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260227.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, February 27, 2026, Vol. 27, No. 42 Headlines A R G E N T I N A ARGENTINA: Reform Runs Up Against Struggling Steel Towns B R A Z I L AZUL SA: Completes Financial Restructuring Under Chapter 11 AZUL SA: S&P Upgrades ICR to 'B-' on Emergence From Chapter 11 M E X I C O AXTEL SAB: S&P Raises ICR to 'BB' on Lower Leverage, Outlook Stable P U E R T O R I C O PARAISO INFANTIL: Hires Bufete Emmanuelli as Legal Counsel RB MARKETPLACE: Seeks to Hire Jose A. Diaz Crespo as Accountant T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Inflation Rate Still Below 1% In January TRINIDAD & TOBAGO: No New Energy Initiatives From Gov't, Says Young TRINIDAD & TOBAGO: Pressure Up on Loosening Currency Grip, IMF Says - - - - - ================= A R G E N T I N A ================= ARGENTINA: Reform Runs Up Against Struggling Steel Towns -------------------------------------------------------- Manuela Tobias & Patrick Gillespie at Bloomberg News report that deep in Argentina's rust belt, the decades of duress that have hollowed out the steel-making port town of Villa Constitucion are everywhere on display. Next to fields strewn with scrap metal, the Parana River has become so shallow after years of drought that ships run aground and fishermen are left idle, according to Bloomberg News. Drug violence from nearby Rosario has crept closer, Bloomberg News notes. And the hulking steel plants that once offered a sense of surety instead symbolise Argentina's gruelling decline, driven by excessive costs, outdated laws and pendulum-swing politics, Bloomberg News says. "Getting a stable job here is now a pipe dream," said Mayor Jorge Berti, who has governed the dusty town three hours north of Buenos Aires for a decade, from his modest municipal office flanked by flags and wood-framed windows, Bloomberg News relays. President Javier Milei promises his flagship labour reform, the next step in his efforts to remake the Argentine economy, will streamline expenses, boost investment and bring well-paying employment back to the country – and few places need that more than Villa Constitucion, Bloomberg News notes. Bloomberg News relates that but towns like this are also where Milei's reform stands to hurt the most, making it a barometer of the change ahead and a likely battleground for the inevitable stand-off with labour unions that are the bedrock of Argentina's Peronist opposition. In Villa Constitucion, a factory job once promised security for life, with unions anchoring both wages and identity. But the steel industry, dependent almost entirely on domestic demand, has risen and fallen alongside Argentina's volatile economy, Bloomberg News says. In the 1990s, then-president Carlos Menem's market overhauls brought sweeping layoffs. More cuts followed after Mauricio Macri won the Presidency, including the 2015 closure of an auto-parts plant whose rusting sign still lines the main road, Bloomberg News notes. Now, under Milei's austerity drive, the erosion has deepened, Bloomberg News discloses. Since taking office in late 2023, the libertarian president has dismantled protectionist trade barriers and frozen hundreds of state-funded infrastructure projects, Bloomberg News says. Now Milei is trying to muscle through his most politically charged bet: a labour reform meant to overhaul rules around hiring, firing, severance and collective bargaining. Supporters and detractors alike see it as long overdue, Bloomberg News relates. But critics fear it will land hardest just as Argentina’s labour-intensive industries that long relied on the state’s cheque-book buckle from decimated private and public spending, eroded further by competition from China, Bloomberg News notes. After clearing the Senate 42-30, the bill headed to a lower house vote. Foreign investors are watching the congressional proceedings for signals of Milei’s political strength, Bloomberg News discloses. But the country's largest labour federation planned a 24-hour strike in a bid to stop it, Bloomberg News relays. And even if approved, it must return to the Senate after Milei stripped out a provision that would have cut sick-leave pay in half in some cases - a measure that threatened to sink the legislation, highlighting the risks of taking on entrenched labour protections in Argentina, Bloomberg News says. Approval might lead to lower interest rates and position the government to return to international bond markets after a sovereign default in 2020, Bloomberg News recalls. Failure would cast doubt on the durability of Milei’s reform agenda and his chances to deliver Argentina from its chronic boom and bust cycle, Bloomberg News notes. ArcelorMittal-owned Acindar, which once employed thousands in Villa Constitucion, now has about 1,700 workers between contractors and permanent employees in a town of 52,000 people, Bloomberg News says. That's down from some 2,300 in 2023, according to local leadership for metallurgy union UOM, Bloomberg News relays. The company declined to comment on the figures, but said in a statement steel demand had fallen 40 percent from 2023, Bloomberg News notes. Across the country, formal salaried jobs are down more than 270,000 in that time, led by losses in the public sector, as well as construction and manufacturing, Bloomberg News discloses. The losses at Acindar could have been steeper, said Pablo González, who has led the local UOM chapter for the last decade, Bloomberg News relates. Jobs at the factory and other associated roles were cut through contracts not being renewed and voluntary retirement plans, Bloomberg News says. Argentina’s strong labour protections – and aggressive collective action – helped shield workers from mass lay-offs, Bloomberg News notes. "For us, it's fundamental to be able to say that after two years and sales down by half, they haven't fired anyone," said González, sporting a black shirt with his name emblazoned on it, Bloomberg News discloses. That leverage is now at risk. Milei's reform would further loosen dismissal rules, reduce severance costs and curb unions' ability to paralyse plants, Bloomberg News says. Under Milei's earlier 'Ley de Bases' omnibus bill, unions lost the ability to fully block factories during strikes, Bloomberg News notes. The new reform would go further, limiting labour actions, for example, to just a quarter of essential operations, Bloomberg News adds. Gone would be the days when workers shut down the factory to protest the attempted assassination in 2022 of leading Peronist and then-vice-president Cristina Fernández de Kirchner – or to celebrate Argentina’s World Cup victory later that year, Bloomberg News relates. Bloomberg News discloses that Gonzalez believes many companies have stayed largely quiet about the pain points of Milei's austerity and free-trade crusade because they see labour reform and future tax cuts as compensation. "It's the prize they’ve been waiting for," he said. Strong worker protections – and high labour costs – have defined Argentina since the rise of Peronism in the 1940s, Bloomberg News recalls. Unions negotiate national wage agreements, wield broad strike powers and remain deeply embedded in social life, particularly in places like Villa Constitucion, where the union represents nearly every metal worker, Bloomberg News says. In the mayor's office, Berti poured mate beneath a framed portrait of Eva Peron, the wife of movement founder Juan Domingo Peron and a patron saint of Argentine labour, Bloomberg News notes. Even so, in 2023's presidential run-off, Milei beat his Peronist opponent by just over 20 percentage points in Villa Constitucion, Bloomberg News says. His party won the October midterms here, too, though by a smaller margin, Bloomberg News relates. "People have lost trust in those who historically represented workers,” Berti said, Bloomberg News says. In many ways, Argentina’s job-market tailspin makes Milei’s case for a reform. For the first time in 30 years, Argentina’s economy grew in 2025 but the formal private-sector workforce shrank, according to argendata, a research website, Bloomberg says. Argentine companies have the same number of salaried, payroll jobs that they did a decade ago, even as the overall population is up by three million in that time, Bloomberg relays. Argentina has the highest tax burden for employers of major Latin American economies — triple Chile’s rate and more than double Mexico’s, according to data compiled by JPMorgan Chase & Co, Bloomberg says. Legal uncertainty compounds the problem, Bloomberg discloses. A labyrinth of pro-labour laws leaves companies unsure how much severance they ultimately owe and encourages litigation, Bloomberg notes. Lawsuits can last years and cost millions of dollars, Bloomberg says. Workplace injury rates in Argentina are similar to peer countries, yet lawsuits for accidents far exceed them, according to research by labour economist Laura Caullo at the IERAL think tank, Bloomberg relates. “The economy has barely budged the past five years, but the rules of the game give perverse incentives,” says Caullo, a professor at the University of Cordoba, Bloomberg says. More manufacturing employers anticipate lay-offs over the next few months than they did during the peak of the Covid-19 pandemic, according to government data, Bloomberg notes. Many Argentines who lose higher-quality jobs with income and benefits often take up gig-work to make ends meet where they declare a small portion or none of their income, Bloomberg relays. Informal employment has added about one million jobs over the past decade, while the number of independent contractors has risen by roughly 700,000, Bloomberg notes. But the labour reform is not only about jobs. It is central to convincing investors that Milei’s pro-market overhaul is durable – and that Argentina’s pendulum will not swing back to the left, Bloomberg discloses. Economy Minister Luis Caputo has signalled that the government wants the reform passed before attempting a return to bond markets, Bloomberg says. Diego Argutti, 48, runs a small construction firm in Villa Constitucion that sells steel and refurbishes office spaces for banks, Bloomberg notes. With 14 employees, his company now has half its workforce at the end of 2023, Bloomberg relates. “We either have to keep going, shut down, or go bankrupt,” said Argutti, who doubles as vice-president of the local manufacturing chamber, lamenting the flood of cheap steel from China. “The labour laws need to be adapted to the times. But I don’t believe the reform by itself will create jobs. If I had the chance to grow, I would hire regardless of the reform,” he added. 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: Completes Financial Restructuring Under Chapter 11 ----------------------------------------------------------- globalinsolvency.com reports that the financial restructuring process of Azul under Chapter 11 of the United States Bankruptcy Code reached its conclusion on February 20. AviaciOnline.com said following the full repayment of the DIP (Debtor-in-Possession) financing and the settlement of its share offering, the company emerges with a reduction in debt and lease obligations of approximately $2.5 billion, according to AviaciOnline.com. The airline successfully repaired its balance sheet through strategic agreements with key creditors, including the lessor AerCap and U.S. carriers United Airlines and American Airlines, the report notes. AZUL SA: S&P Upgrades ICR to 'B-' on Emergence From Chapter 11 -------------------------------------------------------------- S&P Global Ratings, on Feb. 25, 2026, raised its global scale issuer credit rating on Brazil-based airline Azul S.A. to 'B-' from 'D'. The stable outlook reflects S&P's expectation of continued sound operating performance and a leaner capital structure, with controlled leverage. The upgrade reflects Azul's successful emergence from Chapter 11, with a significantly leaner capital structure. On Feb. 20, 2026, Azul completed its financial restructuring process, emerging from Chapter 11 following the full repayment of its debtor-in-possession (DIP) financing, the issuance of US$1.375 billion in new exit notes, and a US$950 million equity injection (including US$200 million from strategic investors--US$100 million from United Airlines and a US$100 million commitment from American Airlines--still subject to the approval of CADE, the Brazilian antitrust authority). The Chapter 11 process resulted in a financial debt haircut of approximately US$1.1 billion. The company also renegotiated several aircraft lease agreements, resulting in a reduction of approximately 40% in lease liabilities, with lease debt of R$13.5 billion in 2026, from over R$21 billion in 2024. After this process, Azul has a much lighter capital structure, with an extended debt maturity profile and better liquidity position. S&P forecasts S&P Global Ratings-adjusted gross debt of approximately Brazilian real (R$) 23.5 billion in 2026, leading to debt to EBITDA of 3.0x-3.5x and funds from operations (FFO) to debt of 15%-20% over the next two years. S&P said, "We expect Azul's cash flow to increase from stronger margins and lower interest payments, but free operating cash flow will remain negative after lease payments. Our base-case scenario projects S&P Global Ratings-adjusted EBITDA margin gradually improving to 31.5% in 2026 and 32.5% in 2027, from around 30.5% in 2024-2025 due to the company's optimized cost structure and operating leverage. Increased EBITDA, coupled with lower interest payments, should improve cash flow. Still, our forecast of higher capital expenditures (capex) and maintenance reserves of R$2.2 billion this year still indicates negative free operating cash flow (FOCF) after lease payments. If the company maintains a trajectory of increasing EBITDA and has no substantial capex increase, it could post positive FOCF after lease payments in 2027." Despite the successful restructuring, Azul's capital structure and operations remain exposed to currency and fuel price volatility. The company is highly sensitive to external shocks, particularly fluctuations in fuel prices and exchange rates. Competitive pressures from carriers such as LATAM Airlines and Gol Linhas Aereas Inteligentes may lead to more aggressive pricing strategies to defend market share, potentially compressing margins. Azul has demonstrated strategic improvements in cost management, and S&P anticipates a leaner cost structure and fleet profile following the restructuring--supported by a young and fuel-efficient fleet. However, limited access to fuel hedging in the current financial restructuring environment could offset these efficiency gains. Furthermore, Azul's post-restructuring capital structure is highly dollarized, while most of its revenue is in Brazilian reais, which amplifies the risks associated with currency fluctuations. Azul has carved out a differentiated competitive position but faces ongoing market challenges. Azul has an important competitive advantage by focusing on underserved regional markets and avoiding direct competition in primary hubs. However, its market share remains closely aligned with Gol, and it lags behind LATAM in overall scale-- LATAM has an expansive network and larger scale within the region. S&P said, "Azul's limited geographic diversification, with approximately 80% of revenue derived from domestic Brazilian operations, exposes the airline to concentrated economic and & stable outlook reflects our expectations that the company will continue reporting sound operating performance after emerging from the restructuring process with an optimized fleet and much lower leverage. We expect Azul to post debt to EBITDA of 3.0x-3.5x and FFO to debt of 15%-20% in 2026 and 2027." A negative rating action over the next 12 months could occur if Azul's operating performance weakens, resulting in much weaker EBITDA and cash flow. This scenario could materialize if: -- Volatility in Brazil's macroeconomic environment impairs passenger demand, leading to declines in revenue passenger kilometers and yields, -- Fuel prices remain persistently higher than our current base-case assumptions, and/or -- The company adopts a more aggressive capex plan. Such a combination would pressure Azul's margins and liquidity, leading to an unsustainable capital structure. A positive rating action over the next 12 months could occur if Azul demonstrates consistent sound revenue growth and maintains healthy operating performance. This would entail stronger EBITDA and cash flow and increasing liquidity cushion. In this scenario, S&P would expect positive FOCF after lease payments and FFO to debt comfortably at around 15%-20%. =========== M E X I C O =========== AXTEL SAB: S&P Raises ICR to 'BB' on Lower Leverage, Outlook Stable ------------------------------------------------------------------- S&P Global Ratings raised its issuer credit rating on Mexico-based provider of information and communications technology services Axtel S.A.B. de C.V. to 'BB' from 'BB-'. The stable outlook indicates S&P's view that the company will maintain debt to EBITDA of 2.0x and a funds from operations-to-debt ratio above 30% in the next 12-24 months. S&P expects broadly stable revenue growth in the next 12-18 months due to Axtel's resilient business prospects with stable client contracts. Axtel S.A.B. de C.V. posted favorable business and financial performance for the second consecutive year by increasing its revenue by 7% and reaching funds from operations to debt of 32% and free operating cash flow to debt of 17.3%. Axtel has achieved positive results for the second consecutive year, driven by increasing revenue across its three main business segments: enterprise, government, and wholesale. The company is particularly focused on expanding its enterprise segment, which accounts for approximately 70% of total revenue, by nurturing strong relationships with key clients in Mexico. In 2026, S&P anticipates revenue growth of about 5% in the enterprise segment, fueled by resilient demand for IT, telecom, cybersecurity, and AI services/solutions. The company plans to enhance its cross-selling and upselling to better meet its client needs. S&P said, "Meanwhile, we expect revenue from the government segment, representing around 15% of consolidated sales, to increase about 5%, supported by more integrated offerings of IT and telecom services to federal and local entities. "On the wholesale segment (fiber optic) side, we expect 1% revenue growth in the next 12 months, considering the stable customer base that Axtel maintains. "We expect Axtel to maintain stable credit metrics, supported by its prudent capital allocation and conservative financial policy. Axtel has consistently reduced debt since 2024, improving its net debt to EBITDA below 3.0x, and we now expect leverage of around 2.0x at the end of 2026. We anticipate a moderate rise in sales and overall stability in its cost structure, which should enable the company to maintain its EBIDA margin around 30%. We also expect prudent working capital management and flexible capital expenditure deployment for the year of about Mexican peso (MXN) 1.5 billion (around 12% of revenue) aimed at supporting the company's revenue growth and EBITDA margins." Lower leverage, coupled with an improved debt maturity schedule, should alleviate potential liquidity pressures. Along with the debt reduction in recent years, Axtel refinanced debt in December 2025 through a long-term bank loan with Bancomext of MXN1.600 billion (about US$85 million). The loan has a grace period in 2026, a smooth amortization schedule in the upcoming years, and a final maturity in 2035. With this new financing, the company reduced its foreign exchange debt exposure to 40% in U.S. dollar and 60% in Mexican peso. S&P said, "We expect Axtel to continue implementing proactive liability management to refinance upcoming maturities, especially the amortizations that will come due in 2027 and 2028. In 2026, the company has debt payment commitments of only MXN200 million (around US$11 million), which we believe are quite manageable. "The stable outlook indicates our expectation that Axtel will post revenue growth of about 5% in the next 12-24 months stemming from resilient demand across its three business segments. We expect this to translate into debt to EBITDA of around 2.0x, funds from operations (FFO) to debt above 30%, and positive free operating cash flow (FOCF)." S&P could revise the outlook to negative or lower the rating in the next 12-24 months if: -- Revenue or profitability fails to increase according to our expectations, or if Axtel requires incremental debt, raising net debt to EBITDA above 3.0x or dropping FFO to debt below 30%; or -- Liquidity worsens, such that expected cash sources don't exceed forecast uses by at least 20%. S&P could raise the rating on Axtel in the next 12-24 months if the execution of the company's business expands its scale and credit metric improves, such that: -- Adjusted debt to EBITDA remains below 2.0x and FFO to debt near 45% (or above), on a consistent basis; and -- FOCF to debt improves at about 25% (or above), on a consistent basis. ===================== P U E R T O R I C O ===================== PARAISO INFANTIL: Hires Bufete Emmanuelli as Legal Counsel ---------------------------------------------------------- Paraiso Infantil Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Bufete Emmanuelli, LLC as counsel to handle its Chapter 11 case. The firm will be paid at these rates: Rolando Emmanuelli-Jimenez, Esq. $285 per hour Paralegal $40 per hour The firm will be paid a retainer in the amount of $10,000. The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. Mr. Jimenez 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 at: Rolando Emmanuelli Jimenez, Esq. Bufete Emmanuelli LLC P.O. Box 10779 Ponce, PR 00732 Tel: (787) 848-0666 Fax: (787) 841-1435 Email: notificaciones@bufete-emmanuelli.com About Paraiso Infantil Inc. Paraiso Infantil Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-00493) on February 10, 2026, with up to $50,000 in assets and $100,001 to $500,000 in liabilities. Rolando Emmanuelli Jimenez, Esq., at Bufete Emmanuelli, C.S.P. represents the Debtor as legal counsel. RB MARKETPLACE: Seeks to Hire Jose A. Diaz Crespo as Accountant --------------------------------------------------------------- RB Marketplace Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Jose A. Diaz Crespo, a certified public accountant at Dage Consulting CPA's, PSC. The accountant will render these services: (a) assist the Debtor and its attorney in documenting the reorganization plan to be filed in its Chapter 11 case; (b) prepare monthly operating reports and all necessary tax returns; (c) assist the Debtor and its attorney in all matters related to court instructions, transactions, and information requests of an accounting or financial nature; and (d) provide consulting services. The hourly rates of the firm's professionals are as follows: Principal consultant, Jose A. Díaz Crespo $175 Manager consultant $160 Senior consultant $125 Staff consultant $100 In addition, the accountant will seek reimbursement for expenses incurred. A retainer fee of $5,500 has been required in this case. Mr. Diaz Crespo disclosed in a court filing that he and his firm are "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code. The accountant can be reached at: Jose A. Diaz Crespo, CPA Dage Consulting CPA's, PSC 340 Industrial Victor Fernandez Suite 201B San Juan, PR 00926 Telephone: (787) 428-3388 Email: jdiaz@dageconsulting.com About RB Marketplace Inc. RB Marketplace Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-05025) on October 31, 2025. At the time of the filing, the Debtor disclosed up to $50,000 in both assets and liabilities. Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc. is Debtor's counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Inflation Rate Still Below 1% In January ----------------------------------------------------------- Roberto Codallo at Trinidad and Tobago Guardian reports that the country's inflation rate for January 2026 stood at 0.7 per cent, meaning prices in January 2026 were 0.7 per cent higher than they were in January 2025. This marks an increase from the previous period, when inflation measured 0.4 per cent in December 2025 compared with December 2024, according to Trinidad and Tobago Guardian. However, it is the same rate recorded in the comparable period a year earlier, when inflation for January 2025 over January 2024 was also 0.7 per cent, the report notes. The Central Statistical Office, in a news release, said on a month-to-month basis, the All Items Index, which measures the overall cost of goods and services, rose to 125.8 in January 2026, the report relays. This represents an increase of 0.6 index points, or 0.5 per cent, compared with December 2025, the report discloses. Food prices continued to edge upward, the report says. The Index for Food and Non-Alcoholic Beverages increased from 152.9 in December 2025 to 153.4 in January 2026, the report notes. This reflects a 0.3 per cent rise over the month, the report relates. However, some food items became cheaper, helping to offset part of the rise, the report relays. Prices declined for cucumber, Irish potatoes, tea in bags, and chocolate malt beverages, the report says. There were also decreases in hot peppers, chive, soya bean oil, grapes, cabbage, and celery. Despite these reductions, the overall food category still recorded a 0.3 per cent increase, the report discloses. Outside of food, several other categories saw price changes between December 2025 and January 2026. The sub-index for Alcoholic Beverages and Tobacco rose by 1.0 per cent, the report relates. Health costs increased by 0.3 per cent, the report says. Recreation and Culture recorded the sharpest increase, rising by 5.3 per cent, the report notes. Hotels, Cafes and Restaurants went up by 0.1 per cent, while Miscellaneous Goods and Services increased by 0.5 per cent, the report adds. At the same time, some sectors experienced price declines, the report relays. Furnishing, Household Equipment, and Routine Maintenance of the House fell by 0.8 per cent, the report discloses. Transport costs declined by 0.2 per cent, and Communication costs slipped by 0.1 per cent, the report notes. All other sections remained unchanged during the period, the report relates. In summary, the data show that while overall inflation remains moderate at 0.7 per cent year-on-year, there was a 0.5 per cent increase in prices from December 2025 to January 2026, the report says. Food prices continued to edge upward, and increases in areas such as Recreation and Culture and Alcoholic Beverages and Tobacco also contributed to the rise in the overall cost of living, the report adds. TRINIDAD & TOBAGO: No New Energy Initiatives From Gov't, Says Young ------------------------------------------------------------------- Andrea Perez-Sobers at Trinidad and Tobago Guardian reports that former energy minister Stuart Young has rejected claims by the current administration that it has broken new ground in regional energy cooperation, arguing that all substantive initiatives with Guyana and Suriname were advanced under the previous People's National Movement government. Young maintained that since the United National Congress administration led by Kamla Persad-Bissessar took office in May 2025, there have been no new achievements in the energy sector, according to Trinidad and Tobago Guardian. He pointed instead to the shutdown of Nutrien and what he described as a decline in competitiveness within the manufacturing sector, the report notes. He contended that collaboration with Guyana and Suriname was formalised under the PNM through signed agreements and ongoing discussions, the report relates. According to Young, arrangements were also concluded with Staatsolie, Suriname's state-owned oil company, and investments were being pursued in Guyana across solar, gas and extractive industries, the report says. "There is not a single new initiative that Kamla Persad Bissessar’s government has achieved in the energy sector to date—not one," Young said, the report notes. On cross-border and near-border natural gas discussions with Venezuela, Young argued that the Government is not engaged in direct negotiations with the Bolivarian Republic and that such an approach would not be in T&T's interest, the report says. He stated that it was the PNM administration that secured a 30-year exploration and production licence for the Dragon gas field and a 20-year licence for Cocuina, along with Office of Foreign Assets Control’s approvals in the name of the T&T's Government, the report relates. He distinguished those arrangements from licences now held in the names of Shell plc and BP plc, the report discloses. Young accused the Government of attempting to claim credit for initiatives already concluded and of misrepresenting the record, the report says. His comments came a day after Minister of Energy Roodal Moonilal signalled a reset in regional energy diplomacy while addressing the Guyana Energy Conference and Supply Chain Expo in Georgetown, the report notes. Moonilal acknowledged that closer synchronisation between Trinidad and Tobago and its regional neighbours had not progressed as it should have in recent years, the report relates. He outlined plans for a structured framework for cooperation, including a recurring platform for regional energy ministers and technical teams to coordinate policy, investment planning, and infrastructure development, the report adds. He also promoted T&T's established energy infrastructure, including pipelines, liquefied natural gas facilities, and petrochemical plants as a base that could support faster gas monetisation for emerging producers rather than duplicating capital-intensive assets, the report relays. Moonilal further referenced discussions on the possible restart of the Pointe-a-Pierre refinery, shuttered in 2018, and indicated openness to potential crude supply arrangements should operations resume, the report notes. TRINIDAD & TOBAGO: Pressure Up on Loosening Currency Grip, IMF Says ------------------------------------------------------------------- Jamaica Observer reports that the International Monetary Fund (IMF) has warned that Trinidad and Tobago will need stricter control of government spending and higher interest rates to maintain its fixed currency, as reserves fall and the government struggles to narrow its wide budget gap. In its latest review of the country's economy, the IMF said defending the exchange rate has required repeated sales of US dollars by the central bank, contributing to a steady decline in foreign reserves, according to Jamaica Observer. Gross official reserves have fallen from US$6,880 million in 2021 to US$5,369 million last year and are projected to drop further to US$4,607 million in 2026 - about 5.4 months of import cover, the report notes. Economic growth remains modest with the IMF estimating that the economy expanded by 0.8 per cent in 2025, the report relays. It expects growth of 0.7 per cent this year before strengthening as new energy projects, including the Manatee gas development, come on stream, the report notes. While reserves remain above traditional adequacy benchmarks, the Fund said keeping the currency steady will require a tighter overall policy approach, the report discloses. This includes reducing the gap between government spending and income and raising interest rates to narrow the difference between Trinidad and Tobago's borrowing costs and those in the United States, the report says. The central bank has kept its main policy rate unchanged at 3.5 per cent since 2020, even as US rates have risen, the report relates. The government is targeting an overall fiscal deficit of 2.2 per cent of Gross Domestic Product (GDP) this year, the report notes. IMF staff, however, project the shortfall will remain closer to 5 per cent under current policies, broadly in line with last year’s 5.5 per cent deficit, the report relays. Meeting the official target would require additional measures equivalent to about 2.8 per cent of GDP, the Fund said, the report notes. Instead, it suggested aiming for a deficit of 3.5 per cent this year - still a significant adjustment - to place public debt on a firm downward path while limiting the impact on growth, the report discloses. Public sector debt has climbed to 84 per cent of GDP, up from 82 per cent a year earlier, while central government debt stands near 68 per cent, the report relates. The IMF said further steps are needed to broaden the tax base, reduce untargeted subsidies and improve the performance of state-owned enterprises, the report says. Foreign exchange shortages have been a recurring issue for businesses reliant on imports, the report relays. The IMF noted that continued intervention to supply US dollars can limit short-term exchange rate movement but gradually reduces the country's financial buffers, the report discloses. As an alternative, the Fund said allowing the exchange rate to move more freely could ease pressure on reserves and allow fiscal adjustment to proceed more gradually - by about 0.4 per cent of GDP per year over the next five years, the report notes. Greater flexibility, it said, would help the economy adjust by encouraging exports and restraining imports, though it could bring short-term volatility, the report says. Inflation is around 2 per cent, unemployment is below 5 per cent and the banking system is described as well capitalised and resilient, the report discloses. Trinidad and Tobago also retains access to international capital markets, the report relays. In January, the government issued a US$1 billion 10-year bond that was 2.5 times oversubscribed, although ratings agencies have recently revised their outlooks to negative, the report adds. The IMF said keeping the currency fixed is achievable, but doing so will require firmer control of public finances and higher interest rates to prevent further reserve losses and stabilise debt, the report notes. Allowing greater exchange rate flexibility, it added, would reduce some of that pressure but shift more of the adjustment onto the currency itself, the report discloses. ********* 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. 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