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250827.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 Wednesday, August 27, 2025, Vol. 26, No. 171 Headlines A R G E N T I N A ARGENTINA: Economic Activity Dropped 0.7% Month-on-Month in June ARGENTINA: More Than 220,000 Formal Jobs Lost so Far in Milei Era B R A Z I L AZUL SA: Gets Approval for AerCap Deal in U.S. Court BRAZIL: U.S. Tariffs Slash $5 Bil. From Export Revenue Forecast J A M A I C A JAMAICA: BOJ Projects Low and Stable Inflation for Next Two Years P U E R T O R I C O PALMAS ATHLETIC: Taps Luis R. Carrasquillo as Financial Consultant T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Inflation Remains Unchanged at 1.5% - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economic Activity Dropped 0.7% Month-on-Month in June ---------------------------------------------------------------- Buenos Aires Times reports that economic activity in June fell 0.7 percent from the previous month, a second consecutive decline, said the INDEC national statistics bureau. By contrast, activity surged 6.4 percent year-on-year, reported the statistics agency, according to Buenos Aires Times. Compared with June 2024, 12 of the sectors included in INDEC's monthly economic activity estimator (EMAE) posted gains, with financial intermediation (28.7 percent) and wholesale, retail and repair trade (11.5 percent) standing out in particular, the report relays. Three sectors recorded year-on-year declines: fishing (down 74.6 percent); public administration, defence and compulsory social security schemes (down 0.7 percent); and other community, social and personal service activities (down 0.7 percent YoY), the report discloses. Reacting to the figures, the Centro de Estudios Políticos y Economicos (CEPEC) think tank noted that "EMAE for June shows solid year-on-year progress, although the monthly contraction signals some fragility in the short-term dynamic," the report notes. "The commerce and industry sectors are sustaining the rebound, but the sharp fall in fishing and the slowdown in public administration reveal imbalances within the economy," the consultancy firm added, the report 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 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) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ARGENTINA: More Than 220,000 Formal Jobs Lost so Far in Milei Era ----------------------------------------------------------------- Martin Fernandez Nadale at Buenos Aires Times reports that President Javier Milei's government has racked up a negative balance in the formal job market: between November 2023, the month prior to his inauguration, and May 2025, more than 220,000 recorded jobs have been lost and over 15,000 companies have disappeared. The figures come from a new report by the Centro de Economia Politica Argentina (CEPA) based on data from the SIPA (Sistema Integrado Previsional Argentino) pension fund system, according to Buenos Aires Times. The fall amounts to a 2.27-percent contraction among registered wage earners in production units, which dropped from 9,857,173 to 9,633,636 employees in only 18 months, the report notes. Job losses were concentrated in key sectors of the economy, the report relays. Public administration, defense and social security accounted for over 98,600 losses, followed by construction with 80,873, the report notes. There were also declines in transport and storage (54,935) and in manufacturing (39,016), the report discloses. The contraction of formal jobs, both private and public, did not translate into such a significant increase in the unemployment rate, however, because self-employment increased, especially monotributo taxpayers, the report says. Analysts consulted by Perfil said this reflected a "precarisation" of employment overall in Argentina, the report relays. At the Politikon Chaco consultancy firm, a slight improvement was detected in May 2025: registered employment rose 0.1 percent compared with April, equivalent to about 6,000 new jobs, the report notes. However, when compared with the start of Milei's administration, the balance remains negative: nearly 100,000 jobs have been lost in seasonally adjusted terms, the report relates. "The monthly increase in May was supported by job growth in such sectors as transport services, storage and communications (0.6 percent), electricity, gas and water (0.4 percent) and trade (0.3 percent), the report notes. Other sectors such as hotels and restaurants (0.2 percent), real estate, corporate and rental services (0.2 percent) and health social services (0.1 percent) also experienced rises," a report noted, Buenos Aires Times relays. A look at employment levels in May 2025 compared to November 2023 reveals that only three sectors recorded growth: fishing (10 percent), agriculture and cattle (3.3 percent) and trade (2.2 percent), the report notes. By contrast, the steepest declines were in mining and quarrying (down 4.4 percent) and construction (down 13.6 percent), the report discloses. On labor market dynamics, analysts at consultancy LCG argued that "the adjustment continues to come via prices (wages) rather than quantities (unemployment)." They stressed that "even though unemployment is not rising, low-quality jobs are gaining ground," analysts disclosed. "Without taking into account monotributo social taxpayers, in the last year and a half the loss of private and public payroll employees was proportional to the increase of sole traders and monotributo taxpayers," they illustrated, notes the report. In other words, the growth of self-employment partly offset the more than 220,000 formal jobs which vanished, the report says. In the near future, the consultancy anticipated a "weak and uneven growth," according to the report. In turn, they warned that real wage gains would not be sustainable due to the recent hike of the official exchange rate and its impact on prices, which will surely overtake the one-percent cap set by the government for wage-bargaining negotiations, the report relays. 15,000 Companies Gone Between November 2023 and May 2025, the number of employers with registered workers fell from 512,357 to 496,793, which translates into a drop of 15,564 firms in just 18 months, the report notes. "The transport and storage sector was the hardest hit, losing 4,094 employers" in that period, reads the CEPA report. "Other industries also suffered significant drops: real-estate services fell by 2,617, wholesale and retail trade, repair of motor vehicles and motorcycles lost 2,387 employers, professional, scientific and technical services fell by 1,783 and construction sustained a loss of 1,669 employers over the same period." Focusing on corporate downsizing, the most affected firms were those with up to 500 workers (99.69 percent). In contrast, employers with more than 500 workers accounted for only 0.31 percent (49 cases), the report relays. Larger companies downsized the most: three out of four jobs destroyed (165,625 cases) were at firms with more than 500 employees, the report discloses. Small and medium-sized enterprises absorbed the rest of the adjustment, with 57,912 fewer jobs, or 26 percent of the total loss recorded between November 2023 and May 2025, the report 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 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) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. =========== B R A Z I L =========== AZUL SA: Gets Approval for AerCap Deal in U.S. Court ---------------------------------------------------- Peter Frontini of Bloomberg Law reports that in a securities filing, the Brazilian airline said it secured court approval for multiple motions in its Chapter 11 case, including an agreement with AerCap. According to the airline, the AerCap deal will yield over US$1 billion in savings, and the approved rejection of certain fleet-related leases and contracts is expected to provide further cost reductions. About Azul S.A. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. BRAZIL: U.S. Tariffs Slash $5 Bil. From Export Revenue Forecast --------------------------------------------------------------- Iolanda Fonseca at Rio Times Online reports that Brazil's National Confederation of Industry (CNI) reported that United States tariffs of up to 50% on Brazilian goods will erase more than five billion dollars in export revenue this year. The report stated that the measure lowers the country's expected export value to 341.9 billion dollars and cuts the trade surplus by 14% to 56.6 billion dollars, according to Rio Times Online. The new tariffs affect a wide range of goods, including coffee, beef, seafood, textiles, footwear, machinery, automobiles, and aerospace products, the report notes. Coffee alone sends around 16 to 17% of its total exports to the U.S., making it highly exposed, notes the report. Machinery and industrial products also face steep duties, raising costs and lowering competitiveness for Brazilian firms, the report relays. CNI lowered its forecast for industrial growth in 2025 from two percent to 1.7 percent, citing weaker external demand and higher domestic borrowing costs, the report discloses. Brazil's overall GDP projection remains 2.3%, supported by a strong farm sector and steady job creation, the report says. Agriculture now expects a 7.9% expansion, up from the earlier estimate of 5.5%, while the services sector should grow 1.85, the report relays. The manufacturing sector, however, now faces a slowdown, with growth limited to 1.5% compared to 3.8% last year, the report discloses. CNI's economic director Mario Sergio Telles said the new U.S. trade policy places national industry at risk, the report notes. He stressed that compensatory measures announced by Brazil's government will not replace the American market for many sectors, the report relates. 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 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. ============= J A M A I C A ============= JAMAICA: BOJ Projects Low and Stable Inflation for Next Two Years ----------------------------------------------------------------- RJR News reports that governor of the Bank of Jamaica, Richard Byles, is forecasting that inflation will remain low and stable over the next two years. Mr. Byles says inflation for July 2025 as reported by the Statistical Institute of Jamaica (STATIN) stood at 3.3 per cent, lower than the figure recorded a year earlier and below the BOJ's target range of 4-6 per cent, according to RJR News. He says inflation is expected to remain low and below the target range over the coming months, but is projected to gradually return to the 4-6 per cent corridor within the next two years, the report adds. 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. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. 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. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== PALMAS ATHLETIC: Taps Luis R. Carrasquillo as Financial Consultant ------------------------------------------------------------------ Palmas Athletic Club Corp. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ CPA Luis R. Carrasquillo & CO, PSC as financial consultant. The firm will assist in the financial restructuring of the Debtor's affairs by providing advice in strategic planning and the preparation of its plan of reorganization, disclosure statement and business plan, and participating in negotiations with its creditors. The hourly rates of the firm's counsel and staff are as follows: Luis Carrasquillo, Partner $200 Ramon Villafane, External Accountant $200 Marcelo Gutierrez, Senior CPA $160 Zoraida Delgado Diaz, Senior Accountant $110 Arnaldo Morales, Senior Accountant $100 David Sanchez Diaz, Accountant $95 Enid Olmeda, Junior Accountant $85 Jean Aponte, Senuor Accountant $75 Luis Guzman, Accountant $60 Rosalie Hernandez, Administrative and Support $45 The firm received a $40,500 retainer from the Debtor. Mr. Carrasquillo disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Luis R. Carrasquillo, CPA, CIRA, CVA CPA Luis R. Carrasquillo & Co., PSC 28th Street, TI - 26 Turabo Gardens, Caguas PR 00725 Telephone: (787) 746-4555 Email: luis@cpacarrasquillo.com About Palmas Athletic Club Corp. Palmas Athletic Club Corp. owns and operates a 420-acre recreational property within Palmas Del Mar Resort in Humacao, Puerto Rico. The site includes two 18-hole golf courses, a 22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse, and related facilities. Palmas Athletic Club Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on August 4, 2025. In its petition, the Debtor reports total assets of $16,793,944 and total liabilities of $36,514,983. The Debtor tapped Charles A. Cuprill Hernandez, Esq. at Charles A. Cuprill, PSC, Law Offices and CPA Luis R. Carrasquillo & CO, PSC as financial consultant. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Inflation Remains Unchanged at 1.5% ------------------------------------------------------ Andrea Perez-Sobers at Trinidad and Tobago Guardian reports that Trinidad and Tobago inflation rate for July 2025, which measures the percentage change in the all-items index for the month of July 2025 over July 2024, was 1.5 per cent, according to the latest data released by the Central Statistical Office (CSO). The inflation rate for July remained unchanged from the previous period (June 2025/June 2024), according to Trinidad and Tobago Guardian. The inflation rate for the comparative period (July 2024/July 2023) was 0.3 per cent, the report notes. The all-items index for July 2025 climbed to 125.7, reflecting a modest increase of 0.1 point or 0.1 per cent compared to June 2025, the report discloses. The CSO said while the overall index ticked upward, the food and non-alcoholic beverages category, one of the largest components of household spending, decreased by 0.6 per cent, falling from 155.5 in June to 154.6 in July, the report relates. This decline was driven primarily by price reductions in several key grocery items, including fresh whole chickens, cucumber, fresh carite, Irish potatoes, parboiled rice, garlic, sweet potatoes, soya bean oil, fresh steak, and hot peppers, the report notes. However, the downward pressure on food prices was partially offset by increases in the cost of tomatoes, ochroes, melongene, green sweet pepper, eddoes, melon, pumpkin, carbonated soft drinks, oranges and pimento, the report says. The net effect of these movements contributed to a 0.2-point decline in the food and non-alcoholic beverage sub-index, the report relays. Beyond the food sector, price changes across other expenditure categories were mixed: Decreases were recorded in: -- Alcoholic beverages and tobacco down 0.2 per cent; and -- Clothing and footwear: down 0.6 per cent. Increases were noted in: -- Housing, water, electricity, gas and other fuels up 0.2 per cent; -- Furnishings, household equipment and routine maintenance up 0.8 per cent; -- Health up 0.8 per cent; -- Transport up 0.2 per cent; -- Recreation and culture up 0.7 per cent; -- Hotels, cafés and restaurants up 0.1 per cent; and -- Miscellaneous Goods and Services up 0.5 per cent. It noted these incremental changes suggest underlying inflationary pressures remain present in key service sectors, even as food prices offer some relief to consumers, the report notes. The CSO's monthly all-items index tracks the movement of prices for a standard basket of goods and services to assess inflation trends across T&T, the report adds. ********* 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 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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