bankruptcy protection in
March just months after it emerged from similar proceedings, said
the delay was mainly due to ongoing negotiations with a group of
its financial creditors, according to Reuters.

Oi, however, release preliminary figures showing that it had
consolidated net revenue of BRL2.62 billion ($518.96 million) in
the fourth-quarter of last year, the report notes.

Its routine earnings before interest, taxes, depreciation and
amortization (EBITDA) for Brazilian operations in the period came
in at BRL320 million, the report discloses.

The firm's cash position at the end of 2022 was BRL3.22 billion, Oi
added.

In a separate securities filing, the telecom operator said it
entered into a note purchase agreement with some financial
creditors to establish terms and conditions for a court-approved
debtor in possession financing of $275 million, the report adds.

                                About Oi SA

Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.

On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the
'Brazilian Bankruptcy Law'), Oi S.A. and certain of its
subsidiaries filed for recuperao judicial (judicial
reorganization)
in Brazil.

On June 21, 2016, OI SA and its affiliates Telemar Norte Leste
S.A.
and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15
proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791).  Ojas N.
Shah, as foreign representative, signed the petitions.

Coop and PTIF are also subject to proceedings in the Netherlands.

The Chapter 15 cases are assigned to Judge Sean H. Lane.

In the Chapter 15 cases, the Debtors are represented by John K.
Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP,
in
New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and
Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida.

On July 22, 2016, the New York Court recognized the Brazilian
Proceedings as foreign main proceedings with respect to the
Chapter
15 Debtors, and granted certain additional related relief.

The company exited bankruptcy protection in December 2022.


PETROBRAS: Banks Invested US$26B From 2016 to 2022
--------------------------------------------------
Richard Mann at Rio Times Online reports that Petroleo Brasileiro
S.A. or Petrobras was the 6th oil company that received the most
funds from financial institutions from 2016 to 2022 at US$26
billion.

The Brazilian state-owned company was behind 5 other large
companies: Exxon Mobil, Saudi Aramco, BP, Shell, and TotalEnergies,
according to Rio Times Online.

The data are in the report "Banking on climate chaos" 2023,
prepared by NGOs such as Reclaim Finance and Rainforest Action
Network, the report notes.

                      About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank and
Brazil's Sovereign Wealth Fund (Fundo Soberano) each control 5%,
bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved
Petrobras.

The scandal related to money laundering that involved Petrobras
executives.  The executives were alleged to get received kickbacks
from overpriced contracts, to the tune of about $3 billion in
total.  Over a thousand warrants were issued against politicians
and businessmen in relation to the scandal.  In 2016,  Marcelo
Odebrecht, CEO of Odebrecht, was sentenced to 19 years in prison
after being convicted of paying more than $30 million in bribes to
Petrobras executives.

In January 2018, Petrobras agreed to pay $2.95 billion to settle a
U.S. class action corruption lawsuit.  In September 2018, Petrobras
agreed to pay $853.2 million to settle with Brazilian and U.S.
authorities.

In July 2022, Fitch Ratings affirmed Petrobras' BB- Long-Term
Issuer Default Rating. In addition, Fitch has revised the Rating
Outlook to Stable from Negative following a similar revision to
Brazil's Sovereign Rating Outlook.  Also in July 2022, Egan-Jones
Ratings Company upgraded the foreign currency and local currency
senior unsecured ratings on debt issued by Petrobras to BB+ from
BB.


TUPY SA: S&P Raises Issuer Credit Rating to 'BB+', Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings raised its issuer credit and issue-level ratings
on Brazil-based auto supplier Tupy S.A. to 'BB+' from 'BB'. S&P
affirmed its 'brAAA' national scale rating. The recovery rating of
'3' (65%) remains unchanged.

The outlook on our global scale issuer credit rating is stable,
indicating S&P's expectation of a successful integration of MWM and
low leverage, with net debt to EBITDA around or below 1.5x.

S&P said, "In our view, Tupy successfully integrated Teksid's
business in 2022, increasing scale and confirming its leading
market position in manufacturing and selling of iron casting
products in the Americas and Europe. In addition, the company
maintained solid profitability, mostly through better terms with
suppliers and production processes. Tupy post an EBITDA margin of
12% in 2022, versus our previous expectation of around 11%-11.5%.
In the coming years, we believe the company will benefit from its
larger scale and broader portfolio of services and products, as
well as production adjustments by transferring production lines
between plants, compensating for MWM's weaker margins. With that,
we expect the EBITDA margin will be close to 12% in 2023 and
gradually improve in the following years. Also, MWM is less capital
intensive because of its services-oriented business, which should
enable Tupy to post stronger free operating cash flows this year,
above Brazilian real (R$) 400 million in our base-case scenario.

"With that, we see the company better positioned to meet the
industry demands for nearshoring, electric vehicles, and
decarbonization, among others. We forecast net revenue of about
R$12 billion and EBITDA of R$1.5 billion by the end of 2023,
compared with R$5.2 billion and R$605 million, respectively, in
2019 for Tupy on a stand-alone basis. The combination of this
larger scale and diversification with our expectation of solid
EBITDA margin above 11% led us to improve our assessment of Tupy's
business risk profile to fair from weak. Moreover, the company
decreased client concentration, with the top three representing
around 35%, compared with 50% before."

The company has benefited from positive trends for commercial
vehicles and agricultural machinery over the past two years, and
with the acquisition of Teksid in 2022 it consolidated its
leadership position in its main business line. With the acquisition
of MWM, the company increased its products and services portfolio.
In addition to casting and machinery, the assembly of engines for
third parties and associated engineering services broadens the
scope of its manufacturing contracts. MWM also adds exposure to the
maritime sector, increases aftermarket offer for engines and
generators, and adds exposure to energy and decarbonization.

With the expansion to Europe with a plant in Portugal (from
Teksid), Tupy expanded out of the Americas. Also, with the new
USMCA requirement of a greater level of regionalization, increasing
production in North America, Tupy is well positioned with plants in
Mexico to meet customers' needs. We expect North America to
continue representing the bulk of revenues in the coming years,
around 50%, while Brazil accounts for around 25%, Europe 20%, and
Asia 5%. Moreover, it is already benefiting from a more complete
business offering. Tupy recently signed new contracts to produce
engine blocks and cylinder heads, as well as for the machining and
assembly of engines for Class 8 trucks in the U.S. and pickups in
South America. Contracts have an initial duration of eight years
that could be extended. It will require capital expenditures of
R$340 million during 2023-2025, and after ramping up will
contribute around R$650 million of revenue per year to the group.

S&P said, "Tupy has historically posted low leverage, even through
the cycles. Because of the change in our view of the company's
business risk profile, we now analyze its credit metrics on a net
basis (versus gross previously). We forecast net debt to EBITDA
consistently below 1.5x in the next three years, funds from
operations (FFO) to debt above 50%, and free operating cash flow
(FOCF) to debt above 25%, which improves our assessment of its
financial risk profile to modest from intermediate. We forecast
Tupy will pay down debt as it comes due from its solid cash
generation."

ESG credit indicators: E-3, S-2, G-2 (climate transition risks)

Environmental factors are a moderately negative consideration in
S&P's credit rating analysis of Tupy. Electrification and the
transition to CO2-neutral mobility are disruptive forces that will
shape the industry. In Europe and North America, regulatory rules
are well advanced for light vehicles, but those for heavy vehicles
will be implemented in the long term.

On the other hand, Tupy has a portfolio of structural component
products that have minimal dependence on the evolution of the
internal combustion engine, and it supplies mainly for producers of
commercial/heavy vehicles. Another mitigating risk factor is that
more than 90% of the company's raw materials are scrap metal,
supporting a circular economy. Tupy also has several research and
development initiatives that should help its clients reduce carbon
emissions, such as for battery recycling and hydrogen. The
acquisition of MWM also brought additional possibilities for the
decarbonization process because the company produces generator sets
and converts engines for biofuels, such as natural gas, biodiesel,
biogas and biomethane. These methods reduce carbon emissions in the
agribusiness sector, used to produce electricity in rural areas,
and as fuel for truck fleets, buses, and tractors.




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C H I L E
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EMPRESA NACIONAL: S&P Rates New Senior Unsecured Notes 'BB+'
------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating to Empresa
Nacional de Petroleo's (ENAP's; BB+/Positive/--) proposed 10-year
senior unsecured notes of up to $500 million. The company will use
the proceeds, together with cash on hand that totaled $450 million
on Dec. 31, 2022, to repay the $600 million international bond due
in October 2024.

S&P said, "The ratings on ENAP continue to incorporate our
assessment of a highly leveraged financial risk profile, which we
consider sustainable due to the company's ownership by Chile
(A/Stable/A-1), and our assessment of a very high likelihood of
extraordinary support from the sovereign in case of financial
distress. Our ratings also incorporate our view of ENAP's liquidity
as less than adequate, because its cash uses will exceed its
sources in the next 12 months. Our liquidity assessment captures
the company's well-established relationship with banks and access
to capital markets, which we also attribute to its shareholding
structure.

"We view the issuance as neutral for the existing ratings, mainly
because our base-case scenario incorporates ongoing access to debt
and capital markets as a means for ENAP to manage its debt
maturities in the short term. In addition, this issuance won't
result in higher debt. If the issuance occurs, it will alleviate
the company's financial needs in 2024 by securing funds to repay
the international bond due in October 2024. Also, it would lengthen
the company's debt maturity profile. We view the issuance as part
of ENAP's plan to manage its existing debt maturity profile and in
line with our expectations, according to our recent publication
dated Feb. 9, 2023.

"Following ENAP's solid 2022 results and metrics, we expect it will
maintain stronger-than-average credit metrics in the next 12-24
months (net debt to EBITDA well below 5x, compared with more than
7.5x on average since 2016), which prompted our outlook change on
the issuer in February."




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D O M I N I C A N   R E P U B L I C
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[*] Dominicans Emigrate From Puerto Rico Due to Poverty
-------------------------------------------------------
Dominican Today reports that the severe economic crisis affecting
Puerto Rico has been the cause of an exodus of the Dominican
population residing in that country, which went from 69,683 in 2010
to 58,352 in 2021, for a reduction of 16% in the last decade,
according to research presented at the Santo Domingo Institute of
Technology (INTEC).

This was revealed in the study "Quisqueya en Borinquen: A
Socioeconomic Profile of the Dominican Population in Puerto Rico,
2023," by the Dominican Studies Institute of the City University of
New York (CUNY) conducted by researchers Ramona Hernandez, director
of the Institute; Francisco Rivera-Batiz, professor at Columbia
University in New York, and Sidie Sisay, a researcher at the
Institute, according to Dominican Today.

The research shows that Puerto Rico's economy stagnated from 2005
onward due to decades of mismanagement in public administration,
hurricanes, earthquakes, and the Covid-19 pandemic, in contrast to
the growth it experienced from 1985 to 2005, the report notes.

Given the circumstances, 51.4% of Dominicans lived in households
with incomes below the poverty level during the 2016 to 2020
period, compared to 44% corresponding to that country overall, the
report relays.  In addition, the report indicates that, two decades
earlier, poverty among the Dominican population was significantly
lower than that of the general population and that, in the past
decade, Dominicans residing in Puerto Rico showed an annual per
capita income equal to or higher than that of the general
population of that country.

"Dominicans migrated to Puerto Rico looking for better jobs and
living conditions, and this worked for a number of years, but
things have changed, and the economic situation has become much
more difficult in the last decade," said Hernandez, co-author of
the study and sociologist at the City College of CUNY, the report
discloses.

According to the results of the study, the annual per capita income
of Dominicans was US$11,245 on average during the 2016-2020 period,
compared to US$13,519 among the general population of Puerto Rico
during the same period, the report says.

Likewise, the findings show that the socioeconomic indicators of
poverty and low wages, which were lower than the rest of the
population in the neighboring country in the past, are now higher,
the report says.

                              Crisis

The situation in the neighboring country represents a crisis for
families headed by separated or divorced women and single women
with children, populations that, when added together, constitute
close to one-third of the Dominican people, Dominican Today notes.


According to the report, on average, from 2016 to 2020, 62.3% of
the Dominican population living in female-headed households were
poor, compared to 51.4% of the Dominican population as a whole.

The study showed high poverty among female-headed households is a
result not only of the economic gap that exists in general between
the Dominican population and that of the rest of the country but
also of the large wage and employment gap based on gender, the
report says.  "Unemployment among Dominican women is significantly
higher than for men; and their wages are substantially lower. And
this occurs despite the fact that Dominican women have a higher
average level of formal education than men," the study reflects,
the report notes.

As a consequence of high poverty among female-headed households,
higher child and youth poverty results in 75.9% of the Dominican
population aged 17 and under living in poverty on average from 2016
to 2020, almost 20 percentage points higher than the general
population in Puerto Rico, 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 To 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.




===============
S U R I N A M E
===============

SURINAME: Nears Key Restructuring Deal After Years in Default
-------------------------------------------------------------
Bloomberg News reports that Suriname's creditors are nearing a deal
with the South American nation's government to restructure $675
million of bonds.

An agreement, which could result in losses in a range of about 25%
to 30% for investors, stands to finally lift the country out of a
years-long default, said the people who asked to not to be name
because the matter is private, according to Reuters.

It is also likely to help as the nation looks to resume a program
with the International Monetary Fund, the report notes.

The deal will potentially involve an instrument linked to oil
royalties that could help compensate bondholders for losses
accepted in a restructuring, the people said, the report relays.

While the final terms have yet to be agreed, it's a major step for
Suriname, the report discloses.  The former Dutch colony defaulted
three times during the pandemic, per Fitch Ratings' criteria, with
a restructuring deal elusive, the report adds.

Bloomberg New relays that with a bondholder deal close, Suriname is
also accelerating negotiations with China, one of the people said.
As part of the latest restructuring proposal, investors would
potentially receive a new bond with a gradually increasing
coupon-payment structure, the person said.

A chasm emerged during earlier negotiation between finance
officials and bondholders, who wanted access to potential future
oil royalties from an offshore basin that driller Apache Corp. says
is "the most watched" on the globe, recalls the report.

Now, progress is in focus, Bloomberg notes. The nation is looking
to lock in debt agreements and resume an IMF program that would
provide a needed source of financing. In late 2021, the sides
reached a three-year agreement that gave the government access to
around $690 million. But it was halted last year after the IMF was
unable to complete reviews, recounts Bloomberg News.

The sides have been in talks over the last year about bringing the
program back, Nigel Chalk, the IMF’s acting director of Western
Hemisphere Department, said in a press briefing, the report adds.



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

URUGUAY: Leads Latin America with First Rate Reduction
------------------------------------------------------
Ken Parks at Bloomberg News reports that Uruguay became the first
inflation-targeting country in Latin America to start lowering
borrowing costs after the economy entered a technical recession in
the second half of 2022.

The decision to cut its key rate a quarter point to 11.25 percent
surprised market participants surveyed by the Central Bank who
expected policymakers to leave the rate unchanged, according to
Bloomberg News.

The Central Bank had lifted its key rate 700 basis points to 11.5
percent between August 2021 and December 2022 as inflation
accelerated to almost 10 percent last year, Bloomberg News relays.
The monetary authority's move marked its first rate cut since the
Central Bank readopted a benchmark rate as its main policy tool in
September 2020, Bloomberg News notes.

"This decision is consistent with the continuity of a contractive
monetary policy and the objective of continuing efforts" to bring
inflation and inflation expectations within the three to six
percent target range, the Central Bank said in a statement obtained
by Bloomberg News.

Growth is being slowed after a drought hit the agriculture sector,
one of Uruguay's top exporters, leading the Central Bank to ease
policy to stimulate the economy, Alberto Landeira, economist at
brokerage Puente, said in an interview, Bloomberg News discloses.

"The main reason the Central Bank started cutting rates before
other countries is because we have a negative output gap," Landeira
said, notes the report. "The drought is having a big impact on the
economy."

Major central banks across Latin America have kept interest rates
at multi-year highs even as inflation gradually retreats after
hitting double-digits in several countries during 2022, Bloomberg
News relays.  Policy-makers are concerned that premature easing
might collide with an upsurge in consumer prices that would damage
their credibility, Bloomberg News notes.  In neighboring Brazil,
the economic fallout from high interest rates spurred President
Luiz Inacio Lula da Silva to publicly chastise his central bank for
strangling growth, Bloomberg News says.

Uruguay's Central Bank under the leadership of economist Diego
Labat has come under fire from exporters who say high borrowing
costs are contributing to an overvalued currency, Bloomberg News
notes.  The peso has appreciated 2.3 percent this year, after
gaining about 12 percent in 2022, Bloomberg News discloses.

A strong currency has helped curb inflation, which fell to a
20-month low of 7.3 percent in March, Bloomberg News relays.  Even
so, market participants are sceptical that policymakers will hit
their target, with the Central Bank's most recent monthly survey of
analysts forecasting 6.95 percent inflation in December 2024,
Bloomberg News adds.




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X X X X X X X X
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LATAM: Mayors to Seek New Financing Sources for Cities
------------------------------------------------------
Approximately 40 mayors from Latin America and the Caribbean will
attend the 2023 Mayors Forum, organized by the Inter-American
Development Bank (IDB) Cities Network, on April 26 in Denver, USA.
The theme of the forum is "Financing the Sustainable Development of
Cities in Latin America and the Caribbean", with a focus on how
local governments can diversify their financing sources.

The Mayors Forum coincides with the first Cities Summit of the
Americas, organized by the United States government. During this
summit, the IDB will host a plenary session on subnational
financing (for states, provinces, and cities). IDB President Ilan
Goldfajn will attend both the Mayors Forum and the summit.

Eight out of ten people in Latin America and the Caribbean live in
cities, which are compelled to devote more and more funding to
infrastructure and services for citizens. In a region especially
vulnerable to climate change, cities also face a growing need to
invest in adaptation and resilience. The region's cities also
currently depend heavily on transfers from central governments,
which provide 56% of their revenue. In light of all these factors,
cities urgently need to find alternative financing sources.

The 2023 Mayors Forum will feature stories of municipalities that
have achieved financial sustainability through initiatives other
than transfers from central governments, like using land in ways
that bring in more tax revenue, accessing financial markets, and
attracting private investment.


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2023.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
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