South America

Brazil's currency firmed and interest rate futures jumped on Thursday as a more hawkish outlook from the central bank led economists to push back forecasts for rate cuts to next year, Reuters reported. The central bank's policy statement was a setback for newly inaugurated President Luiz Inacio Lula da Silva, who has blasted the level of interest rates - maintained at a six-year high of 13.75% on Wednesday - as an obstacle to economic growth.

Peru's consumer prices rose less than expected in January despite growing political tensions, but the 12-month rate still ticked up as the Andean nation battles the highest inflation in a quarter of a century, Reuters reported. Government data showed on Wednesday that consumer prices in the Lima metropolitan region, seen as the national benchmark, were up 0.23% in the first month of the year, well below the median forecast of 0.43% in a Reuters poll of economists.

Venezuela's state oil firm PDVSA is toughening terms for buyers after a month-long halt to most exports of crude and fuel, demanding prepayment ahead of loadings in either cash, goods or services, company documents showed, Reuters reported. PDVSA's new Chief Executive Pedro Tellechea put the move in place this month. It reinforces measures implemented last year after several buyers skipped out on payments for oil, which provides most of the South American country's income.

Brazil's government debt as a share of gross domestic product ended 2022 at its lowest level in more than five years, central bank data showed on Monday, helped by nominal economic growth and net public debt redemptions, Reuters reported. The country's gross debt fell to 73.5% of GDP in December from 74.6% in November, accumulating a 4.8 points contraction in the year, to its lowest ratio since July 2017, when it reached 73.2%. The reduction was mainly led by a nominal rise in GDP, which is also affected by inflation.

A Brazilian court has ordered the seizure of all corporate emails of managers and board members from bankrupt retailer Americanas SA sent and received over the last 10 years, according to documents seen by Reuters.

Chile's central bank maintained its benchmark interest rate at 11.25% on Thursday, as expected, in a unanimous decision by its governing board, with the bank saying inflation remains high and related risks persist, Reuters reported. The central bank embarked on an aggressive monetary policy tightening cycle in July 2021 to reign in spiraling inflation and has increased the rate by a 1,075 basis points since then to its current level. The rate has remained at 11.25% since October.

Brazil's outstanding public debt is expected to increase this year up to 14%, the Treasury said on Thursday, and it stressed that commitment to the public accounts balance will be essential to lengthen the country's debt profile, Reuters reported. In its Annual Financing Plan, the Treasury set the 2023 public debt target at a range between 6.4 trillion reais and 6.8 trillion reais, up from last year's 5.951 trillion reais ($1.2 trillion).

Brazilian shopping chain Americanas SA yesterday filed for chapter 15 bankruptcy, a move that protects its U.S. assets while insolvency proceedings play out in its home country, Bloomberg News reported. The retailer nosedived in January after becoming mired in an accounting scandal. The firm, backed by billionaire Jorge Paulo Lemann, filed for bankruptcy at a court in Rio de Janeiro on Jan. 19. In disclosures to investors, the firm implied it misreported numbers connected to some of its financing and wrongly deducted interest paid to lenders from its liabilities.

Argentina’s plan to repurchase $1 billion of overseas bonds meets the definition for a default, according to Moody’s Investors Service, Bloomberg News reported. The credit assessor sees the nation’s strategy of buying back short-dated dollar bonds — primarily those due in 2029 and 2030 — through direct market purchases as tantamount to a “distressed exchange and hence a default under our definition,” Moody’s analysts including Jaime Reusche wrote in a note. Moody’s still scores Argentina at Ca, the second-lowest rating. It has a stable outlook on the nation.

Brazilian retailer Americanas SA reported 7,720 creditors and debt totaling nearly $8 billion within its restructuring process, a Rio de Janeiro court said on Wednesday, Reuters reported. Americanas, backed by the billionaire trio that founded 3G Capital, entered bankruptcy protection last week after disclosing "inconsistencies" in its accounting, leading top investors such as BlackRock and Capital International to scale back their positions in the firm.