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BNDES reviews infrastructure financing plans; Fitch downgrades Bolivia

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BNDES reviews infrastructure financing plans; Fitch downgrades Bolivia

* BancoNacional de Desenvolvimento Econômico e Social CEO Maria SilviaBastos Marques said the bank is reviewing its financing plans for infrastructureprojects as better funding sources may be available, Reuters reported. Theexecutive urged the capital market to contribute more to Brazil'sinfrastructure projects to compensate for a possible reduction in BNDES'sparticipation.

* Fitch Ratings lowered Bolivia's long-term foreign and local currencyissuer default ratings, as well as its senior unsecured foreign and localcurrency bond ratings, to BB- from BB. A weaker gas price outlook and theaccompanying policy response from the country's government have resulted inlarge "twin deficits" for the sovereign, the rating agency said.

MEXICO AND CENTRALAMERICA

* Moody's withdrew all ratings assigned to and AFBanregio SA de CV SOFOM for its own business reasons. The stableoutlooks on both companies were also withdrawn.

* FinancieraIndependencia SAB de CV SOFOM ENR launched a cash for $200 million inmaximum aggregate principal amount of its outstanding 7.500% senior notes due2019. The tender offer is set to expire Aug. 9.

* Luis Robles Miaja, president of Mexican bankingassociation ABM, reiterated the local banking sector's confidence that overall creditin the country will reach 40% of GDP by 2018 from 32%, El Economista reported.

* Mexico's national housing fund for workers, Infonavit, hasdisbursedalmost 14,000 of the 29,000 loans it plans to extend in the Valley of Mexicoregion by the end of 2016, El Economistareported.

BRAZIL

* Credit recovery for Brazilian consumers increased 3.8% in thefirst half from the same period a year ago, according to data from creditresearch firm Boa Vista SCPC. In June, the index dropped 5.1% from the priormonth and 8.6% year over year.

* Previ, Bancodo Brasil SA's employee pension fund, plans to about 2 billion Brazilian reais ofnonperforming real estate loans, Bloomberg News reported, citing "three peoplefamiliar with the plan." The sale could happen as soon as the end of 2016.

* Brazil's lower house of Congress approveda measure that enables workers to utilize a portion of their severance benefitas loan collateral, Reuters reported. The measure, which is still subject toapproval from the Senate, aims to revive credit demand in the country.

* Will Landers, head of global emerging markets atBlackRock Inc., saidinterim Brazilian President Michel Temer is driving a "major change ineconomic direction" for the country, and his efforts to pull the economyout of recession will gaintraction when he becomes the permanent president, Bloomberg News reported.

* Rodrigo Maia, a supporter of interim Brazilian PresidentMichel Temer, was electedthe new speaker of the country's lower house of Congress, Reuters reported.Maia replaces Eduardo Cunha, who recently resigned from the position amidcorruption allegations.

* Brazilian flat steelmaker Usinas Siderúrgicas de MinasGerais SA has requested ItaúUnibanco Holding SA, Banco Bradesco SA, Banco do Brasil SA and Banco Nacionalde Desenvolvimento Econômico e Social to extend a 120-day standstill agreementfor 4 billion Brazilian reais in loans, Reuters reported, citing four anonymoussources. The agreementexpires next week, and Usinas is seeking an extension of up to 60 days.

* CaixaEconômica Federal CEO Gilberto Occhi said the bank plans to reducethe interest rates it charges on mortgage loans in 2016, O Globo reported. The bank intends to implement more flexibleinterest rate criteria for borrowers who can repay their loans in a shortertime.

ANDEAN

* Colombian corporates face a challengingeconomic environment due to a number of factors that have led to lower cashflow generation and higher leverage, according to Fitch Ratings. Obstacles toliquidity include inflationary pressures, higher debt service cost, exchangerate volatility and a slowdown in consumption.

* A survey by Colombia's central bank, , showed that themarket expects the bank to hike itsbenchmark interest rate by 25 basis points to 7.75% at a policy meetingscheduled for July 29, Reuters reported.

SOUTHERN CONE

* In a survey conducted by , Chileanlenders reported that financing conditions remained tight in the second quarter comparedto the linked quarter, while credit demand was weaker, especially in themortgage and consumer segments.

* Uruguay initiateda tap of almost $1.15 billion in its 4.375% bond due 2027 and 5.1% bond due2050, a source told Thomson Reuters' IFR. The country will use the proceeds forgeneral purposes.

* MasterCardInc. has launched a new rechargeable prepaid cardin Argentina called Avanta, which can be used by people who do not have a bankaccount, La Nacion reported.

PAN LATIN AMERICA

* Starr Companies said it appointedDorian Grey president of the firm's Latin America division. Based in Miami,Grey will have responsibility for growth and profitability in Mexico, Centraland South America, and the Caribbean.

* Deutsche BankAG appointed Charlie Dupree to head the bank's mergers andacquisitions team for the Americas, TheWall Street Journal reported, citing an internal memo. Dupree will replaceJim Ratigan, who intends to depart the company.

* Foreign investors in Latin America are turning away fromMexico in favor of Brazil after being disappointed with the results of energyreforms in Mexico, Reuters reported. Out of 12 funds surveyed by the newswire,seven recently disposedof Mexican bonds and nine purchased Brazilian bonds, while five of the Brazilbuyers were Mexico sellers.

IN OTHER PARTS OF THEWORLD

* Middle East & Africa:

* Europe: Banks reassured over capital buffers; LSE-Deutsche Börse mergerprotest; Spanish banks get relief

Paula Mejiacontributed to this article.

The Daily Dose has aneditorial deadline of 8 a.m. São Paulo time, and scans news sources published inEnglish, Portuguese and Spanish. Some external links may require a subscription.