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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

          Wednesday, May 10, 2023, Vol. 24, No. 94

                           Headlines



A R G E N T I N A

ARGENTINA: Lula Starts Talks with BRICS Bank to Help Country
ARGENTINA: Mull Trade Credit Lines With Brazil Bypassing US Dollar
ARGENTINA: Reserves Slump to 7-Year Low as Crisis Deepens


E L   S A L V A D O R

EL SALVADOR: Fitch Ups Foreign Curr. IDR to CCC+ on Debt Exchange


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Owes $7.8BB in VAT Refunds, Minister Says


X X X X X X X X

CARIBBEAN: Royal Caribbean Incurs $47.9-M Net Loss in 1QFY23
LATAM: CARICOM Calls for Improvements in Trade Policy Formation

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Lula Starts Talks with BRICS Bank to Help Country
------------------------------------------------------------
Buenos Aires Times reports that Brazil President Luiz Inacio Lula
da Silva said he's actively working to help Argentina overcome its
financial crisis after meetings with its president, Alberto
Fernandez, in Brasilia.

The two met for about four hours at the Brazilian presidential
palace to discuss Argentina's high inflation and how to address the
challenges facing Brazilian businesses struggling to sustain
exports to the neighboring country, according to Buenos Aires
Times.

"I will make any and all sacrifices so that we can help Argentina
in this difficult time," Lula said, standing alongside Fernandez,
the report notes.

The Brazilian president added that he asked Chinese counterpart Xi
Jinping while in Beijing last month to also support Fernandez, the
report relays.

One approach, he said, would be to finance exports and make loans
trough Shanghai-based New Development Bank, a multilateral
development bank established by the BRICS countries, which, along
with Brazil and China, include Russia, India and South Africa.
Former Brazil president Dilma Rousseff is the bank's chief
executive, the report notes.

Lula said it will be necessary to change some internal rules, but
he is talking to Rousseff. Taking aim at the the International
Monetary Fund - which has a US$44-billion loan agreement with
Argentina - Lula said he is working "to remove its knife from
Argentina's neck," the report discloses.

Fernandez said Brazilian Finance Minister Fernando Haddad will
travel to Buenos Aires to discuss an agreement on financing for
Brazilian exporters, 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.  

ARGENTINA: Mull Trade Credit Lines With Brazil Bypassing US Dollar
------------------------------------------------------------------
Maria Eloisa Capurro at Bloomberg News reports that Argentina and
Brazil are working to boost their bilateral trade and recover
market share lost to China with credit lines in reais that bypass
the US dollar, according to an Argentine government official who
met with counterparts in Brasilia.

Representatives from the economy and industry ministries of both
countries will discuss ways to implement those credit lines,
according to Bloomberg News.

Under the new mechanism, imports to Argentina would be
fast-tracked, reducing approval times to 30 days from 180,
Bloomberg News notes.  Banks involved as counterparts in the credit
lines will most likely be state-run, said the official, who
requested anonymity since the discussions aren’t yet public,
Bloomberg News relays.

The talks between South America's largest economies come with
Argentina facing major challenges such as dwindling international
reserves, inflation running above 100 percent per annum and a
slumping peso, Bloomberg News notes.  Trade between the two nations
has taken a multi-billion dollar hit in recent years, according to
government estimates, Bloomberg News discloses.  At least 210
Brazilian companies in sectors such as iron, steel, garments,
agriculture and automobiles would be interested in joining the
credit lines, Bloomberg News says.

Brazilian officials will now work on a system to finance and
guarantee payments, similar in function to an escrow account,
Bloomberg News relays.  The lines would help the country's export
goods regain market share in Argentina, after falling from around
US$19 billion in 2013 to US$13 billion in 2022, Bloomberg News
relates.

Argentina's President Alberto Fernandez met his Brazilian
counterpart Luiz Inacio Lula da Silva in Brasilia, where they
discussed ways to help Argentina overcome its financial crisis,
Bloomberg News notes.

A record drought is worsening the nation's prospects as the
government makes efforts to secure lines of credit with
multilateral organizations to support soybean producers, as well as
the creation of multiple exchange rates to boost exports ahead of
October's presidential election, Bloomberg News relays.

Fernandez is also seeking a reworking of Argentina's agreement with
the International Monetary Fund, which recently passed its fourth
review, to raise disbursements under the extended fund facility
program to US$28.9 billion. Lula said he will work for changes in
the Fund's policies to prevent countries from being "asphyxiated"
by the institution, Bloomberg News notes.

The support of a key trading partner like Brazil is very important
in negotiations with the Fund, he said. So far there have been no
indications that the multilateral lender is willing to extend
disbursements, Bloomberg News 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.

ARGENTINA: Reserves Slump to 7-Year Low as Crisis Deepens
---------------------------------------------------------
Bloomberg News reports that Argentina's international reserves have
tumbled to their lowest since 2016 as the central bank drains its
coffers to defend the increasingly beleaguered peso.

The currency tumbled 13% in parallel markets last month to a record
low as a historic drought sapped key crop exports, fueling a dollar
shortage at the same time that inflation accelerates past 100%,
according to Bloomberg News.

As the crisis deepens, Argentina and the International Monetary
Fund are discussing the possibility of bringing forward payments
from the multilateral lender ahead of presidential elections in
October, the report 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.

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.  



=====================
E L   S A L V A D O R
=====================

EL SALVADOR: Fitch Ups Foreign Curr. IDR to CCC+ on Debt Exchange
-----------------------------------------------------------------
Fitch Ratings has downgraded El Salvador's Long-Term Foreign
Currency Issuer Default Rating (IDR) to 'RD' from 'CC' following
the execution of an exchange of domestic pension-related debt.
Fitch believes that the recent exchange constituted a default event
as outlined in Fitch's "Sovereign Rating Criteria" published April
6, 2023.

Subsequently, reflecting the completion of the debt exchange, Fitch
has taken the following actions:

- Upgraded El Salvador's Long-Term Foreign Currency Issuer Default
Ratings (IDR) to 'CCC+' from 'RD', and upgraded the country ceiling
to 'B' from 'B-'.

- Affirmed the Short-Term Foreign Currency ratings at 'C'.

Fitch typically does not assign Outlooks to sovereigns with a
'CCC+' rating or below.

KEY RATING DRIVERS

Pension-Related Debt Exchange: On April 28th, outstanding
Certificados de Inversion Previsional (CIP) issued to private
pension funds (AFPs) under domestic law were exchanged for
Certificados de Financiamiento de Transicion (CFT), as outlined by
the pension reformed approved last year (Dec. 20, 2022). The new
debt instruments were issued by the newly created Instituto
Salvadoreno de Pensiones (ISP), which replaced the Fideicomiso de
Obligaciones Previsionales (FOP).

The government offered three series (A, B, C) to the following
private pension funds: series A replicates the terms of the
restructured CIPs in 2017 (USD6.2 billion outstanding) with a
maturity of 24 years and yield of 4.5%; series B coincides with the
CIPs issued after 2017 (USD2.2 billion outstanding) with a maturity
of 44 years and yielding 6%; series C offers a higher yield of 7%
in exchange for an extension of maturity to 50 years and a
four-year grace period. The private pension funds chose series C by
an overwhelming majority.

Default Event: Fitch deems this operation a Distressed Debt
Exchange (DDE), constituting a default under Fitch's criteria. The
exchange involved an adverse change in terms via the extension of
maturities and the addition of a grace period on the majority of
the public securities in question. In Fitch's view, the exchange
operation was aimed at reducing the sovereign's financing needs
against the backdrop of El Salvador's tight financing constraints
and financial distress.

Rating Upgrade: The upgrade of El Salvador's IDR follows the
successful completion of the exchange. This reflects Fitch's view
that another default event no longer appears probable but remains a
real possibility in light of compromised repayment capacity. El
Salvador's 'CCC+' rating reflects fiscal and external liquidity
positions that have improved relative to Fitch's prior expectations
and following the payment of sizeable global bond amortizations
earlier in the year, but remain tight, as well as constrained
market access and high reliance on short-term debt.

Fiscal Consolidation Efforts: The government's fiscal deficit
declined significantly to 2.5% of GDP in 2022, from 5.5% in 2021
and 10.1% in 2020. The ongoing fiscal consolidation has been driven
both by robust tax collection and expenditure restraint. Fitch
anticipates the fiscal consolidation will continue this year as the
debt-exchange has materially diminished pension-related
expenditures.

External debt service risks declined as the government bought back
a sizeable portion of its sovereign external bonds maturing 2025.
The operation reduced the total amount outstanding to USD348
million (1% of 2023 GDP) from USD800 million. Non-financial public
sector debt reached 75.9% at year-end 2022 down from 80.4% in 2021
and 88.1% in 2020. Fitch anticipates government debt/GDP will
continue to decline over the coming years given an improvement of
the primary balance.

Financing Sources Remain Limited: External borrowing costs remain
prohibitively high, rendering the government dependent on
short-term domestic debt (LETES and CETES). Short-term debt reached
8.4% of GDP at YE 2022 and remains at elevated levels. The banks'
appetite and capacity to increase their short-term debt holdings is
limited, but they are likely to continue extending these positions.
Multilaterals are providing the funding to bridge the financing
gap, particularly the Central American Bank for Economic
Integration (CABEI), the Development Bank of Latin America (CAF),
and the World Bank.

CABEI has provided most of the budgetary funding, but its capacity
to significantly increase its lending remains unclear. Adoption of
bitcoin as legal tender and broader governance concerns have been
obstacles to reaching an agreement for an IMF program, which could
open up additional sources of multilateral lending.

Precarious Foreign Reserves Levels: International reserves have
declined over the past four years, pressured mostly by a wide
current account deficit (CAD) and high external amortizations.
International reserves declined by USD900 million to USD2.4 billion
in 2022 and have only moderately grown through 1Q23. Around USD2.2
billion of reserves (almost 85%) correspond to the reserve
requirements of the banking system, and drawdown of this for
external sovereign debt service could imperil financial stability
under the dollarization regime.

The CAD reached 6.6% of GDP in 2022 from 4.3% in 2021 as imports
outgrew exports. Remittances inflows are a mainstay of the economy
and were 24% of GDP in 2022, albeit down from 25.7% in 2021 as
remittances lagged nominal GDP growth.

Country Ceiling Upgrade: Fitch upgraded El Salvador's country
ceiling to 'B' given the absence of any capital controls which
would potentially constrain private sector debt repayment capacity.
The government has not imposed or signaled any intent of imposing
such controls despite recent periods of sovereign stress. El
Salvador's dollarization regime further reduces incentives for
imposing capital control.

ESG - Governance: El Salvador has an ESG Relevance Score (RS) of
'5' for both Political Stability and Rights and for the Rule of
Law, Institutional and Regulatory Quality and Control of
Corruption. These scores reflect the high weight that the World
Bank Governance Indicators (WBGI) has in Fitch's proprietary
Sovereign Rating Model. El Salvador has a medium WBGI percentile
ranking of 36.7%, reflecting a recent track record of peaceful
political transitions, a moderate level of rights for participation
in the political process, moderate institutional capacity,
established rule of law and a moderate level of corruption.

ESG - Creditor Rights: El Salvador has an ESG Relevance Score of
'4' for Creditor Rights, as willingness to service and repay debt
is highly relevant to the rating and is a key rating driver with a
high weight.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade

- Public Finances: Intensification of financing strains that weaken
willingness and/or capacity to service government debt, as a result
of fiscal deterioration that increases financing needs or
deterioration in financing sources.

- External Finances: Further decline in external liquidity that
heightens risks to financial stability and debt repayment
capacity.

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade

- Public Finances: Fiscal consolidation efforts than lead to a
material reduction in financing needs and/or easing of financing
constraints through progress in unlocking additional funding
sources.

- External Finances: Improvement of the current account deficit
resulting in a sustained improvement of foreign reserves.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns El Salvador a score equivalent to a
rating of 'CCC+' on the Long-Term Foreign-Currency IDR scale.
However, in accordance with its rating criteria, Fitch's sovereign
rating committee has not utilized the SRM and QO to explain the
ratings in this instance. Ratings of 'CCC+' and below are instead
guided by the rating definitions.}

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating, reflecting
factors within its criteria that are not fully quantifiable and/or
not fully reflected in the SRM.

ESG CONSIDERATIONS

El Salvador has an ESG Relevance Score of '5' for Political
Stability and Rights as World Bank Governance Indicators have the
highest weight in Fitch's SRM and are therefore highly relevant to
the rating and a key rating driver with a high weight. As El
Salvador has a percentile rank below 50 for the respective
Governance Indicator, this has a negative impact on the credit
profile.

El Salvador has an ESG Relevance Score of '5' for Rule of Law,
Institutional, Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and are a key
rating driver with a high weight. As El Salvador has a percentile
rank below 50 for the respective Governance Indicators, this has a
negative impact on the credit profile.

El Salvador has an ESG Relevance Score of '4' for Creditor Rights
as willingness to service and repay debt is highly relevant to the
rating and is a key rating driver for El Salvador given the
implementation of buy backs of 2023 and 2025 bonds at below par and
the recent implementation of pension debt exchange that Fitch
deemed a default.

El Salvador has an ESG Relevance Score of '4' for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
World Bank Governance Indicators is relevant to the rating and a
rating driver. As El Salvador has a percentile rank below 50 for
the respective Governance Indicator, this has a negative impact on
the credit profile.

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          Prior
   -----------                 ------          -----
El Salvador     LT IDR          RD   Downgrade   CC
                LT IDR          CCC+ Upgrade     RD
                ST IDR          C    Affirmed     C
                Country Ceiling B    Upgrade     B-

   senior
   unsecured    LT              CCC+ Upgrade     CC



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

TRINIDAD & TOBAGO: Owes $7.8BB in VAT Refunds, Minister Says
------------------------------------------------------------
Trinidad Express reports that Trinidad and Tobago government owes
$7.8 billion in VAT refunds.

And, in an effort to assist in the settlement of this outstanding
sum, Cabinet recently agreed to the issuance of VAT bonds in the
aggregate sum of $3 billion, according to Trinidad Express.

So said Minister of Finance Colm Imbert as he responded to a
question in the Senate from Independent Senator Amrita Deonarine,
who asked what was the current value of the outstanding VAT refunds
to date. Imbert said, at the end of March 2023, it was $7.8
billion, the report notes.

Imbert said the VAT bonds will be issued between June and August
2023, and, as was done in the past, would be suitably priced to
allow "full redemption at par in the commercial banks," the report
relays.

"These bonds will bring the total amount of VAT refunds, for 2023,
to over $5 billion and significantly reduce the amount of
outstanding refunds," Imbert stated, the report discloses.

Asked what plans were in place to deal with the remaining $5
billion owed, Imbert said the question was "presumptive," the
report relays.

"In addition to the issuance of the $3 billion in VAT bonds, we
will continue to issue cash refunds. At this time, the cash refunds
are estimated to be between $1 billion and $2 billion.  So, you are
really looking at a backlog that is closer to $2.8 billion, and we
do believe that when the Revenue Authority comes into full
implementation that the non-compliance gap would be significantly
reduced," he added.

Imbert had earlier stated that the present Government had inherited
close to $5 billion in outstanding VAT refunds when it took office
in 2015, the report relays.

                       Gov't Looking at a Sales Tax

In response to a question from Deonarine on whether consideration
was being given to the entire tax policy design, Imbert said the
Government had looked at the question of replacing VAT with a sales
tax, the report notes.

Noting that "long ago" there was a sales tax, he said VAT was
implemented in 1990, the report relays.

"So, we have had VAT now for over 30 years. The jury is out on
that—as to whether we would collect the same amount of revenue or
more with a sales tax.  With a sales tax, of course, there is no
refund involved.  We are looking at it very carefully but it would
have the same issue of non-compliance that we have with Value Added
Tax.  So, we would not implement a sales tax or have a radical
change in tax policy until the Revenue Authority is up and running
and fully established, and, then, we could deal with compliance
issues.  Whatever mechanism you use—whether you use Value Added
Tax, which looks at VAT paid on inputs and VAT charged on output,
or you impose a sales tax, you will always have a compliance
problem and our biggest problem in T&T as indicated by the Fiscal
Affairs Department Report is non-compliance, where it is estimated
that we lose $4 billion every year through fraud and
under-reporting of Value Added Tax," he added, notes the report.



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

CARIBBEAN: Royal Caribbean Incurs $47.9-M Net Loss in 1QFY23
------------------------------------------------------------
Royal Gazette reports that the Royal Caribbean Group has reported a
net loss for the first quarter of the year of $47.9 million.

That compares with a net loss of $1.2 billion in the prior-year
period, according to Royal Gazette.

Royal Caribbean wholly owns three cruise lines - Royal Caribbean
International, Celebrity Cruises and Silversea Cruises, the report
notes.

Regular callers to the island include Vision of the Seas, Liberty
of the Seas and Celebrity Summit, the report relays.

Occasional callers include Mariner of the Seas, Odyssey of the
Seas, Jewel of the Seas, Anthem of the Seas, Celebrity Beyond,
Celebrity Apex, Silver Shadow, and Silver Nova, the report notes.

Total revenues for the quarter were $2.9 billion.

Adjusted earnings before interest, taxes, depreciation and
amortization were $641.7 million, and operating cashflow was $1.3
billion, the report discloses.

"We knew that demand for our business was strong and strengthening,
but we have been pleasantly surprised with how swiftly demand
further accelerated well above historical trends and at higher
rates," said Jason T Liberty, president and chief executive officer
of the Royal Caribbean Group, the report says.

"Leisure travel continues to strengthen as consumer spend further
shifts towards experiences. Demand for our brands is outpacing
broader travel due to a strong rebound and an attractive value
proposition," the report notes.

As of March 31, the group's customer deposit balance was at a
record $5.3 billion, the report adds.

LATAM: CARICOM Calls for Improvements in Trade Policy Formation
---------------------------------------------------------------
RJR News reports that CARICOM has been encouraged to transform its
trade policy to drive economic growth and sustainable development.

The regional bloc's Prime Ministerial Sub-Committee on External
Negotiations, chaired by Prime Minister Andrew Holness, says there
should be enhanced use of data, analysis, and consultations to
support the formulation of the community's trade policy, according
to RJR News.

The committee says it met recently and stressed the importance of
research and strategic engagement with the private sector in this
push for a transformational trade agenda, the report notes.

It has called for work to be done to update existing bilateral
trade agreements with Costa Rica, Colombia, Venezuela, Cuba, and
the Dominican Republic to meet CARICOM's strategic objectives, the
report adds.


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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
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