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Bradesco makes 836M reais provision for loans to Sete Brasil

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Bradesco makes 836M reais provision for loans to Sete Brasil

* Banco BradescoSA has booked 836 million Brazilian reais in provisions to cover badloans to oil rig producer Sete Brasil Participacoes SA, Bloomberg Newsreported, citing "a person familiar with the matter." Although thebank disclosed the specific amount in its first-quarter earnings release, itdid not specify the client. Sources recently told Bloomberg that Sete Brasilcould soon file for bankruptcy protection. Bradesco's executives said during aconference call that the bank's loan-loss provisions will be within targetin 2016 even if defaults continue to rise, Reuters reported.

MEXICO ANDCENTRAL AMERICA

* said it issued 1.5 billion Mexican pesos worth of"certificados bursátiles" in Mexico's capital markets. The notes havea tenor of three years with a floating-rate coupon set 60 basis points abovethe 28-day TIIE.

* A diverse economyand a high degree of integration with the U.S. are among factors that supportthe government of Mexico's A3 rating, Moody's said in an analysis of thesovereign. However, downward pressure to the rating could occur from stalledfiscal consolidation and the potential crystallization of contingentliabilities via further support to oil firm Petroleos Mexicanos.

* Guatemala sold10-year bondsworth $700 million in the country's first global debt issuance in three years,Bloomberg News reported. Demand for the notes reached $3 billion, FinanceMinister Julio Hector Estrada said.

* EnriqueBojórquez, president of Mexican association of specialized financial entitiesAMFE, said high reserve requirements for local banks force them to chargeexcessively high interest rates on loansto nonbank intermediaries, El Financieroreported.

* posted a netprofit of 10.97 billion Mexican pesos in the first quarter, up 17.4%compared to the same period a year ago, ElFinanciero reported. Eduardo Osuna, the company's director general, saidthe bank does not expect oil firm Petróleos Mexicanos to default on its debt,and is therefore not concerned about its exposureto the oil company, El Economistareported.

BRAZIL

* posted after noncontrollinginterest of 105.9 million Brazilian reais for the first quarter, up from 103.5million reais in the year-ago period. The company noted that Brazil's newsocial contribution tax of 20% impacted its bottom line by 10 million reais.

* Brazil's centralgovernment posted a primary budget deficitof 7.9 billion Brazilian reais in March, its poorest performance for the month,Bloomberg News reported.

* could reduceits benchmark Selic rate to 12.25% from 14.25% if Brazilian Vice PresidentMichel Temer assumes power from President Dilma Rousseff, who faces impeachmentproceedings, Bloomberg News reported, citing three leading independent fundmanagers in Brazil.

* Federalprosecutors in Brazil filed corruption, conspiracy and money laundering chargesagainst João Santana and Mônica Moura, the consultants who led President Dilma Rousseff'selection campaigns in 2010 and 2014, TheWall Street Journal reported.

* Roberto Caldas,president of the Inter-American Court of Human Rights, said the impeachment bidagainst Brazilian President Dilma Rousseff has infringedlegal due process since legislators publicly voiced how they would vote on keymatters in the process before voting actually took place, the Financial Times reported. "Theanticipation of a vote in a judgment annuls that judgment," Caldas said."It is something very grave."

* In the 12 monthsthrough March, Banco Nacional deDesenvolvimento Econômico e Social's loan portfolio shrank0.7% to about 608.11 billion Brazilian reais, Valor Econômico reported. The portfolio declined 3% compared toFebruary.

ANDEAN

* FitchRatings placed theinternational ratings of Banco deBogotá SA and GrupoAval Acciones y Valores SA, as well as the issuer default ratingsof the companies' related entities, on Rating Watch Negative. The placementfollows the release of Banco de Bogotá's financial reports showinglower-than-expected capital metrics, Fitch said.

* Fitch Ratingsplaced certain international scale ratings of Bancolombia SA and some of its subsidiaries on RatingWatch Negative. The placement follows the release of Bancolombia's latestfinancial reports showing underperforming capital metrics.

* Opposition partiesin Venezuela said they amassed in one day 1.1 million signaturesfor their petition to recall President Nicolás Maduro, The Wall Street Journal reported.

* is expected to announce in the coming days the creation of several investmentfunds totaling between $400 million and $500 million, La Nacion reported. The funds will target investments inArgentina's private sector.

SOUTHERN CONE

Banco SantanderChile posted first-quarter net income attributable to shareholders of about 125.44billion Chilean pesos, up 31.4% from the year-ago period. The bank'sshareholders approved a dividend of about 1.79 pesos per share with respect tothe company's 2015 net attributable income.

* Argentina plans to removeits remaining currency controls in the coming months, Bloomberg News reported,citing Banco Central de laRepública Argentina President Federico Sturzenegger. "We areset on lowering inflation significantly in the second half of the year,"Sturzenegger said at a news conference.

* Moody's upgradedseveral of its ratings on ItaúCorpBanca, including the bank's long-term global local and foreigncurrency deposit ratings to A3 from Baa3. Moody's also withdrew all ratings andassessments assigned to Banco Itaú Chile, which has been absorbed intoCorpBanca with the surviving entity now called Itaú CorpBanca.

* Grupo SecuritySA Chairman Francisco Silva said tax, educational and labor reformsadopted by the Chilean government have so far failed to achieve their desiredpurpose, Pulso reported. The companyaims to consolidate its presence in Peru during 2016, CEO Renato Peñafiel said.

* Banco Centroamericano deIntegración Económica has approved a $50 million loanto Argentina, La Nacion reported. Thecountry will use the funds to promote research in key areas.

* Banco deChile posted first-quarter net income of about 132.53 billion Chilean pesos, up13.5% from 116.72 billion pesos in the year-ago period.

PAN LATIN AMERICA

* Spain's BancoBilbao Vizcaya Argentaria SA posted first-quarter net attributableprofit from its South American operations of €182 million, up 8.7% from a year earlierat constant exchange rates. Net interest income from the region totaled €717million, up 17.0% year over year at constant exchange rates.

* Colombia and Panama will sign an agreementin June to share financial information in order to combat tax evasion, Reutersreported. Negotiations over the agreement began in October 2014.

IN OTHER PARTSOF THE WORLD

* Singapore chargeda former wealth manager at Swiss-based private bank BSI with receiving illegitimatefunds and obstructing justice in a case related to a money launderinginvestigation linked to Malaysia's 1MDB investment fund, Reuters reported.Another former BSI employee is facing a criminal investigation.

* An Indianparliamentary panel comprising ruling and opposition party members approveda bill to overhaul the country’s bankruptcy regulations, Bloomberg News reported.The legislation, which may be passed as early as May 13, will allow the seizureof overseas assets of defaulting companies and individuals.

* The EuropeanParliament voted to pass a law which aims to clean up the benchmark-settingprocess, improvetransparency and prevent conflicts of interest like those that resulted inLIBOR rigging scandals during the past years. The law requires all benchmarkadministrators to be authorized by a competent authority or registered.

* The BritishBankers' Association will establish a working group to look into the implicationsof the lifting of international sanctions on Iran, insiders tell Sky News.

Paula Mejiacontributed to this article.

TheDaily Dose has an editorial deadline of 8 a.m. São Paulo time, and scans newssources published in English, Portuguese and Spanish. Some external links mayrequire a subscription.