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Sri Lanka is negotiating a $12 billion debt restructuring deal with creditors, and a key element of the proposal is a governance-linked bond. Under this bond, the government's interest rate would be reduced if it meets certain targets related to improving tax collection and reducing corruption. Major creditors, including BlackRock and Morgan Stanley, have expressed support for this proposal. The bond is seen as a potential solution to address the root cause of repeated defaults in Sri Lanka, which is poor governance. This innovative approach could serve as a blueprint for other countries facing similar challenges. [Extracted from the article]

Sri Lanka is negotiating a $12 billion debt restructuring deal with creditors, and a key element of the deal is a proposal to link bond payments to improvements in governance. Under this proposal, the interest rate Sri Lanka pays would be reduced if the government meets certain targets related to tax collection and transparency. Many major creditors, including BlackRock and Morgan Stanley, have expressed support for this idea. This approach is seen as a potential solution to the problem of repeated government defaults, and it is the first time that a security has been linked to governance in this way. However, some investors are concerned about how the progress towards these targets will be measured. [Extracted from the article]

Sri Lanka is set to begin negotiations with global investors to restructure $12 billion in defaulted global bonds next week. A steering committee of bondholders will discuss a proposal from the government to rework the overseas debt, which has been in default since 2022. The goal is to reach a deal quickly, especially as Sri Lanka has upcoming presidential elections. The nation's dollar bonds have risen in response to the news. Sri Lanka's central bank governor and treasury secretary will travel to Europe for discussions with bondholders, and the government also plans to engage with the International Monetary Fund and World Bank in April. The restructuring is crucial for Sri Lanka to continue receiving financing from an IMF bailout. [Extracted from the article]

Global investors and Sri Lanka officials are expected to begin negotiations next week to restructure $12 billion in defaulted global bonds. A steering committee of bondholders will discuss a proposal from the government to rework the overseas debt, which has been in default since 2022. The goal is to reach a deal quickly, especially as Sri Lanka is set to hold presidential elections later this year. The nation's central bank governor and treasury secretary will travel to Europe for discussions with bondholders, and talks with the International Monetary Fund and World Bank are also expected in April. [Extracted from the article]

Sri Lanka is set to begin negotiations with global investors to restructure $12 billion in defaulted global bonds. A steering committee of bondholders will discuss a proposal from the government to rework the overseas debt, which has been in default since 2022. The aim is to reach a deal quickly, especially as Sri Lanka is scheduled to hold presidential elections later this year. The restructuring is crucial for Sri Lanka to continue receiving financing from the IMF bailout. The government has already reached agreements with official creditors and holders of local debt. [Extracted from the article]

(Bloomberg) -- Opposition frontrunner María Corina Machado said she would seek to roll Venezuela's massive debt pile into a single bond as part of her plan to overhaul the country's economy. Restructuring debt - which stands at around $158 billion, according to the International Monetary Fund - is an integral step to Machado's plan for a country that has fallen deeply into poverty under President Nicolás Maduro. [Extracted from the article]

This puts Gulati directly at odds with a growing chorus of voices on Wall Street who argue that the time has come to bring back value-recovery instruments, or VRIs, as the securities are called, and use them to jumpstart stalled debt-restructuring talks across emerging markets. (Bloomberg) -- Mitu Gulati, a University of Virginia law professor, has studied a lot of sovereign debt defaults and restructurings over the years. [Extracted from the article]

(Bloomberg) -- Even in Ecuador's rich history as a repeat defaulter, the Rafael Correa years stand out as particularly painful for bond investors. Back in 2008, his administration stopped making overseas debt payments while Correa vilified creditors as "true monsters" out to crush the country. [Extracted from the article]

Under the agreement, investors holding debt from South America's smallest nation will accept losses of 25% on their holdings, according to a government statement on Wednesday. (Bloomberg) -- Suriname reached an agreement in principle with a key group of bond investors to restructure $675 million of defaulted global debt, debuting an oil-linked recovery tool to cap more than three years of negotiations. [Extracted from the article]

Creditors holding a majority of debt from South America's smallest nation will accept losses of 25% on their holdings, according to a government statement on Wednesday. (Bloomberg) -- Suriname reached an agreement in principle with a key group of bond investors to restructure $675 million of defaulted global debt, debuting an oil-linked recovery tool to cap more than three years of negotiations. [Extracted from the article]

Bond Buyers See "Best Bang for Buck" in EM as Hiking Cycles End "Once the Fed starts cutting, it allows Latin American central banks to follow as there is less risk of local-currency depreciation as the dollar falls", he added. (Bloomberg) -- With inflation easing around the world and many central banks nearing the end of their interest rate hikes, a growing chorus of investors say the best place for bond buyers to juice returns is in emerging markets. [Extracted from the article]

Indonesia's central bank will extend its rate pause, according to economists surveyed by Bloomberg, amid the rupiah's resilience. (Bloomberg) -- With inflation easing around the world and many central banks nearing the end of their interest rate hikes, a growing chorus of investors say the best place for bond buyers to juice returns is in emerging markets. Bond Buyers See "Best Bang for Buck" in EM as Hiking Cycles End. [Extracted from the article]

(Bloomberg) -- With inflation easing around the world and many central banks nearing the end of their interest rate hikes, a growing chorus of investors say the best place for bond buyers to juice returns is in emerging markets. Bond Buyers See "Best Bang for Buck" in EM as Hiking Cycles End Indonesia's central bank will extend its rate pause, according to economists surveyed by Bloomberg, amid the rupiah's resilience. [Extracted from the article]

(Bloomberg) -- As investors sorted through emerging markets at the start of the year on the lookout for potential disasters, Bolivia and Ecuador were low on their list of worries. Bank of America and Morgan Stanley declined to comment on their Ecuador recommendations. [Extracted from the article]

The article criticizes the Colombian government's implementation of austerity and ensuing popular protests. Economic contraction and planned tax reform in Colombia are described along with International Monetary Fund's supply of funding to Latin American countries and Colombia's potential loss of investment-grade status for its bond issuances.

(Bloomberg) -- Gustavo Petro, the front-runner to win Colombia's presidential election in May, has repeatedly vowed he will halt oil drilling the day he takes office. Ecopetrol SA's notes have posted some of the biggest losses among emerging-market oil companies since August, when Petro first mentioned he would end oil exploration. [Extracted from the article]

(Bloomberg) -- Russell M. Dallen, Jr., a former head of Latin America at Oppenheimer who later went on to become a reference for niche Venezuela legal news around the nation's complex debt issues, has died, family and friends told Bloomberg News. A lawyer by training, Dallen, 58, was based in Caracas between 2000 and 2007 with Oppenheimer. After relocating to the Miami area, Dallen went on to establish Caracas Capital Markets, a boutique investment advisory for Venezuela bond buffs that specialized in detailed reports on legal filings and topics including the whereabouts of oil tankers and central bank gold shipments. [Extracted from the article]

Francke, a former World Bank economist, was sworn in late Friday night after being tapped by Castillo, a former teacher and union leader who won the presidency this year by consolidating Peru's left-wing. QX47ITT0G1KW (Bloomberg) -- Peru's finance minister called for a "clear separation" between party politics and the government, addressing a key investor concern on his first day in the post. Keywords: BNK; BON; BUSINESS; COS; FIN; GEN; GOV; INDUSTRIES; LATAM; MARKETS; POL; WORLD EN BNK BON BUSINESS COS FIN GEN GOV INDUSTRIES LATAM MARKETS POL WORLD Peru's finance minister called for a "clear separation" between party politics and the government, addressing a key investor concern on his first day in the post. [Extracted from the article]

As Colombia was getting cut to junk in the second quarter, and thefinance minister was quitting over a failed tax bill and deadly protestswere raging, an odd thing happened in the local bond market:Foreigners piled in at the fastest pace on record. Colombia's record bond-market inflows are even more surprisingwhen compared with regional peers. The growing appetite for Colombian debt shows investors lookingbeyond credit ratings, lured by yields topping 6% in a world with morethan $15 trillion of debt that investors pay for the privilege of owning. [Extracted from the article]

As Colombia was getting cut to junk in the second quarter, and the financeminister was quitting over a failed tax bill, and deadly protests wereraging, an odd thing happened in the local bond market: Foreigners piledin at the fastest pace on record. (Bloomberg) -- As Colombia was getting cut to junk in the second quarter,and the finance minister was quitting over a failed tax bill, and deadlyprotests were raging, an odd thing happened in the local bond market:Foreigners piled in at the fastest pace on record. [Extracted from the article]

(Bloomberg) -- Colombia's reputation as one of the surest bets in Latin America is being called into question by bond investors. The extra compensation investors demand to own the country's bonds instead of Treasuries fell to a 14-month low last month. [Extracted from the article]

(Bloomberg) -- A development bank is preparing to test whether the craze for sustainable debt extends to Latin America's oceans. Sacristan said that while previous blue issuance been small -- the Seychelles sale was for just $15 million -- IDB Invest aims to raise $100 million or more. IDB Invest is structuring the sale of what would be the region's first blue bond, with proceeds to be used to finance maritime projects such as sustainable fisheries across the region and tourism developments in the Caribbean. [Extracted from the article]

(Bloomberg) -- Investors are bracing for more credit downgrades for Colombia, which would cement the country's junk rating and force some fund managers to ditch billions of dollars of its bonds. With junk ratings from two agencies, Colombia would be dropped from indexes that investors use to balance their portfolios, causing automatic selling. Read More: Colombia's Dollar Bonds Drop After S&P Cuts Nation to Junk Mandates that prohibit some institutional bondholders from holding speculative-grade debt would force them to sell as much as $1.5 billion of government dollar bonds, according to an estimate by Citi. [Extracted from the article]

(Bloomberg) -- Investors are bracing for more credit downgrades for Colombia, which would cement the country's junk rating and force some fund managers to ditch billions of dollars of its bonds. Read More: Colombia's Dollar Bonds Drop After S&P Cuts Nation to Junk Mandates that prohibit some institutional bondholders from holding speculative-grade debt would force them to sell as much as $1.5 billion of government dollar bonds, according to an estimate by Citi. [Extracted from the article]

Finance Minister Jose Manuel Restrepo highlighted progress on a new proposal to cut the deficit, and will meet with ratings agencies in the coming weeks to address their concerns. (Bloomberg) -- Colombia's finance chief is seeking to shore up investor confidence after S&P Global Ratings cut the country to junk, sparking a selloff in bonds and the peso. [Extracted from the article]

(Bloomberg) -- Colombia's all-out effort to preserve itsinvestment-grade credit rating has fueled bloody street protests, costthe finance minister his job and thrown the country into its worstpolitical crisis in years. Which makes Colombia's gung-ho push to appease credit-rating analystswith tax hikes and spending cuts -- even as violent protests eruptacross the country -- seem misguided to some. [Extracted from the article]

The finance ministry confirmed President Ivan Duque and Carrasquilla were meeting this morning. Markets are expected to remain volatile in the short term, with the bond yield curve steepening and the peso continuing to depreciate, at least until investors see the new tax proposal, Scotiabank Colpatria analysts wrote in a note Sunday. (Bloomberg) -- Colombia's peso fell the most among major currencies as local media reported Finance Minister Alberto Carrasquilla is about to step down after bloody street protests led the government to shelf his plan to raise taxes. [Extracted from the article]

Colombia's currency is the worst performer in emerging markets this year after the Turkish lira and Argentine peso, according to data compiled by Bloomberg. (Bloomberg) -- Colombia's Finance Minister Alberto Carrasquilla will quit Monday, Blu Radio reported, after his plan to raise taxes was shelved following days of bloody street clashes and a political crisis. [Extracted from the article]

Keywords: 13347Z; BON; BUSINESS; ELECT; FRX; GEN; GLOBALMACR; GOV; LATAM; MARKETS; NORTHAM; POL; WORLD EN 13347Z BON BUSINESS ELECT FRX GEN GLOBALMACR GOV LATAM MARKETS NORTHAM POL WORLD QSHXSFDWRGG1 (Bloomberg) -- President Ivan Duque withdrew a plan to raise taxes on many Colombians after it triggered days of bloody street clashes and a political crisis. The nation's bonds and currency weakened in recent weeks after the government's plans were rejected by virtually the entire political establishment, including Duque's own party. [Extracted from the article]

(Bloomberg) -- Sustainable debt sales are suddenly booming in Latin America, as investors looking for larger returns in environmentally and socially friendly securities grow more comfortable with buying high-yield bonds. But in recent months, investors in environmental or sustainable notes have grown more comfortable with buying high-yield bonds to earn higher returns. [Extracted from the article]

(Bloomberg) -- Sustainable debt sales are suddenly booming in Latin America, as investors looking for larger returns in environmentally and socially friendly securities grow more comfortable with buying high-yield bonds. Governments across the region are planning green bond sales, and IDB Invest, a part of the Inter-American Development Bank, is working with borrowers on 15 additional green, social and sustainability bonds this year. [Extracted from the article]

(Bloomberg) -- Empresa Electrica Guacolda SA's bonds jumped the most in more than a month after Grupo WEG said it will honor commitments previously made to creditors after it acquires AES Gener's stake in the coal-fired power producer. Read more: Chile coal plant debt falls to distressed on AES stake sale However, in an email response to questions Friday, WEG said it will comply with previously signed commitments "including those relating to the bond issued at the time in the North American market.". [Extracted from the article]

(Bloomberg) -- Empresa Electrica Guacolda SA's bonds jumped the most in more than a month after Grupo WEG said it will honor commitments previously made to creditors after it acquires AES Gener's stake in the coal-fired power producer. Read more: Chile coal plant debt falls to distressed on AES stake sale However, in an email response to questions Friday, WEG said it will comply with previously signed commitments "including those relating to the bond issued at the time in the North American market.". [Extracted from the article]

(Bloomberg) -- Argentina's Salta province reached a deal with an ad-hoc creditors group for amendments to its foreign bonds due in 2024, the provincial government said in a statement late Friday. The proposed debt restructuring would allow the province "to re-direct cash flows in the near-term to important social priorities as well as to ensure continued funding for key capital projects", the creditors group said in a statement Saturday. [Extracted from the article]

(Bloomberg) -- Argentina's Salta province reached a deal with an ad-hoc creditors group for amendments to its foreign bonds due in 2024, the provincial government said in a statement late Friday. The province was downgraded further into junk in July by Fitch Ratings, to C from CCC, after missing a coupon payment on the bonds. [Extracted from the article]

(Bloomberg) -- There was a period last year when investors had all but given up on the Brazilian airline run by David Neeleman, the man who made his name by founding JetBlue Airways years earlier. Bonds of his budget carrier, called Azul SA, had sunk to a mere 35 cents on the dollar, signaling investors were bracing for a painful default. [Extracted from the article]

(Bloomberg) -- There was a period last year when investors had all but given up on the Brazilian airline run by David Neeleman, the man who made his name by founding JetBlue Airways years earlier. Bonds of his budget carrier, called Azul SA, had sunk to a mere 35 cents on the dollar, signaling investors were bracing for a painful default. [Extracted from the article]

(Bloomberg) -- Colombia plans to take advantage of the rise in socially conscious investing with the offering of its first green bonds. "Colombia has prioritized the local market for the development of its issuance strategy of green bonds which is a bit different to the approach some other sovereigns in emerging markets have taken", he said. [Extracted from the article]