* The Argentine economy slid 0.4% in June from the previous month and shrank 2.6% in the first six months of 2019, according to data from the INDEC statistics agency. The financial sector suffered the biggest contraction in the first-half result, declining 15.1% year over year in June. Strong growth in the agriculture sector helped to somewhat balance the economy's aggregate result.
* Irish Prime Minister Leo Varadkar said his government will vote against the European Union's trade agreement with South America's Mercosur bloc if "Brazil does not honor its environmental commitments" to protect the Amazon rainforest, Reuters reported. Ireland would require support from other EU nations to create a blocking minority.
MEXICO AND CENTRAL AMERICA
* Mexico's Financiera Nacional de Desarrollo Agropecuario Rural Forestal y Pesquero rural development agency will seek legislative authorization to operate as a bank in September, El Financiero reported. Director General Javier Delgado said the move will streamline the company's operations and enable more loan disbursements.
* In a central bank survey of Mexican companies, around 75% of the respondents said they did not seek new bank loans in the second quarter due mainly to the country's uncertain economic situation, El Economista reported.
* The Portuguese government said it has chosen investors to submit binding offers for Banco Caixa Geral Brasil SA, the Brazilian unit of state-run bank Caixa Geral de Depósitos SA, Reuters reported. The sale is part of Caixa Geral de Depositos' €4 billion recapitalization plan announced in 2017.
* Brazil's senate approved a decree aimed at promoting economic liberalization, including a measure that allows banks to remain open on Saturdays, O Estado de S.Paulo reported.
* Brazil's Susep private insurance industry regulator has scrapped a requirement for the use of original car parts to cover vehicle claims, a move aimed at reducing the cost of policies and cracking down on an informal system of auto insurance coverage, Valor Econômico reported. The regulator is looking to reduce the price of auto insurance policies by at least 10%.
* Brazilian Health Minister Luiz Henrique Mandetta plans to discuss easing the rules that govern health insurance operators with the supplementary health council, or Consu, in the coming months, Valor Econômico reported.
* Caixa Econômica Federal's recent announcement that it will start offering inflation-linked mortgages is credit positive for the bank and homebuilders because the below-market rate loans will likely increase demand for credit and housing, Moody's said in a report.
ANDEAN
* Banco Ripley Perú SA issued 60 million Peruvian soles of corporate bonds at a rate of 4.6875% and with a term of 2.5 years, Gestión reported. The notes saw demand of more than 100 million soles.
* Credit to Peru's private sector rose 7.6% year over year in July, a similar growth rate to that seen in June, Gestión reported, citing central bank data. Credit to companies grew 5.5% in July, while consumer loans and mortgage credit increased 12.7% and 8.6%, respectively.
SOUTHERN CONE
* Fitch Ratings downgraded seven Argentine financial institutions as part of a review spurred by the rating agency's recent sovereign downgrade of Argentina. The ratings of Banco Santander Río SA, BBVA Banco Francés SA, Banco Macro SA, Banco Supervielle SA, Banco Hipotecario SA, Tarjeta Naranja SA and Banco de la Ciudad de Buenos Aires are "highly influenced" by the volatile operating environment in Argentina, Fitch said.
* Argentine presidential frontrunner Alberto Fernández said the country "has no chance of falling into default if I am president," Clarín reported. Local bank stocks and the peso currency fell after Fernández emerged victorious in primary elections held Aug. 11.
* In the week following Argentina's primary elections on Aug. 11, some of the country's private banks decided to invest excess capital in one-day instruments that yield a lower rate than the central bank's seven-day Leliq notes, Bloomberg News reported, citing central bank data. The shift in investment strategy reflects the local market's instability and uncertainty.
* A delegation from the International Monetary Fund will arrive in Argentina in the week of Aug. 26 ahead of the agency's next planned disbursement for the struggling country, Reuters reported, citing Argentine President Mauricio Macri.
* Banco Santander Chile issued a 10-year bond worth CHF100 million. The debt carries a spread of 69 basis points over the mid-swap rate, which is equivalent to a fixed rate of 0.135%.
* Tanner Corredores de Bolsa SA said its board appointed Felipe Divin general manager, Diario Financiero reported. He replaces Johana Pérez, who had been working as general manager since April 2017.
* The Inter-American Development Bank approved a loan of US$8 million loan for Uruguay to help improve the country's prevention of and response to cyberattacks, El Observador reported. The loan has a repayment term of 25 years with a grace period on top.
IN OTHER PARTS OF THE WORLD
* Middle East & Africa: Old Mutual fires ex-CEO again; Egypt cuts rates; Sudan's new prime minister
* Europe: ECB bad loan extension; EU €100B sov wealth fund; Deutsche prime brokerage move
Helen Popper contributed to this article.
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