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Falklands, A+ S&P credit rating reaffirmed; strong support for current Legislative Assembly

The A+ rating mentioned FIG’s strong reserve balances, the expectation of fiscally prudent policies over the term of the current Legislative Assembly

FIG Financial Secretary, Pat Clunie, said: “Retaining our A+ credit rating is an excellent achievement especially when set against the current large capital program and financial pressure”.

The Falkland Islands Government (FIG) is pleased to report that last Thursday, 19 March, following a detailed review of current fiscal and economic information, as well as confidential interviews with FIG officers and other stakeholders, S&P Global re-affirmed the long-term sovereign credit rating for the Falkland Islands as ‘A+’, with a stable outlook.

‘The stable outlook is based on [the] expectation that public finances will remain strong over the next two years,’ S&P said, ‘supported by the government’s high level of assets that more than offset its recent borrowings and will allow it to proceed with its capital plans. It also reflects our expectation that institutional links with the UK will remain strong, anchoring policy stability and security.’

The A+ rating made additional reference to FIG’s strong reserve balances, the expectation of fiscally prudent policies over the term of the current Legislative Assembly, and growth underpinned by solid results in the fishing industry, as well as continued stability in public services and agriculture. Importantly, it takes into account the planned public expenditure on major capital projects like the new port, power station, wind farm and waste facility along with the general maintenance and development investments that occur each year.

FIG Financial Secretary, Pat Clunie, said: “Retaining our A+ credit rating is an excellent achievement especially when set against the current large capital program and financial pressure. It reflects the strength of our underlying economy and ongoing prudent financial management which in turn support our stable outlook. It is a team effort across all sectors of the Falklands that allows us to have something which we can all be proud of.”

The economic and fiscal forecasts do not yet incorporate potential revenue from oil-production. But S&P noted that they ‘could raise the ratings over the next two years if there was an earlier-than-expected and material ramp-up in the territory’s hydrocarbon sector and we believed it would have a significant impact on long-term growth rates or the stability of the economy, and we expected this effect would be sustained over the long term.’

Uruguay considers with “interest” British offer of three Royal Navy offshore patrol vessels

One of the vessels, the HMS Mersey, is a River-class offshore patrol vessel of the British Royal Navy

Uruguay’s government is considering with “interest” a British offer to acquire three Royal Navy offshore patrol vessels (OPVs), according to El Observador, citing sources at the executive offices. The proposal involves first-generation River-class vessels — HMS Tyne, HMS Mersey, and HMS Severn — operational since 2003 and scheduled for decommissioning in 2028 as part of the British fleet renewal under NATO’s defense spending commitments.

The offer has gained traction in recent weeks following the cancellation of a contract with Spanish shipyard Cardama, which left the Uruguayan Navy without a solution for its oceanic patrol capability gap. President Yamandú Orsi noted last week that the purchase would be conducted “country to country,” which he described as the “most interesting” format, rather than through contracts with private shipyards.

The three vessels measure 79.5 meters in length and displace 1,700 tons, specifications that meet the Uruguayan Navy’s requirements for open-ocean operations beyond 100 nautical miles. However, according to El Observador, naval sources indicated the Navy will need to request detailed technical documentation on propulsion systems, electrical systems, weaponry, sensors, and spare parts before advancing negotiations.

Each vessel would cost approximately $20 million, according to El Observador’s reporting. By comparison, Orsi indicated that a new OPV costs around $60 million. The government intends to equip the Navy with at least two offshore patrol vessels before the end of its term.

Separately, Uruguay confirmed to the United States its interest in acquiring a Reliance-class vessel offered as a donation by the U.S. embassy. The ship, which is not an OPV and lacks the capability for open-ocean navigation, would serve as an “interim solution” for coastal patrol duties, in Orsi’s words. The U.S. embassy confirmed to El Observador that it received Uruguay’s request and expects to continue the process.

The U.S. offer carries a complicated history. Former Navy Commander Jorge Wilson rejected the same proposal in 2022, noting the platforms were built in 1968 and had exceeded the age the Navy considers acceptable by a wide margin. The Defense Ministry estimates refurbishment costs of between $8 million and $15 million, based on a vessel of the same class transferred to Sri Lanka at an associated cost of $20 million in repairs and upgrades.

Another alternative considered was Navantia, Spain’s main public shipyard, but sources close to the negotiations noted that the company’s availability to build a vessel before 2030 is an obstacle, as its capacity is already committed.

Negotiations with the United Kingdom are being conducted under strict confidentiality. In government circles, the acquisition of used OPVs is seen as a short-term solution while progress is made toward incorporating new patrol vessels.

Uruguay raises fuel prices 7% over Middle East war and shifts to monthly price-setting

Under the adjustment, Super 95 gasoline will rise from 76.88 to 82.27 pesos per liter, while 50S diesel will increase from 47.32 to 50.63 pesos per liter

Uruguay’s government announced on Friday a 7% fuel price increase effective April 1, as a direct consequence of rising oil prices driven by the U.S.-Israeli war against Iran and the effective closure of the Strait of Hormuz, through which approximately 20% of the world’s crude oil supply transits.

Oil prices surpassed $110 per barrel in March, up from around $70 in late February — a jump of over 30% in just weeks. Facing the volatility, the government also decided to shift from bimonthly to monthly fuel price adjustments.

Economy Minister Gabriel Oddone explained that without the 7% adjustment cap, increases would have been significantly higher: 13% for gasoline and 44% for diesel. “This is a mitigation strategy until we fully understand what is happening,” Oddone said at a press conference alongside Industry Minister Fernanda Cardona.

Under the adjustment, Super 95 gasoline will rise from 76.88 to 82.27 pesos per liter (USD 2.05), while 50S diesel will increase from 47.32 to 50.63 pesos per liter. LPG will go from 88.46 to 94.65 pesos per kilogram. The government noted that fuel increases across the region ranged between 15% and 60% during March.

Oddone described the situation as “extraordinary” and compared it to Iraq’s invasion of Kuwait in the 1990s. “We have not had oil market disruption events since the 1970s. This bears no comparison even with what happened in 2022 with Russia’s invasion of Ukraine,” he stated. Minister Cardona added that the International Energy Agency classifies the current crisis as the largest crude supply disruption since 1973.

The adjustment is authorized under an exception clause in decree 130/025, which allows the executive branch to deviate from the standard pricing mechanism during extraordinary market conditions.

Alongside the increase, the government announced a mitigation package. A soft credit instrument will be created for agricultural sectors with a maximum amount of $30,000 and an interest rate subsidy of up to 50%. Benefits under the SIGA Agro guarantee system will be extended with reduced commissions, and the state bank will allow financing terms to be extended by 12 months. The tax authority will extend the diesel VAT refund period to 12 months for agricultural taxpayers.

The government clarified that the diesel increase will not affect public transportation fares, as the difference will be absorbed by the Sustainable Mobility Trust Fund. Ancap, the state fuel company, made advance crude purchases to secure supply, and the Economy Ministry authorized new credit lines totaling up to $220 million to cover its financial needs.

Bolsonaro leaves hospital, gets 90-day house arrest within 27-year prison sentence

Bolsonaro was admitted to a private hospital in Brasilia on March 13 after experiencing vomiting and chills in his cell in the military wing of Papuda prison

Former Brazilian President Jair Bolsonaro returned to his home in Brasilia on Friday after being discharged from hospital following a two-week stay for acute bilateral pneumonia. Bolsonaro, 71, will serve at least 90 days of his 27-year prison sentence under house arrest, following a decision by Supreme Court Justice Alexandre de Moraes.

The judge authorized “humanitarian house arrest” this week under strict conditions: an electronic ankle monitor, a ban on using social media, mobile phones, and recording videos or audio, along with restricted visits. After the 90-day period, Moraes will assess the inmate’s health to determine whether to extend the arrangement or return him to prison.

Bolsonaro was admitted to a private hospital in Brasilia on March 13 after experiencing vomiting and chills in his cell in the military wing of Papuda prison, where he had been serving his sentence since January. He was placed in intensive care and treated with intravenous antibiotics and physiotherapy sessions. His physician, Brasil Caiado, said on Friday that the recovery had been “smooth, without any complications” and that the former president would continue treatment at home, including respiratory and motor physiotherapy and cardiopulmonary rehabilitation. In approximately four weeks, he will undergo shoulder arthroscopy.

Caiado also commented on Bolsonaro’s emotional state: “His mood fluctuates considerably depending on the news and his expectations about his health. Today I found him quieter, more pensive.”

The retired military officer was sentenced last November to 27 years in prison for leading a coup conspiracy to remain in power after losing the 2022 election to Luiz Inácio Lula da Silva. His lawyers and family had repeatedly requested house arrest since the day of the conviction, citing his health problems and age. Bolsonaro has suffered lasting effects since being stabbed at a campaign rally in 2018 and has undergone multiple surgeries.

His return home, where he lives with his wife and daughters, was authorized with a limited visitation regime. He may receive three of his four sons, including Senator Flávio Bolsonaro, as well as his lawyers and doctors. His fourth son is barred from visiting due to accusations of obstructing the judicial process. The family has criticized the temporary nature of the house arrest.

Bolsonaro’s hospital discharge coincides with the pre-campaign of his son Flávio, whom he launched in December into the presidential race for the October elections. Polls show a tie between Flávio Bolsonaro, who presents himself as a moderate version of his father, and President Lula, who is seeking reelection, far ahead of any other candidate. Both blocs are spending these weeks securing alliances for congressional and state government candidacies.

House arrest is a widely used regime in Brazil, where more than 200,000 inmates serve their sentences at home, including former President Fernando Collor de Mello, who was convicted of corruption.