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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

          Tuesday, May 28, 2024, Vol. 25, No. 107

                           Headlines



B A R B A D O S

BARBADOS: To Receive More IMF Support


B R A Z I L

BRAZIL: April Deficit Hits Four-Year High


C H I L E

[*] CHILE: Economy Posts Fastest Growth Since 2021


C O L O M B I A

ECOPETROL SA: Moody's Lowers Issuer & Sr. Unsecured Ratings to Ba1
SIERRACOL ENERGY: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Sanctions Firms for Illegal Extraction


J A M A I C A

JAMAICA: BOJ Frustrated at Lack of Competition in Banking Sector
NCB FINANCIAL: Extends Deadline for APO


P E R U

PERU: Exits the Flexible Credit Line Arrangement with the IMF

                           - - - - -


===============
B A R B A D O S
===============

BARBADOS: To Receive More IMF Support
-------------------------------------
RJR News reports that a delegation from the International Monetary
Fund (IMF) ended a nine-day visit to Barbados, reaching a
staff-level agreement with Bridgetown on the completion of the
third review of the Extended Fund Facility and the Resilience and
Sustainability Facility arrangement.

The IMF's executive board is expected to consider both reviews in
June, according to RJR News.

The Washington-based financial institution said Barbados' economy
has recovered to pre-pandemic levels, with 12 consecutive quarters
of growth, driven by a rebound in tourism and related sectors, the
report notes.

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings, on Oct. 26, 2023, revised its outlook on Barbados
to positive from stable. S&P also affirmed its 'B-' long-and 'B'
short-term foreign and local currency sovereign credit ratings. The
transfer and convertibility assessment remains 'B-'.




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

BRAZIL: April Deficit Hits Four-Year High
-----------------------------------------
Richard Mann at Rio Times Online reports that April proved
challenging for Brazil's economy, which saw a significant current
account deficit of $2.516 billion.

This figure, announced by Brazil's Central Bank, was the highest
for April since 2019, according to Rio Times Online.

Despite robust trade surpluses, other economic areas lagged,
amplifying concerns over the country's financial health, the report
notes.

April's trade figures were a bright spot, showcasing a $6.798
billion surplus, the report relays.

Unfortunately, this was overshadowed by significant deficits in
services ($3.985 billion), primary income ($5.482 billion), and the
financial account ($3.128 billion), the report discloses.

Consequently, the first four months of the year culminated in a
$17.310 billion deficit, the report says.

Zooming out, the cumulative 12-month deficit reached $35.271
billion, about 1.57% of Brazil's GDP, the report notes.

Rio Times Online relays that the Central Bank's forecast isn't too
optimistic either, predicting a $48 billion deficit for 2024.

This projection underlines potential challenges in sustaining
economic growth and maintaining financial stability, the report
discloses.

Investments from abroad painted a mixed picture, the report relays.
April saw $3.867 billion entering Brazil, a slight increase from
last year but below March's impressive $9.591 billion, the report
notes.

This figure also fell short of the $4.65 billion expected by
analysts, the report relays.

Despite these fluctuations, the year-to-date direct investments
totaled a promising $27.211 billion, the report notes.

However, not all news was positive.  The profits and dividends
sector registered a $3.732 billion deficit, slightly up from last
year, the report says.

Additionally, Brazil paid more in external interest ($1.778
billion) compared to last April, the report relays.

                    Why Does it Matter?

Brazil's current account deficit is crucial as it signals economic
health and influences the national currency's value, the report
notes.

A large deficit can deter foreign investment and prompt
governmental policy changes, the report says.

Economic instability resulting from sustained deficits may impact
employment and public services, affecting everyday life, the report
relays.

Monitoring and addressing this deficit is essential for Brazil's
economic stability and growth, highlighting its national
significance, 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.

S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. The outlook on the
long-term ratings is stable. S&P affirmed Brazil's global scale
short-term ratings at 'B' and its national scale long-term rating
at 'brAAA'. S&P also raised the transfer and convertibility
assessment on the country to 'BBB-' from 'BB+'. S&P said, "The
stable outlook reflects our expectation that Brazil will maintain
A strong external position, thanks to strong commodity output and
limited external financing needs. We also believe Brazil's
institutional framework can sustain stable and pragmatic
policymaking based on extensive checks and balances across the
executive, legislative, and judicial branches of government. We
expect a very gradual fiscal correction but anticipate fiscal
deficits will remain large."

Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. Fitch said Brazil's ratings are supported by its large and
diverse economy, high per-capita income, and deep domestic markets
and a large cash cushion that support the sovereign's financing
flexibility and its high local-currency debt share. Strong external
finances support resilience to shocks, underpinned by a flexible
exchange rate, robust international reserves and a sovereign net
external creditor position. The ratings are constrained by weak
economic growth potential, relatively low governance scores, high
and rising government debt/GDP, and budgetary rigidities. A new
fiscal framework introduced this year aims to anchor a gradual
consolidation process and address these fiscal weaknesses, but its
effectiveness is increasingly unclear.

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).




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C H I L E
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[*] CHILE: Economy Posts Fastest Growth Since 2021
--------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Chile's
economy recorded the fastest quarterly growth since 2021, when
government stimulus fueled domestic demand during the pandemic, as
both mining output and consumption increased while slowing
inflation and falling interest rates provided much-needed relief.

Gross domestic product rose 1.9% in the first quarter compared with
the prior three months, a tad less than the 2% median forecast from
analysts in a Bloomberg survey, the report notes.

From a year ago, the economy expanded 2.3%, the central bank
reported, according to globalinsolvency.com.

The report comes days after Chile's government raised its 2024
growth estimate to 2.7% on stronger-than-expected data across
sectors and surging prices of copper, the nation's top export,
globalinsolvency.com relays.  The central bank is also supporting
activity with its nearly yearlong monetary easing cycle, and will
likely cut interest rates again on May 23, the report relays.
Still, some sectors such as construction are lagging, and the labor
market remains weak, the report adds.




===============
C O L O M B I A
===============

ECOPETROL SA: Moody's Lowers Issuer & Sr. Unsecured Ratings to Ba1
------------------------------------------------------------------
Moody's Ratings downgraded Ecopetrol S.A.'s Baseline Credit
Assessment (BCA) to b1 from ba3, which reflects its standalone
credit strength. At the same time, Moody's downgraded Ecopetrol's
long term issuer rating and senior unsecured ratings to Ba1 from
Baa3 and changed the outlook to stable from negative.  

RATINGS RATIONALE

The downgrade of Ecopetrol's BCA (a measure of the company's
intrinsic credit risk without support considerations) to b1 from
ba3 and the ratings downgrade to Ba1 from Baa3 reflect a shift in
the company's financial policy as leverage has risen concurrently
with the ongoing distributions of dividends and the coming
implementation of an ambitious capital investment strategy spanning
the next three years, which could erode the company's liquidity
position or lead to higher indebtedness. The downgrade also
reflects the negative free cash flow posted in 2023 and Moody's
expectations that Ecopetrol will continue to register negative free
cash flows by 2025.

Ecopetrol has been increasing debt levels in order to finance its
expansion, including the acquisition of Interconexion Electrica
S.A. E.S.P.'s (ISA, Baa2 stable). However, Moody's acknowledges
that capital investments have not resulted in a similar increase of
the company's EBITDA. Debt increased at a compound annual growth
rate (CAGR) of 22% during the 2019-2023 period, while EBITDA has
only grown at an 11% CAGR. Increasing debt has also led to a lower
interest coverage of 8.3x in 2023 compared to the 12.6x of 2022.
Given that Moody's expects Ecopetrol to continue funding its
ambitious capital spending plan through debt and due to the high
interest rates environment, interest coverage will further decline
to 7.3x, on average, for 2024 and 2025. Moody's also recognizes
that a number of Ecopetrol's planned projects, particularly those
involving natural gas, carry increased execution risk due to their
location in deep-water offshore environments.

The downgrade also takes into account that Ecopetrol has been
distributing a higher share of dividends compared to its current
policy of 40-60% during the last 3 years, while increasing debt
levels, demonstrating a more aggressive financial policy. The cash
outflows have been partially compensated by the Government of
Colombia's (Baa2 stable) transfers to reimburse fuel subsidies.
However, Moody's recognizes that instead of reducing debt or
strengthening the company's liquidity position, available cash has
been used for dividends.  

Ecopetrol's Ba1 ratings continue to reflect the company's status as
Colombia's leading oil and gas producer, accounting for over 60% of
the country's production and close to 100% of the supply of oil
products, as well its large power transmission business in Colombia
and other countries in Latin America. Furthermore, Moody's assumes
high probability of support from the Government of Colombia and a
moderate default dependence between the two entities; this
assessment results in a three-notch uplift of Ecopetrol's rating to
Ba1 from its b1 BCA.

Ecopetrol's liquidity position is adequate. During 2023, Ecopetrol
registered a negative free cash flow position of $3.4 billion
funded through a $3.8 billion increase of debt given its record
capex investments. The company's cash position as of December 2023
equaled $3.6 billion. Moody's expects that in 2024 the company's
cash generation along with the Government of Colombia's transfer to
compensate fuel subsidies will be enough to cover mandatory cash
obligations plus annual capital expenditures of about $6 billion,
as per management's guidance, and dividends. However, Moody's
expects that liquidity will be tight during the next two years per
Moody's expectation that capex will remain around $6 billion, and
if dividend distributions continues to outpace the policy range.
The rating action takes into account that while the company took an
extended time to refinance 2023 and 2024 maturities, it has already
refinanced 2025's. The next significant debt maturity is in 2026
when $2.8 billion will become due.

Moody's expects Ecopetrol's financial obligations will continue to
be supported by access to global and Colombian capital markets, and
government support. Ecopetrol's Ba1 ratings also take into
consideration the solid and relatively stable cash flow from its
power transmission company, Interconexion Electrica S.A. E.S.P.
(ISA) and its midstream subsidiary, Cenit SAS, which includes
Oleoducto Central S.A.

The stable outlook on Ecopetrol's ratings reflects Moody's view
that its credit profile will remain mostly unchanged over the next
12-18 months. The stable outlook also reflects the stable outlook
on the Government of Colombia's sovereign rating.

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

An upgrade on Ecopetrol's Ba1 ratings is unlikely over the next
12-18 months because Moody's expects the company's credit metrics
to remain relatively stable. However, if the company manages to
strengthen its financial policies and simultaneously demonstrates
ability to register recurrent positive free cash flow, reduce
financial leverage while growing production and keeping proved
reserve life at least stable, its ratings could be upgraded.
Specifically, its rating could be upgraded if the company's
Leverage Full Cycle Ratio remains at 1.5 times, which would
indicate stable finding and development costs, and retained cash
flow/net debt would have to be over 40% on a sustained basis.

A ratings downgrade could occur if there is a deterioration in
Ecopetrol's operating performance, including a significant decline
of its reserve life on a sustained basis, or increasing liquidity
risk or debt leverage from the current levels; or if retained cash
flow/net debt declines to around 20%. In addition, because
Ecopetrol's ratings benefit from implicit support from the
Government of Colombia, a negative action on the government's
rating or a change in Moody's assumptions about government support
could lead to a negative action on Ecopetrol's ratings.

Profile

Ecopetrol, 88.5% owned by the Government of Colombia, is the
largest integrated oil and gas company in the country. The company
has three business segments, namely hydrocarbons, low-emission
solutions and transmission and toll roads. Its gross production
averaged close to 730 mboed and total assets amounted $65 billion
on December 31, 2023.

ISA, headquartered in Medellin, Colombia, is an operating holding
company with businesses in the electricity transmission, toll
roads, telecommunications, and systems management sectors. The
company holds direct and indirect ownership stakes in a portfolio
of subsidiaries located in Colombia, Brazil, Peru, and Chile.      
       

The methodologies used in these ratings were Integrated Oil and Gas
published in September 2022.


SIERRACOL ENERGY: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed SierraCol Energy Limited's Long-Term
Foreign and Local Currency Issuer Default Rating (IDR) at 'B+'. The
Rating Outlook is Stable. In addition, Fitch has affirmed SierraCol
Energy Andina, LLC's Long-Term senior unsecured ratings at
'B+'/'RR4'.

SierraCol's ratings reflect its small but stable low-cost
production profile of roughly 43,000 boed in 2023, which is
balanced across its two main assets, Cano Limon and La Cira
Infantas. SierraCol has a long track record of operation in
Colombia with solid production expected to average a gross 47,000
boed through the rating horizon, and 1P reserve life to average 7.0
years. The company has a strong leverage profile, which Fitch
expects to remain at or below 2.0x through the rating horizon.

Despite strong operating metrics, the ratings remain constrained by
the company's relatively small size and the low diversification of
its oil fields.

KEY RATING DRIVERS

Small Production Profile: SierraCol's ratings are constrained by
its production size, projected to average 47,000 boed over the next
four years, relative to the rating trigger of 75,000 boed. The
company has a concentrated production profile split between its
mains assets (CLM and LCI), representing 90% of total production,
which it operates as a joint venture with Empresa Colombiana de
Petróleos S.A. (Ecopetrol, BB+/Stable).

SierraCol produces high-quality crude with 94% of production having
API gravity between 25-35. This gives it preferential treatment to
sell locally to Ecopetrol, under contracts that guarantee pricing
at a premium to the Vasconia discount.

Efficient Cost Producer: SierraCol is one of the lowest-cost
producers in Latin America. Fitch estimates the company's
half-cycle costs at USD26/boe in 2023 and full-cycle cost at
USD44/boe in 2023. Fitch uses the half-cycle cost plus the
three-year average FD&A for 1P of USD15/boe and a 15% of return on
capital invested at USD2/boe in its calculation. SierraCol's
USD76/bbl realized oil price is higher than peers due to the
quality of its crude and its low transportation cost of USD1/boe as
per its legacy contract with Ecopetrol, which compares favorably to
most peers in Latin America.

Strong Leverage Profile: Fitch projects SierraCol's total
debt/EBITDA ratio will be at or below 2.0x over the rating horizon.
Fitch does not assume material addition or decreases in debt
through the rating horizon. Fitch expects the company's debt to
proven, developed, & producing (PDP) reserves of USD11/boe and
total debt/1P of USD7.5/boe in 2024, and then decline to USD10/boe
and USD7/boe in 2026, respectively. The latter assumes an average
reserves replacement ratio of 102% for both PDP and 1P and an
average reserve life of five and seven years, respectively, as the
company deploys its 2024-2026 capex plan with an aggregate amount
close to USD582 million.

Financial Flexibility: SierraCol is fully financed and should be
able to cover all capex projects with internal cash flows. Under
Fitch's price deck and production assumptions, cash flow from
operations (CFO) should cover capex by more than 1.5x over the next
four years. As of March 2024, the company's liquidity was adequate
with cash and cash equivalents of USD111 million plus USD111
million in undrawn amounts from committed credit lines. The
company's major debt maturity is its USD600 million bond which
matures in June 2028.

The rating case is assuming dividends will be paid each year to its
controlling shareholder, the Carlyle Group. However, Fitch does not
expect dividends to materially exceed FCF.

DERIVATION SUMMARY

SierraCol's credit and business profile is comparable with other
small independent oil producers in Colombia. GeoPark Limited
(B+/Negative), Frontera Energy Corporation (B/Stable), and Gran
Tierra Energy Inc. (B/Stable) are all constrained to the 'B'
category or below, given the inherent operational risk associated
with small scale and low diversification of their oil and gas
production.

SierraCol's production profile compares favorably with other 'B'
rated oil exploration and production companies operating in
Colombia. SierraCol's gross production averaged 43,000 boed in
2023, higher than Geopark's 37,000 boed, Gran Tierra's 32,600 boed,
and Frontera's 41,000 boed. SierraCol's 1P reserve life of 7.0
years in 2023 is below Frontera's 7.3 years and Gran Tierra's 7.6
years.

SierraCol's strong capital structure is expected to have a gross
leverage that will be at or below 2.0x over the rated horizon and
debt/PDP of USD11/boe and total debt/1P of USD7/boe, which is lower
than most peers in Latin America.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include

- Fitch's price deck for Brent of $80 for 2024, $70 for 2025, and
$65 for 2026 and 2027;

- Average daily gross production of 47,000 boed from 2024 through
2027;

- Reserve replacement ratio of 102% per annum over the rated
horizon;

- Lifting and transportation cost average of $16boe over the rated
horizon;

- SG&A cost average of $3.1boe over the rated horizon;

- Hedging cost average of $0.5boe over the rated horizon;

- Consolidated capex of $582 million from 2024 through 2026
averaging $194 million per year;

- Minimum cash balance assumed at $100 million over the rated
horizon;

- Effective tax rate of 45% over the rated horizon.

RECOVERY ANALYSIS

The recovery analysis assumes that SierraCol would be a going
concern (GC) in bankruptcy and that it would be reorganized rather
than liquidated.

GC Approach:

- A 10% administrative claim.

- The GC EBITDA is estimated at USD510 million. The GC EBITDA
estimate reflects Fitch's view of a sustainable,
post-reorganization EBITDA level upon which Fitch bases the
valuation of SierraCol.

- EV multiple of 4.0x.

With these assumptions, Fitch's waterfall generated recovery
computation (WGRC) for the senior unsecured notes is in the 'RR3'
band. However, according to Fitch's Country-Specific Treatment of
Recovery Ratings Criteria, the Recovery Rating for corporate
issuers in Colombia is capped at 'RR4'. The Recovery Rating for the
senior secured notes is therefore 'RR4' with 50% recoveries in a
hypothetical event of default.

RATING SENSITIVITIES

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

- Net production rising consistently to 75,000 boed on a sustained
basis while maintaining a total debt to 1P reserves of USD5.00
barrel or below;

- Reserve life is unaffected as a result of production increases,
at approximately seven to eight years.

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

- Extraordinary dividend payments that exceed FCF and weaken
liquidity;

- Sustainable net production falls below 30,000 boed;

- Reserve life declines to below 6.0 years on a sustained basis;

- A significant deterioration of total debt/EBITDA to 3.0x or
more.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: SierraCol's cash and cash equivalents balance
as of March 2024 was USD111 million, plus USD111 million in undrawn
amounts of committed credit lines. Total available liquidity covers
interest expense of the next four years by 1.2x. Furthermore, the
company is fully financed and Fitch projects that capex will be
funded with internal cash flows with no material increases nor
reductions in total debt. SierraCol has a favorable debt maturity
profile, where USD20 million matures in the current year and its
USD600 million matures in June 2028.

ISSUER PROFILE

SierraCol Energy Limited is an independent oil producer created
after Carlyle acquired Occidental Petroleum Corporation's
operations in Colombia in December 2020. SierraCol is the third
largest oil producer in Colombia with assets in the Llanos, Middle
Magdalena, and Putumayo basins.

ESG CONSIDERATIONS

SierraCol's ESG Relevance Score for GHG Emissions & Air Quality is
'4' due to the growing importance of the continued development and
execution of the company's energy-transition strategy. This has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.

   Entity/Debt              Rating        Recovery   Prior
   -----------              ------        --------   -----
SierraCol Energy
Limited            LT IDR    B+  Affirmed            B+
                   LC LT IDR B+  Affirmed            B+

SierraCol Energy
Andina, LLC

   senior
   unsecured       LT        B+  Affirmed   RR4      B+




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

DOMINICAN REPUBLIC: Sanctions Firms for Illegal Extraction
----------------------------------------------------------
Dominican Today reports that the Ministry of Environment and
Natural Resources has initiated sanctions against two companies for
the unauthorized extraction of aggregates near approximately
345,000 KVA electrical transmission towers in the Lucas Diaz
community of Yaguate, San Cristobal.

The Vice Ministry of Soil and Water reported that its technicians
conducted an on-site investigation, revealing that the companies
Alba Sanchez and CAEI-Industrias Bisono were illegally extracting
materials, according to Dominican Today.

Operations by these companies have been halted by prosecutors from
the Specialized Prosecutor's Office for the Defense of the
Environment and Natural Resources (Proedemaren), the report notes.

The report relays that in a statement, the Ministry of Environment
disclosed that Soil and Water technicians determined that the
companies presented an operating permit issued by the ministry,
which pertained to an area located five kilometers away from the
actual extraction site where the investigation was conducted, in
collaboration with the National Environmental Protection Service
(Senpa).

"The companies must assume responsibility for the environmental
damage caused in the affected areas, and the case will be forwarded
to the Electric Transmission Company (ETED) for appropriate
action," stated the Vice Ministry of Soil and Water, the report
discloses.

The Ministry of Environment's technicians confirmed that the
unauthorized operations were compromising the protection and safety
zones associated with electrical transmission projects, 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.

TCR-LA 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 December 4, 2023, the TCR-LA reported that Fitch Ratings has
affirmed Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the Outlook to Positive
from Stable. Fitch says the Positive Outlook reflects a trend
improvement in governance, and robust growth prospects that should
lead to continued gains in per capita income.  According to Fitch,
growth has decelerated in 2023, but it expects Dominican Republic
to recover to high levels during 2024-2025. External liquidity
metrics have improved in recent years, and foreign currency share
of government debt is on a downward path.

In August 2023, Moody's Investors Service 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 wealth levels 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.




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J A M A I C A
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JAMAICA: BOJ Frustrated at Lack of Competition in Banking Sector
----------------------------------------------------------------
Jamaica Observer reports that Bank of Jamaica (BOJ) Governor
Richard Byles continues to express frustration at the lack of
competition in the banking sector and the impact that it has had on
efforts to keep inflation under control.

Byles, who was speaking at the central bank's quarterly monetary
policy press briefing, said inflation numbers could be lower than
the 5.3 per cent rate it was in April if the two dominant players
in the banking landscape — National Commercial Bank and Bank of
Nova Scotia — adjusted interest rates as the central bank would
have liked, according to Jamaica Observer.  The BOJ hiked its
policy rate from 0.5 per cent to 7 per cent between October 2021
and November 2022 and has frozen it at that level since then, with
the hope that banks would follow suit, but the two largest players
in the market have not been playing along as expected, the report
notes.

Seeing the two being reluctant to move rates on both loans and
deposits by any significant amount - that would make taking loans
more expensive and force consumers to cut back spending enough to
slow the economy and cause prices to decrease - Byles said the BOJ
could have taken further action to force the issue by continuing to
hike its policy rate, the report relays.  He, however, acknowledged
that path was not followed because of the economic and social cost
higher interest rates would have had on the average Jamaican, the
report discloses.

"Lower inflation is desirable, but is difficult to achieve in the
near term for a number of reasons.  The first is that Jamaica has a
weak monetary transmission mechanism," he added.

The monetary transmission mechanism is the process through which
the central bank uses its monetary policy, such as changing
interest rates, to impact the economy, the report relays.  It is
done by banks following the lead of the central bank to hike rates
when policy rates are increased and to lower rates when policy
rates are cut, the report notes.

"Among the primary constraints to the transmission mechanism in
Jamaica, particularly via the credit channel, is limited
competition in the banking sector," Byles said, adding that the
dominant players — the National Commercial Bank and Scotiabank
— hold high levels of low-cost saving deposits, which makes their
funding cost less sensitive to the central bank's policy actions,
the report discloses.

By way of example, the governor said that an assessment done by the
BOJ on the existing system would require the central bank to raise
interest rates to double digits to contain inflation close to 4 per
cent, but has refused to do so because if the dramatic increases in
financing costs and reduced financing opportunities that would
cause, the report relays.

"These actions would also reduce the Government's ability to
achieve the targeted reduction in the debt-to-GDP ratio by pushing
up interest costs on GOJ (Government of Jamaica) debt.  It is also
of primary importance that the targeted rate of inflation enables
nominal GDP to grow at a rate that is consistent with the country's
debt reduction strategy," Governor Byles said, the report notes.

Targeting a lower inflation rate is also hampered by low factor
productivity, Byles said, noting that a highly productive economy
produces goods and services at lower unit costs, which dampen
inflation, the report discloses.

"On the flip side, lower productivity means that goods and services
will become relatively more expensive over time, which makes it
more difficult to reduce inflation.  Finally, a significant part of
the consumer price index (CPI) — the 'basket' of goods and
services that people buy, includes goods and services for which the
prices are regulated by the Government," he added.

That includes PPV fares and utilities, the report relays.

"In this regard, large and unpredictable regulated price
adjustments complicate the job of the central bank in containing
inflation," he continued, the report discloses.

Governor Byles says the BOJ remains committed to pursuing measures
to improve the transmission mechanism to facilitate greater and
quicker pass-through of policy rate adjustments in the banking
system, the report says.

The commitment comes as the BOJ welcomed a second consecutive month
of inflation being within its target range, though it said that
June inflation could be above the 6 per cent upper band, the report
notes.  Inflation in April was 5.3 per cent, down from 5.6 per cent
in March and within the 4 per cent to 6 per cent band it is
mandated to achieve by the minister of finance, the report relays.

The BOJ has indicated that if the trend continues, it could start
cutting its policy rate later this year, 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.

In October 2023, Moody's upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B1 from B2, and
senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has
been changed to positive from stable.  The upgrade of Jamaica's
rating to B1 reflects the government's sustained commitment to
fiscal consolidation and debt reduction.  The positive outlook
reflects Moody's assessment that a continuation of the favorable
fiscal trajectory will further increase Jamaica's credit
resilience.

S&P Global Ratings raised on September 13, 2023, its long-term
foreign and local currency sovereign credit ratings on Jamaica to
'BB-' from 'B+', and affirmed its short-term foreign and local
currency sovereign credit ratings at 'B'.  The stable outlook
reflects S&P's expectation that the government will remain
committed to prudent fiscal policies and reducing debt, as well as
supportive economic policies including a flexible exchange rate
regime and effective monetary policy.  

In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.


NCB FINANCIAL: Extends Deadline for APO
---------------------------------------
RJR News reports that NCB Financial Group is extending its
Additional Public Offer (APO) by one week to ensure the broadest
participation of investors and due to requests for additional time
by potential investors.

The new deadline for the APO is now Monday, June 3, according to
RJR News.

NCB Financial Group is seeking $5 billion to $7.5 billion of fresh
capital from the market, the report notes.

The offer, which opened on May 6, brings to the market 78 million
new ordinary shares, at a cost of J$65 per share, the report
relays.

NCB has the ability to up-size to a maximum of just over 117
million shares, RJR News discloses.

The offer was to close on May 27, 2024.

NCB Financial Group says the funds will be used to reduce debt and
bolster the company's capital, the report says.

Investors can purchase shares in the APO through most brokerage
houses and are encouraged to review the prospectus and discuss the
offer with their wealth advisors, the report adds.  

NCB Financial Group Limited is a financial services conglomerate
operating in the Caribbean region and headquartered in Kingston,
Jamaica. NCB Financial Group Limited is the parent company of the
National Commercial Bank of Jamaica.

As recently reported in the Troubled Company Reporter-Latin
America, Jamaica Observer relayed that the NCB Financial Group is
yet to complete negotiations with its former president and CEO
Patrick Hylton and his deputy, Dennis Cohen, over the settlement in
relation to their separation from the company.  At the centre of
the negotiations is the size of the separation package for the two
men who served the financial conglomerate for the last two decades,
including what value the company should compensate the men for
shares they were asked to surrender in July 2021, according to
Jamaica Observer.  Both men were asked to surrender 95.1 million
shares valued at $13.8 billion at the time with the understanding
that, over time, they would recoup that value, the report noted.
Some were recouped in compensation for both men to the tune of $3.6
billion in the last financial year, the report relayed.




=======
P E R U
=======

PERU: Exits the Flexible Credit Line Arrangement with the IMF
-------------------------------------------------------------
The Peruvian authorities have notified the International Monetary
Fund (IMF) of their intention to let the current Flexible Credit
Line (FCL) arrangement, approved by the IMF's Executive Board on
May 27, 2022, expire on May 26, 2024 and not to seek a successor
FCL arrangement. This decision has been expected given the
authorities' previous intention to exit the arrangement conditional
on evolution of external risks.

Peru's initial FCL arrangement of 600 percent of quota was approved
by the IMF's Executive Board in May 2020, shortly after the
beginning of the global COVID-19 pandemic, with the objective of
providing strong signaling, additional buffers, and insurance
against external shocks in a context of heightened risks. Peru
reduced its access to 300 percent of quota in a successor
arrangement approved in May 2022 amid improved international
reserves and lower external financing needs, in line with the
authorities' strategy of gradually exiting the instrument, once
external conditions allow.[1] Over this time, Peru has treated both
arrangements under the FCL as precautionary and continued to
maintain its strong foreign exchange reserves, low public debt, and
prudent fiscal position. In May 2023, at the time of the current
FCL's midterm review, Peruvian authorities reiterated their
intention to exit the FCL conditional on the evolution of external
risks.

At the conclusion of the 2024 Article IV Consultation on May 20,
2024,[2] and against the background of reduced external risks and
ample international reserves, the IMF's Executive Board commended
the authorities for very strong economic fundamentals and
institutional policy frameworks, a sustained track record of
implementing very strong macroeconomic policies despite political
turmoil, and commitment to maintaining such policies in the future.
It also noted that maintaining very strong institutions and
policies would further strengthen and reinforce Peru's resilience
against external risks.   

The IMF's FCL instrument was established on March 24, 2009, and
further enhanced on August 30, 2010 and most recently on October 6,
2023.[3] The FCL is designed for crisis prevention and mitigation
as it provides qualifying members the flexibility to draw on the
credit line or treat it as precautionary. Disbursements are neither
phased nor conditioned on compliance with any policy targets as in
traditional IMF-supported programs. The FCL is available to
qualified countries with very strong fundamentals, institutional
policy frameworks, and track records of policy implementation. The
FCL is a renewable credit line, which could be approved for either
one or two years. There is no cap on access to Fund resources under
the FCL, and access is determined on a case-by-case basis.

Peru has been a member of the IMF since 1945 and has a quota of SDR
1,334.5 million (about US$ 1,761 million).



                           *********


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 2024.  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
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


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