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Banco BMG confirms IPO postponement; Mexican sofipo Coincidir to be liquidated


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Banco BMG confirms IPO postponement; Mexican sofipo Coincidir to be liquidated

* Confirming reports, Brazil-based Banco BMG SA said that it had suspended its initial public offering for a period of up to 60 days after seeing weak demand. In a regulatory filing, the institution said that it took the decision after "considering current market conditions."

* Mexico's CNBV banking regulator ordered the liquidation of troubled popular financial society or sofipo Proyecto Coincidir SA de CV SFP due to inadequate solvency levels, which have prevented some of its almost 2,000 savers from accessing their full deposits or being paid interest in recent months, El Economista reported, citing a notice in the official gazette. The company said its financial troubles had been caused by agricultural sector lending, not fraud. Savers have started to receive compensation under the deposit protection insurance.


* Mexico-based Q-Pagos SAPI de CV, a subsidiary of digital payment provider QPAGOS, launched Suretly México SA de CV in a joint venture with U.S.-based Suretly Inc.. Suretly México will offer "crowd vouching" services, which work by having users of a certain mobile app promise to repay loans that lenders make to separate entities. The mobile users who will vouch, or act as guarantors, for a loan will repay if the borrower defaults.

* Former Mexican Finance Ministry official Óscar Vela Treviño has been appointed subdirector for planning and finances at the state mortgage entity Instituto del Fondo Nacional de la Vivienda para los Trabajadores, known as Infonavit, El Economista reported.

* Analysts polled by Reuters forecast Banco de México to increase its benchmark interest rate by 25 basis points to 8.25% due to high inflation expectations and a hike in borrowing costs by the U.S. Federal Reserve.

* Mexico's central bank is working with 21 local banks to develop an app allowing payments and electronic transfers via cell phones, El Financiero reported. Called Cobro Digital, the application is planned for launch in 2019 and aims to encourage the use of electronic payment systems, especially among small businesses.


* India-based Bank of Baroda decided to shut down three of its overseas branches in Guyana and Trinidad and Tobago by June 30, 2019, to comply with the Indian government's guidelines to rationalize banks' overseas presence, the Press Trust of India reported, citing a regulatory filing.


* Moody's withdrew Modal Asset Management Ltda.'s investment manager quality assessment of MQ3, citing its own business reasons.

* Fitch Ratings revised the outlook on Banco Caixa Geral Brasil SA's ratings to positive from stable. The ratings action reflects the positive outlook on the bank's Portuguese parent.

* Fitch Ratings affirmed and subsequently withdrew its national long- and short-term ratings of BB+(bra) and B(bra), respectively of Brazil-based Dacasa Financeira SA Sociedade de Crédito Financiamento e Investimento, citing commercial reasons.

* Brazilian stock exchange B3 SA – Brasil, Bolsa, Balcão is focused on launching a series of new products in 2019 and is asking customers and investors what they would like to see on offer, Valor Econômico reported, citing Gilson Finkelsztain, president of B3. He reportedly added that the bourse expects 20 to 30 initial public offerings and follow-ons.


* Itaú Unibanco Holding SA will not pursue new acquisitions in Latin America until Itaú CorpBanca's business in Colombia becomes fully consolidated, Banco Itaú BBA SA CEO Eduardo Vassimon told Reuters. The integration process, expected to take another year, has been facing underestimated difficulties, according to the executive, who cited "problems in systems and processes."

* Corporación Financiera Colombiana SA said its affiliate Episol will appeal a court ruling that found that the company had participated in a wide-reaching corruption scandal connected to a highway project in which scandal-plagued Brazilian conglomerate Odebrecht was also involved.

* Bulgarian credit fintech Credissimo AD-Sofia has launched its Latin American operations in Colombia due to the country's strong growth potential and relative lack of competitors, CEO Sokol Iankop told La República.

* Creditors to Venezuela demanded payment on a US$1.5 billion bond on default, Reuters reported, citing the creditors' lawyer. The OPEC nation's government and its state-owned companies owe about US$8 billion in principal and outstanding interest to investors after a default on bonds in the midst of a financial collapse.


* EuroAmerica Seguros de Vida SA's general manager, Claudio Asecio Fulgeri, resigned. The Santiago, Chile-based life insurer did not disclose the reasons for the executive's departure.

* Argentina's foreign currency reserves got a boost of $8.73 billion as a swap agreement with China was finalized, bringing the country's international savings to $58.62 billion, Clarín reported.

* Argentina's Finance Ministry is preparing measures aimed at boosting trade in short-term Treasury paper called Lecaps, which it wants to fill the gap left by the gradual withdrawal of Lebac notes by the central bank, El Cronista reported, citing a source at the ministry.

* Banco De Desarrollo De América Latina raised $500 million to finance infrastructure works in Uruguay through the launch of a mutual fund on the local stock exchange, with most of the investment made by private pension fund administrators, El Observador reported.


* Argentina, Brazil and Colombia have voted against a $500 million loan from Latin American development bank Banco de Desarrollo de América Latina to the government of Venezuela, Uruguay-based El País reported. The countries reportedly cited the controversial re-election of President Nicolás Maduro in May and its dire economic situation for the negative vote.


* Asia-Pacific: CBL shareholder opposes liquidation; Bank of Baroda to close overseas branches

* Middle East & Africa: Diamond Bank confirms Access Bank merger deal; Moody's lifts Bahrain outlook

* Europe: Saxo Bank to buy BinckBank for €424M; Bankia offloads €3B of bad loans

Helen Popper contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.