* Argentina's central bank ordered the restructuring of Banco Finansur SA and accepted an offer from Banco de Galicia y Buenos Aires SA to acquire the assets and assume privileged liabilities of the troubled local lender, though the regulator did not disclose the amount of assets and liabilities involved in the transaction. The regulator estimates the restructuring process will entail a payment of 150 million Argentine pesos from the country's deposit insurance fund.
* The Peruvian central bank cut its benchmark rate by 25 basis points to 2.75% on March 8, saying inflation continues to show a declining trend and is in the lower band of its target range. For March, the regulator expects inflation will be below 1.0%, before converging to 2.0%. Meanwhile, inflation for 12 months was 2.19% in February and is also expected to slope downward.
MEXICO AND CENTRAL AMERICA
* Moody's believes Mexico's newly approved financial technology law is credit positive for local banks, as it promotes a level playing field with banks through a clear set of rules for fintech companies. Banks will also be allowed to invest in these fintech entities, which is a positive development for some banks that have already made inroads into fintech. However, Moody's still expects banks to continue dominating lending and payment services through digital channels.
* Data from Mexican statistics institute INEGI showed inflation of 5.34% for the 12 months through February, lower than the 5.55% for the year through January, Reuters reported. Mexican central bank Governor Alejandro Diaz de Leon said inflation will probably continue to fall in 2018 and should reach the official target of 3% by the first quarter of 2019.
* Honduran central bank President Wilfredo Cerrato said growth in the country's construction, financial and agriculture sectors may contribute to the country's economic growth, estimated to range from 3.8% to 4.2% for 2018, Reuters reported. Remittances sent to the country may also grow 4.2% to $4.66 billion.
* Panama's Banco Panameño de la Vivienda SA said it plans to issue $4.0 million worth of bonds on March 15 at an interest rate of 3.375%. The series BN notes will mature in 180 days.
* The Costa Rican central bank signed a deal for a $1.00 billion loan from the Latin American Reserve Fund to help strengthen the country's international reserves and maintain economic stability.
* Banco Santander (Brasil) SA said they lost in a tax case worth 9.00 billion reais filed by the Brazilian Administrative Council of Tax Appeals stemming from a merger of shares in Banco ABN AMRO Real S.A. wherein Santander Brasil assumed control of Banco ABN AMRO, Valor Econômico reported. Santander Brasil said in a regulatory filing that it is appealing the case and that there is a remote chance of loss.
* Consumer default in Brazil declined 2.6% in February compared to the year-ago period and was down 3.3% in the 12 months through February, data from credit research firm Boa Vista SCPC showed. Economic difficulties over the last two years had made families more cautious, which inhibited consumption and resulted in lower delinquency, Boa Vista said.
* Brazilian hedge fund Squadra Investimentos is buying stakes in state-run firms in the expectation that presidential elections set for October will result in more market-friendly reforms, Bloomberg News reported, citing Guilherme Ache, a partner at the company. The executive gave the expectation that a new president will implement market reforms or at least maintain the current trend of reforms, or risk problems otherwise.
* PagSeguro Digital Ltd. posted fourth-quarter 2017 net income of 188.9 million reais, up 390.6% from 38.5 million reais in the year-ago period as total net revenue jumped 118.1% to 831.0 million reais. The Brazilian payment processor carried out an initial public offering on the New York Stock Exchange in January 2018.
ANDEAN
* A group of Peruvian legislators presented a motion to impeach President Pedro Pablo Kuczynski for allegedly lying about ties to Brazilian construction company Odebrecht, Reuters reported. A vote to approve the motion has not been scheduled.
* The Peruvian Congress passed a bill setting new rules for companies that enter plea deals with the attorney general's office, in light of corruption linked to construction firm Odebrecht, Reuters reported. The new rules will relax financial restrictions for companies that have been judged guilty or have at least pleaded guilty to corruption charges. Peru's banking association had reportedly warned that without the new rules, the corruption case might afflict the country's entire economy.
* Mibanco Banco de la Microempresa SA said it received regulatory approval for a debt issuance program of up to 800.0 million Peruvian soles, or its equivalent in foreign currencies.
SOUTHERN CONE
* Argentine consumer defense association ADUC has filed a class-action lawsuit against Banco Santander Río SA over alleged exchange differences in the acquisition of foreign currency. The bank said it was preparing arguments against the case.
* Brazilian hedge funds have taken a 10% stake in Argentine stock exchange operator Bolsas y Mercados Argentinos SA, and some of them are looking to appoint a director on the company's board, Bloomberg News reported, citing "four people familiar with the matter."
* The board of Argentina's Banco Hipotecario SA proposed a capital increase worth 900 million Argentine pesos via the issuance of ordinary class A, B, C and D shares, for discussion in an April 9 meeting. The class D shares would be offered in capital markets locally and internationally.
* Paraguayan Finance Minister Lea Giménez said in a Twitter post that the country sold $530.0 million worth of 30-year sovereign bonds, carrying a 5.6% yield, Reuters reported. The offering was over 5x oversubscribed, compared to expectations of $500.0 million.
* Francisco Sardón, general manager for Scotiabank Chile, told Pulso in an interview that closing the entity's merger process with Banco Bilbao Vizcaya Argentaria Chile SA and integrating the two banks will take one and a half years or two years. The executive added that regulatory approvals are within expected schedules.
PAN LATIN AMERICA
* Eleven countries signed the revised version of the Trans-Pacific Partnership free trade pact, rebranded as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Among the eleven signatories include Chile, Mexico and Peru in Latin America. The pact aims to promote trade and cut tariffs in the eleven nations, which collectively account for 13.5% of the world economy, equivalent to about $10.000 trillion. Prior to the signing, Chilean Minister of Foreign Affairs Heraldo Muñoz said the new trade deal was a "powerful signal" against protectionism in global trade, Reuters reported.
IN OTHER PARTS OF THE WORLD
* Asia-Pacific: QBE sells stake in Australian broker; Bank Central Asia FY'17 profit rises 13%
* Europe: ECB holds rates; Swiss Raiffeisen chair resigns; ING boss pay hike draws ire
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.
