* The Argentine government on Sept. 1 authorized the reintroduction of currency controls, many of which were previously lifted by President Mauricio Macri early during his term, Reuters reported. The announcement means companies will need central bank approval to access the foreign exchange market for the purchase of foreign currency and to make transfers abroad. "The executive branch needed to adopt a series of extraordinary measures aimed at ensuring the normal functioning of the economy," the government said. A spokesman for the International Monetary Fund said the IMF is analyzing Argentina's "capital flow management measures with the aim of protecting exchange rate stability and the savers."
* The Dominican Republic's central bank cut its benchmark interest rate by 25 basis points to 4.50%, noting that annual inflation remained below the bank's target range in July. "The uncertainty factors that have been gravitating in the international environment have been accentuated, particularly those related to trade disputes, as well as geopolitical risks," the monetary authority said in a statement.
MEXICO AND CENTRAL AMERICA
* Analysts at Citibanamex believe that Mexico's central bank, which recently lowered its benchmark interest rate by 25 basis points to 8.00%, will likely announce another rate cut of 25 basis points when it meets later in September, Reuters reported.
CARIBBEAN
* Dorian became a Category 5 hurricane the morning of Sept. 1 as it slowed near the northern islands of the Bahamas. The U.S. National Hurricane Center said it expects the storm to push westward before turning to the north.
BRAZIL
* Banco Bradesco SA said its shareholders approved the bank's acquisition of BAC Florida Bank. Bradesco announced the roughly US$500 million deal in May. Shareholders also authorized Bradesco's absorption of card unit Banco Bradesco Cartões SA
* Banco Nacional de Desenvolvimento Econômico e Social plans to auction its Lotex state lottery operations on Oct. 22 for a minimum price of 542 million reais, Folha de S.Paulo reported. BNDES has been trying to sell the state lottery business since 2017, but previous attempts were generally met with muted demand.
* Itaúsa - Investimentos Itaú SA shareholders approved a plan to incorporate wholly owned subsidiary Itaúsa Empreendimentos SA as the company looks to increase synergy and operational efficiency in its structure.
* The Brazilian government's primary fiscal deficit improved to 2.76 billion reais in July from about 3.4 billion reais in June, Reuters reported, citing the central bank. However, the country's gross debt-to-GDP ratio increased to 79.0% while net public sector debt jumped to 55.8% of GDP.
* Banco BS2 SA is set to launch digital banking services focused on small and medium-sized enterprises, Valor Econômico reported. The operations will initially include a billing platform and acquiring and investment services, while credit offerings will be added later.
* Brazil's central bank is studying new rules to stimulate competition in the credit card market, Valor Econômico reported. The bank is looking at prohibiting the seizure of money owed to the seller of a product or service, and preventing accounts from being blocked if the card company experiences financial difficulty.
* Banco Original SA has started talks with investment banks to coordinate a potential initial public offering for the Brazilian lender, Valor Econômico reported. Banco Original is a unit of J&F Participações SA, controlled by the Batista brothers who have been implicated in corruption and bribery allegations.
* Banestes SA - Banco do Estado do Espírito Santo has launched a special incentives plan under which eligible employees can voluntarily resign from the company. The sign-up period for the program, which comes as the bank shifts toward more automation, will run for six months.
* The Brazilian government expects GDP growth of 2.17% in 2020, Valor Econômico reported, citing a budget proposal sent to Congress. The forecast is down from an estimate of 2.7% growth contained in a similar document presented in April.
* Banco Pan SA said CEO Luiz Francisco Monteiro de Barros Neto has resigned. The bank named Carlos Eduardo Pereira Guimarães, currently its CFO and investor relations officer, as the new CEO.
ANDEAN
* Banco Serfinanza SA's directors approved the placement of ordinary bonds for up to 500.00 billion Colombian pesos, Valora Analitik reported. The bank has not yet furnished details about the offering, including the date and terms.
* The central bank of Colombia kept its benchmark interest rate steady at 4.25%, marking 16 months of the rate remaining unchanged. The rate was last cut by 25 basis points in April 2018.
SOUTHERN CONE
* Moody's, Fitch Ratings and DBRS downgraded Argentina after the country unilaterally extended the maturity of its short-term debt. Fitch lowered Argentina's long-term foreign and local currency issuer default ratings to restricted default from CCC, while DBRS cut the long-term ratings to CC from B/B (high) and placed them under review with negative implications. Moody's downgraded the long-term foreign and local currency issuer and senior unsecured ratings to Caa2 from B2. It also placed them under review for further downgrade. S&P Global Ratings, meanwhile, upgraded the country's sovereign credit ratings to CCC-/C, saying that the amended terms for Argentina's short-term debt took effect and cured the default.
* Chilean banking regulator CMF's adoption of a standardized minimum loan loss reserve requirement for credit to small and medium-sized enterprises aligns with international best practices and is a credit positive for the banking system, Fitch Ratings said. The measure, which also covers student loans, boosted Chilean banks' loan reserves by $237 million, equivalent to an increase of 5 basis points to take reserves to 2.48% of total loans.
* Banco Central de la República Argentina said it now requires banks in Argentina to request authorization before transferring their earnings abroad. The measure aims to "keep liquidity within the [Argentine financial] system" in order to meet purchasing demands from depositors, according to regulatory sources cited by La Nación. The decision reportedly applies only to financial institutions' operations in Argentina.
* Fitch Ratings affirmed Chile's long-term foreign currency issuer default rating at A, with a stable outlook. The country's ratings are supported by a credible policy framework centered on an inflation-targeting regime and a flexible exchange rate. Fitch expects Chile's economic growth to slow to 2.5% in 2019 from 4% in 2018 after certain temporary factors reduced mining output in the first half of this year.
* Argentina's central bank called an urgent meeting with local lenders shortly after the government announced the return of currency controls, La Nación reported. The central bank discussed the implementation of the new measures, including the extension of operating hours at branches, official sources told the newspaper.
* Asia-Pacific: Bank of Jinzhou's FY'18 net loss; Dewan Housing Finance proposes resolution plan
* Middle East & Africa: AUB completes due diligence on takeover bid; Lebanese bank denies US allegations
* Europe: Danske's overcharging case; Julius Bär to keep Kairos; HSBC targets UK mortgages
Pablo Jimenez Arandia contributed to this article.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
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