Andean, Central America, & Caribbean Weekly Report

Barbados & Bolivia

December 31, 2018BancTrust & Co. Research Team

Barbados: The First Clash

  • External creditors reject first government proposal
  • Lack of communication leads to long term risks
  • S&P improves local currency ratings…
  • … but foreign currency rating waits for restructuring

After settling local debt restructuring, logical next step for Barbados government was facing foreign creditors and, while we always expected negotiations to be tough, officials started with the wrong foot.

Andean, Central America, & Caribbean Weekly Report

Costa Rica: Bet Pays Off

December 31, 2018BancTrust & Co. Research Team
  • Constitutional Court approves tax reform
  • Second vote coming next week
  • Bonds with positive reactions
  • Issuances for USD6bn through next 6 years

This week brought really good news for Costa Rica and, finally, some relief comes as Constitutional Court approves tax reform.

Andean, Central America, & Caribbean Weekly Report

Puerto Rico: Not a Done Deal

December 31, 2018BancTrust & Co. Research & Strategy Team
  • COFINA agreement’s disclosure statement got approved
  • Final approval to agreement may not be that easy
  • Junior COFINA creditors getting ready to fight
  • Doubts over PR’s future financial stability

Judge Laura Taylor Swain allows Puerto Rico (PR) to continue its complicated debt restructuring process after COFINA agreement’s disclosure statement got approved in a hearing on Tuesday.

Andean, Central America, & Caribbean Weekly Report

Barbados: Panorama Starts to Clear Up

December 31, 2018BancTrust & Co. Research & Strategy Team
  • Domestic debt restructuring successful
  • Important challenges remain in long-term horizon
  • Multilaterals supporting BERT

Barbados reaches a new milestone in the path to restructure its debt.

Issuance of new securities offered in domestic debt exchange process was scheduled for yesterday, after technical and data issues forced Central Bank of Barbados (CBB) to reschedule. CBB still needs to confirm issuances and that no new issues surged but, in the meantime, we can deem domestic debt restructuring successful.

Andean, Central America, & Caribbean Weekly Report

Panama: “Successful” 2050’s Tap

December 31, 2018gquiroga
  • April’s issuance gets USD550mn increase
  • PANAMA’26 is our Top Pick
  • Growth sustains despite construction’s downtrend

Panama’s Finance Ministry informed the tap of bond maturing in 2050, issued back in April, which they consider reflects international investors’ confidence on Panamanian macroeconomic and financial conditions. Even though original intention was to issue just USD0mn, high demand appeared and now April’s issuance gets USD550mn increase to total USD1.75bn. Tap priced to yield 4.915% – above original 4.5% but in line with country’s current yields.

  • Tuesday, January 16 2018

    Venezuela:

    - Yesterday the President Nicolas Maduro gave its yearly speech which should be something close to the state of the union and that according to the constitution should be presented in front of the National Assembly. However, this year and arguing the illegality of the National Assembly, the decision was to give his speech in front of the National Constituent Assembly. In detail, more than a state of the union this was one of the usual speech of the President with not much data to collect. Among

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  • Monday, January 15 2018

    Venezuela:

    - The dialogue meeting held in the Dominican Republic between members of the opposition and the government last weekend culminated again without any results. International mediators indicated that although some agreements were reached, several points remain pending and both parties will meet again this Thursday, January 18. In our opinion, it was expected that results would not be achieved,as we have been saying we believe that the most likely to happen is that the negotiation rounds will culmin

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  • Friday, January 12 2018

    Venezuela:

    - The National Electoral Council (CNE in Spanish) announced that it has approved the schedule for the validation of political parties that did not participate in the last municipal elections which it will take place on 27 and 28 of January. The process will be carried out to comply with the order of the National Constituent Assembly (ANC), which has as its sole purpose to be another obstacle for the opposition. We believe that at the moment the attention is focused on the negotiations in the Dom

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  • Thursday, January 11 2018

    Venezuela:

    - The situation regarding Venezuela’s debt with Brazil received yesterday two mixed updates, as the Brazilian Ministry of Finance reported that the first paid an old debt but that it is still in arrears with another payment. In detail, the ministry informed that Venezuela paid USD262.5mn – corresponding to the May-August period of 2017 – on 5 January as part of their commitments under the Reciprocal Credit and Payments Agreement (CCR), which is part of the benefits of the Latin American In

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