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

            Friday, July 25, 2014, Vol. 15, No. 146


                            Headlines



A R G E N T I N A

ARGENTINA: Seeks Delay of Bond Rulings as Talks Proceed
ARGENTINA: Debt-Dispute Mediator Postpones Meeting


B R A Z I L

BANCO BARCLAYS: Moody's Cuts Bank Financial Strength Rating to D-
BANCO CRUZEIRO: Judge Approves Ch. 15 Protection
* BRAZIL: Sells $3.5 Billion in First Dollar Bond This Year


C A Y M A N  I S L A N D S

ASHTON PERFORMANCE: Creditors' Proofs of Debt Due Aug. 14
ASHTON SELECT: Creditors' Proofs of Debt Due Aug. 14
BUTTERFIELD HOLDINGS: Creditors' Proofs of Debt Due Aug. 20
CQS ABS ALPHA: Creditors' Proofs of Debt Due Aug. 11
CQS ABS MASTER: Creditors' Proofs of Debt Due Aug. 11

EXPENSIVE INVESTMENTS: Creditors' Proofs of Debt Due Aug. 15
HANSON OPPORTUNITIES: Commences Liquidation Proceedings
HIGHER MICROSYSTEMS: Creditors' Proofs of Debt Due Aug. 4
HMTF-LA VENEZUELA: Creditors' Proofs of Debt Due Aug. 5
HMTF-LA VENEZUELA: Shareholders' Final Meeting Set for Aug. 6

HMTF-LA VZ: Creditors' Proofs of Debt Due Aug. 5
HMTF-LA VZ: Shareholders' Final Meeting Set for Aug. 6
WINDSONG HOLDINGS: Creditors' Proofs of Debt Due Aug. 4


C H I L E

* CHILE: IMF Concludes 2014 Article IV Consultation


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Energy Fiasco is Country's Top Headache


P U E R T O   R I C O

PUERTO RICO: Utility May Default on January Interest Payment


S T. V I N C E N T  &  G R E N A D I N E S

ST. VINCENT COCOA COMPANY: Closes, Ceases Operations


                            - - - - -


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


ARGENTINA: Seeks Delay of Bond Rulings as Talks Proceed
-------------------------------------------------------
Bob Van Voris at Bloomberg News reports that Argentina asked a
U.S. judge to delay rulings that bar the country from making
payments on its restructured debt before paying holders of
defaulted bonds as it faces a possible default this month.

The South American nation renewed its calls for a delay so it can
negotiate without risking liability for what it argues could be
billions of dollars in new claims by holders of defaulted and
restructured bonds, according to Bloomberg News.  Argentina made
the request to U.S. District Judge Thomas Griesa.

Bloomberg News notes that Argentina defaulted on a record $95
billion in debt in 2001.  Judge Griesa has ordered the country to
pay holders of more than $1.5 billion in defaulted bonds when it
makes a payment on its performing debt, Bloomberg News notes.
Last month, Bloomberg News relates, the U.S. Supreme Court
declined to consider a challenge to that order.

The combination of rulings in favor of holders of the defaulted
bonds, led by billionaire Paul Singer's Elliott Management Corp.,
caused Argentina to miss a June 30 payment to holders of the
restructured debt, Bloomberg News notes.  The nation has a 30-day
grace period to make the payment before triggering a new default.

Elliott Management has said Argentina is refusing to negotiate,
while government officials continue to seek a delay in Judge
Griesa's orders, Bloomberg News adds.

                          Global Resolution

Argentina and the bondholders have each met with a court-appointed
mediator.  The delay is needed so the country can make payments on
its restructured bonds while negotiating a global resolution with
holders of both defaulted and performing debt, Argentina argued,
Bloomberg News discloses.

Judge Griesa scheduled a hearing to consider a variety of requests
from holders of Argentina's euro-denominated bonds, from Bank of
New York Mellon Corp., the trustee for Argentina's restructured
bonds, and from a group of payment intermediary firms seeking
clarification of Judge Griesa's decisions, Bloomberg News notes.

Last month, Judge Griesa ruled that a $539 million payment made by
Argentina to BNY Mellon was an illegal attempt to evade his
orders, Bloomberg News relates.

Holders of the euro bonds asked Judge Griesa to allow
clearinghouses including Euroclear SA to share information about
bondholders with Argentina to help avoid a legal hurdle in the
negotiations, Bloomberg News notes.  Holders of the defaulted
bonds claimed Argentina could use the information to route
payments to restructured bondholders outside the jurisdiction of
Judge Griesa's court in violation of his orders, Bloomberg News
adds.

The case is NML Capital Ltd. v. Republic of Argentina, No. 08-cv-
06978, U.S. District Court, Southern District of New York
(Manhattan).


ARGENTINA: Debt-Dispute Mediator Postpones Meeting
--------------------------------------------------
Ken Parks, writing for The Wall Street Journal, reported that a
court-appointed mediator has postponed a meeting between Argentina
and a small group of creditors in a high-profile dispute over
unpaid debt that could end in a default as soon as next week.

According to the report, U.S. federal Judge Thomas Griesa has
ordered Argentina and hedge funds to meet "continuously" with the
mediator in a bid to reach a deal ahead of a July 30 deadline on
Argentine bond payments.  The meeting has been rescheduled after
the Argentine government said its representatives needed more time
to get to New York City, Daniel Pollack, the attorney that Judge
Griesa named to oversee negotiations, said in an email to the
Journal.


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


BANCO BARCLAYS: Moody's Cuts Bank Financial Strength Rating to D-
-----------------------------------------------------------------
Moody's Investors Service has downgraded Banco Barclays S.A.'s
(Barclays Brazil) bank financial strength rating to D-, from D,
and lowered its standalone baseline credit assessment (BCA) to
ba3, from ba2. On the same date, Moody's affirmed the bank's local
and foreign currency deposit ratings of Baa3 and Prime 3, long-
and short-term, respectively, and the Brazilian national scale
deposit ratings of Aa1.br and BR-1, long- and short-term,
respectively. The outlook on all ratings continues to be stable.

The following rating of Banco Barclays was downgraded:

- Bank financial strength rating: to D-, from D, with stable
outlook

The following ratings of Banco Barclays were affirmed:

- Long-term global local-currency deposit rating of Baa3, with
stable outlook

- Short-term global local-currency deposit rating of Prime-3

- Long-term foreign currency deposit rating of Baa3, with stable
outlook

- Short-term foreign currency deposit rating of Prime-3

- Long-term Brazilian national scale deposit rating of Aa1.br,
with stable outlook

- Short-term Brazilian national scale deposit rating of BR-1

Ratings Rationale

The downgrade of Barclays' Brazil standalone ratings to D-/ba3
reflects the ongoing shift in strategic direction adopted by the
bank as part of Barclays Plc's new business plan, which has
focused on the revaluation of core activities on a global basis.
The Brazilian subsidiary has also revised its growth plans for the
domestic market, reducing its participation in products and
services deemed as non-core and centralizing operations in
activities with stronger earnings generation potential, such as
fixed-income, foreign exchange and derivatives trading for
clients. However, the weak economic environment and lower business
and investors' confidence has led to a decline in business
opportunities and reduced earnings origination. The ratings
downgrade also incorporates the bank's smaller franchise, with a
leaner structure, less products and a lower capacity to originate
recurring revenues relative to peers.

Despite the change in growth plans, Moody's acknowledges that
Barclays Brazil continues to report strong capitalization and
maintains a highly liquid balance sheet, with limited exposure to
credit risk, as reported over the last four years. Additionally,
the standalone ratings reflect Barclays Brazil's relatively small
franchise as an investment bank, with modest market shares in the
products it targets. Moody's notes that the bank's wholesale
funding structure, which is intrinsically concentrated, limits the
standalone ratings.

Barclays Brazil's global local-currency deposit ratings of Baa3
and Prime-3 incorporate Moody's assessment of a high probability
of support from its parent, Barclays Bank Plc's, in light of the
liquidity and funding support that it provides to the Brazilian
subsidiary. The deposit ratings do not incorporate a probability
of systemic support given Barclays Brazil's limited footprint in
the Brazilian deposit industry.

Moody's last took a rating action on Barclays Brazil on 31 July
2012, when Moody's assigned to Barclays Brazil a bank financial
strength rating of D, long- and short-term global local and
foreign-currency deposit ratings of Baa3 and Prime-3 and long- and
short-term national scale ratings of Aa1.br and BR-1. The outlook
on all ratings was stable.

The principal methodology used in this rating was Moody's Global
Banks methodology published in July 2014.

Banco Barclays S.A. is headquartered in Sao Paulo, Brazil and
reported consolidated assets of BRL7 billion ($3 billion) and
equity of BRL575 million ($245 million) as of 31 December 2013.


BANCO CRUZEIRO: Judge Approves Ch. 15 Protection
------------------------------------------------
Law360 reported that a Florida federal bankruptcy judge approved
Brazilian bank Banco Cruzeiro do Sul SA's petition for Chapter 15
bankruptcy, a decision that will provide the bank some protection
in United States courts while it continues its primary insolvency
proceedings in Brazil.  According to the report, U.S. District
Court Bankruptcy Judge Laurel M. Isicoff granted recognition to
the bank's petition for Chapter 15 bankruptcy, which was filed on
June 5, saying that the bank's foreign representative, Eduardo
Felix Bianchini, is qualified and granting the bank protection in
U.S. courts while the Central Bank of Brazil proceeds with its
liquidation.

                    About Banco Cruzeiro Do Sul

Banco Cruzeiro Do Sul S.A. ("BCSUL") was first established in
August 1989.  In 1993, the bank's shares were acquired by the
Indio Da Costa family, who continued to manage the bank until June
4, 2012, when the assets of the bank and its affiliates were
seized by the Central Bank of Brazil.

Luis Felipe Indio Da Costa is the principal member of the Indio Da
Costa family and was also the principal of the bank although his
son, Luis Octavio, was the president of BCSUL.

According to BCSUL's Web site, the bank provided a variety of
services which included commercial portfolio investments and
credit services.

During the course of its banking operations, BCSUL primarily
operated out of Rio de Janeiro and Sao Paulo where it received
deposits and extending loans to individual customers.  BCSUL
operated nationally through a network of salesmen and agents,
promoting the salary-secured loan product offered by the bank.
The total loan book for BCSUL was R$12 billion.

Prior to be placed into liquidation, BCSUL was the 27th largest
bank in Brazil.  As of March 31, 2014, the bank's balance sheet
reflected the R$7.75 billion (US$3.47 billion) in assets and
R$10.3 billion (US$4.64 billion) in liabilities.

The liquidator for BCSUL filed a Chapter 15 petition (Bankr. S.D.
Fla. Case No. 14-22974) on June 4, 2014, to seek recognition of
the liquidation proceeding before the Central Bank of Brazil.
According to the Chapter 15 petition, the bank has more than
US$1 billion in assets and debt.

Judge Laurel M Isicoff is assigned to the Chapter 15 case.
Gregory S. Grossman, Esq., at Astigarraga Davis Mullins &
Grossman, PA, in Miami, represents the Debtor.


* BRAZIL: Sells $3.5 Billion in First Dollar Bond This Year
-----------------------------------------------------------
Filipe Pacheco at Bloomberg News reports that Brazil issued $3.5
billion of government bonds in exchange for cash and old debt
securities, offering the country's longest maturity in its first
dollar-denominated offering this year.

The country issued the bonds due in 2045 to yield 5.131 percent
per year, the Treasury said in a statement, according to Bloomberg
News.  The country raised about $1.5 billion of new cash,
according to a person familiar with the offering who asked not be
identified because the details haven't yet been made public,
Bloomberg News notes.  The country also swapped new bonds for
outstanding securities with maturities ranging from 2024 to 2041,
according to the statement obtained by Bloomberg News.

Brazil tapped the bond market a week after Fed Chair Janet Yellen
reiterated in congressional testimony that U.S. borrowing costs
will probably stay low for a "considerable period," making
emerging-market assets more attractive, Bloomberg News relates.

The Latin American country sold EUR1 billion ($1.3 billion) of
seven-year bonds in March to yield 2.961 percent just three days
after Standard & Poor's lowered Brazil's credit rating by one step
to the lowest level of investment grade, reports Bloomberg News.

"The timing for the offering can be considered ideal," Siobhan
Morden, the head of Latin America strategy at Jefferies Group LLC
in New York, said in a telephone interview with Bloomberg News.
"There is still appetite for emerging-markets assets and for a
credit name like Brazil," Bloomberg News quoted Mr. Morden as
saying.

Brazil's dollar bonds yield an average 2.05 percentage points more
than U.S. Treasuries, compared with 2.30 percentage points at the
end of 2013, according to index data from JPMorgan Chase & Co,
Bloomberg News notes.

                       October Offering

The sale may be extended to Asian investors by as much as $50
million, and the final result of the operation will be announced
once the sale in Asia is over, the Treasury said, Bloomberg News
discloses.

The Latin American country last sold dollar bonds in October, when
it issued $3.2 billion of securities maturing in 2025 to finance
overseas buybacks, Bloomberg News relays.

Bloomberg News says that among Brazilian issuers that issued
dollar bonds this month are state-controlled bank Caixa Economica
Federal, which sold $500 million of bonds maturing in 2024, and
pulp producer Klabin Finance SA, which sold the same amount of 10-
year notes.

"The objective of the operation is to improve the curve of the
sovereign debt in dollars," the Treasury said in the statement.
Bank of America Corp., Deutsche Bank AG and Banco Itau BBA SA will
coordinate the sale, the Treasury added, Bloomberg News notes.

                         Growth Estimate

The latest bond offering comes as President Dilma Rousseff is
facing a combination of stalled growth and above-target inflation
as the October election approaches, Bloomberg News discloses.

Analysts cut their growth estimate for an eighth consecutive week,
forecasting a 0.97 percent expansion of gross domestic product
following a 2.5 percent increase in 2013, according to the median
of about 100 estimates in a central bank survey published July 21,
Bloomberg News relays.

Policy makers held the target lending rate at 11 percent for a
second straight meeting on July 16 after nine consecutive
increases to curb accelerating inflation, reports Bloomberg News.

S&P lowered Brazil by one step on March 24 to BBB-, citing the
nation's sluggish economic growth and Rousseff's expansionary
fiscal policies.


==========================
C A Y M A N  I S L A N D S
==========================


ASHTON PERFORMANCE: Creditors' Proofs of Debt Due Aug. 14
---------------------------------------------------------
The creditors of Ashton Performance SPV are required to file their
proofs of debt by Aug. 14, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on July 3, 2014.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943-3100


ASHTON SELECT: Creditors' Proofs of Debt Due Aug. 14
----------------------------------------------------
The creditors of Ashton Select SPV are required to file their
proofs of debt by Aug. 14, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on July 3, 2014.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943-3100


BUTTERFIELD HOLDINGS: Creditors' Proofs of Debt Due Aug. 20
-----------------------------------------------------------
The creditors of Butterfield Holdings (Cayman) Limited are
required to file their proofs of debt by Aug. 20, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on July 1, 2014.

The company's liquidator is:

          Appleby (Cayman) Ltd
          c/o Sophie Benbow
          Telephone: (345) 949 4900
          P.O. Box 190 Clifton House, 75 Fort Street
          Grand Cayman KY1-1104
          Cayman Islands


CQS ABS ALPHA: Creditors' Proofs of Debt Due Aug. 11
----------------------------------------------------
The creditors of CQS ABS Alpha Feeder Fund Limited are required to
file their proofs of debt by Aug. 11, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 30, 2014.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


CQS ABS MASTER: Creditors' Proofs of Debt Due Aug. 11
-----------------------------------------------------
The creditors of CQS ABS Alpha Master Fund Limited are required to
file their proofs of debt by Aug. 11, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 30, 2014.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


EXPENSIVE INVESTMENTS: Creditors' Proofs of Debt Due Aug. 15
------------------------------------------------------------
The creditors of Expensive Investments Ltd are required to file
their proofs of debt by Aug. 15, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on June 30, 2014.

The company's liquidator is:

          MBT Trustees Ltd.
          Telephone: 949-9808
          Facsimile: 949-9793/4
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands


HANSON OPPORTUNITIES: Commences Liquidation Proceedings
-------------------------------------------------------
On July 3, 2014, the sole shareholder of The Hanson Opportunities
Fund resolved to voluntarily liquidate the company's business.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Summit Management Limited
          c/o David Egglishaw
          Telephone: (345) 945 7676
          Suite # 4-210, Governors Square
          P.O. Box 32311 Grand Cayman KY1-1209
          Cayman Islands


HIGHER MICROSYSTEMS: Creditors' Proofs of Debt Due Aug. 4
---------------------------------------------------------
The creditors of Higher Microsystems Technology Co., Ltd. are
required to file their proofs of debt by Aug. 4, 2014, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on July 2, 2014.

The company's liquidator is:

          Fei Jian-Nffang
          Telephone: +8651266969588
          Xin Du Square, SIP Su Zhou
          Room 108, Building 12
          Jiang Su Province
          People's Republic of China


HMTF-LA VENEZUELA: Creditors' Proofs of Debt Due Aug. 5
-------------------------------------------------------
The creditors of HMTF-LA Venezuela Cable Ltd are required to file
their proofs of debt by Aug. 5, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 30, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


HMTF-LA VENEZUELA: Shareholders' Final Meeting Set for Aug. 6
-------------------------------------------------------------
The shareholders of HMTF-LA Venezuela Cable Ltd will hold their
final meeting on Aug. 6, 2014, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company commenced liquidation proceedings on June 30, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


HMTF-LA VZ: Creditors' Proofs of Debt Due Aug. 5
------------------------------------------------
The creditors of HMTF-LA VZ LP Ltd are required to file their
proofs of debt by Aug. 5, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on June 30, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


HMTF-LA VZ: Shareholders' Final Meeting Set for Aug. 6
------------------------------------------------------
The shareholders of HMTF-LA VZ LP Ltd will hold their final
meeting on Aug. 6, 2014, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company commenced liquidation proceedings on June 30, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


WINDSONG HOLDINGS: Creditors' Proofs of Debt Due Aug. 4
-------------------------------------------------------
The creditors of Windsong Holdings, Inc are required to file their
proofs of debt by Aug. 4, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on July 3, 2014.

The company's liquidator is:

          Appleby Trust (Cayman) Ltd
          c/o Richard Gordon
          Telephone: +1 (345) 949 4900
          Appleby Trust (Cayman) Ltd.
          75 Fort Street
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands


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C H I L E
=========


* CHILE: IMF Concludes 2014 Article IV Consultation
---------------------------------------------------
On June, 27, 2014, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation with
Chile.

Chile is confronting a challenging macroeconomic environment.
After several years of strong economic performance, Chile's
investment has weakened and growth slowed markedly due in part to
a weaker copper price outlook, with the economy performing
slightly below potential.  At the same time, the depreciation of
the peso has fed into higher inflation, but medium-term
expectations remain anchored around the Central Bank's target.

The current account deficit has narrowed rapidly to 3.1 percent of
GDP in the first quarter of 2014, but gross external financing
needs, though smaller than in 2013, remain high at 17 percent of
GDP.  The labor market - albeit still tight - has softened.
Monetary policy has eased; fiscal policy has stayed broadly
neutral.  The central bank reduced the policy rate from 5 to 4
percent between October 2013 and April 2014 amid a weakening
economic outlook and inflation below target.  The cuts have been
transmitted to interbank and lending rates and contributed to peso
depreciation.

Nonetheless, credit growth has moderated for all types of credit,
except for mortgage credit, which remains brisk. The 2013
structural deficit was 0.8 percent of GDP (staff estimate).  The
fall in copper revenue shifted the headline balance to a deficit
of 0.6 percent of GDP from a surplus of equal size in 2012.

However, central government net assets remained at 6.7 percent of
GDP.

Growth is expected to bottom out in 2014 and gradually return to
trend.  Growth will reach 3.2 percent in 2014 and recover to its
potential level by 2016, supported by monetary easing, the peso
depreciation, and recovery in the global economy.  Key risks to
the outlook stem from the potential of further declines in copper
prices and global financial volatility.  Although there are signs
that investment is stabilizing and could pick up later in the
year, consumption of durable goods has declined and further
weakening cannot be ruled out.  Net exports should continue to
provide a boost to the recovery.

The government has launched an ambitious policy agenda to bolster
long-term growth and reduce inequality.  It includes important
reforms in taxation, education, productivity, and energy.  The
authorities' tax reform aims to create a more progressive tax
structure and raise 3 percent of GDP in revenue to fund greater
spending on education and health, while raising public savings.

The education reform focuses on early childhood education, and
fostering equal access and improving quality and accountability in
education.  The energy agenda aims to promote investment and
efficiency and facilitate the use of clean technologies.  The
authorities' plans to bolster competitiveness include improving
infrastructure, promoting research and development and job
training, and providing new services for small and medium-
enterprises.

The financial sector is large, but risks are contained. Financial
system assets exceed 200 percent of GDP.  Bank capitalization
appears adequate, profitability remains comfortable, and
nonperforming loans are low and fully provisioned.  Life insurers'
growing exposure to commercial real estate merits watching, but
stress tests do not show significant concerns.  Investment returns
of the private pension system have declined, and the government
has appointed a commission to propose parametric changes to ensure
adequate replacement rates.

The authorities have sent to congress legislation that establishes
risk-based insurance supervision and a comprehensive credit
registry, and strengthens the legal framework of the Securities
and Insurance Supervisor and the Financial Stability Council.

                     Executive Board Assessment

Executive Directors commended the authorities for their sound
macroeconomic management, which has contributed to Chile's robust
economic performance in recent years.  At the same time, Directors
noted that the end of the copper price boom and the normalization
of global monetary conditions pose challenges to the growth
outlook.  They acknowledged, however, that Chile, with its strong
fundamentals and policy frameworks, including a floating exchange
rate, is well placed to cope with these challenges.
Directors agreed that the current macroeconomic policy mix is
broadly appropriate.  They concurred that, with inflation
expectations well anchored and some remaining slack in the
economy, monetary policy can remain accommodative although
continued vigilance is needed in light of recent inflation
developments.  Directors supported a broadly neutral stance of
fiscal policy, with full operation of automatic stabilizers. They
welcomed the authorities' commitment to move toward a balanced
structural fiscal position by 2018 while minimizing the drag on
the recovery.

Directors emphasized the need for structural reforms to strengthen
prospects for strong and inclusive growth. They agreed with the
authorities' focus on improving education, fostering female labor
force participation, upgrading key infrastructure, and promoting
energy efficiency.  Directors also supported the tax reform's
objectives of increasing progressivity and generating permanent
revenue to finance additional social spending, while maintaining
incentives for private investment.

Directors commended the authorities for their track record of
fiscal prudence, anchored in a credible fiscal rule.  They
welcomed the plan to strengthen the legal framework for the Fiscal
Council, noting that consideration could be given in the medium
term to increase its autonomy and broaden its mandate.  In due
course, further refinements to the rule-based fiscal framework
could also be considered. Directors saw the benefits of setting a
small structural surplus target over the cycle in preserving
adequate buffers.

Directors recognized the progress in enhancing financial sector
oversight and the resilience of the financial system, and looked
forward to full implementation of the recommendations from the
Financial Sector Assessment Program.  They underscored the
importance of focusing efforts on completing legislative
initiatives, aligning capital standards with Basel III, and
strengthening the independence of the Supervisor of Banks and
Financial Institutions.  The dominant role of financial
conglomerates in the financial system also calls for a more
consolidated approach to their oversight.  Directors encouraged
close monitoring of corporate leverage, the real estate sector,
and the growing exposure of insurance companies to commercial real
estate.


===================================
D O M I N I C A N   R E P U B L I C
===================================

* DOMINICAN REPUBLIC: Energy Fiasco is Country's Top Headache
-------------------------------------------------------------
Dominican Today reports that for entrepreneurs in the Dominican
Republic, tackling the energy problem must be the Government top
economic goal, according to the Deloitte Consulting business
barometer poll conducted with 108 senior executives of local
companies, from April 21 to May 23.

The survey found however that while 32.7% of those polled said the
electricity problem is the main goal to pursue, just 7.5 percent
said it should be the reform of the Labor Code, according to
Dominican Today.

Moreover Deloitte Consulting, represented by economists Jose Luis
Ramon and Nassim Alemany, found great optimism with Danilo
Medina's Administration, with a 70.1% approval rating, a jump of
11 percentage points compared with the previous poll, of 59.1%,
the report relates.


=====================
P U E R T O   R I C O
=====================


PUERTO RICO: Utility May Default on January Interest Payment
------------------------------------------------------------
Michelle Kaske, writing for Bloomberg News, reported that the
Puerto Rico Electric Power Authority may miss a January interest
payment to investors, according to Municipal Market Advisors,
potentially triggering the largest restructuring ever of state and
local debt.

The agency, called Prepa, used $41.6 million of reserve funds to
help make a $417.6 million payment to bondholders on July 1,
according to Bloomberg.  With the reserve now depleted by about 10
percent, "we expect the bond trustee is unlikely to make any more
distributions to bondholders, reserving cash for likely litigation
expenses," Bloomberg quoted Matt Fabian, a managing director at
Concord, Massachusetts-based MMA as saying.


==========================================
S T. V I N C E N T  &  G R E N A D I N E S
==========================================


ST. VINCENT COCOA COMPANY: Closes, Ceases Operations
----------------------------------------------------
Caribbean360.com reports that the St. Lucia government said it
will plan the way forward for the cocoa industry after owners of
the St. Vincent Cocoa Company announced their decision to cease
operations.

Prime Minister Dr. Ralph Gonsalves, Minister of Agriculture,
Saboto Caesar was slated to meet with the firm, notes the report.

Caribbean360.com said the company began operating in August 2011
after signing a 50-year agreement with the Gonsalves government.

". . . . it is clear that they probably feel that the amount of
money to be made . . .  they probably feel that enough farmers
haven't come forward to plant cocoa; but the state will keep with
the cacao industry," Prime Minister Gonsalves told CMC, according
to Caribbean360.com.

The report notes that the agreement, which qualified for review
after 20 years, gave Amajaro exclusivity in St. Vincent and the
Grenadines to buy cocoa beans, in wet and dry form and to perform
all sales and marketing of cocoa within the period of the
agreement.

It, however, made exception for cottage industry persons selling
cocoa for consumption in the country, the report notes.

"They haven't spoken in any detail about the reasons," Prime
Minister Gonsalves said when asked what reasons the company gave
for pulling out of St. Vincent, the report relates.

"I think the general statement has been the new owners not seeing
the light for a few years," Prime Minister Gonsalves said, the
report discloses.

Bloomberg reported in November 2013 that Armajaro Holdings Ltd.
agreed to sell its soft commodities trading unit to Ecom Agro
industrial Corp, the report notes.

The company's trading arm, Armajaro Trading Ltd., reported a loss
of US$7.6 million in the year ended September 2012, Bloomberg
reported, the report relates.

Prime Minister Gonsalves said after the meeting, Caesar was
expected "to be in a better place to find out the precise way in
going forward in light of the memorandum of understanding that we
had," the report notes.

Prime Minister said the Cocoa Company would leave is assets and
infrastructure for the government for "continuation of the
process," the report notes.

"We are interested in continuing the process.  A company came in,
if they decide for their own commercial reasons to pull out, it
doesn't mean that there is not a space for cocoa," the report
quoted Prime Minister Gonsalves as saying.

Asked if the company had to give notice before ceasing operations,
Prime Minister Gonsalves, who along with former Minister of
Agriculture, Montgomery Daniel, signed the agreement, said "I
think they had to give a period of notice, but I think all those
things Saboto will discuss with them," the report discloses.

Prime Minister Gonsalves said the government will see what can be
traded off in lieu of notice.



                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
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affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
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