260216.mbx

260216.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 Monday, February 16, 2026, Vol. 27, No. 33 Headlines B R A Z I L BANCO MASTER: TCU Finds No Fault with Central Bank in Wind-Down MOVIDA PARTICIPACOES: Moody's Affirms 'Ba3' CFR, Outlook Stable SIMPAR SA: Moody's Affirms 'Ba3' CFR, Outlook Stable C A Y M A N I S L A N D S ARCHBLOCK LLC: Case Summary & 30 Largest Unsecured Creditors J A M A I C A JAMAICA: NIR Jumps to US$6.7 Billion After IMF Drawdown JUTC: Facing Billions in Operating Losses Despite Gov't. Subsidy P U E R T O R I C O ESW MANUFACTURING: Taps Gerardo L. Santiago Puig as Legal Counsel T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Slowly Recovers to Pre-Pandemic Levels, IMF Says V E N E Z U E L A CITGO PETROLEUM: Venezuela, Gold Reserve Won't Shoulder $3.1-Mil. - - - - - =========== B R A Z I L =========== BANCO MASTER: TCU Finds No Fault with Central Bank in Wind-Down --------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that Brazil's federal audit court TCU has completed a technical review of the central bank's handling of Banco Master's liquidation and found no reservations or recommendations regarding the regulator's conduct. The central bank did not immediately reply to a request for comment. The audit court said in a statement that the case is confidential and that no further information is available. About Banco Master Banco Master, S.A., formerly known as Banco Maxima, is a financial institution that provides corporate credit, foreign exchange, and treasury services, and later expanded into real estate credit as well as fund and wealth management activities. The bank began operations in 1974 and broadened its business lines in the mid-1990s as part of its growth strategy within the financial service sector. Banco Master filed a Chapter 15 Petition with the U.S. Bankruptcy Court for the Southern District of Florida on December 10, 2025 (Case No. 25-24568), with the Hon. Scott M Grossman presiding. MOVIDA PARTICIPACOES: Moody's Affirms 'Ba3' CFR, Outlook Stable --------------------------------------------------------------- Moody's Ratings has affirmed Movida Participacoes S.A. (Movida)'s Ba3 corporate family rating. At the same time, Moody's affirmed the Ba3 rating on the $500 million backed senior unsecured notes due 2029 issued by Movida Europe S.A. The outlook is stable for both entities. RATINGS RATIONALE Movida's Ba3 ratings reflect its competitive position as the second largest company in the Brazilian car and fleet rental market. It has a flexible business model, which helps it weather economic and auto market slowdowns. The company's adequate liquidity, stable operating performance, and Moody's expectation of an adequate leverage over the next 12-18 months also support the rating. In 2025, Movida reduced fleet investments, resulting in a slowdown in fleet growth and a reduction in capex. At the same time, the company implemented significant tariff increases across both the Rent-a-Car and Fleet Management segments, driving revenue growth of 5.8% in the twelve months ended September 2025. These measures substantially reduced cash consumption and supported deleveraging, with Debt/EBITDA improving to 3.5x in September 2025 from 4.2x in December 2024. The ratings also incorporate Movida's relevance for Simpar S.A. (Ba3 stable) and benefits derived from being controlled by Simpar group, which holds a 67.7% ownership stake in Movida. The significant board representation gives it strong incentives and ability to influence Movida's financial policies and provide support when needed. Movida benefits from the broader group's scale and diversification, while the absence of guarantee-related debt links preserves Simpar's flexibility to manage its portfolio. At the same time, Movida maintains substantial operational independence, supported by its own dedicated management team and a distinct brand identity. Constraining the ratings of Movida is the capital-intensive nature of the car rental business, because of that Moody's expects the company to maintain gross leverage at around 3.5x – 4.0x. Although the company has the ability to fairly cover maintenance capex by divesting of used vehicles, fleet expansions require funding obtained from third-party debt. Additionally, Movida's ratings incorporate the lack of significant international footprint with most of its revenues generated in Brazil; the Government of Brazil (Brazil, Ba1 stable). The stable rating outlook reflects Moody's expectations that Movida will continue to grow, while maintaining profitability, cash generation and adequate leverage, including a large unencumbered fleet. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Movida's rating could be upgraded if the company is able to increase market share, geographic diversification and revenue while maintaining healthy credit metrics. A rating upgrade would also require Movida to improve free cash flow and its liquidity profile by extending debt maturities. Quantitatively, a rating upgrade would require total Moody's-adjusted gross debt/EBITDA below 3.5x and EBIT margin above 20%, and RCF/Net Debt above 25% on a sustained basis. A rating upgrade would also be dependent on the relative positioning to the rating of Simpar, given the strong links between the two companies. The ratings could be downgraded if Movida's liquidity deteriorates because of weakness in operations, inability to sell used vehicles or to refinance upcoming maturities. Negative rating pressure would emerge if EBITDA growth does not materialize, such that Movida's Moody's-adjusted gross leverage remains above 4.5x on a sustained basis, and EBIT Margin declines below 15% without prospects of improvement. The principal methodology used in these ratings was Equipment and Transportation Rental published in October 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. SIMPAR SA: Moody's Affirms 'Ba3' CFR, Outlook Stable ---------------------------------------------------- Moody's Ratings has affirmed Simpar S.A. ("Simpar")'s Ba3 corporate family rating. The outlook is stable. RATINGS RATIONALE Simpar S.A.'s Ba3 rating primarily reflects its status as the holding company of one of the largest logistics, vehicle and equipment rental groups in Brazil, with a significant scale in the country. Simpar's solid business model encompasses long-term service agreements, a wide service portfolio, a diversified client base and cross-selling opportunities, a large unencumbered fleet of vehicles in key subsidiaries providing resiliency to operations during downturns. Simpar S.A.'s subsidiaries have flexible business models and a proven ability to manage the return on invested capital throughout the life cycle of its vehicles and equipment, ensuring adequate profitability and cash generation through economic cycles. The company's good liquidity and profitability also support the rating. Businesses include (i) the largest supply-chain management service provider and truck logistics transportation company in Brazil through JSL S.A. (JSL); (ii) largest truck and equipment leasing company in Brazil through Vamos Locação de Caminhões, Máquinas e Equipamentos S.A. (Vamos); (iii) largest automotive dealership network in Brazil through Automob Participações S.A., (iv) the second-largest rent-a-car and fleet rental company through Movida Participações S.A. (Movida), in addition to a portfolio of companies in logistics, infrastructure and banking. In 2025, Simpar's subsidiaries reduced fleet investments leading to a reduction in capex. At the same time, the group implemented significant tariff increases and repriced contracts, driving revenue up 6.8% in the twelve months ended September 2025. These measures substantially reduced capital spending, cash consumption and supported deleveraging, with Moody's Adjusted Gross Debt/EBITDA improving to 4.2x in September 2025 from 4.9x in December 2024. The leverage metric does not consider the potential debt reduction with proceeds from Ciclus Ambiental S.A. The rating is still constrained by the group's high consolidated Moody's-adjusted leverage and from the capital-intensive nature of Simpar's business. Leverage has declined during 2025 given reduced investments. Moody's believes that, if Simpar group companies were to resume the accelerated growth, that gross leverage could remain around 4.5x-5.0x. During expansion periods the group's consolidated free cash flow should remain negative, but the group has the flexibility to reduce capital spending and sell its unencumbered light and heavy vehicle fleet in case of need, helping the group generate cash and reduce debt. But, as long as interest rates in Brazil remain high, Moody's believes Simpar would maintain a more constrained growth strategy. Finally, Simpar S.A.'s capital allocation strategy could lead to notching considerations of debt issued at the parent level due to structural subordination. Liquidity at the holding company level is adequate with BRL2.9 billion in cash covering debt amortizations until 2030. At the subsidiaries the amortization schedule is less spread out, therefore the group's consolidated liquidity is a concern and assumes that all subsidiaries would maintain active liability management to avoid a build-up of short-term maturities and increasing refinancing risk. The stable rating outlook reflects Moody's expectations that Simpar will continue to grow both organically and inorganically, and improve its profitability and cash generation to gradually reduce leverage over time. The outlook also reflects Moody's expectations that the group will maintain a conservative approach toward liquidity, balancing capital spending and shareholders' and creditors' interest. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Moody's could upgrade Simpar's rating if the company is able to substantially reduce leverage, either through organic EBITDA growth or gross debt reduction. Quantitatively, a rating upgrade would require its total Moody's-adjusted gross debt/EBITDA to remain below 4.0x, and RCF/Net Debt above 17.5% on a sustained basis. A rating upgrade would also require Simpar to improve free cash flow and its liquidity profile by extending debt maturities. Moody's could downgrade Simpar's rating if the company's operating performance deteriorates, with its EBIT margin declining below 10% without prospects of an improvement. Negative rating pressure would emerge if EBITDA growth does not materialize, such that the company's Moody's-adjusted gross leverage remains above 5.0x on a sustained basis. A deterioration in the company's liquidity at the holding level or on a consolidated basis and evidence of an aggressive growth strategy in times of weak market fundamentals could also lead to a downgrade. The principal methodology used in this rating was Surface Transportation and Logistics published in December 2025. Simpar's Ba3 rating is two notches below the Ba1 scorecard-indicated outcome. This differential reflects Simpar's position as a holding company of a group with a consolidated high gross leverage and weak interest coverage. The current negative interest coverage at the holding level is also a rating constraint. =========================== C A Y M A N I S L A N D S =========================== ARCHBLOCK LLC: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------------ Six affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- Archblock LLC (Lead Case) 26-10152 FKA TrustLabs Inc. FKA ZenTrusts, Inc. FKA Win the Game Inc. PMB 1125 447 Sutter St., Ste. 405 San Francisco, CA 94108 Archblock (Cayman) 26-10155 FKA TrueTrading Walkers Corporate Limited 190 Elgin Avenue, George Town Grand Cayman, Cayman Islands KY1-9001 TrueCoin LLC 26-10154 490 Post St., Ste. 500 PMB 2057 San Francisco, CA 94102 TrueCoin II, LLC 26-10156 584 Castro St #2168 San Francisco, CA 94114-2512 TrustToken, Inc. 26-10153 5214F Diamond Heights Blvd #3394 San Francisco, CA 94131 TrueTrading 1 GP LLC 26-10157 2549 Irving St. #1006 San Francisco, CA 94122 Business Description: Archblock LLC, together with its affiliates Archblock (Cayman), TrueCoin LLC, TrueCoin II, LLC, TrustToken, Inc., and TrueTrading 1 GP LLC, operates in the blockchain and decentralized finance sector, focusing on the development of stablecoins, tokenized financial products, and related financial infrastructure. The group is associated with the issuance of the TrueUSD (TUSD) stablecoin and the development of TrueFi, a decentralized lending protocol, with operations centered in San Francisco, California, and international presence through its Cayman affiliate. TrueTrading 1 GP LLC serves as an affiliated investment vehicle supporting the group's financial and corporate activities. Chapter 11 Petition Date: February 6, 2026 Court: United States Bankruptcy Court District of Delaware Judge: Hon. Craig T Goldblatt Debtors' General Bankruptcy Counsel: William E. Chipman, Jr., Esq. CHIPMAN BROWN CICERO & COLE, LLP Hercules Plaza 1313 North Market Street, Suite 5400 Wilmington, DE 19801 Tel: (302) 295-0191 Email: chipman@chipmanbrown.com AND WOLLMUTH MAHER & DEUTSCH LLP Archblock LLC's Estimated Assets: $1 million to $10 million Archblock LLC's Estimated Liabilities: $100 million to $500 million The petitions were signed by Michael Bland as authorized person. Full-text copies of the petitions are available for free on PacerMonitor at: https://www.pacermonitor.com/view/5QNG3RA/Archblock_LLC__debke-26-10152__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/53XZ2UA/TrustToken_Inc__debke-26-10153__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/CCEBSDY/TrueCoin_LLC__debke-26-10154__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/CLLDL3Y/Archblock_Cayman__debke-26-10155__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/CRQRGNY/TrueCoin_II_LLC__debke-26-10156__0001.0.pdf?mcid=tGE4TAMA https://www.pacermonitor.com/view/CYMCGZY/TrueTrading_1_GP_LLC__debke-26-10157__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount 1. Internal Revenue Service Tax Liability $1,300,000 PO Box 7346 Philadelphia, PA 19101-7346 2. Sher Tremonte LLP Disputed $39,547 90 Broad Street Legal 23rd Floor Services New York, NY 10004 Kimo Peluso Email: KPeluso@shertremonte.com 3. Brown Rudnick LLP Legal Services $3,681 One Financial Center Boston, MA 02111 Brown Rudnick LLP One Financial Center Boston, MA 02111 Palley, Stephen D. Email: SPalley@brownrudnick.com 4. Reflexive LLC Legal Services $3,300 10291 Grand River Rd Ste F Brighton, MI 48116 Peter Samoray Email: psamoray@reliclawpllc.com 5. Ashby & Geddes Legal Services $1,771 500 Delaware Avenue Wilmington, DE 19899 6. Timely AS. Trade Vendor $7,862 Hausmannsgate 16 0182 Oslo, Norway 7. Orrick, Herrington & Disputed $89,670 Sutcliffe LLP Legal PO Box 848066 Services Los Angeles, CA 90084-8066 Joseph Perkins Email: jperkins@orrick.com 8. heyData GmbH Trade Vendor $8,272 Schutzenstrasse 5 Berlin, 10117 Germany 9. Daniel Jaiyong An Disputes Unknown Address on File 10. Celsius Network Limited Stablecoin Unknown The Corporation Trust Company Holder 1209 Orange Street Wilmington, DE 19801 11. Alameda Research LLC Potential $8,512,910 c/o GKL Registered Creditor Agents of DE, Inc 3500 S Dupont Hwy Dover, DE 19901 12. Oasis Pro, Inc. Potential $250,000 1 Thorndal Circle Creditor Darien, Connecticut 06982 13. Prime Trust LLC Dispute Unknown 330 S Rampart Blvd, Ste 260 Las Vegas, NV 89145 14. Pizzeys Patent & Trademark Legal Services Unknown Attorneys Pty Ltd. Level 15 241 Adelaide Street Brisbane, QLD 4000 Australia 15. Bend Law Group Legal Services Unknown 2181 Greenwich Street San Francisco, CA 94123 Doug Bend Email: doug@bendlawgroup.com 16. Techteryx Ltd. Disputes Unknown B101 Yaxinju Jinhui Xinyuan Huizhou City, Guagdong Province China 17. First Digital Trust Ltd. Dispute Unknown Room 4001; 40/F Tower 1, Lippo Centre Admiralty, Hong Kong Vincent Chok Email: v.chok@legacytrust.com.hk 18. State of Delaware, State Taxes $179,012 Secretary of State Division of Corporations PO Box 898 Dover, DE 19901 19. State of Delaware, State Taxes $860 Secretary of State Division of Corporations PO Box 898 Dover, DE 19901 20. Gadze Finance SEZC Loan Unknown 90 North Church St. George Town, Grand Cayman Email: mike@gadze.finance 21. Georgi Georgiev Loan Unknown Address on File 22. Marc Thalen Loan Unknown Address on File 23. Yi Chou Loan Unknown Address on File 24. Tomoaki Sato Loan Unknown Address on File 25. Ryan Yip (YIP CHUNG HONG) Loan Unknown Address on File 26. Daryl Choong Loan Unknown Address on File 27. Lee Tsun Ngai Loan Unknown Address on File 28. Wei-Chieh Hsia Loan Unknown Address on File 29. Tyler Kyle Loewen Loan Unknown Address on File 30. Mikko Matias Ohtamaa Stablecoin Holder Unknown Address on File ============= J A M A I C A ============= JAMAICA: NIR Jumps to US$6.7 Billion After IMF Drawdown ------------------------------------------------------- RJR News reports that Jamaica's Net International Reserves (NIR) climbed to US$6.7 billion at the end of January, up from US$6.3 billion in December. This follows a US$415 million drawdown from the International Monetary Fund's Rapid Financing Instrument, according to RJR News. Total foreign assets increased by more than $400 million during the month, while a short-term foreign liabilities rose only marginally, the report notes. The additional funds are intended to help cushion balance of payments pressures arising from Hurricane Melissa, the report relays. The government is expected to face higher import bills for reconstruction supplies and essential goods at a time when key foreign exchange earning sectors, including tourism and exports, remain under strain, 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. 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. JUTC: Facing Billions in Operating Losses Despite Gov't. Subsidy ---------------------------------------------------------------- RJR News reports that the Jamaica Urban Transit Company (JUTC) is projected to record another $18 billion in operating losses before the government's subsidy by the end of this fiscal year in March. The government will be covering some of these losses with a subsidy of $11.1 billion, resulting in a projected loss of $7.7 billion, according to RJR News. These losses were generated after operating expenses of $10.7 billion, the report notes. These expenses are projected to surge to $17 billion during the next fiscal year, the report relays. Figures are found in the Jamaica Public Bodies Estimate of Revenue and expenditure for the year ended on March 31, 2027, the report recalls. As reported in the Troubled Company Reporter-Latin America in May 2025, RJR News relayed that the Jamaica Urban Transit Company's losses and subsidies are currently running at J$20 billion, or 0.66 % of GDP, while the amount of money collected from tickets or the fare box is $1.5 billion, compared with $3 billion in 2016. The company deploys about 200 buses per day, compared with 400 per day in 2016 but its operating expenses remain the same, according to RJR News. About Jamaica Urban Transit Company Jamaica Urban Transit Company was established in 1998 to provide a centrally managed state-of-the-art public bus service. The government invested US6 billion aiming to have an efficient transport system and for the Jamaican people. ===================== P U E R T O R I C O ===================== ESW MANUFACTURING: Taps Gerardo L. Santiago Puig as Legal Counsel ----------------------------------------------------------------- ESW Manufacturing, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Gerardo Santiago Puig, Esq., an attorney practicing in San Juan, Puerto, Rico, as counsel. The attorney will render these services: (a) prepare pleading and applications and conduct examinations incidental to administration; (b) develop the relationship of the status of the Debtor to the claims of creditors in this case; (c) advise the Debtor of its rights, duties, and obligations as debtor operating under Chapter 11 of the Bankruptcy Code; (d) take any and all other necessary action incident to the proper preservation and administration of this Chapter 11 estate; and (e) advise the Debtor and assist in the formulation and presentation of a plan pursuant to Chapter 11 of Bankruptcy Code, the disclosure statement and concerning any and all matters relating thereto. Mr. Santiago Puig will be billed at his hourly rate of $200. The Debtor agreed to pay the attorney in advance the amount of $5,162 as a retainer fee. Mr. Santiago Puig disclosed in a court filing that he is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: Gerardo L. Santiago Puig, Esq. Pavia II Building, Suite 105 1449 Americo Salas St. San Juan, PR 00909 Telephone: (787) 593-3922 Email: gsantiagopuig@gmail.com About ESW Manufacturing Inc. ESW Manufacturing, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-00084) on January 15, 2026, listing under $1 million in both assets and liabilities. Judge Enrique S. Lamoutte Inclan oversees the case. Gerardo L. Santiago Puig, Esq., represents the Debtor as counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Slowly Recovers to Pre-Pandemic Levels, IMF Says ------------------------------------------------------------------- An International Monetary Fund (IMF) staff team, led by Ms. Ana Guscina, visited Port of Spain and Scarborough during January 27 to February 9, 2026, and held discussions on the 2026 Article IV consultation with Trinidad and Tobago’s authorities. At the end of the consultation, the mission issued the following statement, which summarizes its main conclusions and recommendations. Recent Macroeconomic Developments Trinidad and Tobago's economy is gradually recovering to pre-pandemic levels amid persistent headwinds. The non-energy sector, particularly manufacturing and services, has underpinned recent growth, but stagnant production in the mature energy sector has weighed on activity Inflation and unemployment are low, the banking sector appears sound, and private sector credit growth is robust. The current account (CA) balance remains in surplus, though the external position has weakened and FX shortages persist. Foreign reserves remain adequate, with coverage at 6.4 months of prospective imports. The Heritage and Stabilization Fund (HSF) assets continue to provide an additional sizeable buffer (US$6.38 billion as of February 2026). A new administration took office in May 2025 with an economic revitalization policy agenda. The new government is focusing on revitalizing the energy sector through facilitating work on mature fields, deepwater exploration, and fostering regional collaboration with Suriname, Guyana, and Venezuela. They are also striving to lift non-energy growth through greater emphasis on improving the business environment, encouraging trade and foreign direct investment, and promoting economic diversification. The fiscal deficit in FY2025 remained high and public debt has risen. The overall deficit of the central government for FY2025 is estimated at 5.5 percent of GDP, compared with 5.9 percent of GDP in FY2024, as the windfall from a tax amnesty, improved energy revenues, and contained spending on wages and capital spending more than offset a drop in non-tax revenue and increases in expenditure on goods and services and in transfers and subsidies. The non-energy central government primary deficit widened from 14.2 percent of non-energy GDP in FY2024 to 14.9 percent in FY2025. Central government debt rose to 67.8 percent of GDP (64.5 percent in FY2024), and public sector debt reached 84.2 percent (81.8 percent in FY2024). Although the FY2025 deficit was financed through domestic borrowing and HSF withdrawals of US$411 million (1.6 percent of GDP), strong investment returns nonetheless increased the HSF balance by about US$250 million (1 percent of GDP). The country retains investment-grade sovereign credit ratings and international market access. In September 2025, Standard and Poor’s affirmed the BBB- rating, while revising the outlook to negative. In December 2025, Moody’s maintained its Ba2 rating but also downgraded the outlook to negative. CariCRIS continues to assign an AA rating, the highest in the Caribbean. In January 2026, the government successfully issued a US$1 billion 10-year international bond with an implied spread of about 241 bps above the comparable U.S. Treasury Note, and the issuance was 2.5 times oversubscribed. Macroeconomic Outlook And Risks Economic growth is expected to remain subdued in the near term before gradually recovering over the medium term. The economy is estimated to have grown by 0.8 percent in 2025, driven by non-energy sectors. Real GDP growth is projected to moderate to 0.7 percent in 2026, as stronger growth in the non-energy sector partly offsets an anticipated decline in energy production. Medium-term growth prospects are expected to improve as several new energy projects, most notably Manatee, come onstream, lifting growth to around 2.9 percent in 2027 and 3.5 percent in 2028. Inflation is projected to hover around two percent in the near to medium term, broadly in line with international trends. The CA is projected to remain in surplus. The CA surplus is expected to improve to 3.0 percent of GDP in 2025, reflecting a modest increase in energy exports and a decline in goods imports. Over the medium term, the CA surplus is projected to average about 4 percent of GDP. The CA is assessed as moderately weaker than fundamentals. The economic outlook is subject to considerable uncertainty, and the balance of risks is tilted to the downside in the near term and to the upside in the long term. Domestic risks to growth and the external sector stem from lower oil and gas production, which could result from disruptions in mature fields or delays in new projects. Policy slippages and persistent FX shortages may weaken market confidence. Externally, elevated global uncertainty, trade disruptions, tighter global financial conditions, and regional geopolitical tensions pose additional risks. On the upside, faster progress on structural reforms and higher energy prices could strengthen economic activity and boost fiscal revenues. There is a positive momentum in the energy sector with deepwater exploration activity and potential regional agreements, which are not included in staff’s baseline until final investment decisions are announced. There are also upside risks to non-energy growth from private investment in the government's Revitalization Blueprint. Enhancing fiscal discipline while strengthening the fiscal framework The FY2026 budget introduces important measures to strengthen fiscal revenues, fiscal management, social protection, and economic diversification. The approved budget targets an overall fiscal deficit of 2.2 percent of GDP, which entails an ambitious consolidation. The budget includes an asset levy on banks and insurers, surcharges on landlords and commercial electricity consumption, and higher excise duties and fees. Additionally, the National Gas Company is expected to increase its dividend payments to the government, reflecting improved retained earnings from cost‑cutting measures and the higher gas prices it announced for its light industrial and commercial customers. Together with tax administration measures to fully staff and modernize the Inland Revenue Division and Customs, these should help strengthen non-energy revenue collection. At the same time, the budget expands targeted support for agriculture, housing, and vulnerable groups. Stronger fiscal consolidation is needed to place public debt on a firmly declining trajectory, rebuild policy buffers, and safeguard market access. IMF staff project an overall deficit of 5.0 percent of GDP for FY2026, slightly improving compared to FY2025. Meeting the authorities’ 2.2 percent of GDP fiscal balance target would require additional fiscal measures amounting to 2.8 percent of GDP. Under the current outlook for energy prices, agreed settlement of back pay obligations to public sector union workers and additional hiring of public sector workers in October 2025, such a large adjustment would be very difficult to implement without significantly weakening growth. Assuming an unchanged exchange rate regime, staff suggests targeting a 3.5 percent of GDP fiscal deficit in FY2026, by implementing 1.5 percent of GDP in additional high-quality measures, including broadening the tax base by phasing out extensive zero ratings and exemptions in the VAT, accelerating the removal of untargeted utility subsidies while protecting the vulnerable households, streamlining transfers to SOEs and putting them on a sounder financial footing, and improving the efficiency and quality of public expenditure. Such still sizeable and frontloaded adjustment will put debt on a firmly downward path and reduce vulnerabilities, while the emphasis on base broadening, efficiency, and targeting would help mitigate the impact on near-term growth. IMF staff welcomes the authorities' courageous steps taken to improve the long-term sustainability of the public pension system. The country faces the twin pressures of a rapidly aging population that increases expected pension and healthcare costs and an aging energy sector that limits the potential for future revenue growth to cover these costs. The announced gradual increase in the retirement age and contributions rates (already enacted) will help delay the depletion of the National Insurance System (NIS) assets by 15 years. To strengthen the system, it will be important to improve compliance, broaden the contribution base, and embed automatic adjustment mechanisms in NIS legislation. Further reforms to the non-contributory pension system are also necessary to contain costs to the budget. Better integrating the contributory and non-contributory schemes and improving administrative efficiency would enhance equity and fiscal sustainability. A rules-based fiscal framework would help reinforce fiscal discipline and improve medium‑term management of public finances. In a highly uncertain global environment, a rules-based medium-term fiscal framework will enhance fiscal discipline, mitigate fiscal risks, help avoid procyclical fiscal policy, and safeguard HSF savings for future generations. Broadening fiscal data coverage to include SOEs and other public bodies is important to improve transparency and assess the public sector’s broader macroeconomic footprint and any attendant risks. Finally, staff stress the need to develop an integrated asset-liability management framework to help guide borrowing decisions, strengthen risk management, and enhance governance of the HSF. Maintaining Consistent Macroeconomic Policies Supporting the existing exchange arrangement calls for a significantly tighter macroeconomic policy mix. Staff recognize the authorities’ commitment to the current de facto stabilized exchange rate arrangement. However, maintaining it has required large, regular FX sales that are contributing to declining reserves, while FX shortages persist, impeding non-energy activity. Supporting the existing exchange rate arrangement therefore requires a sizeable and front-loaded fiscal consolidation (as discussed above) to facilitate external adjustment and put debt on a firmly downward path. This should be combined with moving the policy rate toward a more neutral stance and narrowing the negative US-TT interest rate differential, to help support the exchange rate regime and stem reserve losses. Closing the interest rate differential with the United States would help make local assets more attractive and encourage capital inflows - the Central Bank of Trinidad and Tobago (CBTT) has maintained its repo rate at 3.5 percent since March 2020 despite the now - negative US-TT interest rate differential. Such an adjustment would support macroeconomic stabilization, but could weigh on growth. A more flexible exchange rate would support external rebalancing with lower costs on growth. In staff’s view, greater exchange rate flexibility would improve the policy mix by allowing for a more gradual fiscal consolidation (0.4 percent of GDP per year over the next five years), while facilitiating external rebalancing by stimulating exports and reducing imports, and allowing for more countercyclical monetary policy over the medium term. Gradually moving toward a more efficient, market-clearing FX allocation system would improve the business environment and support private-sector investment and diversification. Enhancing Financial Sector Resilience Systemic financial-sector risks remain low, although vulnerabilities are rising due to a growing sovereign-financial nexus. Financial soundness indicators show that the banking system is broadly healthy and resilient: commercial banks are well-capitalized and profitable, with low non-performing loans and adequate provisioning, even as liquidity has tightened in recent months. At the same time, the domestic financial system has become an increasingly important holder of government debt, deepening the sovereign-financial nexus. While this has supported public financing needs and reduced near-term external and rollover risks, it has also heightened the financial sector’s exposure to sovereign credit and interest rate risks through valuation, collateral, and funding channels. The authorities continue to make strong progress in strengthening financial stability and integrity. The CBTT advanced work on Basel II/III risk disclosure rules, liquidity coverage and monitoring metrics, and revisions to insurance regulations on capital adequacy, policy liabilities, and financial conditions reporting. The National Anti-Money Laundering Committee prepared for the Caribbean Financial Action Task Force 5th round evaluation and completed Third National Risk Assessment. In 2025, the authorities enacted the Counter-Proliferation Financing Act, aligning the legal and regulatory framework with global standards by strengthening the identification, assessment, and mitigation of proliferation-financing risks and enforcing targeted financial sanctions. The authorities continue to take steps to strengthen the regulatory framework for virtual assets and virtual asset service providers These measures will further enhance resilience to emerging risks, including cyber, climate, and cross‑border financial crimes. IMF staff commends the authorities' progress in strengthening international tax-transparency frameworks. In 2025, the authorities signed and brought into force the Convention on Mutual Administrative Assistance in Tax Matters and improved access to legal and beneficial ownership information through amendments to the Companies Act. Staff encourages continued implementation of reforms to support the country’s removal from the EU of non-cooperative jurisdictions in 2026. Notable progress has been made in addressing Anti-Money Laundering and Counter-Financing of Terrorism challenges. The authorities have strengthened the National Anti-Money Laundering and Counter-Financing of Terrorism Committee through capacity-building initiatives across key agencies. They have also enacted or introduced legislation that improves beneficial ownership transparency, expands asset‑recovery tools, and tightens controls on virtual‑asset activities. Advancing structural reforms to strengthen inclusive growth and resilience Trinidad and Tobago needs all engines of growth operating to build a more diversified, resilient, and inclusive economy. Oil and gas revenues have long underpinned economic development and will continue to support medium-term growth, fiscal revenue, and export earnings. However, over the long-term, achieving both horizontal and vertical diversification will be essential to navigate the challenges of global energy-market volatility and to lay the foundations for sustainable, broad-based, and inclusive growth. Trinidad and Tobago should capitalize on its comparative advantage arising from being outside of the hurricane belt. IMF staff welcome the authorities' increased emphasis on economic diversification. Guided by the Manifesto 2025 and the Revitalization Blueprint, their agenda focuses on increasing private investment in major projects, developing agriculture and agro-processing, expanding tourism and the creative economy, promoting a knowledge-based and innovation driven economy, and strengthening Small and Medium-sized Enterprises through improved access to finance and a more supportive business environment. These efforts are complemented by broader reforms to enhance economic resilience and growth, improve governance and regulation, upgrade infrastructure, and invest in human capital. Decisive steps are needed to raise labor force participation and reduce informality. High informality weighs on productivity and contributes to revenue leakage. Incentives to remain outside the formal labor market stem from generous non‑contributory pensions, rigid hiring and dismissal rules, the marginal income‑tax structure, and administrative barriers to business registration. Reducing informality and boosting labor force participation (especially for women) will require a multipronged approach that includes reducing the marginal tax burden on labor, strengthening the link between social contributions and benefits, streamlining businesses registration, and improving workforce skills to support the transition to formal employment. The authorities are advancing digitalization and bolstering AI preparedness. The newly established Ministry of Public Administration and Artificial Intelligence is leading efforts to modernize government operations and harness digital and AI technologies for national development. Strengthening digital skills across the workforce, integrating AI into production processes, and supporting smooth job transitions will ensure that workers benefit from technological change and that the country can capture AI-driven productivity gains while minimizing displacement risks. Enhancing The Adequacy Of Statistics Staff welcome the authorities' sustained efforts to improve the quality, timeliness, and coverage of macroeconomic statistics. Transforming the Central Statistical Office into an independent National Statistical Institute would further strengthen institutional capacity and data governance. Continued efforts are needed to preserve recent improvements in reducing balance of payments errors and omissions, enhance the timeliness of national accounts, and close remaining macro-financial data gaps. The IMF team is grateful to the authorities and to the broad range of public and private sector counterparts for their warm hospitality, cooperation, and constructive engagement. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Venezuela, Gold Reserve Won't Shoulder $3.1-Mil. ----------------------------------------------------------------- Rose Krebs at law360.com reports that a special master has lost his request to have Venezuela and gold mining company Gold Reserve pay his $3.1 million bill for defending against their unsuccessful bid to have him disqualified in long-running litigation over the sale of Citgo, with a judge saying they shouldn't have to shoulder "more than their ordinary share" of the fees. About Citgo Petroleum Citgo Petroleum Corporation is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. Based in Houston, Texas, Citgo is majority-owned by PDVSA, a state-owned company of the Venezuelan government (although due to U.S. sanctions, in 2019, they no longer economically benefit from Citgo.) As reported in the Troubled Company Reporter-Latin America in September 2025, Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at 'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at 'CCC+'. Fitch also affirmed Opco's existing senior secured notes and industrial revenue bonds at 'BB' with a Recovery Rating of 'RR1'. ********* 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 2026. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *