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

               Thursday, December 22, 2016, Vol. 17, No. 253


                            Headlines



B O L I V I A

COMPANIA DE SEGUROS: Moody's Affirms B2 IFS Rating


B R A Z I L

BRAZIL: Court Votes Renan Calheiros Can Remain Senate President
MINAS GERAIS: Geographic Shift in Mining Leaves Region Hurting


C A Y M A N  I S L A N D S

AVERY CAPITAL: Shareholder Receives Wind-Up Report
BLUECREST SPECIALTY: Shareholders Receive Wind-Up Report
FOUR CORNERS: Shareholders Receive Wind-Up Report
FRM GLOBAL: Shareholders Receive Wind-Up Report
FRM GLOBAL MASTER: Shareholders Receive Wind-Up Report

FRM PHOENIX: Shareholders Receive Wind-Up Report
GLG ASIAN: Shareholders Receive Wind-Up Report
LOCKINGTON HOLDINGS: Shareholders Receive Wind-Up Report
SICOMM TECHNOLOGY: Shareholders Receive Wind-Up Report
SPROTT MASTER: Shareholder Receives Wind-Up Report

SPROTT MASTER II: Shareholder Receives Wind-Up Report
WCG MASTER: Shareholders Receive Wind-Up Report
WCG OFFSHORE: Shareholders Receive Wind-Up Report


J A M A I C A

FLOW: In Trouble With Customers After Publishing Private Numbers
JAMAICA: Currency Growth for Dec. Lower Than Projected Says BOJ
JAMAICA: Non-Performing Loans Continue to Decline, BOJ Says


P A R A G U A Y

PARAGUAY: Fitch Affirms 'B' ST Currency Issuer Default Ratings


P U E R T O    R I C O

LUCY LOPEZ ROIG: Case Summary & 20 Largest Unsecured Creditors


V E N E Z U E L A

VENEZUELA: In 2nd Day of Crisis Due to Lack of Cash


                            - - - - -


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B O L I V I A
=============


COMPANIA DE SEGUROS: Moody's Affirms B2 IFS Rating
--------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo, S.A.
affirmed Compania de Seguros y Reaseguros Fortaleza S.A.'s and
Compania de Seguros de Vida Fortaleza S.A.'s B2 global local-
currency (GLC) insurance financial strength (IFS) ratings and
their A3.bo Bolivian national scale (NS) IFS ratings. The outlook
of the A3.bo NS IFS ratings was revised to negative from stable,
whereas the outlook of the B2 GLC IFS ratings remains stable.

RATINGS RATIONALE

According to Moody's, the shift of Fortaleza Seguros' NS rating
outlook to negative from stable, is based on the decline in the
company's investment returns, contributing to an annualized
negative return on capital of -8.4% for the first nine months of
2016. According to the rating agency, the company's higher
concentration of US dollar-denominated securities during 2016,
along with very low market interest rates in Bolivia, has hurt its
profitability, although it could be restored in the coming year
should the company shift its asset allocation towards a more
profitable composition. The rating agency went on to say that the
company also posted underwriting losses, and that an inability to
restore profitability to historical levels could result in a
rating downgrade.

Moody's said that Fortaleza Vida's NS rating outlook was also
revised to negative from stable, in tandem with Fortaleza Seguros,
reflecting the life insurer's integration and synergies with
Fortaleza Seguros, implying that a downgrade of Fortaleza Seguros'
would likely result in a downgrading of Fortaleza Vida's rating as
well.

The rating agency said that the ratings' affirmation is based
primarily on Fortaleza Seguros leading position in the Bolivian
surety segment, its diversified distribution channels, and the
integration of both Fortaleza Seguros and Fortaleza Vida with
Banco Fortaleza S.A. (IFS B2,stable), which provides greater
market visibility and access to a large client base.

Moody's pointed out, however, that these positive factors are
significantly tempered by the insurers' asset-quality risk, given
their significant investments in non-investment grade assets such
as Bolivian sovereign bonds and local bank deposits, a
characteristic common to most Bolivian insurers. Other concerns
noted include Fortalza Seguros' high business concentration in the
surety and automobile segments, and Fortaleza Vida's lack of
operating history, narrow product focus, and very modest market
presence.

Among the factors that could result in a rating downgrade for
Fortaleza Seguros and Fortaleza Vida, Moody's mentioned a
sustained reduction in its profitability (e.g. sustained negative
results) and capital adequacy due to lower investment returns, or
a significant deterioration in investment credit quality.
Conversely, the companies' ratings could be upgraded if they are
able to sustain previous profitability levels, or through a
combination of improved reserve adequacy, further product
diversification, and strengthened market presence.

Fortaleza Seguros and Fortaleza Vida are Bolivian property and
casualty and life insurers, respectively, that are privately owned
primarily by a local family. They are part of a local financial
conglomerate that includes affiliates engaged in the brokerage,
finance, and leasing businesses.

Based in Santa Cruz, Bolivia, Fortaleza Seguros and Fortaleza Vida
reported for the first nine months of 2016 net losses of BOB 2.4
million and BOB 0.9 million, respectively, and gross premiums
written of BOB 156.2 million and BOB 6.7 million, respectively. As
of 30 September 2016, total assets were BOB 242 million and BOB 9
million, respectively


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


BRAZIL: Court Votes Renan Calheiros Can Remain Senate President
---------------------------------------------------------------
Paulo Trevisani and Jeffrey Lewis at The Wall Street Journal
report that Brazil's Supreme Court voted to leave Senate President
Renan Calheiros in his powerful leadership post, raising hopes
economic overhauls making their way through Congress can be
approved.

Mr. Calheiros had defied a preliminary high-court order to stand
down as Senate leader following his indictment on embezzlement
charges, sparking a constitutional crisis that had put the country
on edge, according to The Wall Street Journal.

The court's decision should aid President Michel Temer, who has
been counting on Mr. Calheiros, a political ally, to help shepherd
through Congress unpopular austerity measures aimed at closing a
worrisome budget deficit and rebuilding Brazil's credibility with
investors.

The order had been issued by a lone justice on the 11-member
Supreme Court, the reprot notes.  Justice Marco Aurelio Mello
ruled Mr. Calheiros should step aside following his indictment for
falsifying his Senate expense reports, allegations Mr. Calheiros
denies, the report relays.  Such temporary rulings are binding
unless and until they are overturned by the full court, the report
discloses.

The high court indicated recently, in a different preliminary
vote, that officials under indictment can't be in line to succeed
the president. Mr. Mello based his order to remove Mr. Calheiros
from the Senate presidency on that understanding, the report says.

The Supreme Court ruled Mr. Calheiros can remain Senate president,
but will be removed from the line of succession, the report says.
"It was a decision by large majority, there is no way to rebel
against it," said Justice Celso de Mello, the most senior of the
justices, the report notes.  "The court decided strictly within
its competency and the constitution," he added.

A constitutional expert expressed dismay the high court let a
powerful politician choose to defy an order by one of its members,
the report relays.

"They're sending a message that [Mr. Calheiros] is stronger than
they are," said Ivar Hartmann, a law professor at the Getulio
Vargas Foundation in Rio de Janeiro, the report notes.

Alessandro Molon, a representative from Rede, the party that asked
for Mr. Calheiros to be removed from the Senate presidency, was at
the court and said afterward, "This is a bad decision.  We've
missed an opportunity to turn a page in Brazil's history," the
report discloses.

Mr. Calheiros's refusal to follow the initial order was
unprecedented, and had ratcheted up tension that has been building
for months between Brazil's judiciary and legislative branches,
the report relays.

A massive kickback probe centered on contracts with the state oil
company has targeted dozens of politicians in the capital,
including Mr. Calheiros, who has denied wrongdoing, the report
notes.

Legislators in recent weeks have moved to hobble that sprawling
investigation, sparking outrage among the public and prosecutors
that lawmakers are trying to shield themselves from prosecution,
the report adds.

As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2016, Fitch Ratings has affirmed Brazil's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'/
Negative Outlook.  Brazil's senior unsecured Foreign- and Local-
Currency bonds are also affirmed at 'BB'. The Country Ceiling is
affirmed at 'BB+' and the Short-Term Foreign and Local-Currency
IDRs at 'B'.


MINAS GERAIS: Geographic Shift in Mining Leaves Region Hurting
--------------------------------------------------------------
Benjamin Parkin and Paul Kiernan at The Wall Street Journal report
that when Brazilian mining behemoth Vale SA closed an iron-ore
mine here earlier this year, it turned this working-class town
into a case study for a region whose traditional industry is
starting to slip away.

For centuries mining has been the lifeblood of communities across
Brazil's southeastern state of Minas Gerais, home to colonial
towns with baroque churches and ornate mansions built with mineral
wealth, according to The Wall Street Journal.  Even today, Minas
Gerais remains one of Brazil's more prosperous states, thanks in
large part to the jobs and royalties generated by companies like
Vale, the report notes.

But a hollowing-out has begun, and concerns are growing that this
region could one day resemble the U.S. Rust Belt or Appalachian
coal country, the report relays.

A thousand miles north, meanwhile, in the Carajas mountains of the
Amazon rain forest, Vale is putting the finishing touches on a
$14-billion mining complex known as S11D, the report discloses.
Set to ramp up in the coming months, it will crank out as much as
90 million tons a year of the highest-quality, lowest-cost iron
ore in the world. By 2018, half of Vale's production is expected
to come from Carajas, up from 39% extracted last year from its
existing mines in the region, the report says.

That shift is beginning to be felt in towns like Barao de Cocais,
where the closure of Vale's Gongo Soco iron-ore mine in April
caused royalty payments to virtually dry up, the report says.
Unemployment is rising, shuttered houses and businesses line the
streets and municipal revenue is projected to fall by around one-
fourth next year, the report notes.

"Mining finishes eventually," said mayor-elect Decio dos Santos,
adding that the town is ill-prepared for life without Vale, the
report relays.  "We need to think about more sustainable forms of
development," he added.

Decades of intensive mining have left Minas Gerais with depleted
deposits that are increasingly costly and less feasible to
exploit, with iron-ore prices crashing from nearly $200 a ton in
2011 to below $40 earlier this year, the report notes.  Prices
have since recovered somewhat to around $80 currently, the report
discloses.

Refining this lower-grade ore also produces large volumes of waste
that can be dangerous to store, the report notes.  After a dam
failure at Vale's Samarco joint venture in nearby Mariana last
year killed 19 people, company executives and local politicians
say regulators have balked at granting the licenses Vale would
need to mine fresh deposits in the region, the report relays.

"The future here is not certain," said Karina Rapucci, co-manager
of Vale's nearby Brucutu iron-ore mine, the largest in Minas
Gerais, the report discloses.

As a result, Vale has increasingly focused its investments on
vast, untapped reserves in Carajas, where the ore is so rich it
generates little waste and is cheap enough to be profitable in
virtually any price scenario, the report notes.  Vale sees S11D
bringing lower upkeep costs and higher margins, ferrous minerals
director Peter Poppinga said in November, the report relays.  The
new mine should enable the company to easily offset depletion in
its older pits, he added.

That bodes ill for Minas Gerais, where mining is still the
mainstay of many communities that have done little to diversify
their economies. Citing dwindling mining activity, Governor
Fernando Pimentel recently declared "financial calamity" as the
state struggles to maintain public services and pay salaries, the
report notes.

In Barao de Cocais, a town of around 30,000, royalty-fueled
building sprees spawned new government offices and public-sector
jobs, the report discloses.  But without Gongo Soco to prop up the
budget, Mr. dos Santos, the incoming mayor, plans to lay people
off and cut municipal agencies next year, while potholed streets
go unrepaired, the report relays.

A 40-minute drive east of Barao de Cocais, the town of Sao Goncalo
do Rio Abaixo finds itself in a similarly vulnerable spot, the
report notes.

Once a rural outpost where residents scraped by harvesting bananas
and sugar cane, the town was transformed almost overnight in 2006
when Vale opened its Brucutu mine, the report relays.  Per capita
gross domestic product soared to more than $100,000 in 2014, on
par with San Jose in California's Silicon Valley, the report
notes.  The unprecedented flood of wealth spawned a new fleet of
cars for city hall, a handsome stadium and a gourmet burger joint,
the report relays.

But despite having fewer than 11,000 inhabitants, the local
government also increased its payroll almost 700% to 1,600 over
the past decade, highlighting a common practice in commodity-
dependent parts of Brazil, the report says.

Vale has already dug out the most of best ore from the Brucutu
sections within Sao Goncalo's borders, meaning a likely decline in
the royalties to which the city has grown accustomed, the report
notes.

Sao Goncalo's mining wealth came -- and is poised to fade -- so
quickly that it never touched some residents. Development
indicators like literacy and child-mortality rates lag behind
Brazilian averages, with 10% of the town's residents burning their
garbage at home. Scenes of crushing poverty are still to be found
along the dirt tracks leading off the town center's freshly
asphalted roads, the report says.

As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2016, Fitch Ratings has affirmed Brazil's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'/
Negative Outlook.  Brazil's senior unsecured Foreign- and Local-
Currency bonds are also affirmed at 'BB'. The Country Ceiling is
affirmed at 'BB+' and the Short-Term Foreign and Local-Currency
IDRs at 'B'.



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


AVERY CAPITAL: Shareholder Receives Wind-Up Report
--------------------------------------------------
The shareholder of Avery Capital Ltd. received on Dec. 20, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Benno Hafner
          Sonnenhof 8
          Lucerne
          6004 Switzerland
          Telephone + 41 44 201 95 01
          Facsimile: + 41 201 95 41


BLUECREST SPECIALTY: Shareholders Receive Wind-Up Report
--------------------------------------------------------
The shareholders of Bluecrest Specialty Asset Finance Fund Limited
received on Dec. 14, 2016, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Ms. Claire Loebell
          c/o Steve Bull
          Ernst & Young Ltd.
          62 Forum Lane, Camana Bay
          P.O. Box 510 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 814 9060


FOUR CORNERS: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Four Corners Absolute Return Offshore Fund,
Ltd received on Dec. 13, 2016, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Stuart Sybersma
          Yvonne Lorimer
          Deloitte & Touche
          Citrus Grove Building, 4th Floor
          Goring Avenue George Town KY1-1109
          Cayman Islands
          Telephone: +1 (345) 814 2214
          Facsimile: +1 (345) 949 8258


FRM GLOBAL: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of FRM Global Equity Fund SPC received on
Dec. 15, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Ms. Claire Loebell
          c/o Steve Bull
          Ernst & Young Ltd.
          62 Forum Lane, Camana Bay
          P.O. Box 510 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 814 9060


FRM GLOBAL MASTER: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of FRM Global Equity Master Fund SPC received on
Dec. 15, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Ms. Claire Loebell
          c/o Steve Bull
          Ernst & Young Ltd.
          62 Forum Lane, Camana Bay
          P.O. Box 510 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 814 9060


FRM PHOENIX: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of FRM Phoenix Fund Limited received on Dec. 15,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Ms. Claire Loebell
          c/o Steve Bull
          Ernst & Young Ltd.
          62 Forum Lane, Camana Bay
          P.O. Box 510 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 814 9060


GLG ASIAN: Shareholders Receive Wind-Up Report
----------------------------------------------
The shareholders of GLG Asian Equity Long-Short Master Fund Ltd.
received on Dec. 15, 2016, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Ms. Claire Loebell
          c/o Steve Bull
          Ernst & Young Ltd.
          62 Forum Lane, Camana Bay
          P.O. Box 510 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 814 9060


LOCKINGTON HOLDINGS: Shareholders Receive Wind-Up Report
--------------------------------------------------------
The shareholders of Lockington Holdings Limited received on
Dec. 14, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Frances Holliday
          c/o Jasmine Amaria
          Walkers
          6 Gracechurch Street
          London EC3V 0AT
          UK
          Telephone: + 44 207 2204975


SICOMM TECHNOLOGY: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Sicomm Technology Limited received on Dec. 13,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

Shi Zhongming is the company's liquidator.


SPROTT MASTER: Shareholder Receives Wind-Up Report
--------------------------------------------------
The shareholder of Sprott Master Fund, Ltd. received on Dec. 13,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Samgenpar, Ltd.
          c/o Joanne Huckle
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949 9877


SPROTT MASTER II: Shareholder Receives Wind-Up Report
-----------------------------------------------------
The shareholder of Sprott Master Fund II, Ltd. received on
Dec. 13, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Samgenpar, Ltd.
          c/o Joanne Huckle
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949 9877


WCG MASTER: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of WCG Master Fund, Ltd. received on Dec. 12,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Barry Wittlin
          Walkers
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9001
          Cayman Islands
          Telephone: (345) 914 6386


WCG OFFSHORE: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of WCG Offshore Fund, Ltd. received on Dec. 12,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Barry Wittlin
          Walkers
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9001
          Cayman Islands
          Telephone: (345) 914 6386


=============
J A M A I C A
=============


FLOW: In Trouble With Customers After Publishing Private Numbers
----------------------------------------------------------------
Caribbean360.com reports that first it was the cover, now it's the
contents of the 2016-2017 Yellow Pages telephone directory that is
creating problems in Jamaica.

The telephone numbers and other information of hundreds of FLOW
Jamaica customers who have been paying J$2,400 (US$ 18.63) per
year to keep their numbers private, has been released in the
directory, a month after a controversy surrounding the depiction
of scantily clad women dancing with men in a dancehall street
session, on the front of the publication, according to
Caribbean360.com.

Some senior government ministers and top business leaders are
among those affected, the report notes.

In a statement to the Jamaica Gleaner, FLOW Jamaica said it
"regrets the inclusion of the private listing of some customers in
the 2016-2017 telephone directory," the report relays.

"We unreservedly apologize for this," the company said, notes the
report.  "We wish to assure our customers that we value their
privacy and are taking all the necessary steps to address this as
quickly as possible and prevent a recurrence."

Ian Neita, the chief executive officer of Global Directories
Limited, the publishers of the directory, declined to speak to the
newspaper and directed all queries to FLOW, the report relays.

Late last month, Global Directories Limited gave in to pressure
and produced an alternative cover to its telephone directory on
the heels of a stern rebuke from a local lobby group about the
original front, the report says.

Mr. Neita had rejected suggestions that the picture was
"offensive", saying it was merely depicting culture and was not
meant to insult any group, the report notes.

But he said the company had taken a "commercial and principled"
decision to print an alternative cover for institutions such as
churches and schools or any others who would be offended by the
image, the report adds.


JAMAICA: Currency Growth for Dec. Lower Than Projected Says BOJ
---------------------------------------------------------------
RJR News reports that the Bank of Jamaica has revealed that the
growth in currency issue so far this month is lower than
projected, but says it is still expecting to see the pace of
currency issue to pick up before the end of this week.

In a release dated Dec. 20, the central bank said in the period
December 13 to 16, net currency issue was up five per cent to
J$4.2 billion, according to RJR News.

That growth was below projections that net currency issue would
have amounted to almost US$9 billion on the back of a revived
economy, says the report.

Despite currency demand not being as strong as projected, the
central bank says it expects to see an uptick in currency demand
during this week to facilitate increased spending for the holiday,
the report relays.

Currency issue is expected to amount to J$8 billion to cover that
eventuality, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2016, S&P Global Ratings affirmed its 'B' long-term and
short-term foreign and local currency sovereign credit ratings on
Jamaica.  The outlook on the long-term sovereign credit ratings
remains stable.  In addition, S&P affirmed its transfer and
convertibility assessment at 'B+'.


JAMAICA: Non-Performing Loans Continue to Decline, BOJ Says
-----------------------------------------------------------
RJR News reports that non-performing loans in Jamaica continue to
decline, according to the Bank of Jamaica.

Data from the central bank show the stock of non-performing loans
-- which are loans which go unpaid for more than three months --
fell by 16 per cent in September, when compared to the previous
year, according to RJR News.

The decline comes as financial institutions tighten oversight of
their loan portfolios, despite recording strong loan growth, the
report notes.

At the end of September, the value of loans classified as non-
performing was $18.7 billion, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2016, S&P Global Ratings affirmed its 'B' long-term and
short-term foreign and local currency sovereign credit ratings on
Jamaica.  The outlook on the long-term sovereign credit ratings
remains stable.  In addition, S&P affirmed its transfer and
convertibility assessment at 'B+'.


===============
P A R A G U A Y
===============


PARAGUAY: Fitch Affirms 'B' ST Currency Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed Paraguay's sovereign ratings as
follows:

  -- Long-term foreign and local currency Issuer Default Ratings
     (IDRs) at 'BB', Outlook Stable;

  -- Issue ratings on senior unsecured foreign currency bonds at
     'BB';

  -- Country ceiling at 'BB+';

  -- Short-term foreign and local currency IDRs at 'B'.

KEY RATING DRIVERS
Paraguay's ratings reflect a long track record of macro policy
prudence, low fiscal deficits and debt levels, and increased
resilience to external shocks. These are counterbalanced by
constraining factors on creditworthiness including high output
volatility due to weather related shocks and weak structural
factors compared to peers such as lower per capita income, and
weaker governance and social development indicators.

Paraguay's economy is becoming increasingly resilient to external
shocks given an adequate level of international reserves,
increased exchange rate flexibility and improved credibility of
monetary policy. Fitch estimates real GDP growth at 4% in 2016
despite low commodity prices of key exports (soya and beef) and
the fact that Paraguay's main trading partners - Brazil and
Argentina - are in deep recession. Abundant rainfall benefitted
both hydro-electric and agricultural production. Growth is
expected to reach 3.5% of GDP in 2017 and 3.8% in 2018 driven by
domestic demand. There are signs of economic diversification into
higher value-added activities as well, which could over time
reduce output volatility.

Inflation is expected to rise to an average of 3.6% in 2016, at
the lower end of the central bank's 4.5% +/-2% inflation target.
The central bank's monetary policy credibility has increased since
its inflation targeting regime was introduced in 2011. It has
broadly met the targets and kept inflation expectations anchored.

International reserve coverage, at 6.5 months of current external
payments (CXP) has improved and remains adequate to mitigate risks
related to commodity dependence and high financial dollarization.
Furthermore, measures of external debt sustainability have
improved sharply over the last decade; external debt represents
36% of CXR in 2016, down from 135% in 2007. A large part of the
external debt is related to the Itaipu dam, jointly owned by
Paraguay and Brazil.

Fitch expects the government to meet the 1.5% of GDP central
government deficit target in 2016 as stipulated in the Fiscal
Responsibility and Transparency Law, given buoyant revenue growth
and current expenditure restraint. However, Fitch forecasts a
central government deficit of 2% of GDP in 2017 due to a rise in
government spending on salaries. The government is threatening to
veto the 2017 budget recently passed by the Congress because it
would lead to a deficit exceeding the 1.5% of GDP limit.

Given the continued difficult external environment and the
country's significant infrastructure and social needs, the
government is considering modifying the fiscal rule to target a
structural fiscal balance based on economic growth potential,
reducing the economic pro-cyclicality of the current fiscal rule.
At the general government level, Fitch expects a fiscal deficit of
0.4% of GDP in 2016, which captures the surplus run by the public
pension fund.

In order to boost infrastructure investment while preserving
strong fiscal metrics, President Cartes' administration is focused
on ramping up projects under the public-private partnerships (PPP)
law. Paraguay's low level of infrastructure spending has been one
of the country's key structural weaknesses but has been improving
over the last three years.

Fitch estimates that the general government debt reached 23.7% of
GDP in 2016 from 22.5% of GDP in 2015, largely as the result of
the government's $600 million international bond issuance. Nearly
77% of Paraguay's debt is external, exposing the debt ratio to
foreign exchange volatility. Debt/GDP remains less than half of
the 'BB' median of 51%.

Structural factors remain Paraguay's major rating constraints,
reflected in governance indicators which are well below those of
the 'BB' median although improving. In an effort to increase
transparency and reduce corruption, the government passed a law in
2014 that requires publication of all public sector salaries. Per
capita income of below $4000 is well below the BB median of $5000.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Paraguay a score equivalent to a
rating of 'BB-' on the Long-term FC IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final LT FC IDR by applying its QO, relative
to rated peers, as follows:

-- Macro: +1 notch, to reflect Paraguay's long track record of
prudent, credible and consistent economic policies. The
authorities continue to emphasize macroeconomic stability in their
policy actions, which has contained macroeconomic imbalances
despite volatile GDP growth.

Fitch's SRM is the agency's proprietary multiple regression rating
model which employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within Fitch
criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

RATING SENSITIVITIES
The main factors that could individually or collectively lead to a
positive rating action are:

  -- A higher, less volatile growth trajectory that improves per
capita income relative to peers while maintaining macroeconomic
stability;
  -- Improvements in governance indicators.

The main factors that could individually or collectively lead to a
negative rating action are:

  -- A prolonged terms-of-trade or weather-related shock that
negatively impacts the country's economic prospects and external
accounts;
  -- A sustained fiscal deterioration and/or emergence of
financing constraints;
  -- Increased macroeconomic instability, for example from
substantial asset quality deterioration that impacts the financial
sector.

KEY ASSUMPTIONS
  -- Fitch assumes that the Brazilian economy will grow modestly
by 1.2% in 2017, after a deep recession in 2015-16 with a fall of
over 3% in both years. Argentina is expected to grow by 3.2% in
2017 after a 1.7% fall in GDP in 2016;

  -- Fitch assumes that Paraguay will maintain access to external
sources of financing and continue to attract FDI inflows.

  -- Fitch projects oil price average of USD45 in 2017 and USD55
in 2018.


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


LUCY LOPEZ ROIG: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Lucy Lopez Roig E.A.P., Inc.
        Suit 701
        400 Ave. Domenech
        San Juan, PR 00918

Case No.: 16-09790

Chapter 11 Petition Date: December 16, 2016

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Judge: Hon. Mildred Caban Flores

Debtor's Counsel: Carmen D Conde Torres, Esq.
                  C. CONDE & ASSOC.
                  254 San Jose Street, 5th Floor
                  San Juan, PR 00901-1523
                  Tel: 787-729-2900
                  Fax: 787-729-2203
                  E-mail: notices@condelaw.com
                          condecarmen@condelaw.com

Total Assets: $82,830

Total Liabilities: $1.17 million

The petition was signed by Marion A. Wennerholm, president.

A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/prb16-09790.pdf


=================
V E N E Z U E L A
=================


VENEZUELA: In 2nd Day of Crisis Due to Lack of Cash
---------------------------------------------------
EFE News reports that for the second straight day, Venezuelans
faced the crisis of getting through the day without cash, after
the 100-bolivar bill, which has the largest circulation in the
country, was no longer accepted as payment, while bills of lower
denomination are strictly rationed.

On this second cashless day, protests broke out in the country's
interior where, particularly in rural areas, methods of payment
aside from cash are hard for people to get their hands on,
according to EFE News.

In Bolivar state, one of the chief mining areas in the southern
part of the country and bordering on Brazil, authorities reported
a number of protests and stores being plundered for the lack of
money in circulation for making purchases, the report notes.

The state governor, the Chavista Francisco Rangel Gomez, said that
135 people were arrested for being caught perpetrating acts of
violence, and announced that security forces are being doubled,
the report relays.

Protesters have attacked government offices in the state, Rangel
Gomez announced, and said the opposition to President Nicolas
Maduro's government is guilty of sparking the violence, the report
says.

Several stores in Bolivar and other states of the country decided
not to open as protection against these attacks, the report
discloses.

As a last resort, Bolivar authorities decided to coordinate with
stores to accept VEB100 bills as a form of payment, even though
they lost their validity.  Stores should have stopped accepting
them, when the time expired when they could be deposited in
private banks, the report relays.

Venezuelan President Nicolas Maduro told citizens that the reason
the new bills, which should have started circulating on Dec. 15,
have not yet been delivered to the country is due to
"international sabotage" aimed at harming the Venezuelan economy,
the report says.

The decision to replace the old paper money, in circulation since
2008, was made to deal with inflation and facilitate the handling
of cash, which in recent years became unbearable because of the
huge volume of bills needed to make the simplest cash payments,
the report adds.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term
Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR)
at 'CCC'. Fitch has also affirmed the sovereign's Short-Term
Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'.


                            ***********


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.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
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
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com


                            ***********


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, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.

Copyright 2016.  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 or Nina Novak at
202-362-8552.


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