/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/230907.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 Thursday, September 7, 2023, Vol. 24, No. 180 Headlines A R G E N T I N A AGILETHOUGHT ARGENTINA: Case Summary & 20 Largest Unsec. Creditors B R A Z I L BRAZIL: Introduces Low-Interest Loans to Spur Innovation BRAZIL: Surprise Economic Rebound Could Provide Boost to Argentina D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Agricultural Losses Over 1BB Pesos After Storm DOMINICAN REPUBLIC: Economy Slows Down in 1H 2023, Growth at 1.2% H A I T I HAITI: IMF OKs New Staff Monitored-Program with Country J A M A I C A JAMAICA: IMF Board Completes Review Under PLL and RSF Arrangement JAMAICA: Strategies Put in Place to Cut Skills Gap, PIOJ Says P A R A G U A Y VISION BANCO: S&P Alters Outlook to Negative, Affirms 'B' ICR - - - - - ================= A R G E N T I N A ================= AGILETHOUGHT ARGENTINA: Case Summary & 20 Largest Unsec. Creditors ------------------------------------------------------------------ Three additional affiliates of An Global LLC (Bank. D. Del. Case No. 23-11294) that filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Tarnow Investment, S.L. 23-11376 Camino Fuente de la mora 9 28050 Maldrid, Spain AgileThought Argentina S.A. 23-11377 Guemes 676, Pdo. de Vicente Lopez Pcia. de Buenos Aires Buenos Aires, Argentina AGS Alpama Global Services Mexico, S.A. de C.V. 23-11378 Av. Sierra Vista 1305, piso 4, int 8 Colonia Lomas del Tecnologico, CO 78215 San Luis Potosi Mexico Business Description: The Debtors are global providers of agile- first, end-to-end digital transformation services in the North American market using on-shore and near-shore delivery. The Company helps its clients transform by building, improving and running new solutions at scale. The Debtors operate their business through ten "Guilds," which act as agencies within the Company. Chapter 11 Petition Date: September 1, 2023 Court: United States Bankruptcy Court District of Delaware Judge: Hon. J. Kate Stickles Debtors' Co-General Bankruptcy Counsel: Jeremy W. Ryan, Esq. Gregory J. Flasser, Esq. Sameen Rizvi, Esq. POTTER ANDERSON & CORROON LLP 1313 North Market Street, 6th Floor Wilmington, Delaware 19801 Tel: (302) 984-6000 Fax: (302) 658-1192 Email: jryan@potteranderson.com gflasser@potteranderson.com srizvi@potteranderson.com - and - Kathryn A. Coleman, Esq. Christopher Gartman, Esq. Jeffrey S. Margolin, Esq. Elizabeth A. Beitler, Esq. HUGHES HUBBARD & REED LLP One Battery Park Plaza New York, NY 10004-1482 Tel: (212) 837-6000 Fax: (212) 422-4726 Email: katie.coleman@hugheshubbard.com chris.gartman@hugheshubbard.com jeff.margolin@hugheshubbard.com elizabeth.beitler@hugheshubbard.com Debtors' General Mexican Restructuring Counsel: GARRIGUES MEXICO, S.C. Debtors' Financial Advisor: TENEO CAPITAL LLC Debtors' Investment Banker: GUGGENHEIM SECURITIES, LLC Debtors' Claims, Noticing & Balloting Agent: KURTZMAN CARSON CONSULTANTS LLC Estimated Assets: $100 million to $500 million Estimated Liabilities: $100 million to $500 million The petitions were signed by James S. Feltman as chief restructuring officer. Full-text copies of the petitions are available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/LX72TQY/Tarnow_Investment_SL__debke-23-11376__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/LTADNFI/AgileThought_Argentina_SA__debke-23-11377__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/3WVXK2Q/AGS_Alpama_Global_Services_Mexico__debke-23-11378__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Tax Administration Service Tax $203,333,138 (Mexico) Av. Hidalgo 77 Col. Guerrero Ciudad De Mexico, 06300 Mexico Phone: (52) 55 627 22 728 2. Monroe Capital LLC Fee $3,451,615 Jeff Cupples 311 South Wacker Drive Suite 6400 Chicago, IL 60606 Tel: 312-523-2385 Fax: 312-258-8350 Email: jcupples@monroecap.com 3. Microsoft Corporation Trade $1,808,548 Edgar I. Blanco PO Box 842103 Dallas, TX 75284 Phone: 469-775-0391 Email: edgarblanco@microsoft.com 4. Exitus Capital Sapi De Debt $1,580,000 CV Sofom ENR Jacobo Montoya Carretera Mexico- Toluca Numero 5420 Piso 8 Colonia El Yaqui Cuajimalpa De Morelos CDMX 05320 Mexico Tel: 55-41709910 Fax: 55-36490804 Email: jmontoya@exitus.com 5. Mayer Brown LLP Professional $1,524,203 Lucas Giardelli Services 230 South LaSalle St Chicago, IL 60604 Phone: 646-469-4914 Email: lgiardelli@mayerbrown.com; mgomez2@mayerbrown.com 6. Cousins Fund II Tampa III, LLC Lease $1,130,032 Jillian Tahan 3344 Peachtree Rd NE Suite 1800 Atlanta, GA 30326 Phone: 813-289-2600 Email: mdessler@cousins.com; jtahan@cousins.com 7. SAP Mexico SA De CV Trade $1,106,302 Omar Torres Av. Paseo De La Reforma 509 Piso 20 CDMX, 06500 Mexico Tel: 52 55 4588 2887 Fax: 52 (81) 8152 1701 Email: omar.tores01@sap.com; vanessa.dalmas@sap.com; eduarda.foresta@sap.com 8. Korn Ferry Professional $949,447 Max Kershner, Barbara Jordan Services N50 Suite 25000 1201 West Peachtree Atlanta, GA 55402 Phone: 404 577 7542 Email: max.kershner@kornferry.com; barbara.jordan@kornferry.com 9. Factoring Corporativo Factoring $917,592 SA De CV Sofo Agreement L Rodriquez Reforma No. 2654 Interior 1003 Reforma No. 2654 Interior 1003 Mexico City, 11950 Mexico Phone: 55 508109910 Ext 124 Email: lrodriguez@faccorp.net 10. KC Rentals S.A. De C.V. Lease $828,531 Ricardo Mendieta, Rosalba Cesareo 10 De may #47-A Tlalnepantla De Baz, 54080 Mexico Phone: 52 55 5365 Ext 421; 52 55 1525 8836 Email: rmendieta@kapali.com.mx; rcesareo@kapali.com.mx 11. AGS Group Debt $775,931 Mauricio Rioseco 907 Ranch Road 620 South, Suite 302 Lakeway, TX 78734 Email: mauricio.rioseco@rw.com.mx 12. Tennessee Department of Revenue Tax $684,561 Collection Services Division 500 Deaderick St Nashville, TN 37242 Phone: 844-729-8689 Email: revenue.collection@tn.gov; tdor.bankruptcy@tn.gov 13. Link X S.A. De C.V. Trade $680,137 Blanca Gomez, Jose Luis Chacon Jose Pages Yergo La Magdalena 104 Toluca, 50010 Mexico Phone: 52 55 7858 0472 52 55 8868 8713 Email: bigomez@linkx.mx; casegura@linkx.mx; jlchacon@linkx.mx 14. KPMG LLP Professional $566,571 Spencer Feld Services 2323 Ross Avenue Suite 1400 Dallas, TX 75201 Tel: 402-650-3441 Fax: 214-840-2297 Email: sfeld@kpmg.com; lacosta@kpmg.com 15. BDO USA, LLP Professional $490,070 TJ Nunez Services 770 Kenmoor SE Suite 300 Grand Rapids, MI 49546 Phone: 813-302-6622 Email: clewis@bdo.com; tnunez@bdo.com 16. PricewaterhouseCoopers Professional $462,368 Ivanna Nazar Services 2121 N. Pearl Street Suite 2000 Dallas, TX 75201 Phone: 31 06 41587682 Email: ivanna.nazar@pwc.com 17. Microstrategy Mexico S Trade $434,004 DE RL De CV Leticia Perez Juan Salvador Agraz 50 602 Santa Fe Cuajimalpa, 05348 Mexico Tel: 52 55 6827 8367 Fax: 52 55 4140 6112 Email: lperez@microstrategy.com 18. Anovorx Litigation $395,000 Kyle P. Truitt 1710 N Shelby Oaks Dr Suite 3 Memphis, TN 38134 Tel: 901-359-8896 Fax: 901-201-5470 Email: kyle.truitt@anovorx.com 19. Datavision Digital Trade $383,641 Norma Diaz Avenida Patriotismo 48 Miguel Hidalgo, 11800 Mexico Phone: 52(55) 5273-2903 Email: norma.diaz@datavision.com.mx 20. Banco Ve Por Mas, S.A. Trade $349,750 Javier Garcia, Sion Cherem Peseo De La Reforma 243 Piso 21 Cuauhtemoc CDMX, 06500 Mexico Phone: 52 55 7919 3828 Email: javier.garcia@simetricgi.com; sion.cherem@simetricgi.com =========== B R A Z I L =========== BRAZIL: Introduces Low-Interest Loans to Spur Innovation -------------------------------------------------------- Richard Mann at Rio Times Online reports that Brazil introduces new low-interest loans to spur tech innovation. Vice President Geraldo Alckmin announced a record-low 4% interest rate for these loans, according to Rio Times Online. The program starts in September with a US$13 billion fund, the report relays. It will support a range of tech projects. These include AI, green fuels, and digital economy efforts, the report discloses. "The goal is to energize our industries," said Alckmin, the report says. Two banks will offer these low-interest loans, adds the report. 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. Fitch Ratings upgraded on July 26, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB', from 'BB-', with a Stable Outlook. The upgrade reflects better-than-expected macroeconomic and fiscal performance amid successive shocks in recent years, proactive policies and reforms that have supported this, and Fitch's expectation that the new government will work toward further improvements. In mid-June 2023, S&P Global Ratings, revised the outlook on its long-term global scale ratings on Brazil to positive from stable. S&P affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. S&P also affirmed its 'brAAA' national scale rating, and the outlook remains stable. The transfer and convertibility assessment remains 'BB+'. The positive outlook reflects signs of greater certainty about stable fiscal and monetary policy that could benefit Brazil's still-low GDP growth prospects. Continued GDP growth plus the emerging framework for fiscal policy could result in a smaller government debt burden than expected, which could support monetary flexibility and sustain the country's net external position. 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 Inc., on August 15, 2023, upgraded Brazil's Long-Term Foreign and Local Currency - Issuer Ratings to BB from BB (low). At the same time, DBRS Morningstar confirmed Brazil's Short-term Foreign and Local Currency - Issuer Ratings at R-4. The trend on all ratings is Stable.(March 2018). BRAZIL: Surprise Economic Rebound Could Provide Boost to Argentina ------------------------------------------------------------------ Buenos Aires Times reports that judging by data from the second quarter of 2023, the Brazilian economy has consolidated growth under Luiz Inacio Lula da Silva's government. GDP grew 0.9 percent in relation to the first three months of the year and increased 3.4 per cent compared to the same period of 2022, according to Buenos Aires Times. For most large financial consultancy firms, the figure was a "surprise," the report notes. At the Tendencias consulting firm, for example, they indicated that "the index was much better than expected a few months ago" and highlighted the "important resilience" of industrial activity and the services sector, Buenos Aires Times relays. The improvement could have a knock-on effect for Argentina, especially in the weeks after September 14, when the governments of both nations and the CAF development bank will seal an agreement that will allow Argentina to import Brazilian products without requiring the immediate use of foreign currency, the report discloses. This help is arriving at a special moment, just when Argentine Economy Minister Sergio Massa, the presidential candidate for the ruling coalition, Sergio Massa, needs to show concrete improvements in the run-up to the elections, the report says. The driver behind the Brazilian recovery, according to economists from top consulting firms, was higher consumption and, consequently, increased production from industry and improved commercial sales, the report discloses. If these parameters stay as they are now, and have been for the last few months, Brazil's annual GDP would grow by at least three percent, the report notes. Already among the top seven best performing economies, Brazil's economy would thereby surpass the growth rates of the major powers: United States, Great Britain, Germany and even China, the report relays. The Brazilian labour market has also shown a recovery, with an increase in formal employment and an improvement in workers' incomes, Buenos Aires Times notes. Inflation for the year is estimated at only 5.1 percent, lower than in 2022, Buenos Aires Times relays. In this context, an increase in presidential popularity should not come as a surprise. In June, according to top pollster Datafolha, Lula's approval rating was 37 percent -- it has now climbed to 45 percent, the report notes. The implementation of the government's plans, such as partial tax relief on fuel and an increase in Bolsa Familia welfare stipends, have contributed to the change in public mood, Buenos Aires Times notes. Silvia Matos, a researcher at the Getulio Vargas Foundation, said: "If you had asked me a few months ago about the evolution of the economy, I would have said that a retraction of household consumption was on the horizon. But that is not what happened," Buenos Aires Times says. There are, however, some uncertainties, mostly related to the evolution of the global economy, which has led experts to offer a less optimistic outlook for the rest of the year, Buenos Aires Times discloses. "The second half of the year will show a slowdown," said the specialist, adding that "there may be a loss of strength due to a much more difficult international scenario, with the main countries, such as China and also those of Europe, in decline," the report relays. For Roberto Campos Neto, the president of Brazil's Central Bank and the protagonist of repeated confrontations with Lula, the data published by the Brazilian Institute of Geography and Statistics (IBGE) gives cause for celebration, the report notes. "It was a good surprise," he celebrated in front of his country's businessmen at the meeting of the Brazilian Development Forum in Washington, the report adds. 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. Fitch Ratings upgraded on July 26, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BB', from 'BB-', with a Stable Outlook. The upgrade reflects better-than-expected macroeconomic and fiscal performance amid successive shocks in recent years, proactive policies and reforms that have supported this, and Fitch's expectation that the new government will work toward further improvements. In mid-June 2023, S&P Global Ratings, revised the outlook on its long-term global scale ratings on Brazil to positive from stable. S&P affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. S&P also affirmed its 'brAAA' national scale rating, and the outlook remains stable. The transfer and convertibility assessment remains 'BB+'. The positive outlook reflects signs of greater certainty about stable fiscal and monetary policy that could benefit Brazil's still-low GDP growth prospects. Continued GDP growth plus the emerging framework for fiscal policy could result in a smaller government debt burden than expected, which could support monetary flexibility and sustain the country's net external position. 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 Inc., on August 15, 2023, upgraded Brazil's Long-Term Foreign and Local Currency - Issuer Ratings to BB from BB (low). At the same time, DBRS Morningstar confirmed Brazil's Short-term Foreign and Local Currency - Issuer Ratings at R-4. The trend on all ratings is Stable.(March 2018). =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Agricultural Losses Over 1BB Pesos After Storm ------------------------------------------------------------------ Dominican Today reports that the Minister of Agriculture, Limber Cruz, stated that the aftermath of the Franklin storm caused greater damage as it moved away from the country, especially in the northern zone. Preliminary data suggests that crop destruction will surpass 1 billion pesos, according to Dominican Today. This unusual phenomenon, characterized as "atypical," brought heavy rainfall from its remnants, flooding rice and banana plantations and leading to rivers overflowing in areas with minimal previous rainfall during its passage through the Dominican Republic, the report notes. Additionally, a tornado formed in La Vega due to sudden temperature changes, resulting in significant consequences for banana plantations and poultry farms in communities like Arroyo Hondo de Cutupu, El Quemado, Los Nunez, Los Pilarte, and Bonagua. The total losses from this event are still being assessed, the report relays. In Constanza and Jima, the overflow of the Tireo and Bajo Yuna rivers inundated horticultural and rice fields, respectively, the report says. Municipalities like Moca and Nagua also reported agricultural damage during the storm. The Minister of Agriculture mentioned that nine towns have been confirmed to be affected so far, the report discloses. The head of the agricultural department stated that initial estimates indicate agricultural losses from the Franklin storm amount to 519 million pesos in the province of Azua and the towns of Yamasa (Monte Plata) and Hacienda Estrella (Santo Domingo Norte), the report notes. However, he expects this figure to surpass 1 billion pesos due to the events of the past two days, the report relays. A meeting at the Ministry of Agriculture is scheduled to conduct more precise evaluations for accurate loss estimation, the report notes. Quantifying the losses is challenging due to damaged roads and inaccessible areas caused by the storm, the report says. To mitigate losses, the Price Stabilization Institute (Inespre) purchased over a million bananas from producers in Azua, aiming to prevent further waste and support producers, the report discloses. Both organic and conventional bananas will be sold at 1 peso each in Inespre's programs, the report says. The director of Inespre also mentioned the delivery of more than 2,000 food rations to storm-affected areas, the report notes. Inespre will continue inspecting other parts of the country that require assistance,’ 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 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. On August 14, 2023, the TCR-LA reported that Moody's Investors Service has changed the outlook on the Government of Dominican Republic's ratings to positive from stable and affirmed the local and foreign-currency long-term issuer and senior unsecured ratings at Ba3. Moody's said the key drivers for the outlook change to positive are: (i) sustained high growth rates have enhanced the scale and wealthclevels of the economy; and (ii) a material decline in the government debt burden coupled with improved fiscal policy effectiveness will support medium-term debt sustainability The affirmation of the Ba3 ratings balances the Dominican Republic's strong economic growth dynamics and relatively contained susceptibility to event risks, with a comparatively weaker fiscal position, reflecting long-standing credit challenges which include: (i) a shallow revenue base compared to peers, (ii) weak debt affordability metrics, and (iii) high exposure to foreign currency borrowing. S&P Global Ratings, in December 2022, raised its long-term foreign and local currency sovereign credit ratings on the Dominican Republic to 'BB' from 'BB-'. The outlook on the long-term ratings is stable. S&P affirmed its 'B' short-term sovereign credit ratings. S&P also revised its transfer and convertibility (T&C) assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12-18 months that will likely stabilize the government's debt burden. In February 2023, S&P said its BB ratings reflect the country's fast-growing and resilient economy. It also incorporates the country's historical political and social challenges in passing structural reforms to contain fiscal deficits, despite recent improvements in the electricity sector. The ratings are constrained by relatively high debt, a hefty interest burden, and limited monetary policy flexibility. Fitch Ratings, in December 2022, affirmed the Dominican Republic's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Rating Outlook. DOMINICAN REPUBLIC: Economy Slows Down in 1H 2023, Growth at 1.2% ----------------------------------------------------------------- Dominican Today reports that the Dominican Republic witnessed a deceleration in its economic activity during the initial half of 2023, achieving a mere cumulative growth rate of 1.2%. This percentage marks a significant drop from the average of 5.6% recorded during the corresponding period last year, according to Dominican Today. In the month of June, the Year-on-Year Monthly Indicator of Economic Activity (IMAE) barely registered a 0.1% increase, the report notes. Despite this, the government remains optimistic about the near future, attributing the anticipated economic upturn to the Central Bank of the Dominican Republic's implementation of monetary stimulus measures and increased public investment, the report relays. However, global uncertainties are heightened by the decisions of the United States Federal Reserve regarding its interest rates, the report discloses. Jerome Powell, the president of the Federal Reserve, stated that the central bank will persist with higher rates until inflation is effectively controlled, the report says. Nonetheless, he hinted at the possibility of halting the rate hikes in the future, the report relays. "We are prepared to continue raising rates as needed and intend to maintain a stringent policy until we are confident in the sustained decline of inflation towards our target," Powell mentioned during a central bankers' annual meeting, the report discloses. In July, following a pause in June, the Federal Reserve resumed its interest rate hikes by raising them by 0.25 percentage points, the report relays. As a result, the rates now range between 5.25% and 5.5%, reaching their highest level since 2001, the report notes. In contrast, the Central Bank of the Dominican Republic has maintained its annual monetary policy interest rate at 7.75% for two consecutive months, the report notes. This follows a previous adjustment to 8.00% for a month and an extended period at 8.50%, all part of an effort to curb inflationary pressures, the report relays. Taking international uncertainties into account, the central bank explained this pause in the interest rate reduction cycle, the report discloses. With domestic inflation within the target range of 4.0% ± 1.0%, the bank acknowledged the influence of implemented monetary and fiscal policies, as well as reduced internal demand pressures, in its latest monetary policy announcement, the report relays. While the Dominican Republic's economy has been lauded for its dynamism and resilience, the International Monetary Fund (IMF) revised its growth projection for 2023 down to 4%, offering recommendations such as introducing a fiscal responsibility law, broadening the tax base, and reducing exemptions, the report says. Similarly, the World Bank trimmed its growth forecast for the country from 4.8% in January to 4.1% in June, the report notes. Considering these forecasts, a consensus suggests that the nation might grow by 3.9% in 2023 and 4.2% in 2024, positioning it as a standout performer in the region, the report discloses. Overall, Latin America and the Caribbean are projected to witness a growth rate of 1.6% in 2023, with a similar prediction for 2024, given the heightened uncertainties related to global macrofinancial conditions, 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 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. On August 14, 2023, the TCR-LA reported that Moody's Investors Service has changed the outlook on the Government of Dominican Republic's ratings to positive from stable and affirmed the local and foreign-currency long-term issuer and senior unsecured ratings at Ba3. Moody's said the key drivers for the outlook change to positive are: (i) sustained high growth rates have enhanced the scale and wealthclevels of the economy; and (ii) a material decline in the government debt burden coupled with improved fiscal policy effectiveness will support medium-term debt sustainability The affirmation of the Ba3 ratings balances the Dominican Republic's strong economic growth dynamics and relatively contained susceptibility to event risks, with a comparatively weaker fiscal position, reflecting long-standing credit challenges which include: (i) a shallow revenue base compared to peers, (ii) weak debt affordability metrics, and (iii) high exposure to foreign currency borrowing. S&P Global Ratings, in December 2022, raised its long-term foreign and local currency sovereign credit ratings on the Dominican Republic to 'BB' from 'BB-'. The outlook on the long-term ratings is stable. S&P affirmed its 'B' short-term sovereign credit ratings. S&P also revised its transfer and convertibility (T&C) assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12-18 months that will likely stabilize the government's debt burden. In February 2023, S&P said its BB ratings reflect the country's fast-growing and resilient economy. It also incorporates the country's historical political and social challenges in passing structural reforms to contain fiscal deficits, despite recent improvements in the electricity sector. The ratings are constrained by relatively high debt, a hefty interest burden, and limited monetary policy flexibility. Fitch Ratings, in December 2022, affirmed the Dominican Republic's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Rating Outlook. ========= H A I T I ========= HAITI: IMF OKs New Staff Monitored-Program with Country ------------------------------------------------------- Management of the International Monetary Fund (IMF) approved on June 29, 2023 a Staff-Monitored Program (SMP) with Haiti which runs through March 31, 2024. The new 9-month SMP was designed by IMF staff and the Haitian authorities, keeping in mind Haiti's fragility and capacity constraints while supporting the authorities' economic policy objectives. The SMP may be extended by three additional months at the request of the authorities through June 2024. SMPs are arrangements between country authorities and the IMF to monitor the implementation of the authorities' economic program and to establish a track record of policy implementation. SMPs are not accompanied by IMF financial assistance. Haiti faces a challenging macroeconomic outlook amid a dire humanitarian crisis. The country has been hit hard by economic spillovers from Russia's invasion of Ukraine, including food price inflation that has triggered a hunger crisis. This global shock has been compounded by a highly volatile security situation in Haiti, which has heightened the economy's fragility. Despite the very challenging environment, signs of resilience have emerged. Net international reserves have been rebuilt, although from a low base; custom duties helped boost fiscal revenue by 50 percent in the first six months of the fiscal year of 2023 starting in October 2022, monetary financing of the budget has declined; and the exchange rate has recently stabilized. Efforts to further to stabilize the macroeconomic outlook should continue under the SMP, as well as reforms aimed at reducing governance vulnerabilities. Building on the satisfactory outcome of the previous SMP, which concluded in May, the new SMP should help strengthen Haiti's domestic revenues mobilization and raise taxes by supporting the implementation of the tax code. This should contribute to the continued lowering the monetary financing of the budget. The fiscal measures should also help enhance transparency and accountability in the use of public spending, continue to enhance the AML/CFT framework, and build administrative and institutional capacity in Haiti. Sustaining progress on reforms to strengthen governance is paramount to ensure inclusive growth and build the trust of the private sector and of development partners. Recent progress in reducing governance vulnerabilities is welcome and should continue to be effectively addressed. Governance and anti-corruption measures were key components of reforms under the 2022 SMP and will continue to be key in the new SMP. The authorities have acted to strengthen accountability in the use of public resources and have boosted the transparency of public procurement for emergency resources. The recent finalization of revisions to the Central Bank and to the AML/CFT legal frameworks are also critical for improving governance and transparency. The authorities have also recently made a formal request for an IMF Governance Diagnostic , which is a very welcome development and will help Haiti solidify the early improvements achieved during the recently concluded SMP. The diagnostics are designed to help inform governance and anti-corruption strategies, including sequencing of reforms. In line with the Fund Strategy for Fragile and Conflict-Affected States, IMF staff will also continue to coordinate closely with Haiti's main development partners, particularly given the critical role of development partners on capacity development and financing. ============= J A M A I C A ============= JAMAICA: IMF Board Completes Review Under PLL and RSF Arrangement ----------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) completed the first reviews of the Precautionary and Liquidity Line (PLL) and the Resilience and Sustainability Facility (RSF) arrangement. The completion of the RSF review makes available the equivalent of SDR191.45 million (about US$255 million) under the under the RSF. Access to the PLL equivalent to SDR 459.48 million (about US$611 million) is available after completion of this review. The authorities continue to treat the PLL as precautionary. Jamaica has continued to make progress in enhancing fiscal, financial, AML/CFT policy frameworks, and data adequacy, and is implementing the ambitious climate policy agenda to support economic growth. These policies are supported by the PLL and RSF arrangements, which were approved on March 1, 2023, in an amount equivalent to SDR 727.51 million (about US$968 million) or 190 percent of quota, and SDR 574.35 million (about US$764 million) or 150 percent of quota, respectively (see Press Release No. 23/57 ). Following the Executive Board's discussion, Ms. Antoinette Monsio Sayeh, Deputy Managing Director and Acting Chair of the Board, issued the following statement: "Jamaica continues to make significant progress in strengthening its policy frameworks and implementing an ambitious climate policy agenda, supported by the Precautionary and Liquidity Line (PLL) and the Resilience and Sustainability Facility (RSF) Arrangement. "Entrenched macroeconomic stability and sound policy frameworks continue to support economic growth, allowing Jamaica to navigate a complex global environment. A large primary fiscal surplus continues to support a strong downward trajectory of public debt, the financial system remains well capitalized, liquid, and stable, and inflation is converging to the midpoint of the Bank of Jamaica's target band. "Important progress has been made on the fiscal reform agenda, including the reform of the public wage structure to eliminate distortions in the salary scale and to retain skilled workers, and improvements in the fiscal policy framework. "The authorities continue their efforts to improve financial supervision and to bring the AML/CFT framework to international best practices. Moving forward, efforts should focus on demonstrating the AML/CFT framework's effectiveness in line with the action plan agreed with FATF. They also remain committed to improve data adequacy and have defined a roadmap to subscribe to the SDDS by mid-2025. "The authorities are advancing their ambitious climate policy agenda to increase resilience to climate change and green the economy. Reforms include the adoption of a disaster risk financing policy, the addition of climate requirements to the framework for private public partnerships, the approval of an electric vehicle policy and the issuance of guidelines for energy efficiency in public buildings, schools, and hospitals. "Climate-oriented reforms of the fiscal framework, incentives for investments in renewables and the greening of the financial system can foster investor confidence and catalyze private climate financing." About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. Standard & Poor's credit rating for Jamaica stands at B+ with negative outlook (April 2020). Moody's credit rating for Jamaica was last set at B2 with stable outlook (December 2019). Fitch's credit rating for Jamaica was last reported at B+ with stable outlook (April 2020). In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. JAMAICA: Strategies Put in Place to Cut Skills Gap, PIOJ Says ------------------------------------------------------------- RJR News reports that the Planning Institute of Jamaica (PIOJ) says strategies are being put in place to reduce the local skills gap. PIOJ Director General Dr. Wayne Henry says this is important to ensure Jamaica meets its growth targets, according to RJR News. "We've had discussions with partners in the Ministry of Education as well as the Ministry of Labour to speak to the supply of labor going forward to continue the sustained supply of labor in terms of ensuring the types of educational outcomes, the types of training and opportunities for improvements in skills. So it's something that we continue to watch," he admitted, the report discloses. Dr. Henry said some industries have made substantial headway, the report notes. "We've seen efforts in the business process outsourcing industry to upskill and to move persons into knowledge process outsourcing. And we've seen a number of jobs growing and being created in that space. We've seen efforts to train workers in the tourism industry and in those spaces. And so, just broadly, these are ongoing efforts. We've been looking at efforts to identify, quantify the skills gaps and to see how we can address closing those gaps," the report relays. Over the last few years, the private sector has been lamenting the lack of available skilled workers to fill a number of posts, the report notes. This was made worse during the COVID-19 pandemic, when a number of people left the workforce, the report adds. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. Standard & Poor's credit rating for Jamaica stands at B+ with negative outlook (April 2020). Moody's credit rating for Jamaica was last set at B2 with stable outlook (December 2019). Fitch's credit rating for Jamaica was last reported at B+ with stable outlook (April 2020). In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. =============== P A R A G U A Y =============== VISION BANCO: S&P Alters Outlook to Negative, Affirms 'B' ICR ------------------------------------------------------------- S&P Global Ratings revised the outlook on Vision Banco S.A.E.C.A. to negative from stable and affirmed the 'B' issuer credit rating on the bank. S&P could revise its assessment of the bank's risk position if its asset quality doesn't recover in the upcoming quarters. During 2022 and the first half of 2023, Vision Banco's delinquency rates continued to rise because of the 2022 drought's residual effects, and to a lesser extent, by the pandemic, among other factors. In this sense, nonperforming loans (NPLs; 60-day past-due loans) rose to 7.5% of total loans at the end of July 2023 from 5.7% at the end of 2022 and 4.3% in 2021. These metrics were higher than system averages of 3.4%, 2.9%, and 2.2%, respectively. In addition, the amount of the bank's repossessed assets doubled to about 2.2% of loans as of July 2023 from the historical average of about 1%, due to the impact of one large problematic loan that should be solved in the upcoming months. The loan-loss reserve coverage dropped to 76% at the end of June 2023 from 118% at the end of 2022 (including 100% of repossessed assets). Although metrics should improve slightly in the second half of the year given the resumption in lending growth because seasonal cycles (with more credit demand from the agricultural segment) and resolution of larger cases, S&P will continue to monitor asset quality, as it believes that there are other variables that could exert pressure on asset quality and single-name loan concentrations. More recently, within the entity's overall portfolio risk limits, Vision Banco started increasing lending to larger entities. Even though many of these loans are to existing clients and part of them are covered with guarantees, S&P will monitor the effect of the change in the portfolio mix and the bank's management of lending exposures. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *