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Citi names buyers for Brazil, Argentina ops; Caixa looks to transfer state loan guarantees

* Itaú Unibanco Holding SAis purchasing Citigroup Inc.'sBrazilian retail business for 710 million reais, or roughly $220.2 million. Thedeal is for approximately$2.8 billion in assets that include loans, deposits, credit cards and branches,among others. The transaction, which is subject to customary closing conditions,will help Itaú's assets reach the 1.404 trillion reais mark.

* Citigroup Inc. signed a definitive agreementto sell its Argentine consumer banking operations to Banco Santander Río SA. The deal involves assets totaling$1.4 billion, including credit cards, personal loans, deposit accounts and the retailbrokerage business. Citi did not disclose the sale price for the deal, which issubject to regulatory approvals.

* Caixa Econômica FederalCEO Gilberto Occhi said the bank is in talks with the government for the Treasuryto assumeguarantees on loans to state-owned companies, especially oil firm Petrobras, Valor Econômico reported. If the Treasurywere to assume the guarantees, it would free up approximately 900 million reaisof capital at the bank.

MEXICO ANDCENTRAL AMERICA

* FitchRatings withdrew the nationalfinancial strength rating of IstmoCia. de Reaseguros Inc., citing a loss of the rating term and the terminationof the corresponding contract. As a result, Fitch will no longer provide follow-upservices to the company's rating.

* Panama plansto raise $2.6 billion in early 2017 by tapping global and local debt markets inorder to cover part of its financingrequirements for next year, IFR reported, citing Economy and Finance MinisterDulcidio de la Guardia. "Our policy is to have an average maturity of 10 yearsto reduce refinancing risks," he said.

* Mexican retailgiant Oxxo, which already has correspondent banking relationships with the sevenbiggest lenders in Mexico, plans to expandits offering of financial services by partnering with more banks, El Economista reported. The company is lookingto establish ties with BanCoppel SAInstitución de Banca Múltiple and Banco Azteca SA Institución de Banca Múltiple.

* Mexico hasa flexible creditline of about $90 billion with the IMF that the country could tap in the eventof an external shock such as a possible victory for Donald Trump in upcoming U.S.presidential elections, El Economistareported, citing Banco de MéxicoGovernor Agustín Carstens.

* Costa Ricanbanks increased their reservesfor impaired loans by 25% in the 12 months through August, while total loans grewonly 11% in the same period, El Financieroreported, citing data from financial regulator Sugef. The higher growth in reservescompared to loans was attributed to new regulatory requirements implemented in 2015.

CARIBBEAN

* The Community& Workers of Jamaica Cooperative Credit Union Ltd. acquired National Water Commission Cooperative Credit UnionLtd., effective Oct. 1, The (Jamaica) Gleaner reported. The resulting entity hasapproximately 80,000 members served by 18 branches throughout the island.

BRAZIL

* named Wagner Murgelhead of the bank's moneymanagement operations, effective Oct. 3, Reuters reported. Murgel will focus onboosting the bank's fee-related income and capital markets activity in Brazil.

* Lisa Schineller,a senior analyst at S&P Global Ratings, told Reuters that despite preliminaryapproval for a measure to limit public expenditure, Brazil is still years away fromrecoveringits investment-grade rating. "Now we are really focused on the details of reformsand what will be put on the table and what can be passed," the analyst said.

* Brazil's Prosecutor-General'soffice recommended that Congress shelvea proposal by President Michel Temer to curb public expenditure, arguing that itwould hinder the independence of other federal authorities and weaken the legalsystem, Reuters reported. Finance Minister Henrique Meirelles said congressionalsupportfor the proposal remains strong despite the prosecutor's challenge, the newswirereported separately.

* willrestructureits Brazilian operations in 2017 following substantial losses in the country, SonhoSeguro reported. The company will stop offering some products in Brazil, like homeand group life insurance, in an attempt to boost profitability.

* said its shareholdersapproved a proposal forthe company and two of its units to absorb portions of HSBC Bank Brasil SA - Banco Múltiplo's net equity througha partial spinoff. Shareholders also approved a proposal to raise the age limitfor Bradesco's CEO to 67 years from 65 years.

* BrazilianFinance Minister Henrique Meirelles said Citigroup Inc. executives have assuredhim that the company will continue to investin Brazil despite reaching a deal to sell its retail banking business in the countryto Itaú Unibanco Holding SA, Valor Econômicoreported.

* Followinga meeting with International Monetary Fund Managing Director Christine Lagarde,Brazilian Finance Minister Henrique Meirelles said the IMF backs the government'sproposed reforms,including a measure to cap public spending, ValorEconômico reported. Meirelles also noted that the reforms will stimulate privateinvestment in the country, the publication reported separately.

* Caixa EconômicaFederal has 34 billion reais available to disbursein the form of mortgage loans before the end of 2016, but the bank is uncertainif it will see demand for the entire amount, Valor Econômico reported, citing Caixa Vice President Nelson Antôniode Souza.

* Creditorsof bankrupt Brazilian phone operator Oi asked the company a number of questionsregarding its judicial recovery plan around 10 days ago, but have not yet receiveda response, Valor Econômico reported,citing an anonymous source.

* Brazilianinsurance companies expect new regulationsto be announced soon that would allow them to offer more flexible individual lifeinsurance policies starting in 2017, ValorEconômico reported. The new rules could open up the possibility of higher premiumsand could also entail changes to how installments are made.

* Federal prosecutorsin Brazil have requested for nine former directors and executives of Banco Panamericano,now called Banco Pan SA,to be sentencedfor financial crimes and money laundering committed between 2007 and 2010, Folha de S. Paulo reported.

* Amid signsof an economic recovery in Brazil and expectations for interest rates to fall, analystsbelieve bank lending will start to recoverin 2017 after contracting 3.2% so far in 2016, O Globo reported. Expectations for credit growth next year range from3% to 8%.

* Workers forCaixa Econômica Federal in the Brazilian states of Rio de Janeiro and São Paulovotedto end a month-long strike, joining other banking sector employees who accepteda wage increase offer from banking federation Fenaban last week, O Globo reported.

ANDEAN

* Colombia'sfiscal reform progress remains ontrack despite the public recently voting to reject a peace deal with FARC rebels,Reuters reported, citing Ana Milena Lopez Rocha, the country's director generalof public credit. Following the peace vote, the government decided not to altera reform bill that seeks to simplify the tax code and boost fiscal revenues, LopezRocha said.

* There arefive strong candidates to succeedJosé Darío Uribe as head of Colombian central bank Banco de la República when his term expires at the end of2016, Portafolio reported. The candidatesinclude former Finance Minister José Antonio Ocampo and central bank executive HernandoVargas.

SOUTHERNCONE

* Uruguay is studying ways to take advantage of a surge in investorappetitefor debt denominated in the local currency, IFR reported, citing Herman Kamil, thecountry's debt head. "We see renewed appetite for local currency," theofficial said, adding that the government is "always looking for ways to increasestable sources of funding in local currency."

* Argentina is thinking about extendinga tax amnesty program for undeclared foreign assets to include insurance products,La Nación reported, citing unnamed governmentsources. A law created in 1947 currently prohibits Argentine nationals from takingout insurance products overseas.

PAN LATINAMERICA

* Banks whose risk models significantly diverge from those of theirpeers may face a "significant" increase in capital charges under upcoming rule changes due by the endof 2016, said William Coen, the secretary general of the Basel Committee on BankingSupervision. The rules will reduce variability between different banks' calculationsof possible losses from bad loans and improve confidence in their capital ratios,Coen said.

* The global economic recovery is progressing slowly and unevenly, and growthis expected to pick up onlyslightly in 2017, mostly on account of emerging market economies, the InternationalMonetary Fund said in a communique. "The persistently low growth has exposedunderlying structural weaknesses, and risks further dampening potential growth andprospects for inclusiveness," the IMF said.

IN OTHERPARTS OF THE WORLD

* Asia-Pacific:ABN AMRO may sell Asian private bankingbiz; Macquarie in talks to buy Green Investment Bank

* Middle East& Africa: Barclays Kenya unit'sstock market debut; new board for Angola's BPC

* North America:Wells gets another letter from senators;community bank attempts takeover in Illinois

S&P GlobalRatings and S&P Global Market Intelligence are owned by S&P Global Inc.

Matthew Crazecontributed to this article.

The DailyDose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sourcespublished in English, Portuguese and Spanish. Some external links may require asubscription.