/raid1/www/Hosts/bankrupt/TCRLA_Public/230727.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
Thursday, July 27, 2023, Vol. 24, No. 150
Headlines
A R G E N T I N A
ARGENTINA: Firms Rush to Raise Dollars Before Election Volatility
ARGENTINA: IMF Talks Ahead of Elections Spur Devaluation Jitters
GAUCHO GROUP: Issues 270,272 Shares to Non-Executive Directors
B R A Z I L
BRAZIL: Beef Export Volume and Revenue Drops in H1 2023
[*] BRAZIL: Soybean And Corn Exports Rise Sharply in July
C H I L E
GUACOLDA ENERGIA: S&P Downgrades ICR to 'CC', Outlook Negative
G U Y A N A
GUYANA: Parliament Approves 20% Tax Removal on Cell Phones
P A N A M A
PROMERICA FINANCIAL: S&P Rates $300MM New Senior Secured Notes 'B+'
P E R U
PERU: Central Bank Says Inflation Likely to Speed Up in July
- - - - -
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A R G E N T I N A
=================
ARGENTINA: Firms Rush to Raise Dollars Before Election Volatility
-----------------------------------------------------------------
Buenos Aires Times reports that companies in Argentina are jumping
at the chance to refinance their debt at rock-bottom rates as
investors brace for more financial volatility before key primary
elections next month.
In recent weeks, the deals have been seemingly endless: from
state-run oil company YPF SA to Telecom Argentina SA to the
country's largest clean energy generators, according to Buenos
Aires Times.
The pile of issuance shows just how much investors are demanding
something - anything - to protect their savings from an
all-but-certain currency devaluation as the government runs out of
dollar reserves to defend the peso, the report notes. Companies
are taking advantage of the rush, selling bonds that carry close to
0% interest and pay investors at the spot exchange rate at
maturity, the report relays.
Argentina's capital controls restrict investors and companies from
accessing dollars and issuing dollar-linked debt in pesos is one
way Argentine corporates can find cheap financing, the report
notes. This is especially important as the cost of selling debt
abroad remains elevated after the Federal Reserve's rate hiking
campaign to tame inflation, according to Francisco Schumacher, a
corporate analyst at BancTrust & Co, the report discloses.
"The difference in US dollar domestic funding versus international
funding is at a level I have never seen before," Schumacher said,
the report says. "Argentine companies are in a situation where
international financing costs are very high and the risk of
currency depreciation is palpable, but there's a relatively low
cost for domestic funding."
Compania General de Combustibles SA is the latest company jumping
on the liability management bandwagon, the report relays. CGC sold
$200 million in securities last week to local units of The Dow
Chemical Co., which will be used to cancel existing debt, the
report notes. The notes, which don't carry interest, improved the
company's liquidity and reduced its average cost of capital to just
over 2.5% annually, according to S&P Global Ratings.
Companies like CGC are taking advantage of the demand as Argentines
brace for volatility ahead of the vote, the outcome of which is
still uncertain as inflation surges past 115% and the nation
renegotiates its $44 billion program with the International
Monetary Fund, the report discloses. The government owes the IMF
about $2.6 billion by the end of July or risks running into
arrears.
A surprise upset in the last primary elections in 2019 sparked a
dramatic asset sell-off and an ensuing credit crunch that locked
companies out of foreign and domestic markets, the report notes.
"The local market is offering very low rates for companies which
have been largely kicked out of the official exchange market,"
CGC's chief executive Hugo Eurnekian said in an interview. "This
is where the opportunity lies, even if the local market has its own
limitations," he added.
Corporate issuance came to a head in March, with companies selling
around 130 billion pesos ($325 million) in dollar-linked bonds, the
biggest wave of issuance in more than two years, according to the
latest available data from Argentina's securities regulator, the
report relays. In early 2021 Argentine corporates - like YPF - saw
a series of restructurings when the central bank mandated that
corporates refinance their debt in order to access dollars, the
report says.
This June, state-run oil company YPF SA sold $150 million of local
bonds, while Telecom Argentina issued almost $92 million in
dollar-linked bonds at a 2.75% interest rate, the report discloses.
More recently, green energy producer Genneia SA sold $71 million
in dollar-denominated and dollar-linked bonds to fund capital
expenditure, and power generator AES Argentina Generacion sold
around $30 million in dollar bonds to repay existing debt, the
report notes.
Investors are scooping up these dollar-linked bonds in a bet the
government will be forced to devalue the beleaguered peso around
August's primaries, the report relays. Economists are also
expecting Argentina will depreciate its official exchange rate,
forecasting the peso will weaken to 400 pesos per dollar by the end
of the year, the report says. This time, companies won't be caught
on the back foot, said Paula La Greca, a corporate analyst at TPCG
Valores in Buenos Aires, the report adds.
"Companies are taking advantage of this boom in the local market,"
La Greca said. "They're selling debt with coupons close to 0%, and
if they have any pesos leftover, they're going and buying back
their more expensive debt," he added.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri 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 25, 2022, Argentina finalized agreement with the IMF for a
new USD44 billion Extended Funding Facility (EFF) intended to fund
USD40 billion in looming repayments of the defunct Stand-By
Arrangement (SBA), with an extra USD4 billion in up-front net
financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris Club debt.
S&P Global Ratings, on March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina. The outlook on the long-term ratings is negative. S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.
S&P's negative outlook on the long-term ratings reflects risks
surrounding pronounced economic imbalances and policy uncertainties
before and after the 2023 national elections. Divisions across the
political spectrum constrain the sovereign's ability to implement
timely changes in economic policy. Global capital markets are
closed to Argentina. In the local market, swaps are being deployed
to manage large maturities before placing debt through traditional
auctions. The central bank continues to play a key role as a
backstop for local debt management in the secondary market. The
ongoing severe drought has exacerbated pressures in the already
disrupted foreign exchange (FX) market.
Fitch Ratings, on March 24, 2023, downgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC-',
and has affirmed the Long-Term Local Currency IDR at 'CCC-'.
Fitch's downgrade of Argentina's rating to 'C' from 'CCC-' follows
an executive decree that forces domestic public-sector entities
into operations involving their holdings of sovereign debt
securities, which would involve unilateral exchanges
and forced currency conversion that constitute default events under
Fitch's criteria. The 'C' rating reflects Fitch's view that default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted Default' (RD) upon execution of the exchanges.
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
ARGENTINA: IMF Talks Ahead of Elections Spur Devaluation Jitters
----------------------------------------------------------------
Buenos Aires Times reports that Argentines are seeking more and
more hedges against a possible devaluation of the nation's currency
amid delays and difficulties in the negotiations between the
government and the IMF ahead of an upcoming presidential election.
Signs that Argentines are dollarizing multiplied, according to
Buenos Aires Times. The peso reached a record high of 527 per
dollar in the black market, from around 500, the report notes.
Estimates from private firms show the central bank increasingly
intervening in the bond market to support the local currency, the
report relays.
"We are noticing a notable increase in the intervention of the
public sector in the bond market," said Pedro Siaba Serrate, a
senior economist at Buenos Aires-based Portfolio Personal
Inversiones, the report notes. "We estimate that dollar sales to
support bond prices and influence the price of the parallel
exchange rate reached an almost two-month high," he added.
A delegation from Argentina's Economy Ministry arrived in
Washington DC last week to discuss the fifth review of the $44
billion International Monetary Fund program, the report discloses.
Officials from the South American nation expect to close a
staff-level agreement after months of negotiations, which have been
further complicated by Economy Minister Sergio Massa's presidential
run, the report says. The government owes the Fund about $2.6
billion by the end of July or risks running into arrears, the
report notes.
The central bank's reserves - at the lowest level since 2016 - are
adding to investor angst before the upcoming elections, the report
discloses. Argentina holds primaries on August 13 ahead of an
October vote that will usher in a new government against a backdrop
of economic woes that include triple-digit inflation and a historic
drought that crippled agricultural exports, the report says.
The country's official exchange rate, which differs wildly from the
parallel rate, has lost 34% of its value against the dollar, making
it the worst-performing currency among emerging markets, the report
relays. Many local economists project it will slump to 400 per
dollar from the current 268 by the end of this year, the report
says.
The rising pressure can also be felt in other types of hedging, the
report notes. The effective implicit rates of the futures exchange
rate climbed to 433 for August, from 335 at the end of June,
despite central bank interventions, the report relays. Yields on
dollar-linked securities maturing in 2024 are already at negative
levels of between 6% and 10%, from close to zero at the end of May,
the report notes.
"The market is seeing that the government and the IMF are not
reaching an agreement and, based on this, it is beginning to
foresee that there will be a devaluation after the primary
elections," said Emiliano Merenda, responsible for sales & trading
at Win Securities, a brokerage in Buenos Aires, the report
discloses. "The expectation is for two devaluation jumps: the
first one after the primaries; and the second one, with the new
government, starting in December," he added.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri 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 25, 2022, Argentina finalized agreement with the IMF for a
new USD44 billion Extended Funding Facility (EFF) intended to fund
USD40 billion in looming repayments of the defunct Stand-By
Arrangement (SBA), with an extra USD4 billion in up-front net
financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris Club debt.
S&P Global Ratings, on March 29, 2023, lowered its long-term
foreign currency sovereign credit rating on Argentina to 'CCC-'
from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency
sovereign credit rating and its 'CCC-/C' local currency ratings on
Argentina. The outlook on the long-term ratings is negative. S&P
also lowered the transfer and convertibility assessment to 'CCC-'
from 'CCC+'.
S&P's negative outlook on the long-term ratings reflects risks
surrounding pronounced economic imbalances and policy uncertainties
before and after the 2023 national elections. Divisions across the
political spectrum constrain the sovereign's ability to implement
timely changes in economic policy. Global capital markets are
closed to Argentina. In the local market, swaps are being deployed
to manage large maturities before placing debt through traditional
auctions. The central bank continues to play a key role as a
backstop for local debt management in the secondary market. The
ongoing severe drought has exacerbated pressures in the already
disrupted foreign exchange (FX) market.
Fitch Ratings, on March 24, 2023, downgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC-',
and has affirmed the Long-Term Local Currency IDR at 'CCC-'.
Fitch's downgrade of Argentina's rating to 'C' from 'CCC-' follows
an executive decree that forces domestic public-sector entities
into operations involving their holdings of sovereign debt
securities, which would involve unilateral exchanges
and forced currency conversion that constitute default events under
Fitch's criteria. The 'C' rating reflects Fitch's view that default
is thus imminent. Fitch said the rating would be downgraded to
'Restricted Default' (RD) upon execution of the exchanges.
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
GAUCHO GROUP: Issues 270,272 Shares to Non-Executive Directors
--------------------------------------------------------------
Gaucho Group Holdings, Inc. disclosed in a Form 8-K filed with the
Securities and Exchange Commission that it issued a total of
270,272 shares at $0.555 per share to the non-executive directors
of the Company as compensation for service as members of the Board
of Directors of the Company for the first half of 2023.
For this sale of securities, no general solicitation was used, no
commissions were paid, all persons were accredited investors, and
the Company relied on the exemption from registration available
under Section 4(a)(2) and/or Rule 506(b) of Regulation D
promulgated under the Securities Act with respect to transactions
by an issuer not involving any public offering. A Form D will be
filed with the SEC within 15 days of the issuance of the shares.
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc. --
http://www.algodongroup.com-- was incorporated on April 5, 1999.
Effective Oct. 1, 2018, the Company changed its name from Algodon
Wines & Luxury Development, Inc. to Algodon Group, Inc., and
effective March 11, 2019, the Company changed its name from Algodon
Group, Inc. to Gaucho Group Holdings, Inc. Through its wholly
owned subsidiaries, GGH invests in, develops and operates real
estate projects in Argentina. GGH operates a hotel, golf and
tennis resort, vineyard and producing winery in addition to
developing residential lots located near the resort. In 2016, GGH
formed a new subsidiary and in 2018, established an e-commerce
platform for the manufacture and sale of high-end fashion and
accessories. The activities in Argentina are conducted through its
operating entities: InvestProperty Group, LLC, Algodon Global
Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties
II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its
wines in Europe through its United Kingdom entity, Algodon Europe,
LTD.
Gaucho Group reported a net loss of $21.83 million for the year
ended Dec. 31, 2022, compared to a net loss of $2.39 million for
the year ended Dec. 31, 2021. As of March 31, 2023, the Company had
$21.01 million in total assets, $8.60 million in total liabilities,
and $12.40 million in total stockholders' equity.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
17, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
===========
B R A Z I L
===========
BRAZIL: Beef Export Volume and Revenue Drops in H1 2023
-------------------------------------------------------
Richard Mann at Rio Times Online reports that the Brazilian
Association of Refrigerators (Abrafrigo) reported a slight decrease
in the volume and a notable drop in the value of Brazilian beef
exports for the first half of 2023.
Compared to the corresponding period in 2022, exports fell by 1%,
from 1,085,595 tons to 1,076,780 tons, according to Rio Times
Online.
The value of these exports saw a 21% decline, dropping from
US$6.230 billion in H1 2022 to US$4.937 billion in H1 2023, the
report notes.
While June 2023 showed a 34% increase in volume of beef exports,
the revenue was 4.73% lower compared to June 2022, the report
adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022
Brazilian general election. He was sworn in on January 1, 2023, as
the 39th president of Brazil, succeeding Jair Bolsonaro.
In mid-June 2023, S&P Global Ratings, revised the outlook on its
long-term global scale ratings on Brazil to positive from stable.
S&P affirmed its 'BB-/B' long- and short-term foreign and local
currency sovereign credit ratings on Brazil. S&P also affirmed its
'brAAA' national scale rating, and the outlook remains stable. The
transfer and convertibility assessment remains 'BB+'. The positive
outlook reflects signs of greater certainty about stable fiscal and
monetary policy that could benefit Brazil's still-low GDP growth
prospects. Continued GDP growth plus the emerging framework for
fiscal policy could result in a smaller government debt burden than
expected, which could support monetary flexibility and sustain the
country's net external position.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
Fitch, in December 2022, affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook. The ratings are constrained by high government
indebtedness, a rigid fiscal structure, weak economic
growth potential, and a record of governability challenges that
have hampered efforts to address these fiscal and economic issues
and clouded policy predictability. The Stable Outlook reflects
Fitch's expectation that growth will slow in 2023 and that recent
fiscal improvement will erode under a new government,
but within a margin consistent with the current rating, and from a
better starting point than previously expected.
DBRS's credit rating for Brazil is BB (low) with stable outlook
(March 2018).
[*] BRAZIL: Soybean And Corn Exports Rise Sharply in July
---------------------------------------------------------
Rio Times Online reports that the National Association of Cereal
Exporters (Anec) reports a considerable increase in Brazilian
soybean and corn exports in July.
Soybean exports are expected to reach 8.8 million tons, a 25.5%
rise from the 7.009 million tons exported in July last year,
according to Rio Times Online.
This comes after June's shipments tallying at 13.834 million tons,
the report notes.
In addition, the week of July 9 to 15 witnessed Brazil exporting
1.783 million tons, while projections for the week of July 16 to 22
show an increase with 2.322 million tons of soybean exports, the
report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022
Brazilian general election. He was sworn in on January 1, 2023, as
the 39th president of Brazil, succeeding Jair Bolsonaro.
In mid-June 2023, S&P Global Ratings, revised the outlook on its
long-term global scale ratings on Brazil to positive from stable.
S&P affirmed its 'BB-/B' long- and short-term foreign and local
currency sovereign credit ratings on Brazil. S&P also affirmed its
'brAAA' national scale rating, and the outlook remains stable. The
transfer and convertibility assessment remains 'BB+'. The positive
outlook reflects signs of greater certainty about stable fiscal and
monetary policy that could benefit Brazil's still-low GDP growth
prospects. Continued GDP growth plus the emerging framework for
fiscal policy could result in a smaller government debt burden than
expected, which could support monetary flexibility and sustain the
country's net external position.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
Fitch, in December 2022, affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook. The ratings are constrained by high government
indebtedness, a rigid fiscal structure, weak economic
growth potential, and a record of governability challenges that
have hampered efforts to address these fiscal and economic issues
and clouded policy predictability. The Stable Outlook reflects
Fitch's expectation that growth will slow in 2023 and that recent
fiscal improvement will erode under a new government,
but within a margin consistent with the current rating, and from a
better starting point than previously expected.
DBRS's credit rating for Brazil is BB (low) with stable outlook
(March 2018).
=========
C H I L E
=========
GUACOLDA ENERGIA: S&P Downgrades ICR to 'CC', Outlook Negative
--------------------------------------------------------------
S&P Global Ratings lowered its issuer credit and issue-level
ratings on Chilean coal-fired power generator Guacolda Energia S.A.
to 'CC' from 'CCC+'.
S&P said, "The outlook remain negative and reflects that we will
lower the ratings to 'D' upon the transaction's completion under
the currently analyzed terms and conditions, which should occur
either on the early (August 1) or final expiration date (August
15).
"We believe that the tender offer as a whole (including bidders
entering during the early tender until Aug. 1, 2023) doesn't
provide sufficient compensation to bondholders, because we view the
offered value as lower than the original promise. The company
announced that it will be purchasing for cash its 4.56% senior
notes due 2025 and for each $1,000 in principal, Guacolda will be
offering $650 for bidders that enter until August 1, and $600
afterwards until Aug. 15, 2023, the offer's expiration date. Both
values are below par; therefore, we consider that investors will
receive less value than the original promise. The transaction also
incorporates an exchange offer for the existing notes for new 10%
notes maturing in 2030. Bondholders can choose any of the two
options or maintain their current position on the 2025 notes.
"In addition, our forecast of Guacolda's cash deficit to service
its debt in 2025 and challenging operating conditions suggest a
realistic possibility of a conventional default, absent the
proposed transaction. Despite lower coal prices expected in 2023
than in 2022 and the subsequent improvement in the company's cash
flow, we forecast deficit of $100 million - $150 million by
mid-2025, which could widen further in case of unexpected dividend
distributions, given that financial covenants don't limit them. As
a result, we expect Guacolda to struggle to repay its debt in the
ordinary course of its business, and we view this offer as
distressed, and hence, as default.
"According to our ratings definitions, under the proposed terms, we
would likely consider this transaction as distressed and lower our
ratings on Guacolda to 'D' upon the offer's closing. Afterward, we
would incorporate the company's new capital structure in our credit
analysis."
ESG credit indicators: E-5, S-2, G-3
ESG credit factors for this downgrade:
-- Climate transition risks; and
-- Risk management, culture, and oversight.
===========
G U Y A N A
===========
GUYANA: Parliament Approves 20% Tax Removal on Cell Phones
----------------------------------------------------------
RJR News reports that the Guyanese Parliament has given the nod to
legislation removing the 20 per cent tax on cell phones.
Finance Minister, Dr. Ashni Singh, said the law is in keeping with
a commitment made by President Irfaan Ali last June, according to
RJR News.
Dr Singh says the impact will be felt across the country, the
report notes.
He says the removal of the 20 per cent customs duty on cell phones
should not be seen in isolation as it forms part of a series of
measures taken by the government aimed at promoting improved
connectivity, and increased access to telecommunications services
at a reduced cost, the report adds.
===========
P A N A M A
===========
PROMERICA FINANCIAL: S&P Rates $300MM New Senior Secured Notes 'B+'
-------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' global scale issue-level
rating to Promerica Financial Corp.'s (PFC; B+/Stable/B) proposed
senior secured notes for up to $300 million. The tenure of the
notes will be five years, and they will bear a fixed rate with
semiannual interest payments. The Panama-based holding company will
use the proceeds to redeem its existing senior notes due 2024 and
the remainder for general corporate purposes, including business
expansion.
The rating on the proposed notes is at the same level as the
long-term global scale issuer credit rating on PFC, which is one
notch lower than the 'bb-' group credit profile, given that PFC is
a non-operating company and its debt is structurally subordinated
to that of the operating companies.
The new issuance will account for about 1.7% of PFC's consolidated
total funding base. Therefore, S&P doesn't expect the issuance to
change its view of the group's funding profile. Finally, S&P
estimates PFC's double leverage ratio will be 118%-120% during the
next two years, considering the proposed notes and its expectation
of the group's internal capital generation during that timeframe.
ESG credit indicators: E-2, S-2, G-2
=======
P E R U
=======
PERU: Central Bank Says Inflation Likely to Speed Up in July
------------------------------------------------------------
Reuters reports that Peru's central bank expects the country's
inflation rate to be higher in July versus June, which saw a
contraction in prices, the head of the bank's economic studies unit
said during a presentation, citing seasonal variation.
Adrian Armas also said that May GDP figures are likely to be in the
negative realm when asked by reporters, with the fishing sector
having taken a notable hit, according to the report.
The central bank earlier kept its interest rate steady at 7.75% for
the sixth consecutive time, highlighting that inflation was still
above the bank's target, the report notes.
Peru's annual inflation rate slowed to 6.46% in June, with its
monthly rate dipping into negative terrain for the first time in
nearly two years, the report says. Armas said it maintained its
forecast that annual inflation would hit 3% by end 2023, the report
adds.
*********
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 2023. All rights reserved. ISSN 1529-2746.
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balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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