/raid1/www/Hosts/bankrupt/TCRLA_Public/240719.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
Friday, July 19, 2024, Vol. 25, No. 145
Headlines
A R G E N T I N A
ARGENTINA: To Buy $1.5BB from Central Bank to Pay Bond Interest
B A H A M A S
FTX GROUP: Class Action Attys. Can't Stop Chapter 11 Plan Vote
FTX GROUP: Customers to Vote on Repayment Plan
B R A Z I L
BANCO DE BRASILIA: S&P Lowers Long-Term Issuer Credit Rating to 'B'
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Minister of Economy Meets with IMF
[*] DOMINICAN REPUBLIC: DGII Introduces Tax Scoring Tool
J A M A I C A
[*] JAMAICA: To Get USD16.3M Payout Following Hurricane Beryl
P U E R T O R I C O
DESARROLLOS GJOM: Hires Charles A. Cuprill P.S.C. as Counsel
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: To Buy $1.5BB from Central Bank to Pay Bond Interest
---------------------------------------------------------------
Reuters reports that Argentina's economy ministry said it will
purchase just over $1.5 billion from the central bank to pay the
total interest on the country's "Globales" and "Bonares" bonds due
in January 2025.
The operation will use part of the financial surplus achieved in
the first half of the year, which had accumulated to 2.3 trillion
Argentine pesos ($2.5 billion) by May, the ministry said in a
statement, according to the report.
The ministry added that $1.528 billion will be deposited in an
account at trustee Bank of New York and will be available only to
be used for paying the interest on the bonds, the report adds.
The announcement came a day after the government of libertarian
President Javier Milei outlined a plan to stop expanding the
monetary base in order to combat annual inflation close to 300%,
Reuters relays.
According to the report, the bank's reserve accumulation is key to
restoring economic and financial stability after years of crisis,
and pivotal to the government being able to follow through with its
pledge to undo tough currency controls that stymie business and
trade.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez 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.
The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.
S&P Global Ratings, on March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating.
The outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.
The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).
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.
=============
B A H A M A S
=============
FTX GROUP: Class Action Attys. Can't Stop Chapter 11 Plan Vote
--------------------------------------------------------------
Becky Yerak of The Wall Street Journal reports that FTX bankruptcy
lawyers won a fight against class-action attorneys who are battling
the defunct crypto company over the rights to distribute a
$1.2 billion pot of forfeited funds, with a bankruptcy judge
agreeing they aren't creditors and lack standing to object to
FTX's chapter 11 voting process.
The fallout from the collapse of the crypto exchange in late 2022
has included bankruptcy in Wilmington, Del., criminal charges in
New York and consolidated civil lawsuits, known as multidistrict
litigation, or MDL, in Miami. FTX bankruptcy lawyers are now
fighting with MDL lawyers whom the company has accused of trying to
divert $1.2 billion in assets that are part of a forfeiture in a
U.S. Justice Department proceeding so they can pocket up to $400
million in legal fees. Those funds could otherwise go to creditors
in the bankruptcy, according to FTX.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. Bankman-Fried agreed to
step aside, and restructuring vet John J. Ray III was quickly
named new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
FTX GROUP: Customers to Vote on Repayment Plan
----------------------------------------------
Jonathan Randles of Bloomberg News reports that FTX customers will
be asked in the coming weeks to vote on the
failed crypto exchange's multi billion dollar plan for compensating
victims whose assets have been locked on the platform since it
collapsed.
Judge John Dorsey said he'll authorize FTX bankruptcy advisers to
begin soliciting creditor votes on a sweeping Chapter 11 plan to
repay customers and resolve billions of dollars in government
penalties related to the fraud-fueled implosion of Sam
Bankman-Fried's crypto business, notes Bloomberg News.
The decision represents a major milestone in resolving the nearly
two-year-old bankruptcy, adds the report.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to
sell itself to its giant rival Binance, but Binance walked away
from the deal amid reports on FTX regarding mishandled customer
funds and alleged US agency investigations. Bankman-Fried agreed to
step aside, and restructuring vet John J. Ray III was quickly named
new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
billion in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
===========
B R A Z I L
===========
BANCO DE BRASILIA: S&P Lowers Long-Term Issuer Credit Rating to 'B'
-------------------------------------------------------------------
S&P Global Ratings lowered its global scale long-term issuer credit
rating on BRB - Banco de Brasilia S.A. to 'B' from 'B+'. At the
same time, S&P lowered its long- and short-term national scale
ratings on BRB to 'brA+/brA-1' from 'brAA-/brA-1+'. At the same
time, S&P affirmed its 'B' short-term issuer credit rating. The
outlook on the global and national scale ratings is now stable.
On July 12, 2024, BRB announced that its private capital raise will
total R$294 million, considerably lower than expected. The capital
raise is still subject to regulatory approval. In addition, BRB
recently announced that it will sell 49.9% of Financeira BRB, one
of its subsidiaries, to private partners at a price almost twice
its book value. While these measures should bring capital relief
for the upcoming months, S&P believes this will be temporary, and
that its capitalization ratios will tighten for the remainder of
this year and in 2025. This expectation incorporates BRB's
expansion plans, sluggish profitability prospects, and its recent
track record of aggressive capital management.
In 2023, BRB sold R$2.2 billion of its portfolio of payroll loans
to third parties at premium. This helped the bank to generate
pretax profits and reduce the capital use last year. However, BRB's
recurring profit has been low in recent years due to margin
compression and hefty noninterest expenses. BRB's return on average
equity (ROAE) for 2023 was about 8%, the lowest level since 2015.
In the first quarter of 2024, the bank reported net losses of R$39
million, according to data from the central bank of Brazil. Between
2016 and 2020, BRB's ROAE had averaged almost 22%.
S&P said, "We forecast that BRB's RAC ratio will be between 4% and
5% in the next 12 months, below the industry average of 6%. Between
2019 and 2022, BRB's RAC ratio was between 5% and 6%. Our view of
the bank's capital and earnings is based on our forecast RAC ratio,
which considers some recovery in profits for the entire 2024, but
also continued credit expansion that would deplete the extra
capital recently announced." Our projection considers the following
assumptions:
-- Brazil's GDP growth of 2.0% in 2024 and 2025.
-- Loan book growing 8%-12% in the next few years, including the
bank's continued portfolio sales.
-- Net interest margins in line with those in recent years.
-- Noninterest income growing in line with inflation.
-- Nonperforming loans at 3.0%-3.5% in 2024 and 2025, slightly
above those in recent years.
-- ROAE of 2%-6% in 2024 and 6%-10% in 2025.
-- Capital injection of R$294 million in 2024 and the sale of
49.9% of Financeira BRB.
-- The dividend payment of 25% of net income.
While its Basel ratio has remained above 14%, the Tier 1 and core
capital ratios have remained relatively close to minimum regulatory
levels. Between September 2022 and March 2024, the Tier 1 ratio was
9.0%-9.5%, close to the minimum of 8.5%. Moreover, in the same
period, the core capital ratio was 7.5%-8.0%, just above the
minimum of 7.0%. In turn, BRB's RAC, which is our own measure of
the bank's capitalization, was 4.2% as of December 2023,
significantly lower than the industry average of almost 6%.
The bank continues to benefit from a relatively diversified and
stable funding structure compared with those of other midsize banks
in the country. This supports BRB's funding stability even in
difficult times, such as during the Operation Circus Maximus
corruption investigation. Also, BRB's broad liquid assets remained
solid as of December 2023, comfortably covering its short-term
wholesale funding.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Minister of Economy Meets with IMF
------------------------------------------------------
Dominican Today reports that the Minister of Economy, Planning and
Development, Pavel Isa Contreras, met with the International
Monetary Fund (IMF) mission visiting the country within the
framework of the Article IV consultation for 2024. In this
meeting, the Dominican economy's recent performance, medium - and
long-term prospects, management of public investment, and progress
on the climate agenda were discussed, according to Dominican
Today.
The minister indicated that the Dominican economy would grow by
close to 5% by the end of 2024, given the recovery of exports and
favorable financial conditions, the report notes. However, he
mentioned the external risks posed by the United States Federal
Reserve’s stance and global financial conditions, the report
relays.
Isa Contreras also highlighted the good performance of the
construction and tourism sectors and recognized the challenges
facing the country in the long term, such as promoting educational
quality through the improvement of programs aimed at both
pre-university and technical-vocational education, the report
discloses.
He also highlighted the critical initiative to promote the
transformation of productive sectors through the "RD 2036 Goal"
plan, which seeks to prioritize specific programs and projects that
will give more excellent traction to achieving the National
Development Strategy, the report says. He also commented on the
progress made to boost the semiconductor industry and the strategy
of positioning the country as a critical destination for this
industry, the report relays.
He said that the country could benefit from "nearshoring," that is,
the relocation of industrial production to territories closer to
the company’s headquarters, especially if it considers the
proximity of the Dominican Republic to the United States, the
report says. He also mentioned that the country has made
significant advances in logistics, 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.
[*] DOMINICAN REPUBLIC: DGII Introduces Tax Scoring Tool
--------------------------------------------------------
Dominican Today reports that the General Directorate of Internal
Revenue (DGII) has unveiled the Tax Scoring tool, a new rating
system designed to assess taxpayers' compliance with their tax
obligations. This technological advancement allows taxpayers to
monitor their tax status and compliance history, aiding in
financial planning, access to credit, and fostering better
relations with tax authorities, according to Dominican Today.
Luis Valdez Veras, Director General of DGII, highlighted the tool's
introduction as a pioneering initiative in Latin America, alongside
Brazil and Colombia, the report notes. The system assigns a star
rating to indicate compliance levels, promoting transparency and
confidence between taxpayers and tax authorities, the report
relays. It also aims to expedite administrative processes, enhance
corporate reputation, and cultivate a culture of tax compliance,
the report says.
Valdez Veras clarified that a higher star rating signifies full
compliance with formal obligations, while fewer stars indicate
pending obligations such as filing forms or making payments, the
report discloses. Initially available to large taxpayers,
representing 75% of DGII’s collection, the tool will gradually
extend to all taxpayers, the report notes. However, Valdez Veras
emphasized that the rating does not exempt taxpayers from audits or
investigations by DGII to verify declaration accuracy, the report
discloses.
Alongside the Tax Scoring tool, DGII announced the launch of the
Compilation of Technical Consultations 2006-2023, the report
relays. This compilation consolidates 5,163 queries from taxpayers
regarding tax application across various activities, the report
notes. Predominantly, queries concern the tax on transfers of
industrialized goods and services (ITBIS) and income tax (ISR),
categorized under General Standards and legal provisions, the
report says.
The compilation aims to provide comprehensive guidance to
taxpayers, ensuring clarity and consistency in tax application
across different sectors and activities, 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.
=============
J A M A I C A
=============
[*] JAMAICA: To Get USD16.3M Payout Following Hurricane Beryl
-------------------------------------------------------------
Trinidad Express reports that the Jamaica government said its
tropical cyclone policy with the Caribbean Catastrophe Risk
Insurance Facility (CCRIF) has triggered a payment following the
passage of Hurricane Beryl.
Finance and Public Service Minister Dr Nigel Clarke said the
government received a Preliminary Modelled Loss and Policy Payment
Report from the CCRIF, indicating that a payment of approximately
US$16.3 million or J$2.5 billion would be made, according to
Trinidad Express.
He said this policy represents the fourth level in the government's
multi-layered disaster risk financing framework, the report notes.
Jamaica has strategically put in place a multi-layered set of
financial instruments to pre-finance the emergency response to and
recovery costs of natural disasters, the report relays.
Clarke said that while it is neither expected nor designed that all
storms will trigger all instruments, the idea is that Jamaica
should always be able to access resources from some instruments for
every severe weather event, the report relates.
Clarke said the Jamaica government had initiated the process to
access funds under a Contingent Credit Claim with the
Inter-American Development Bank (IDB), the report discloses. The
government also has a J$140 billion Precautionary and Liquidity
Line (PLL) with the International Monetary Fund (IMF), the report
relays.
The PLL is intended for countries with strong fundamentals and can
be drawn down in the event of liquidity challenges emerging from
natural disasters or economic shocks, the report notes.
Clarke said that, however, "at the current time, this facility is
unlikely to be drawn [by the government]" and in the coming weeks,
will provide further updates on the status of additional disaster
risk financing that is available, the report discloses.
In 2023, the government facilitated public consultations on the
National Natural Disaster Risk Financing Policy (NNDRFP) that is
intended to assist in improving Jamaica’s resilience in handling
the aftermath of disasters and adequately planning and preparing,
financially, for these events, the report relays.
It provides for pre- and post-disaster measures, and focuses
primarily on planning for and ensuring adequate financial capacity
to address fallouts, 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.
=====================
P U E R T O R I C O
=====================
DESARROLLOS GJOM: Hires Charles A. Cuprill P.S.C. as Counsel
------------------------------------------------------------
Desarrollos Gjom Inc. seeks approval from the U.S. Bankruptcy Court
for the District of Puerto Rico to employ Charles A. Cuprill,
P.S.C., Law Offices as counsel to handle its Chapter 11 bankruptcy
case.
The firm will be paid at these rates:
Charles A. Cuprill-Hernandez, Esq. $350 per hour
Paralegal $85 per hour
The firm received a retainer in the amount of $25,000.
As disclosed in court filings, Charles A. Cuprill, P.S.C. is a
"disinterested person" within the meaning of Section 101(14) of
the
Bankruptcy Code.
The firm can be reached through:
Charles A. Cuprill, Esq.
Charles A. Cuprill, P.S.C., Law Offices
356 Fortaleza Street 2nd Floor
San Juan, PR 00901
Tel: (787) 977-0515
Email: ccuprill@cuprill.com
About Desarrollos Gjom Inc.
The Debtor is a merchant wholesaler of motor vehicle and motor
vehicle parts and supplies.
Desarrollos Gjom, Inc. in Mayaguez, PR, filed its voluntary
petition for Chapter 11 protection (Bankr. D.P.R. Case No.
24-02687) on June 27, 2024, listing $1,680,587 in assets and
$708,897 in liabilities. Gustavo E. Guilbe Ortiz, president, signed
the petition.
Charles A Cuprill Law Offices PSC serve as the Debtor's legal
counsel.
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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
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