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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Wednesday, January 1, 2025, Vol. 26, No. 1

                           Headlines



A R G E N T I N A

ARGENTINA: Spent US$803MM Last Week on Importer Dollar Demand


B A R B A D O S

BARBADOS: Closes Debt-For-Climate Loan, Says CIBC


B R A Z I L

BRAZIL: IDB OKs $900M Loan for MSMEs, SMEs in Brazilian Amazon


P A N A M A

PANAMA: President Rules Out Talks With Trump After Canal Threat


T R I N I D A D   A N D   T O B A G O

NATIONAL ENTERPRISES: Reports $348.7 Million Loss

                           - - - - -


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

ARGENTINA: Spent US$803MM Last Week on Importer Dollar Demand
-------------------------------------------------------------
Kevin Simauchi at Bloomberg News reports that Argentina's Central
Bank sold some US$803 million in hard-currency reserves last week
after officials rushed to meet a surge in demand from importers for
dollars ahead of a major bond payment.

The monetary authority stepped in on three straight business days
as Argentina's auto industry clamoured for the US currency to pay
suppliers abroad following President Javier Milei's move to
eliminate a key tax on imports at the start of the week, according
to Bloomberg News.

Officials sold the biggest single day amount of foreign reserves
since Oct. 2019 on Thursday, Dec. 26, according to government data,
the report notes.  The operations on Friday, Dec. 27, included an
additional $25 million in hard-currency reserves sold, Bloomberg
News says.

The Central Bank's operation at the end of last year risks denting
the government's efforts to replenish its treasure chest of
reserves, a resource necessary for Milei's team to eventually lift
the country's thicket of capital controls that's hampered
investment, Bloomberg News relays.  

Argentina also needs the funds to make a series of payments to
sovereign bondholders, which jump to some US$9 billion in 2024,
half of which comes due in some 13 days, Bloomberg News discloses.

Despite praise for Milei's reforms from Wall Street, investors have
lamented over Argentina's shortage of net foreign reserves, which
is the difference between the Central Bank's cash on hand and the
nation's debt liabilities, Bloomberg News says.  

Calculations for the exact amount of net reserves vary from
negative US$10.4 billion to US$4.6 billion in the red depending on
how various piles of money are counted, according to local
brokerage PPI, Bloomberg News notes.

The peso that trades in Argentina's parallel market, known as the
blue-chip swap, edged higher by about 0.65 percent to 1185 pesos
per dollar, Bloomberg News adds.

                          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.

In March 2022, the International Monetary Fund (IMF) approved a
new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota).  The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.

Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of
monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.

In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina.  The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.

On Nov. 15, 2024,  Fitch Ratings has upgraded Argentina's
Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC'
from 'CC', and its Long-Term Local-Currency IDR to 'CCC' from
'CCC-'.  Argentina's upgrade to 'CCC' from 'CC' reflects
developments that have improved Fitch's  confidence in the
authorities' ability to make upcoming  foreign-currency bond
payments without seeking relief of some  sort.

S&P, in March 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 S&P ratings have
been affirmed as of August 2024.  S&P said the stable outlook on
the long-term ratings balances the risks posed by pronounced
economic imbalances and other uncertainties with recent progress
in
making fiscal adjustments, reducing inflation, and undertaking
structural reforms to address long-standing microeconomic
weaknesses that have contributed to poor economic performance for
many years that it would likely consider to be distressed.

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. upgraded Argentina's Long-Term Foreign and Local
Currency
Issuer Ratings to B (low) from CCC on November 25, 2024. The
trend on all ratings is Stable.



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

BARBADOS: Closes Debt-For-Climate Loan, Says CIBC
-------------------------------------------------
Andrea Perez-Sobers at Trinidad Guardian reports that Barbados has
completed an unprecedented debt-for-climate operation to finance
water and sewage projects resilient to climate change.

In a news release, CIBC Caribbean said through support from its
international funding partners, Barbados replaced outstanding, more
expensive debt with more affordable financing, generating US$125
million in fiscal savings which will be used to enhance water
resource management and increase water and food security, according
to Trinidad Guardian.

CIBC Caribbean, as lead arranger, closed the sustainability-linked
loan transaction earlier this month, the report notes.

"The loan was backed by US$300 million in guarantees - US$150
million each from the Inter-American Development Bank (IDB) and the
European Investment Bank (EIB), the latter under the European
Union's Global Gateway Initiative.  With the support of the
guarantees, Barbados secured a long-tenor, local currency loan at
favourable conditions arranged by CIBC Caribbean, with regional
banks investing in the transaction," the release stated, the report
relays.

CIBC Caribbean noted that the debt conversion will create the
necessary fiscal space to finance upgrading the South Coast sewage
treatment plant into a modern water reclamation facility plus
several associated facilities, the report discloses.

The water reclamation facility, one of the first in the Caribbean,
it said will produce water of a suitable quality for use in
agricultural irrigation and groundwater recharge, the report notes.
The additional fiscal space also allows for investments to reduce
water losses and improve the sewer system, the report discloses.

"The reduction in marine and groundwater pollution will help
protect marine ecosystems and nearshore reefs, groundwater quality
and safeguard public health. The IDB and the Green Climate Fund
(GCF) are providing a total of US$110 million upfront funding for
the project, including a US$40 million grant from the GCF," the
release detailed, the report discloses.

It explained that Barbados, one of the world's most water-scarce
countries, faces an average per capita water availability four
times less than the global average -- a challenge set to worsen
with climate change, the report says.  It also faces a large annual
food import bill, as farmers lack water to expand crop production,
the report relays.

The buy-back will finance a new facility to boost water management,
food security and resilience, Barbados' Prime Minister Mia Mottley
said in the release, the report notes.

"In the face of the climate crisis, this groundbreaking transaction
serves as a model for vulnerable states, delivering rapid
adaptation benefits for Barbados," she added.

The report relays that CIBC Caribbean's CEO, Mark St. Hill
commenting on the completion said, "Barbados' initiative enhances
climate resilience and sets a benchmark for sustainable adaptation
for the Caribbean.  CIBC Caribbean is honoured to again collaborate
with the Government of Barbados and multilateral agencies like the
IDB and EIB in setting precedents for innovative financial
mechanisms that drive environmental stewardship in our region. This
partnership underscores our commitment to accelerating climate
action and fostering sustainable development across the
Caribbean."

As reported in the Troubled Company Reporter-Latin America on Nov.
7, 2024,  S&P Global Ratings raised its long-term local and foreign
currency sovereign credit ratings on Barbados to 'B' from 'B-', and
affirmed its 'B' short-term ratings. The transfer and
convertibility assessment is 'B'.




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

BRAZIL: IDB OKs $900M Loan for MSMEs, SMEs in Brazilian Amazon
---------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a loan for
the Brazilian Development Bank (BNDES), creating the BID-BNDES
Access to Credit Program for Micro, Small, and Medium-Sized
Enterprises (MSMEs) and Small Entrepreneurs in the Brazilian
Amazon. In addition to the $750 million in financing approved by
the IDB, the BNDES will contribute $150 million.

This initiative aims to boost sustainable, productive activities
that create jobs and income. The BNDES has prioritized this
operation and is moving forward with its internal processes for
deliberation and legislative approval in Brazil.

To achieve a broader impact on the region's sustainable
development, the program has set specific targets for the share of
resources to be earmarked for women (30%), for climate investments
in low-carbon agriculture (20%) and for borrowers in municipalities
with a Human Development Index (HDI) below the national average
(70%). The program's environmental commitment is underscored by a
zero deforestation policy and geo-referenced monitoring of land use
in beneficiary areas.

MSMEs are Brazil's main source of jobs and play a particularly
central role in the Brazilian Amazon, where 75% of the population
lives in cities and 8 million people are unemployed or work
informal jobs. However, these enterprises still have limited access
to long-term financing.

This program is thus designed to provide MSMEs with loans to fund
productive investments.

"The future of the Amazon Rainforest depends on a holistic vision
that protects the environment and offers sustainable economic
opportunities to those living there. This approach forms the core
of our Amazonia Forever program and guides the alliance with the
BNDES to benefit 16,000 MSMEs in the Brazilian Amazon," said IDB
President Ilan Goldfajn.

"This loan will expand the capacity of SMEs in the Brazilian Amazon
to invest in new means of production and sustainable practices,
both essential for driving economic development while preserving
the environment and regulating the climate, which is one of the
touchstones of President Lula's administration," added BNDES
President Aloizio Mercadante. "The investments include capital
assets like machinery, equipment, vehicles, goods and services."

Because of BNDES's experience and close relationship with Brazilian
MSMEs, it is a key partner in offering financial and non-financial
services tailored to development, and in overcoming the barriers to
accessing credit these enterprises face. The long-term financing
from the IDB will allow the BNDES to expand its lending capacity
with a multi-sector approach and indirect operations through
accredited financial agents. BNDES's indirect credit model helps
decentralize and invigorate the Brazilian banking sector and can
potentially mobilize additional private-sector resources for
program-eligible activities to these financial institutions.

The $750 million IDB loan has a 25-year repayment term, a 5.5-year
grace period and an interest rate based on the Secured Overnight
Financing Rate (SOFR).

                       About Amazonia Forever

Amazonia Forever is the IDB's holistic umbrella program that aims
at protecting biodiversity and accelerating sustainable development
in three lines of action: expanding funding, boosting knowledge
exchange, and facilitating regional coordination among the eight
Amazonian countries.   

The program is based on five pillars: (i) Combating deforestation
and strengthening environmental control and security in the context
of national governments; (ii) Bioeconomy and creative economy,
promoting alternative and sustainable economic activities; (iii)
People, aiming at adequate access to quality education, healthcare,
and employment; (iv) Sustainable cities and infrastructure and
connectivity; and (v) Sustainable, low-carbon agriculture,
livestock and forestry. In addition, the program focuses on
promoting the inclusion of women, indigenous peoples, people of
African descent and local communities; climate and forest
conservation; and strengthening institutional capacities and the
rule of law.

                          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.

In October 2024, Moody's Ratings has upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to
Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from
(P)Ba2; and maintained the positive outlook.

S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'.  Fitch Ratings
affirmed on Dec. 15, 2023, Brazil's  Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'BB'  with a Stable Outlook.  
DBRS' credit rating for Brazil was last reported at BB with
stable outlook at July 2023.




===========
P A N A M A
===========

PANAMA: President Rules Out Talks With Trump After Canal Threat
---------------------------------------------------------------
Buenos Aires Times reports that Panamanian President Jose Raul
Mulino ruled out negotiations with US president-elect Donald Trump
over control of the Panama Canal, denying that China was
interfering in its operation.

Mulino also rejected the possibility of reducing tolls for US
vessels in response to Trump's threat to demand control of the
vital waterway connecting the Atlantic and Pacific oceans be
returned to Washington, according to Buenos Aires Times.

"There's nothing to talk about," Mulino told a press conference,
the report notes. "The canal is Panamanian and belongs to
Panamanians. There's no possibility of opening any kind of
conversation around this reality, which has cost the country blood,
sweat and tears."

The canal, inaugurated in 1914, was built by the United States but
handed to Panama on December 31, 1999, under treaties signed some
two decades earlier by then-US president Jimmy Carter and
Panamanian nationalist leader Omar Torrijos, the report relays.

Trump slammed what he called "ridiculous" fees for US ships passing
through the canal and hinted at China's growing influence, the
report says.

"It was solely for Panama to manage, not China, or anyone else,"
Trump said in a post on his Truth Social platform, notes the
report. "We would and will NEVER let it fall into the wrong
hands!"

If Panama could not ensure "the secure, efficient and reliable
operation" of the channel, "then we will demand that the Panama
Canal be returned to us, in full, and without question," he said,
the report discloses.

                     'No Chinese Interference'

An estimated five percent of global maritime traffic passes through
the Panama Canal, which allows ships traveling between Asia and the
US East Coast to avoid the long, hazardous route around the
southern tip of South America, the report discloses.

The United States is its main user, accounting for 74 percent of
cargo, followed by China with 21 percent, the report says.

Mulino said the canal's usage fees were "not set at the whim of the
president or the administrator" of the interoceanic waterway, but
under a long-established "public and open process," relays Buenos
Aires Times. "There is absolutely no Chinese interference or
participation in anything to do with the Panama Canal," Mulino
added.

Trump wrote on Truth Social alleged, without evidence, that Chinese
soldiers were "lovingly, but illegally, operating the Panama
Canal," the report relays.

Mulino denied that allegation, too. "There are no Chinese soldiers
in the canal, for the love of God," he added.

Panama established diplomatic relations with China in 2017, after
breaking off ties with Taiwan -- a decision criticized by Trump's
first administration, the report notes.

Dozens of demonstrators gathered outside the US Embassy in Panama
City chanting "Trump, animal, leave the canal alone" and burning an
image of the incoming US president, the report adds.



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

NATIONAL ENTERPRISES: Reports $348.7 Million Loss
-------------------------------------------------
Andrea Perez-Sobers at Trinidad and Tobago Guardian reports that
National Enterprises Limited (NEL) reported a net loss of $348.7
million for the financial year ended September 30, 2024. 

Chair Ingrid Lashley, however, noted this reflects a 23 per cent
improvement over the prior year's net loss of $455.1 million,
according to Trinidad and Tobago Guardian.  

She said this $106.4 million variance underscores its ongoing
efforts to navigate challenging market conditions, the report
notes.  

Operating profit declined by 70 per cent to $120.4 million (fy2023:
$391.3 million) which was influenced by a reduction in dividend
income to $113.1 million (fy2023: $382.7 million), the report
relays.

Lashley explained that total assets stood at $2.7 billion, down
from $3.3 billion in fy2023, in line with fair value adjustments
across its investee companies, particularly in the energy sector,
the report discloses.

"Our non-energy investee companies delivered notably strong
performances, collectively registering a 24 per cent increase in
fair value.  Telecommunications Services of T&T Ltd and National
Flour Mills Ltd both achieved profit growth, expanded their product
and service offerings, and enhanced their market positions. The
Power Generation Company of T&T Ltd continued its consistent
trajectory, posting a 12 per cent increase in value," she added,
notes the report.

"In contrast, our energy portfolio faced ongoing pressures. The
Trinidad Nitrogen Co Ltd's fair value declined 25 per cent to $1.1
billion (from $1.46 billion), while Pan West Engineers Constructors
LLC and NGC NGL Co Ltd also recorded decreases of a similar
magnitude. These shifts reflect the volatile energy landscape,
shaped by geopolitical factors, climate-related challenges, and
ongoing constraints in local gas supply, particularly gas
curtailments," Lashley says, the report relays.




                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
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