SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: esmart@caricris.com

▪ Eastern Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Trinidad and Tobago Unit Trust Corporation’s initial rating assigned at CariAA

▪ Massy Holdings Ltd. rating reaffirmed at CariAA+

▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA

▪ National Flour Mills Limited’s rating reaffirmed at CariA-

▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO)

▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-

▪ Government of Barbados’s local currency rating upgraded to CariBB

▪ PanJam Investment Limited’s initial rating assigned at CariBBB+

▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+

▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+

▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+

OUR UPCOMING WORKSHOPS!

Benefits of a CariCRIS Rating to a Manufacturing Entity:

Latest Rating Actions by CariCRIS

• Access to an independent assessment of the Company which can

lead to increased efficiencies as a result of improved business

operations

• Access to improved terms from suppliers

• Access to improved terms for lines of credit

DATE

WORKSHOP

COUNTRY

Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings

CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.

REGIONAL

Trinidad and Tobago

T&T to host CDB meeting

The annual board of governors' meeting of the Caribbean Development

Bank (CDB) will be held in T& T on June 5 and 6, Planning Minister Camille

Robinson-Regis and CDB President Warren Smith officially announced

yesterday.

CAL expands cargo offering

Majority State-owned Caribbean Airlines Ltd (CAL) has formed an alliance

with ground transport handlers Forward Air, to facilitate the trucking of

large-volume cargo from New York and Fort Lauderdale to the airline's

Cargo Hub in Miami, for shipments into the Caribbean.

Index Fund gains $0.54

Overall market activity resulted from trading in 16 securities of which six

advanced, four declined and six traded firm.

Barbados

Govt to build nation’s quality standards system – Sutherland

Admitting that Barbados’ national quality infrastructure is not yet fully

developed, the Minister of Commerce has pledged urgent attention to

the system by which international standards are measured and enforced

here.

‘Route master’

The Transport Board is in the early stages of developing a new and

improved “master plan” for its future operations, which could see

Government’s role reduced to a mere regulator of a privately-owned,

public route network.

Jamaica

IMF puts Jamaican growth at 1.7% for 2019

THE latest publication of the International Monetary Fund's World

Economic Outlook projects growth in GDP of 1.7 per cent for Jamaica in

2019.

Jamaica continued

Increase in NIS deductions takes effect

JAMAICANS currently contributing to the National Insurance Scheme (NIS)

will see an increase in the amount deducted from their salaries this month.

NCB relocates Negril branch to better serve customers

National Commercial Bank (NCB) recently relocated its Negril branch to

the Boardwalk Shopping Village along the Norman Manley Boulevard, in

an effort to better serve its growing number of customers.

Management and operational changes planned for PCJ

CHANGES are to be made to management and operational practices at

Petroleum Corporation of Jamaica (PCJ) to conform with Government

policy in light of serious inefficiencies identified in the auditor general's

damning December 2018 compendium report on the State-run oil refinery

and its subsidiary, Petrojam.

14 countries participate in Kingston fisheries workshop

MORE than 30 government officials from 14 countries are in Jamaica

taking part in the three-day World Trade Organization (WTO) Regional

Workshop on 'Fisheries Subsidies for Caribbean Countries'.

Civil servants’ uncertainty led to low take-up of early retirement

The Jamaican Government did not meet the objective of its Special Early

Retirement Programme (SERP) as the level of participation achieved was

only 37 per cent, or 597 public-sector workers of the take-up target of

1,600.

Guyana

Don’t approve Liza Phase Two Permit until all issues are resolved–Dr. Jan

Mangal

Oil and Gas Consultant, Dr. Jan Mangal, is of the firm view that the

Environmental Permit for the Liza Phase Two project should not be

approved until a long list of issues has been resolved.

The Bahamas

Web Shops Told: ‘Get on Board and Pay Up’

Web shops were last night warned by a Cabinet minister to “get on board

and pay your fair share to the Treasury” otherwise their licences will not be

renewed if taxes remain owing.

The Bahamas continued

Security Expert Unveils Bahamas Clean-Up Strategy

THE Bahamas is a popular destination for Canadian fraudsters, a global

security expert has warned, revealing that he has proposed a plan to

recover millions this nation has lost to corruption.

Haiti

IMF loan of $229M, Haiti is trying to negotiate a deadline

Tuesday in Washington, Jean Baden Dubois, the Governor of the Bank of

the Republic of Haiti (BRH), accompanied by Gary Bodeau the Speaker of

the Chamber of Deputies on tour in Washington until April 11 participated

in a high-level working session at the headquarters of the International

Monetary Fund (IMF). Discussions focused on the $229 million 0% three-

year concessional loan signed last March whose deadline for approval

(with conditions) is April 24th.

Costa Rica

Recope’s Plan for Ethanol Nixed

The central government announced this Tuesday morning the suspension

until further notice the plan by the State refinery to replace super gasoline

with an ethanol mix by the end of May.

Cuba

Cuba Proclaimed Its New Constitution

The new Constitution of the Republic of Cuba was proclaimed in Havana

on Wednesday in a solemn session of Parliament, after a speech

pronounced by the First Secretary of the Central Committee of the

Communist Party, Raul Castro.

The Dominican Republic

Flap over severance pay trumps push for wage hike

Unions Federation (CNUS) president Rafael (Pepe) Abreu, said on

Wednesday that the trade unions are not going to allow the severance

pay to be “stripped” from the country’s workers.

Venezuela

Venezuela pledges to honour oil commitments to Cuba despite sanctions

Venezuela will “fulfil its commitments” to Cuba despite United States

sanctions targeting oil shipments from the South American country to its

ideological ally, Foreign Minister Jorge Arreaza said on Monday.

Fund sues Venezuela for $26 million in unpaid bonds, interest

Global fund manager Pharo has sued Venezuela for $26 million in unpaid

bond principal and interest, a U.S. court filing showed, as legal claims by

creditors piled up against the OPEC nation whose economy is suffering

from a hyperinflationary collapse.

Two of Venezuela's four crude upgraders restart after blackout: document

Two of Venezuela’s four crude oil upgraders, which are necessary to

process the country’s extra-heavy crude into exportable grades, have

restarted after halting activities due to blackouts in March, according to a

document seen by Reuters on Tuesday.

Exclusive: Venezuela removes eight tonnes of gold from central bank –

sources

Venezuela removed eight tonnes of gold from the central bank’s vaults

last week, and the cash-strapped socialist state is expected to sell the

bullion abroad as it seeks to raise hard currency in the face of U.S.

sanctions, a lawmaker and one government source said.

Venezuela congress allows parallel PDVSA board to negotiate foreign

debt

Venezuela’s opposition-controlled National Assembly on Tuesday allowed

a parallel board of directors of state-run oil company PDVSA to negotiate

foreign debt ahead of a looming payment deadline that could put its

crown jewel overseas asset, U.S. refiner Citgo, at risk.

INTERNATIONAL

United States

Futures indicate slightly higher open for Wall Street

U.S. stock index futures pointed to a slightly higher open for Wall Street on

Thursday, as investors assessed warnings from major central banks about a

global slowdown.

Europe

Airline stocks lift European equities after Brexit delay

Airline stocks helped European shares advance on Thursday after

European Union leaders gave Britain another six months to leave the bloc,

while sterling simply shrugged.

European shares slip on growth slowdown fears; luxury shares shine

European shares slipped on Thursday as comments from the U.S. and

European central banks added to concerns about the risks of a slowdown

in global growth, but strong gains by LVMH boosted luxury goods stocks

and buoyed equities in France.

Euro steady on ECB caution; pound indifferent to Brexit delay

The dollar and euro were little changed on Thursday after the Federal

Reserve and the European Central Bank hinted they were willing to leave

interest rates alone amid trade tensions and signs of flagging growth.

EU gives May till October for Brexit, seeking clarity

European Union leaders gave Britain six more months to leave the bloc,

more than Prime Minister Theresa May says she needs but less than many

in the bloc wanted, thanks to fierce resistance from France.

China

China's Geely launches new electric car brand 'Geometry'

Geely, China’s highest profile car maker with investments in Volvo and

Daimler, launched a premium all-electric car brand “Geometry” on

Thursday as it pushes ahead with its plans to boost production of new

energy vehicles.

India

Big turnout for India's giant election, where Modi has an edge

Indians voted enthusiastically on Thursday at the start of a mammoth

general election, with Prime Minister Narendra Modi seeking a second

term after campaigning fervently on a plank of national security, following

tension with neighbouring Pakistan.

Global

Oil prices slip as U.S. stocks surge, but global market tightens

Rising U.S. crude stocks dragged oil lower on Thursday but prices

continued to find a floor as OPEC-led cuts and freefalling Venezuelan

output tightened global supplies.

Airline stocks lift European equities after Brexit delay Thursday 11th April, 2019 – Reuters

Airline stocks helped European shares advance on Thursday after

European Union leaders gave Britain another six months to leave the bloc,

while sterling simply shrugged.

Gains for airlines from easyJet to Lufthansa helped European indexes gain

0.2 percent, with the EU’s Brexit extension to Oct. 31 clearing some of the

uncertainty previously clouding the key summer holiday period.

The summit deal in Brussels, struck in the early hours of Thursday, means

that Britain will not crash out of the bloc on Friday without a treaty -

though it offers scant clarity on when, how or even if Brexit will happen.

Markets in London and Frankfurt ticked up and Paris outperformed as

luxury stocks also gained ground, even with concern over protectionism

rumbling and markets digesting central bank warnings over slowing

growth.

Futures indicate that Wall Street was set to open higher, a turnaround for

global equities after a disappointing day in Asia, where four consecutive

days of gains ground to a halt.

The dollar and euro held steady.

Equities and other risky assets have been volatile this year, while bonds

have rallied over worries of a slowdown in the United States and other

major economies, including the euro zone. Many central banks have

taken a dovish stance, pivoting away from moves toward interest rate

increases.

The Federal Reserve will likely leave U.S. rates unchanged this year,

minutes from its policy meeting last month showed, given risks to the U.S.

economy from financial conditions and protectionist trade policies.

The European Central Bank maintained its loose policy stance on

Wednesday, highlighting threats to global growth and raising the prospect

of more support being pumped into the struggling euro zone economy.

Looming in the background has been concern over a retreat to

protectionism, with U.S. President Donald Trump threatening new tariffs on

EU while the Sino-U.S. trade dispute rumbles on.

The world’s two biggest economies have largely agreed on a mechanism

to police any trade agreement they reach, including establishing new

“enforcement offices”, U.S. Treasury Secretary Steven Mnuchin said, with

talks due to resume on Thursday.

“We do expect U.S. growth to remain relatively tepid this year compared

to what we saw last year, and it will probably lose further momentum as

we head toward the end of the year,” said Chris Scicluna, head of

economic research at Daiwa Capital Markets

MSCI’s world equity index, which tracks shares in 47 countries, hovered

around this week’s six-month highs.

European trading was thin, a trend likely to continue during upcoming

disrupted trading weeks in major markets. Easter lies ahead and Japan is

due for a 10-day break from late April to mark the ascension of its new

emperor.

STERLING STEADY

Major currencies struggled, with the dollar hanging near two-week lows

and the euro unmoved.

But most notably sterling was unchanged below $1.31, remaining within

the trading range it has held to during the past month or so.

Markets now see less chance Britain will crash out of the EU, so the focus

of traders will turn - for the coming months at least - to the underlying state

of the British economy, said Thu Lan Nguyen, FX strategist at

Commerzbank in Frankfurt.

“People have been focused on Brexit ... In the short-term, maybe these

investors or traders will look more at the economic fundamentals,” she

said.

Rising U.S. crude stocks dragged oil lower, though prices found a floor as

OPEC-led cuts and plunging Venezuelan output tightened global

supplies.

International benchmark Brent futures stood at $71.25 a barrel around

midday, down 0.9 percent from their last close.

<< Back to news headlines >>

European shares slip on growth slowdown fears; luxury shares shine Thursday 11th April, 2019 – Reuters

European shares slipped on Thursday as comments from the U.S. and

European central banks added to concerns about the risks of a slowdown

in global growth, but strong gains by LVMH boosted luxury goods stocks

and buoyed equities in France.

The pan-European STOXX 600 index was down 0.2 percent by 0907 GMT,

led by declines in Milan and Madrid, but Paris rose 0.3 percent.

The European Central Bank stood pat on borrowing rates on Wednesday

and said threats to global economic growth remained, while the U.S.

Federal Reserve reiterated its patient stance on similar grounds, citing risks

from an unresolved trade dispute with China and potentially, Europe.

“At least on (the) part of the ECB, they seem to be slightly less certain on

their outlook that (growth) will rebound but they are still hoping this,” said

Bas van Geffen, a quantitative analyst ECB at Rabobank.

“The question is to what extent are markets going to see this as indeed

‘low rates for longer’ and, if so, how concerned are they on the growth

cautions.”

Ireland’s ISEQ stock index was flat after the European Union gave British

Prime Minister Theresa May until October to leave the bloc, but the lack of

clarity on when, how or even if Brexit will happen, kept a lid on gains.

ASML was one of the biggest drags on the pan-region index after a media

report said Chinese employees stole corporate secrets from the Dutch

semiconductor equipment maker, resulting in hundreds of millions of euros

(dollars) in losses. ASML, in response, said that a U.S. software subsidiary

was the victim of corporate theft several years ago, but denied that the

information stolen was a blueprint for its lithography machines.

German silicon wafer maker Siltronic fell 2.1 percent after Credit Suisse cut

its target price for the company by 12 euros.

Material stocks lost 1.2 percent with mining majors BHP and Rio Tinto,

tracking a decline in iron ore and copper prices.

Utilities were dragged 1 percent lower, with Engie down 1.8 percent after

Morgan Stanley downgraded it to “equal-weight” from “overweight” as it

sees headwinds in 2019.

Prysmian shed more than 8.5 percent and was among the biggest

percentage decliners on the STOXX 600 as the Italian cable maker said it

would review its financial results for last year.

On the other hand, LVMH surged to an all-time high, up 4 percent after

sales growth at the luxury goods conglomerate picked up pace in the first

quarter.

Other luxury good stocks such as Kering, Christian Dior, Moncler and

Burberry also climbed.

Sodexo jumped 5.4 percent after the French food services group reported

a stronger-than-expected rise in first-half revenues as growth accelerated

in North America during the second quarter.

EssilorLuxottica SA was also among the biggest boosts as Citigroup

upgraded shares of the world’s largest eyewear maker to “neutral”.

<< Back to news headlines >>

Euro steady on ECB caution; pound indifferent to Brexit delay Thursday 11th April, 2019 – Reuters

The dollar and euro were little changed on Thursday after the Federal

Reserve and the European Central Bank hinted they were willing to leave

interest rates alone amid trade tensions and signs of flagging growth.

Sterling traded flat after European Union leaders extended the deadline

for Britain to leave the EU, suggesting fears remain about where Brexit is

headed.

Currency markets are waiting for key economic data from China: trade

figures due on Friday and first-quarter gross domestic product due next

week.

The Fed on Wednesday released the minutes on its March 19-20 meeting

at which policy-makers signalled they would not raise rates in 2019.

ECB President Mario Draghi underscored the risks facing the euro zone

economy, reinforcing bets on further stimulus to prevent the region from

slipping into recession.

Investors are focused on where the pound is headed after another delay

to Brexit.

The advantages for sterling, as well as UK and European equities, include

the removal of a near-term, no-deal Brexit. But that is offset by the

prospects of UK Prime Minister Theresa May’s replacement, a general

election and the threat to the UK economy of prolonged uncertainty.

As a result, no conviction bets emerged on the pound and it remains

stuck just below $1.31.

“The extension is unlikely to improve business confidence much, thus

limiting the upside to GBP,” said Chris Turner, head of foreign exchange

strategy at ING.

“The rising probability of a change in Conservative Party leadership

ahead of the new October deadline suggests a difficulty for EUR/GBP to

move below the 0.85 pence level,” he said.

Concern about big swings in the pound have subsided, according to one-

month implied volatility, which fell to a seven-month low.

The dollar index last stood at 96.95, flat on the day, after slipping to a two-

week low of 96.823 on Wednesday.

The euro last held at $1.1278, recovering from Wednesday’s low of

$1.12295, keeping intact its slow rise from $1.1183 on April 2.

Commodity currencies including the Aussie were also helped by recent

gains in commodity prices.

<< Back to news headlines >>

EU gives May till October for Brexit, seeking clarity Thursday 11th April, 2019 – Reuters

European Union leaders gave Britain six more months to leave the bloc,

more than Prime Minister Theresa May says she needs but less than many

in the bloc wanted, thanks to fierce resistance from France.

The summit deal in Brussels in the early hours of Thursday meant Britain will

not crash out on Friday without a treaty to smooth its passage. But it offers

little clarity on when, how or even if Brexit will happen, as May struggles to

build support in parliament for withdrawal terms agreed with the EU last

year.

With German Chancellor Angela Merkel insisting that Britain would not be

forced out and that a chaotic no-deal departure must be avoided if at all

possible, there was never any real doubt that May would get an

extension.

The drama was about its length and conditions.

French President Emmanuel Macron, reprising a role he took last month

when May got a first, two-week delay, pushed leaders into hours of

debate over dinner as he fought a largely solo campaign to persuade

them not to give the British up to another year.

Summit chair Donald Tusk and others argued that obliging May to accept

a much longer deadline than the June 30 date she had sought could

help swing pro-Brexit hardliners within her own Conservative party behind

her deal, fearing a long delay could see the British public turning against a

withdrawal altogether.

But Macron, while irritating some peers who saw his stance as Gallic

grandstanding, insisted that letting Britain stay in the Union any longer

risked undermining the project of European integration that is one of his

main policy goals.

The result was a compromise on the date, with a deadline of Oct. 31, for

Britain to leave, deal or no deal — on condition that May holds an

election on May 23 to return British members to a new European

Parliament that convenes in July, and that it pledge not to disrupt key EU

decision-making before it leaves.

If May fails to win over lawmakers on the treaty or fails to hold an election,

Britain will leave with no deal on June 1.

MAY EYES BREXIT SOON

The prime minister was keen to stress that the extension to Oct. 31 — and

several leaders refused to rule out further delays — did not mean she

would not deliver Brexit sooner and before, as she promised her rebellious

party, she steps down.

“I know that there is huge frustration from many people that I had to

request this extension,” she told reporters, as her team prepared for

another round of talks on Thursday with the Labour opposition, to whom

May turned for help last week.

“But the choices we now face are stark and the timetable is clear. So we

must now press on at pace with our efforts to reach consensus on a deal

that is in the national interest,” she added, acknowledging the coming

weeks would not be easy.

Tusk, a former Polish premier who has long tried to keep a door open for

Britons to change their minds and stay, said the delay until Halloween

gave time for London to ratify May’s deal, tweak elements of the future

EU-UK relationship to Labour’s liking — or give it a chance to “cancel Brexit

altogether”.

Merkel, who eased tension at the start of the talks by sharing a joke with

May over photographs of them both wearing very similar jackets, stressed

a need for calm and order: “We want an orderly exit by Britain,” she said.

“And an orderly exit by Britain can be best ensured if we give it some

time.”

FRENCH RESISTANCE

Macron defended his resistance to giving Britain nine months or a year

more, saying it was for the “common good”. French officials, pointing to

threats by some of May’s pro-Brexit potential successors, spoke of the EU

facing “blackmail” by a future British government blocking decisions in

Brussels.

“It’s true that the majority was more in favour of a very long extension. But

it was not logical in my view, and above all, it was neither good for us, nor

for the UK,” said Macron.

French pressure also tightened clauses referring to Britain not disrupting EU

affairs if it stays in longer and a reference to a June 20-21 EU summit taking

stock of the position again.

May addressed the other 27 for an hour at the start of the summit and

failed to convince many, notably Macron, that she truly had a new

strategy for securing ratification.

Leaders are exasperated with May’s handling of a tortuous and costly

divorce that is a distraction from ensuring the bloc can hold its own

against global economic challenges.

Across from the summit venue, the EU executive celebrated its part in

funding a global project that produced the first picture of a black hole,

prompting no shortage of ironic comments on social media about the

juxtaposition.

Blogger Eliot Higgins tweeted: “We’re now more certain about what black

holes look like than what Brexit looks like.”

<< Back to news headlines >>

Futures indicate slightly higher open for Wall Street Thursday 11th April, 2019 – Reuters

U.S. stock index futures pointed to a slightly higher open for Wall Street on

Thursday, as investors assessed warnings from major central banks about a

global slowdown.

Minutes from the Federal Reserve’s March meeting on Wednesday

showed that it was likely to leave interest rates unchanged this year given

risks to the U.S. economy from the slowdown and uncertainty over trade

policies and financial conditions.

The European Central Bank also maintained its loose policy stance, raising

the prospect of more support being pumped into the struggling euro zone

economy.

Concerns about trade and financial conditions have pushed central

banks to take a dovish stance, broadly supporting appetite for risk assets.

Investors are hoping that a trade deal with China and a better-than-

feared quarterly earnings season will help Wall Street extend its strong start

to the year.

U.S. Treasury Secretary Steven Mnuchin said on Wednesday that trade

talks continued to make progress and both sides have largely agreed on

a mechanism to police any trade agreement they reach, including

establishing new “enforcement offices”.

At 7:12 a.m. ET, Dow e-minis were up 47 points, or 0.18%. S&P 500 e-minis

were up 4.5 points, or 0.16% and Nasdaq 100 e-minis were up 9 points, or

0.12%.

Profit forecasts for the first quarter have dropped steadily in the last six

months, with S&P 500 earnings now seen falling 2.5%, which would mark

the first year-on-year contraction since 2016, according to Refinitiv data.

Bed Bath & Beyond Inc shares tumbled 9.7% after the home furnishing

retailer forecast weak current-quarter profit.

Tesla Inc shares fell 3.5% after the Nikkei reported the electric carmaker

and Panasonic Corp were rethinking plans to expand the capacity of

Gigafactory 1. Panasonic said it was studying further investments.

United States Steel Corp was down 3.2% after Bank of America Merrill

downgraded the stock to “underperform”.

<< Back to news headlines >>

China's Geely launches new electric car brand 'Geometry' Thursday 11th April, 2019 – Reuters

Geely, China’s highest profile car maker with investments in Volvo and

Daimler, launched a premium all-electric car brand “Geometry” on

Thursday as it pushes ahead with its plans to boost production of new

energy vehicles.

The move comes as automakers race to develop vehicles powered by

means other than petrol to meet an expected rise in demand as the

world’s top car market enforces official production quotas designed to

reduce smog.

Geometry will take overseas orders but will mainly focus on the Chinese

market and will launch more than 10 pure electric models in multiple

segments by 2025, Geely said in a statement on Thursday.

The company added it had already received more than 26,000 orders

globally for its first model, the Geometry A. The longer-range version of the

model has an ability to travel up to 500 kilometres (310.69 miles) on a

single charge, Geely said.

Geely launched Geometry at an event in Singapore and said the city-

state would eventually become a target market.

“The launch of Geometry and its first product advances Geely’s strategic

goal of becoming one of world top 10 automotive groups,” An Conghui,

president of Zhejiang Geely Holding Group, said in the statement.

Geely set up a new joint venture with Germany’s Daimler just last month to

build the next generation of Smart electric cars in China. Smart is Daimler’s

small-car brand.

Geely is also developing new energy commercial vehicles like pickup

trucks at another unit, Yuan Cheng Auto.

China has been a keen supporter of new energy vehicles (NEV) including

pure battery electric, hybrid, and plug-in hybrid technologies, and started

implementing NEV sales quota requirements for automakers.

According to a Reuters report, global automakers are planning a $300

billion surge in spending on electric vehicle technology over the next five

to 10 years, with nearly half of the money targeted at China.

Geely posted sales growth of 20 percent in 2018. However, it is forecasting

largely steady sales this year as the country’s giant auto market struggles

with slowing economic growth and more cautious consumers. Last year,

the overall market contracted for the first time since the 1990s.

The Chinese carmaker bought Volvo Cars in 2010 from Ford Motor Co in

what was China’s biggest acquisition of a foreign car maker at the time.

<< Back to news headlines >>

Big turnout for India's giant election, where Modi has an edge Thursday 11th April, 2019 – Reuters

Indians voted enthusiastically on Thursday at the start of a mammoth

general election, with Prime Minister Narendra Modi seeking a second

term after campaigning fervently on a plank of national security, following

tension with neighbouring Pakistan.

People trekked, rode bicycles and drove tractors to polling stations in the

world’s biggest democratic exercise, with nearly 900 million eligible to

vote during seven phases of balloting spread over 39 days, and vote-

counting set for May 23.

“I’ve never missed my vote in my life,” said Anima Saikia, a 61-year-old

woman in Assam, who was among early voters in the first phase.

“This is the only time we can do something. The game is in our hands right

now.”

Boosted by a surge in nationalist fervour after hostilities with Pakistan in

February, Modi’s Hindu nationalist Bharatiya Janata Party (BJP) held the

advantage going into the election, opinion polls showed.

But distress over growing unemployment and weak farm incomes in rural

areas, home to two-thirds of Indians, is expected to shrink the tally of

Modi’s BJP alliance to a far smaller majority than in the 2014 election.

“He’s improved India’s global standing, and taken revenge against our

enemies,” Sachin Tyagi, 38, the owner of a mobile telephone shop, told

Reuters near a polling station in Uttar Pradesh, India’s most populous state.

“I am happy with Modi-ji but the employment situation could be

improved,” he added, using an honorific suffix.

By 3 p.m., with three hours to the close of polling, more than half of voters

had turned out in most states, the Election Commission said. Voter

participation was the highest, at 70 percent, in the eastern state of West

Bengal, where the BJP is on a collision course with a firebrand regional

politician.

While tension with Pakistan has fuelled nationalist sentiment, political

analysts say the BJP has soft-pedalled its agenda to spread Hindu culture

in a country where a fifth of the population of about 1.3 billion belongs to

other religions.

One of the Uttar Pradesh constituencies voting was Muzaffarnagar, where

Hindu-Muslim riots killed 65 people months before the last election.

“Modi has worked, but not done enough for us,” Shadab Ali, a Muslim first-

time voter in a polling queue, told Reuters. “We want development. I’ve

voted for development.”

The main opposition Congress is leading the fight against the BJP,

partnering with smaller parties in some places and elsewhere going it

alone, hoping to bank on the charisma of its president, Rahul Gandhi,

drawn from the Nehru-Gandhi family.

On Thursday, it raised concerns over security for Gandhi, saying there

could have been an attempt to assassinate him this week when he met

reporters in the family borough in Uttar Pradesh, the state that sends the

most lawmakers to parliament.

A suicide bomb blast killed Gandhi’s father, former prime minister Rajiv

Gandhi, during election campaigning in 1991. His grandmother, Indira

Gandhi, was assassinated by her bodyguards while prime minister.

In a letter, Congress told the home ministry a green laser had been

pointed at Rahul Gandhi’s head intermittently during the meeting, making

a total of seven instances.

Feedback from former security personnel suggested the laser could have

come from a potential weapon, such as a sniper gun, the party added.

The home ministry dismissed the fears, saying the “green light” was found

to be a mobile phone used by a Congress photographer.

In the southern state of Andhra Pradesh, a scuffle between supporters of

two regional parties turned violent, killing at least one person and injuring

four, Reuters’ Indian partner ANI said.

Roads were bare and shops and schools shut in the disputed Himalayan

region of Kashmir after separatists called a strike in protest against the

election.

NATIONALIST UPSURGE

As voting began, Modi said the mood was firmly in favour of his National

Democratic Alliance (NDA), whose senior party is the BJP. “NDA’s aim is -

development, more development and all-round development,” he said

on Twitter.

Congress, which promised more jobs and “Love over hate” in its own

rallying cry on Twitter, had wrested three key states from the BJP in state

polls in December by promising to waive the outstanding loans of

distressed farmers.

It has sought allies among regional parties to defeat the BJP over its

economic record, but pollsters say support for the ruling party grew over

Modi’s tough stance against Pakistan.

Aerial clashes between the nuclear-armed neighbours followed a suicide

attack in February by a militant group based in Pakistan that killed 40

Indian paramilitary police in Kashmir.

An average of four opinion polls showed the BJP alliance on course to win

273 of the 545 seats in parliament’s lower house, a much-reduced majority

from the more than 330 it won in 2014.

<< Back to news headlines >>

Oil prices slip as U.S. stocks surge, but global market tightens Thursday 11th April, 2019 – Reuters

Rising U.S. crude stocks dragged oil lower on Thursday but prices

continued to find a floor as OPEC-led cuts and freefalling Venezuelan

output tightened global supplies.

International benchmark Brent futures were at $71.13 a barrel at 1201

GMT, down 60 cents from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were down 55 cents at

$64.06 per barrel.

U.S. crude inventories surged by 7 million barrels to a 17-month high of

456.6 million barrels last week, the Energy Information Administration said

on Wednesday.

U.S. crude oil production remained at a record 12.2 million barrels per day

(bpd), making the United States the world’s biggest oil producer ahead of

Russia and Saudi Arabia.

“While U.S. crude stocks built last week, a massive draw on (gasoline)

inventories likely buoyed the whole complex,” Vienna-based consultancy

JBC Energy said.

U.S. gasoline stocks fell by a whopping 7.7 million barrels, sending U.S.

RBOB up 3.5 percent from its close on Wednesday.

Tightening global oil supplies also kept a lid on further price losses.

U.S. sanctions and power outages pushed OPEC member Venezuela’s

crude output to a long-term low of 870,000 bpd, the International Energy

Agency said on Thursday, even lower than OPEC had reported the day

before.

Overall output from the Organization of the Petroleum Exporting

Countries, which has agreed with allies to withhold 1.2 million bpd of

crude from the market since the start of 2019, fell 550,000 bpd in March to

30.1 million bpd, the IEA said.

The agency, which coordinates the energy policies of developed nations,

saw oil stocks in industrialized countries fall in February by 21.7 million

barrels, putting inventories 16 million barrels above their five-year average.

Oil markets will remain tight “as long as Saudi Arabia continues to back

the production cut deal as aggressively as it has done so far”, said Ole

Hansen, head of commodity strategy at Saxo Bank.

Beyond the short-term outlook for oil markets, a lot of attention is on the

future of demand amid the rise of alternative transport fuels.

“We believe global demand has another 10 million bpd of growth, with

over half from China,” Bernstein Energy said in a note.

Current oil demand stands at around 100 million bpd.

Bernstein said it expected oil demand to peak around 2030.

“While no industry lasts forever, the age of oil is far from over,” Bernstein

said.

<< Back to news headlines >>

Don’t approve Liza Phase Two Permit until all issues are resolved–Dr. Jan

Mangal Thursday 11th April, 2019 – Kaieteur News

Oil and Gas Consultant, Dr. Jan Mangal, is of the firm view that the

Environmental Permit for the Liza Phase Two project should not be

approved until a long list of issues has been resolved.

These include the need for all oil companies to have internationally

recognized insurance policies and for the industry to be governed by a

robust legislative and regulatory framework.

He made this remark, among others, during an exclusive interview with

Kaieteur News recently.

The former Presidential Advisor said, “We need new legislation which is all

aligned. But this cannot happen without teams of oil professionals which

we do not have. And these teams cannot include the ‘experts’ popping

up who have zero years’ experience with the major oil companies.”

He added, “We have people who went off to do a Masters, have never

worked for a major oil company, but are prancing around Guyana as oil

experts and consultants.

“We cannot do anything without the right people, and we do not have

the right people now.”

Dr. Mangal commented that the only way Guyana has a chance to do a

modicum of justice to its own interests, is by slowing the pace of

ExxonMobil so as to give the country a chance to catch-up.

He emphasized that the players in government are obviously desperate to

give the impression that they are in control and that Guyana is being well

served. But this is not the case, the Oil Consultant said.

FURTHER DELAYS

ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited

(EEPGL), was supposed to receive its permit for the Liza Phase Two Project

on or before March 1, 2019. But a few issues related to its permit are still

being worked out before this can happen.

Confirming this was Head of the Environmental Protection Agency (EPA),

Dr. Vincent Adams.

He said that the Energy Department is conducting a rigorous review of the

Field Development Plans (FDP) for the Phase Two Project. He reminded

that the EPA has to work along with the Energy Department where these

matters are concerned.

The Environmental Engineer said, “We are working together to ensure

everything is in order before signing off on the permit. I wouldn’t go and

sign off on the permit if their plans are not approved or if the Department

is not comfortable with the development plans.”

He assured that permit would be granted once the aforementioned issue

is addressed.

It was in February that the Energy Department announced that UK-based

firm, Bayphase Oil and Gas Consultants, won the contract from Guyana

to review the Field Development Plans (FDPs) of its client, ExxonMobil.

But prior to this, Kaieteur News had exposed that this company is not only

a client of Exxon, but even some of its primary contractors working here.

In fact, Bayphase which was established in 1986 is also contracted by

NEXEN, a subsidiary of the Hong Kong based China National Offshore Oil

Corporation (CNOOC). CNOOC holds 25 percent interest in the Stabroek

Block.

Bayphase also works for Exxon’s subcontractors which include

Schlumberger and Technip FMC.

<< Back to news headlines >>

Web Shops Told: ‘Get on Board and Pay Up’ Wednesday 10th April, 2019 –Tribune 242

Web shops were last night warned by a Cabinet minister to “get on board

and pay your fair share to the Treasury” otherwise their licences will not be

renewed if taxes remain owing.

Dionisio D’Aguilar, minister of tourism and aviation, who has responsibility

for gaming, said there was no good reason for continued foot-dragging

by some operators now that the industry’s taxation settlement with the

government had been given legal effect.

He revealed that two web shop chains, which he did not name, had

been waiting for the Gaming Board to confirm the “specifics” of the

agreement before they began to pay taxes owing for both the first half of

the 2018-2019 fiscal year and under the new structure.

Warning that operators may “have a large mountain to climb” if they did

not soon begin paying what is owed, Mr D’Aguilar said tax non-

compliance would result in the withholding of licence renewals by the

Gaming Board.

He admitted, though, that he was unaware of Wayne Munroe QC’s

revelation to Tribune Business last week that none of his three web shop

clients had signed up to the mid-February settlement with the government

that was unveiled with much fanfare by the Minnis administration.

Mr Munroe, who represents the Island Game, Paradise Games and Asure

Win chains, said “resolution wasn’t agreed” between his clients and the

Government, and that a legal challenge remained a possibility once he

had assessed the proposed legal reforms and received their instructions.

Mr D’Aguilar, though, yesterday argued that the tabling of legal and

regulatory reforms in Parliament to give effect to the settlement should

act as the trigger to “put this behind us and move on” for the benefit of

both sides.

“We’ve laid the legislation to concretise what was agreed between legal

representatives of the operators and the Government,” Mr D’Aguilar told

Tribune Business: “I strongly suggest that every operator begins to abide by

these rules and pays the taxes, because these taxes are obviously

accruing.

“If they don’t pay them this is a large mountain for them to climb to

remain compliant, and they need to receive the necessary licences from

the Gaming Board. If we feel they are non-compliant, then we’re not able

to issue the licences unless they’re able to pay the taxes.”

While Mr Munroe said Sebas Bastian’s Island Luck and Ultra Games were

the only two operators “as far as I’m aware” who had agreed to the

settlement terms with the Government, Mr D’Aguilar argued that he did

“not see any reason” to drag the issue out any further.

“We should put this behind us and move on,” he said. “Nothing is gained

by dragging this on further. The gaming house operators agreed to this. I

don’t see why these two have not. I would suggest they get on board and

pay their fair share to the Treasury or what they are mandated to pay to

the Treasury.”

Mr D’Aguilar said the “two” web shops he was referring to were awaiting

“official notification” of the settlement and what they have to pay,

adding: “I don’t think there was a disagreement to pay... The Bills should

be all the notification they require, and I would suggest they begin to

abide by the agreement.

“One or two of them were wanting a letter from the Gaming Board

outlining the specifics of the agreement, but I was under the impression

everyone has agreed to pay the taxes from July to December and the

new tax increases from January to June.

“I think we’ve reached a compromise rather than endless litigation. The

agreement with the gaming house operators has been implemented.

Let’s move on. We don’t need it to be any more contentious in any way

or for this to be dragged on any longer than it has already been dragged

out.”

Confirming that he expects all web shops to be current with their tax

payments by the 2018-2019 fiscal year’s close at end-June, Mr D’Aguilar

said: “I’m led to believe that for the period July 2018 to December 2018,

the gaming houses are now paying those taxes.

“So in February they will pay for January and July of last year. Every month

they will pay two months to catch up so that by the end of the fiscal year

everyone will be current. I don’t know the specific numbers but they are

paying the amount calculated. By June 30 they will be up-to-date.”

So-called “back taxes” for the first half of the 2018-2019 fiscal year - from

July 1-December 31, 2018 - are to be levied using the web shop’s old

taxation rate of 11 percent of gaming revenues.

Mr D’Aguilar previously estimated this will generate around $11-$12m for

the Treasury based on previous full-year collections of $21m, which is less

than 50 percent of what the Ministry of Finance had projected to earn -

$15m “sliding scale”, and $10m from the “patron tax” - during that period.

The Government last week tabled changes to both the Gaming Act and

Gaming House Operator Regulations to give effect to the “settlement”, as

well as amending the Stamp Act to eliminate the previously proposed 5

percent “patron tax” on customer deposits and over-the-counter lottery

ticket sales.

That has been replaced by a “winnings tax”, which was due to be levied

from April 1 (Monday) on winnings associated with lottery bets. The

changes, which confirm that the tax will only be levied on the actual

winnings, provide for the “sliding scale” whereby winnings up to $1,000 will

attract a 5 percent rate.

Anything greater will attract a 7.5 percent rate, and the Government

expects this to generate $15m as opposed to the initial “patron tax”

forecast of $25m. Web shops must submit monthly tax returns, and

payment of the operator “sliding scale” and winnings tax, by no later than

the 10th of the following month or “the next business day” if that is Sunday.

The operator tax is due to take effect retroactively from January 1, 2019.

The settlement, and the Government’s position, has shifted much closer to

that taken by the web shop industry in the immediate aftermath of the

2018-2019 Budget’s unveiling, as the operator tax rates now fall into the

15-20 percent range that the sector’s consultants argue represents the

global gaming average.

The Government, in unveiling the agreement, said it would reduce its

projected take from the “sliding scale” by $15m annually - from the initially

projected $50m to $35m - as a result of shrinking the six rates to just two,

lower levies of 15 percent and 17.5 percent, respectively. The latter rate

kicks in for taxable revenue higher than $24m.

Tribune Business previously reported that Island Luck is the prime web shop

industry beneficiary of the settlement since it was virtually the only

operator exposed to the higher tax rates under the Government’s original

“sliding scale” taxation structure.

It was the sole web shop chain exposed to rates ranging from 30 percent

to 50 percent on its gross gaming revenues, whereas five of the remaining

six operators would only have faced the lowest 20 percent rate. Chances

was the only chain, apart from Island Luck, which would have seen a 25

percent rate levied on a miniscule portion of its revenue.

The bulk of Island Luck’s revenues will now be taxed at 17.5 percent,

which is much lower than the rates originally proposed in the 2018-2019

Budget. While its six rivals will largely only attract the lower 15 percent rate,

this still represents a 36.3 percent - or more than one-third increase - upon

the 11 percent rate they were originally paying. And the five-percentage

point reduction in the originally proposed 20 percent rate means they will

likely see fewer benefits than Island Luck.

<< Back to news headlines >>

Security Expert Unveils Bahamas Clean-Up Strategy Wednesday 9th April, 2019 – Tribune 242

THE Bahamas is a popular destination for Canadian fraudsters, a global

security expert has warned, revealing that he has proposed a plan to

recover millions this nation has lost to corruption.

Juval Aviv, former Israeli counter-intelligence officer, and founder and

chief executive of New York-based security consulting company, Interfor,

told Tribune Business: “I do a lot of work in Canada. Maybe you guys don’t

know but Canadian fraudsters put their money in The Bahamas. They

don’t go anywhere else, in a hope maybe to move here and live here in

the future.”

“Right now The Bahamas is on some lists that are not favourable. Serious

investors are not going to come to The Bahamas. We are already a

vendor of the EU. We are going to third world countries to really help them

to come up to a level that the EU can loan them money.”

Mr Aviv, a speaker at an Insurance Management cyber security and risk

management seminar, added that the fight against corruption and other

forms of financial crime must be led from the top by national leaders.

Referring to nations unable to access European Union (EU) grants and

other forms of funding, he added: “Today, those countries cannot borrow

money anywhere. One of the goals is to really clean it up so we can have

a favourable rating for countries to trust us and come and do some

business here.

“It has to start with the top. You cannot do it with mid-level officials. They

don’t have the authority to make decisions. They need to know that the

top guy is interested in it. That if he’s criticising the old regime he shouldn’t

fall for the same type of activity.”

Mr Aviv said he has presented the government with a proposal to fight

corruption. “With the proposal that I gave the government I want to build

a reputation for The Bahamas,” he added.

“If you have fraud in mind, go to some other islands. We mean business.

You’re not going to be able to do it. If you have done it in the past we are

going to crack down. We want to build a reputation with people who

really want to invest money.”

Mr Aviv continued: “The programme is really about coming in, looking at

the system, looking at the previous government and their activities. We

know from rumours and stories that money has left The Bahamas into

private pockets. The programme is going after that money, recovering it

and bringing it back home. That could make a big change in the

Government’s budget.

“We are talking about hundreds of millions of dollars. It’s not just small

amounts. The second thing is to really work on prevention. What do we do

in systems we can introduce, teach law enforcement here, teach the

police, teach other law enforcement agencies how to deal with those

type of frauds and prevention.

“The key is prevention. In other countries we also look at the legal area.

We found out in some other countries that judges accepted bribes. It just

needs the will of the Government to do it.”

<< Back to news headlines >>

IMF loan of $229M, Haiti is trying to negotiate a deadline Wednesday 10th April, 2019 – Haiti Libre

Tuesday in Washington, Jean Baden Dubois, the Governor of the Bank of

the Republic of Haiti (BRH), accompanied by Gary Bodeau the Speaker of

the Chamber of Deputies on tour in Washington until April 11 participated

in a high-level working session at the headquarters of the International

Monetary Fund (IMF). Discussions focused on the $229 million 0% three-

year concessional loan signed last March whose deadline for approval

(with conditions) is April 24th.

Recall that the process of advancing the file at the IMF is currently

suspended as announced by Gerry Rice, Director of Communications of

the IMF "We cannot move the process forward to the IMF Executive Board

without a little more clarification on the establishment of a new

government and the introduction of the budget [...] We hope that

political uncertainties can be quickly dissipated so that we take back the

work to help Haiti and the Haitian people facing enormous socio-

economic challenges."

The purpose of this meeting was to try to obtain an extension of the

deadline. At the end of the meeting, Gary Bodeau was satisfied saying

that he had managed to negotiate a new deadline of up to June given

the time required for the installation of the new Government. Bodeau

believes he managed to convince the IMF team that there was no other

choice that to postpone the deadline and promised to grant the benefit

of urgency to the draft budget, once submitted to the lower chamber.

No official comment for the moment from the Governor of the BRH nor the

IMF, while a source close to the file indicates that the IMF would want a

new Government to be installed in Haiti within 30 days... one of the

conditions required before making any disbursement.

<< Back to news headlines >>

T&T to host CDB meeting Thursday 11th April, 2019 – Trinidad Express Newspaper

The annual board of governors' meeting of the Caribbean Development

Bank (CDB) will be held in T& T on June 5 and 6, Planning Minister Camille

Robinson-Regis and CDB President Warren Smith officially announced

yesterday.

The meeting, which is the CDB's 49th, is expected to attract about 400

delegates, comprising government ministers and officials, development

partners, private sector representatives, members of civil society,

academia and media.

The meeting which will focus on the buzzword 'Transformation'.

Smith said transformation is a priority for the region as a whole as well as

for the bank as it approaches its 50th anniversary year.

'Our borrowing member countries are operating in an increasingly

complex global environment.

The challenges are new, different and becoming increasingly complex

relative to what obtained when the Bank was founded in 1970.

As a region and as an institution we need to, not just keep up but actually

use innovation as a vehicle to leap ahead in this changing world.

That is what we are anticipating in Trinidad and Tobago – a rich exchange

of ideas, approaches and innovation that places the region's

development at the forefront.

We extend our thanks to the Government and people of Trinidad and

Tobago for hosting this important meeting,' said Smith.

In her capacity as chair elect of the board of governors for the meeting,

Robinson-Regis echoed the President's sentiments, stating that this is also a

year of transformation for Trinidad and Tobago as the country is emerging

from a period of recession and all of the efforts over the past three years

to transform the economy in terms of the creative sector, agriculture,

climate change and trade are coming to a head, and the CDB has also

projected economic growth at an average rate of 2 per cent for 2019 for

Trinidad and Tobago.

Robinson-Regis was invited by the CDB to undertake an official visit to the

bank's headquarters in Barbados yesterday. She met with the CDB

President and other members of senior management. The official visit

served to discuss matters of mutual interest between the bank and T& T. It

also provided an opportunity to update the bank on the plans for the

upcoming annual meeting, which are being undertaken by the Ministry of

Planning and Development.

CDB's board of governors

The board of governors is the highest policy making body of CDB. The

governors meet once a year in one of the member countries of CDB. All of

the powers of CDB are in the hands of the board of governors, which can

delegate its powers to the board of directors except on certain matters

such as: the admission of new members. The last time Trinidad and

Tobago hosted the board of governors was in May 2011.

The Caribbean Development Bank's 19 borrowing member countries, are

allowed to borrow funds from the bank and also have voting rights, which

entitles them to be a part of the decision-making process of the bank.

Together, they have 55.26 percent of the voting power on the bank's

board, of which T& T is the chair.

<< Back to news headlines >>

CAL expands cargo offering Thursday 11th April, 2019 – Trinidad Express Newspaper

Majority State-owned Caribbean Airlines Ltd (CAL) has formed an alliance

with ground transport handlers Forward Air, to facilitate the trucking of

large-volume cargo from New York and Fort Lauderdale to the airline's

Cargo Hub in Miami, for shipments into the Caribbean.

Commenting on the alliance, chief executive officer Garvin Medera

stated: 'Starting April 2, customers shipping cargo to the Caribbean out of

New York and Fort Lauderdale can now do so at one flat rate with no

capacity restrictions. The freighting process is seamless and hassle-free as

Forward Air will handle all ground transport needs to Caribbean Airlines'

Cargo hub in Miami and we will handle the air freight. Customers will only

be required to drop off their cargo at designated ports and we will take

care of delivery to the intended destinations.'

Caribbean Airlines cargo freighter service operates five times a week on

Monday, Tuesday, Wednesday, Thursday and Friday, offering connections

to/from North American and Caribbean gateway to rest of the world with

its fully-developed air and ground transportation network.

<< Back to news headlines >>

Index Fund gains $0.54 Thursday 11th April, 2019 – Trinidad Express Newspaper

Overall market activity resulted from trading in 16 securities of which six

advanced, four declined and six traded firm.

The Composite Index declined by 2.72 points (0.20 per cent to close at

1,327.77. The All T& T Index declined by 7.45 points (0.4 per cent) to close

at 1,762.49. The Cross Listed Index advanced by 0.29 points (0.24 per cent)

to close at 120.50. The SME Index remained at 99.50.

Trading activity on the first-tier market registered a volume of 271,889

shares crossing the floor of the Exchange valued at $2,388,460.65. Sagicor

Financial Corporation was the volume leader with 130,100 shares

changing hands for a value of $1,106,681.00, followed by JMMB Group Ltd

with a volume of 77,751 shares being traded for $136,841.76. TTNGL

contributed 17,443 shares with a value of $513,243.05, while NCB Financial

Group added 17,372 shares valued at $143,319.00.

Calypso Macro Index Fund registered the day's largest gain, increasing

$0.54 to end the day at $15.00. Conversely, National Enterprises Ltd

registered the day's largest decline, falling $0.80 to close at $6.80.

On the mutual fund market 106,919 shares changed hands for a value of

$2,454,087. CLICO Investment Fund was the most active security, with a

volume of 106,319 shares valued at $2,445,087. CLICO Investment Fund

remained at $23. Calypso Macro Index Fund advanced by $0.54 to end

at $15.

The second-tier market did not witness any activity.

The SME market did not witness any activity. CinemaOne remained at

$9.95.

The USD equity market did not witness any activity. MPC Caribbean Clean

Energy remained at US$1.

<< Back to news headlines >>

Recope’s Plan for Ethanol Nixed Tuesday 9th April, 2019 – Today Costa Rica

The central government announced this Tuesday morning the suspension

until further notice the plan by the State refinery to replace super gasoline

with an ethanol mix by the end of May.

Five days ago the Refinadora Costarricense de Petróleo (Recope)

announced its intention to replace super gasoline with Eco 95, a 8%

ethanol and 92% gasoline mix.

According to Recope’s plans, ethanol would also be included in regular

gasoline in 2020.

“By mutual agreement between the Presidency, the minister of Energy,

Carlos Manuel Rodríguez, and Recope, in the general opinion that it is

necessary to postpone the launching the mixture of gasoline with

ethanol,” said Alejandro Muñoz, president of Recope.

Muñoz added that the Recope would “start a socialization program with

all sectors so that people have better information about the technical

and bibliographical studies and, later, the Minae can develop some tools

and actions that allow greater strength in terms of environmental

protection.”

The central government also announced that it will begin a volunteer

program for eventual users interested in using the mix.

The plan for Recope to buy ethanol was also declared void, while the

‘recurso amparo’ (writs of appeal) filed on Monday with the Constitutional

Court were voided.

Muñoz said the issue of ethanol could be raised again in a year.

<< Back to news headlines >>

IMF puts Jamaican growth at 1.7% for 2019 Thursday 11th April, 2019 – Jamaica Observer

THE latest publication of the International Monetary Fund's World

Economic Outlook projects growth in GDP of 1.7 per cent for Jamaica in

2019.

The projection comes as the report anticipates a reduction in growth this

year for 70 per cent of the world economy. Growth in the global

economy which was 3.6 per cent in 2018 is expected to decrease to 3.3

per cent in 2019 but should pick up in the second half of the year.

The report further projects growth for Jamaica to increase to 1.9 per cent

in 2020 and 2.4 per cent in 2024. The 2019 projection is in line with a recent

assessment from the Caribbean Development Bank (CDB) which

expected 1.7 per cent growth for the financial year 2018-19.

The CDB had warned, however, that “key downside risks, such as a

slowdown in global growth, macroeconomic and/or weather-related

shocks, policy reversal of the structural reforms, and high crime, could

derail growth prospects.”

The projected figures are an improvement over the past three years as

the World Economic Outlook report shows growth in Jamaica was 1.5 per

cent in 2016, 0.7 per cent in 2017 and 1.4 per cent in 2018.

In light of the current global situation, the World Economic Outlook states

in its foreword that, “Across all economies, the imperative is to take

actions that boost potential output, improve inclusiveness, and strengthen

resilience.”

This statement comes only days after Jamaica's finance minister Dr Nigel

Clarke stressed the necessity for greater local investments to maintain

Jamaica's economic growth.

The minister was speaking at the Destination Experience Masters of

Industry Reception held at the Mercedes Benz showroom in Kingston on

April 5. He revealed that policies designed to “encourage and incentivise

greater levels of domestic and foreign investment” were being

implemented by the government to stabilise the economy.

“We believe that the environment today and the policy choices we have

made will encourage domestic investment to be unleashed in Jamaica in

ways that it hasn't in a long period of time,” he stated.

The finance minister stressed the necessity for greater “value-added” in

output and production which he believes can take place in the tourism

industry through “backward integration” and in the manufacturing sector

through allowing more manufacturing businesses to be established in

Jamaica.

“We are seeing firms from the region establish manufacturing companies

in Jamaica to access the northern markets; that's something that never

happened before,” the finance minister revealed.

He also called for greater efficiency in the economy which can be

achieved by addressing associated cost factors.

“In the last budget, we dealt with some of those fiscal costs, those

transaction costs that lead to inefficiency and lead to inefficient

allocation,” he stated. “We have a lot more work to do, not just in the

fiscal side, but on the regulatory side and on the microeconomic

structures that lead to inefficiency.”

Increasing worker productivity through training was another pathway he

identified for greater efficiency to support growth.

The IMF notes that while the growth of the global economy continues to

be reasonable despite the current decline, there are a number of

downside risks including tensions in trade policy, Brexit-related hazards,

potential deterioration in market sentiment and unexpected growth on

the downside in China and the Euro area that could take place.

“This is a delicate moment for the global economy,” states a post from the

IMF Blog. “If the downside risks do not materialise and the policy support

put in place is effective, global growth should rebound. If, however, any

of the major risks materialise, then the expected recoveries in stressed

economies, export dependent economies, and highly-indebted

economies may be derailed. In that case, policymakers will need to

adjust.”

<< Back to news headlines >>

Increase in NIS deductions takes effect Thursday 11th April, 2019 – Jamaica Observer

JAMAICANS currently contributing to the National Insurance Scheme (NIS)

will see an increase in the amount deducted from their salaries this month.

The 0.5 per cent increase announced by Minister of Finance and the

Public Service Dr Nigel Clarke in December took effect two Mondays ago,

moving NIS deductions from five per cent to 5.5 per cent.

Additionally, Dr Clarke told Parliament that the contributions will further

increase to six per cent by April 1, 2020.

The increase is to be shared equally between employer and employee,

with each absorbing 0.25 per cent.

NIS is a compulsory contributory-funded social security scheme covering

all employed individuals in Jamaica. It is administered under the National

Insurance Act and offers some financial protection to the worker and his

or her family, against the loss of income arising from injury on the job,

sickness, retirement and/or death of the breadwinner.

Clarke had cited an actuarial study in 2016, which revealed that the

National Insurance Fund would have a negative cash flow by 2029 if the

contributions were not increased, and by 2037, would be completely

depleted.

He explained that this was due to the fund paying out more than the

amount being generated.

In 2016, the fund paid out pensions to 100,000 individuals, resulting in

outflows of $14.87 billion, while inflows only amounted to $12.8 billion, the

minister revealed.

According to the latest Statistical Institute of Jamaica Labour Force

Survey, at October 2018, the country's employed labour force stood at

1,219,700. Only 470,000 people are actively contributing to the insurance

scheme.

Part II subsections I and II of the National Insurance Act outline that a

person who, on or after the appointed day, being over the age of 18 and

under retirement age, and having fulfilled residence in Jamaica, is

gainfully occupied in Jamaica, or is in such employment outside Jamaica

as is specified in (certain instances) shall become insured under the Act

and remain insured until he reaches retirement age. It said insured persons

are divided into two classes, employed and self-employed.

Employed persons are defined as those who work in a business, not their

own. This category includes factory workers; private household workers

such as butlers, chauffeurs, cooks, gardeners, general helpers,

housekeepers, and nurse-maids; and all other employed persons including

civil servants, teachers, nurses, and members of the security forces.

Self-employed are those who work independently in their own business.

Included in this category are doctors, lawyers, accountants, consultants,

vendors, informal commercial importers, dressmakers, tailors, hairdressers,

barbers, fisherfolk, farmers, and Jamaican nationals employed in foreign

embassies in Jamaica.

<< Back to news headlines >>

NCB relocates Negril branch to better serve customers Thursday 11th April, 2019 – Jamaica Observer

National Commercial Bank (NCB) recently relocated its Negril branch to

the Boardwalk Shopping Village along the Norman Manley Boulevard, in

an effort to better serve its growing number of customers.

The decision to undertake the construction of a new facility under its

transformation programme, has cost the financial conglomerate millions

of dollars.

However, senior general manager for NCB's Retail Banking Division, Brian

Boothe, is encouraged that it is money wisely spent.

“We offer a full suite of banking products at the Negril branch and with

our in-branch digital platform, new accounts can be opened in under 10

minutes. Customers will have 24-hour access to three automated banking

machines, one of which facilitates withdrawals in US currency for both

locals and visitors,” said Boothe, adding that “a drive- thru will be

constructed shortly”.

Boothe also stated that NCB is now in the process of launching their new

Pay Advance Plus loan product, aimed at offering a short-term loan

facility until customers' next pay cycle. This, he said, is being offered at an

attractive interest rate, even lower than other loan products.

For several years, the NCB Negril branch operated from the Sunshine

Shopping Village along the Westend main road.

Now, Boothe is pleased with its new location.

“We think the location fits in quite nicely with the environmental

characteristics of Negril and we are pleased that the developer took that

into consideration,” he argued.

In the meantime, Boardwalk Village developer, Richard Wallace, said he

was pleased with the partnership between his company and NCB.

“I can't explain how thrilled I am now that NCB has opened. This is a huge

upgrade for Negril – a community that is deserving of a development as

this. It is a major investment that they have undertaken, which

demonstrates that they do care about their customers in Negril,” said

Wallace.

<< Back to news headlines >>

Management and operational changes planned for PCJ Thursday 11th April, 2019 – Jamaica Observer

CHANGES are to be made to management and operational practices at

Petroleum Corporation of Jamaica (PCJ) to conform with Government

policy in light of serious inefficiencies identified in the auditor general's

damning December 2018 compendium report on the State-run oil refinery

and its subsidiary, Petrojam.

Permanent secretary in the Ministry of Science, Energy, and Technology

Carol Palmer gave this indication Tuesday at another meeting of the

Public Accounts Committee (PAC), where the PCJ's employment

practices came under scrutiny.

Among the issues brought to the fore, from information contained in an

extensive document submitted to the committee yesterday by the

ministry, was a list of people hired to the PCJ without interviews or

assessments, or the positions being advertised, or reference checks in

some instances.

Palmer said she is now in discussions with portfolio minister Fayval Williams,

but that the changes will require a Cabinet submission.

“I have been in discussions with the minister up to yesterday (Monday) on

this particular entity and we will be taking steps to address the issues,

which I am not prepared to divulge at this time... suffice it to say that the

actions we are taking will require us also going to the Cabinet for a

decision,” Palmer said.

Since the publishing of the auditor general's report, in which the PCJ was

cited for poor oversight of Petrojam as well as questionable practices of its

own, there have been calls from the Opposition for the management of

the corporation to be held to account.

Palmer also said she has received a list of the approved establishments for

all agencies that fall under the ministry.

“I have made it very clear that we must return to the proper policies that

govern operations… yes, you may seek approval for short-term

engagement but any intention for longer-term engagement must require

an appropriate submission to the ministry for approval for that post to be a

part of the establishment,” she said.

“This is the challenge that we now face, as I have been provided by the

Ministry of Finance with the establishment of all the bodies within the

portfolio, and I am going through with a fine-tooth comb to establish the

irregularities because it has to be remedied. It cannot be that you just

decide that you need more people, and you have money so you go

ahead, totally oblivious of the policy direction that you must obtain from

the Government,” Palmer said.

“This appears to be the practice, and so I shall be writing to indicate that

the process must be observed or else the appropriate sanctions must

therefore be applied. It cannot be that we continue business as usual,

which is all unusual in my estimation, as I delve into this process, now nine

weeks on the job,” she stated.

St Catherine Southern Member of Parliament Fitz Jackson had raised

questions about a three-year contract for the post of manager of finance

and administration, which paid a salary of $5.2 million per annum; $25,000

for duty allowance; $75,700 for transportation, and other benefits, and

included a loan provision as well as gratuity entitlement of 25 per cent of

gross salary after two years.

Palmer told the PAC that as far as she was aware, there is in fact no such

position. “It's not on the establishment as I have been provided by the

Ministry of Finance. It's a position that has been established by the board, I

would assume, and the person was employed,” she said.

The PAC is scheduled to meet on April 23 to continue the discussions.

<< Back to news headlines >>

14 countries participate in Kingston fisheries workshop Thursday 11th April, 2019 – Jamaica Observer

MORE than 30 government officials from 14 countries are in Jamaica

taking part in the three-day World Trade Organization (WTO) Regional

Workshop on 'Fisheries Subsidies for Caribbean Countries'.

The workshop, which opened on Tuesday at the Courtyard by Marriott

Hotel in New Kingston, aims to update the participants on the current

status and main issues in the global fisheries subsidies negotiations, and

facilitate discussions on specific interests and concerns.

The negotiations, which were launched at the fourth WTO Ministerial

Conference in Doha, Qatar, in 2001, aim to clarify and improve existing

WTO disciplines on fisheries subsidies; strengthen WTO rules on subsidies

provided to the fisheries sector; and eliminate subsidies contributing to

illegal, unreported and unregulated (IUU) fishing.

Delegates attending the 11th WTO Ministerial Conference in Buenos Aires,

Argentina, in 2017, agreed to conclude the negotiations this year.

The importance and the need for stakeholder adherence to the laws and

regulations governing the oceans and seas was underscored by chief

technical director for Special Projects in the Ministry of Industry,

Commerce, Agriculture and Fisheries, Courtney Cole, at the opening

ceremony.

He noted that IUU fishing remains a global challenge for developed and

developing countries, and emphasised the universal recognition of the

“vast importance of the blue (marine) economy, and the need to

properly manage the resources of our oceans and seas”.

“Ours is the shared responsibility to be good stewards of the economic

and environmental value of the [fisheries] sector… so that we can

sustainably manage, protect and preserve the oceans and seas for this

and future generations,” he said.

Cole further stressed the importance of broad stakeholder access to the

“fairest parameters possible” and ensuring that all parties are able to

operate in a global space that prohibits fisheries subsidies facilitating

overcapacity, and IUU fishing practices.

He said Jamaica's position underscores the need to tackle IUU fishing

practices at the local, bilateral, regional and international levels, hence

the ministry's embarking on a comprehensive strategy to address the issue.

Cole reiterated the strategy's focus on modernising the regulatory

framework and technical capacity to monitor Jamaica's territorial waters,

enhancing surveillance, and “ultimately [ensuring] that IUU vessels do not

cross into our territories”.

“As largely small island developing states, we in the Caribbean region will

require, not just technical assistance to address IUU issues and monitor fish

stocks towards improving sustainability, but we also need to work

collaboratively to ensure the best outcomes in the current negotiations on

subsidies,” he added.

Cole, in acknowledging that the region's fishing fleet and industries are

“relatively small”, emphasised the need for flexibility to facilitate

development within sustainable levels through subsidies.

Ultimately, the Chief Technical Director said the discussions and

negotiations must be “rooted in our commitment to develop the capacity

to fully exploit fisheries resources within our exclusive economic zones and

other legal spaces”.

It is anticipated that the workshop, which ends today, will facilitate

increased stakeholder awareness and knowledge about the issues being

discussed in the fisheries subsidies negotiations, now under way at the

WTO in Geneva, Switzerland.

This is expected to encourage greater participation by Caricom in the

negotiations, with a view to contributing to the outcome.

Also represented at the workshop are The Bahamas, Barbados, Belize,

Dominica, Guyana, Haiti, St Kitts and Nevis, St Lucia, St Vincent and the

Grenadines, Suriname, and Trinidad and Tobago.

<< Back to news headlines >>

Civil servants’ uncertainty led to low take-up of early retirement Wednesday 10th April, 2019 – Jamaica Gleaner

The Jamaican Government did not meet the objective of its Special Early

Retirement Programme (SERP) as the level of participation achieved was

only 37 per cent, or 597 public-sector workers of the take-up target of

1,600.

The minister of finance, in February 2017, approved the programme for

eligible employees in the public sector aged 50 to 59 to take up early

retirement through an incentivised package.

It was intended to support public-sector pension reform and cut the

Government’s wage bill to nine per cent of gross domestic product by

March 2018, in line with commitments made under its economic

programme with the International Monetary Fund.

However, Auditor General Pamela Monroe Ellis, in a report posted on the

department’s website, said the Ministry of Finance implemented the

programme without first ensuring that all the requirements for financial

viability had been met.

In the report of an audit she commissioned, Monroe Ellis said that despite

securing Cabinet approval over one year before, the ministry failed to

undertake a comprehensive survey of eligible civil servants in order to

gauge whether the programme could be successful.

“We found that the Government implemented SERP without first

conducting a comprehensive survey to determine interest and possible

take-up rates from the total eligible population,” Monroe Ellis said.

The ministry’s measure of the financial viability of the programme also did

not include a metric for the impact on service delivery, she said.

Hence, there was a disjuncture between the expected reduction in the

wage bill and maintenance of essential job functions.

Heads of ministries, departments and agencies were also advised that

any rehire that takes place consequent on the programme should not

exceed 15 per cent of the total savings generated by the SERP.

Monroe Ellis said it was therefore not surprising that some heads of

department and permanent secretaries could not reconcile how they

could contribute to the success of the programme while maintaining the

level of service delivery.

Records of the programme’s oversight committee also revealed that

some members believed that after the retirees left the public service, the

posts would be deactivated or abolished.

“This apparent confusion underscored the important role of the ministry to

engage permanent secretaries and heads of department to obtain buy-

ins for the programme,” the auditor general said.

“This may have also influenced the low level of applications and

approvals. Our survey of permanent secretaries and heads of department

revealed that some viewed the 15 per cent cap as limiting their ability to

employ suitable replacements to maintain service delivery,” Monroe Ellis

said.

Noting that the programme suffered from inadequate planning and

monitoring, she also said the oversight committee did not effectively

oversee its implementation.

Since inception, the committee, which was responsible for providing

overall guidance, has met only three times, with the last meeting held on

January 30, 2018, a month before the February 28, 2018, deadline for the

submission of applications.

She said the Ministry of Finance provided information that the accountant

general paid $1.7 billion with respect to 538 approved applicants.

However, it was unable to provide information on payments through

municipal corporations and executive agencies.

Information obtained directly from four agencies revealed total payments

of $37.3 million for incentives and gratuity to 22 of the retirees.

“This deficiency undermined credibility and transparency in the

implementation and monitoring of SERP,” Monroe Ellis said.

The auditor general also said the programme’s communications strategy

was less successful than anticipated in building awareness and

encouraging buy-ins.

“The ministry scheduled the communication and public-relations activities

to take place over the period December 2017 to March 2018,” she said.

However, the ministry cancelled its planned press conference, which

would have provided further opportunity for the Government to directly

engage and clarify concerns of prospective retirees and stakeholders,

and instead issued a news release, citing ongoing tense public-sector

wage negotiations as a reason for the change.

Monroe Ellis said more than 35 per cent of heads of department and

permanent secretaries surveyed, as well as human resources managers of

seven ministries, departments and agencies, believed that the time frame

for submitting applications was too short.

Respondents also identified a lack of clarity regarding the implementation

and implications of the programme as factors deterring their

participation, as demonstrated by the low take-up rate.

<< Back to news headlines >>

Govt to build nation’s quality standards system – Sutherland Thursday 11th April, 2019 – Barbados Today

Admitting that Barbados’ national quality infrastructure is not yet fully

developed, the Minister of Commerce has pledged urgent attention to

the system by which international standards are measured and enforced

here.

Assuring delegates to the 34th meeting of the CARICOM Regional

Organisation for Standards and Quality (CROSQ), Minister Dwight

Sutherland said the Barbados National Standards Institution (BNSI) and

CROSQ would ensure the infrastructure’s development, under a new NQI

policy aimed at boosting export competitiveness.

“Government considers this goal as urgent, and of very

high priority, in our efforts to enhance the national competitiveness of our

local micro-small and medium size (MSMEs) businesses, industries and the

promotion of fair trade,” he said.

The Commerce Minister said the proposed NQI policy is to improve the

export competitiveness of Barbados’ goods, services and produce, and

strengthen the capacity of MSME businesses and entrepreneurs to flourish

and succeed locally, intra-regionally, and in extra-regional markets.

Stressing that the NQI policy would also serve to defend our domestic and

regional borders from inferior, hazardous and illicit goods and services, he

said that it was also Government’s objective to use the application of the

NQI to rebuild the economy “in a sustainable manner”.

Sutherland said to expand international trade, countries cannot

underestimate the importance of adopting and implementing

internationally recognised and accepted metrology, accreditation,

standardisation, and quality practices.

Meeting global standards is the gateway to global trade, market access

and export competitiveness, and contributes to consumer confidence in

product safety, quality, health and the environment, he told the

delegates.

Sutherland said regional economies needed to continuously upgrade on

new trade standards and be able to conform to an increasing number of

new regulations, or question the validity of proposed regulations that they

consider discriminatory, and put the region’s perspective strongly.

He added that the basic enabling environment for providing proof of

compliance was the national quality infrastructure, and he stressed if

CARICOM countries wanted to attract foreign investments, they must

keep in mind that infrastructure, including quality infrastructure, was one

of the key pre-requisites which foreign investors considered.

Sutherland said: “In the case of a national quality infrastructure (NQI), they

must at the very least ensure access to international standards and

technical regulations, guarantee reliable measurements, and set up a

system that will allow accreditation of their testing and certification

facilities in such a way that the results of these bodies will be

internationally accepted.”

<< Back to news headlines >>

‘Route master’ Thursday 11th April, 2019 – Barbados Today

The Transport Board is in the early stages of developing a new and

improved “master plan” for its future operations, which could see

Government’s role reduced to a mere regulator of a privately-owned,

public route network.

Chairman Gregory Nicholls in an interview with Barbados TODAY

indicated that it is still “early days yet”, but predicted that the new

structure would significantly reduce the financial burden currently placed

on Government.

“All the buses will be painted the same, the drivers will continue to wear

the same uniforms, but the Transport Board, instead of being an operator

of 300 plus buses, will instead be a route manager,” said Nicholls.

“Instead of sinking $60 million of taxpayers’ money into the Transport

Board, we will be trying to create a platform for the public transport sector

to operate on a much more regulated and orderly basis but without the

requirement of being subsidised to that extent by the public purse.

“We’re talking about a system where the Transport Board is not the owner

of 300 plus buses, but more the regulator of a route network which will

have much more private sector participation in the delivery of those

services. That is the Government’s plan going forward,” revealed Nicholls.

He added that the new, profit-making endeavour would afford drivers at

least a 20 per cent stake in the new entities to create opportunities for

current drivers and operators to have an ownership in the business.

On Wednesday, Nicholls revealed that Government had awarded a

tender for the provision of electric buses, adding that the Transport Board

was well on the way to having the buses in the country by year-end.

“First of all, we have to sit down and negotiate a contract that is

beneficial to the Government and people of Barbados while ensuring that

the entity which won the bid is happy with the arrangement as well. So we

have to make those determinations during negotiations,” he said.

Approximately two weeks ago, 85 workers, mostly bus drivers, accepted

voluntary separation and early retirement packages as the Transport

Board intensified restructuring efforts.

With further reform on the horizon, Nicholls said the Transport Board was

engaged with trade unions on the structure of the entity amid numerous

operational challenges, reduced subvention and a significantly depleted

fleet.

“No one is anticipating that the Transport Board will have to own in excess

of 300 buses again in order to service the network,” he said, adding that

the plans could only be rolled out, when all stakeholders were on the

same page.

“We have designed a master plan which we have submitted to Cabinet

for approval. The unions have responded to a number of things that

concern them and we have to continue those discussions and

negotiations,” said Nicholls.

<< Back to news headlines >>

Flap over severance pay trumps push for wage hike Wednesday 10th April, 2019 – Dominican Today

Unions Federation (CNUS) president Rafael (Pepe) Abreu, said on

Wednesday that the trade unions are not going to allow the severance

pay to be “stripped” from the country’s workers.

During a march to the National Palace to protest the employers’

proposal, Abreu said the attempt to eliminate the severance pay stems

from “the ambition of business owners.”

He also demanded that, “to avoid difficulties for the country and for

labour peace to be lost,” the bill that would amend the labour code must

be withdrawn from Congress.

Wage hike takes a hike

The heated debate over the severance pay has displaced labour’s

demand for a 30% wage hike from the headlines, while business leaders

have quietly faded to the background.

<< Back to news headlines >>

Venezuela pledges to honour oil commitments to Cuba despite sanctions Monday 8th April, 2019 – Reuters

Venezuela will “fulfil its commitments” to Cuba despite United States

sanctions targeting oil shipments from the South American country to its

ideological ally, Foreign Minister Jorge Arreaza said on Monday.

Washington on Friday imposed sanctions on 34 vessels owned or operated

by state-run oil company Petroleos de Venezuela as well as on two

companies and a vessel that have previously delivered oil to Cuba,

aiming to choke off a crucial supply of crude to the Communist-run island.

Venezuela has long sent subsidized crude to Cuba. The United States

describes the arrangement as an “oil-for-repression” scheme in which

Havana helps socialist President Nicolas Maduro weather an economic

crisis and power struggle with the opposition in exchange for fuel.

Arreaza said he would not reveal Venezuela’s “strategy,” but that the

sanctions would not stop the shipments.

“When the conventional power of capitalism attacks you, you have to

know how to respond through non-conventional means, always

respecting international law,” Arreaza told reporters.

Friday’s measure came after broader sanctions Washington had slapped

on PDVSA in January as part of its bid to oust Maduro.

The United States, along with most Western nations, recognizes Juan

Guaido, the leader of the opposition-controlled National Assembly, as

Venezuela’s rightful leader. Guaido invoked the country’s constitution to

assume an interim presidency in January, arguing Maduro’s May 2018 re-

election was a sham.

The opposition last month ordered an end to oil shipments to Cuba, but

PDVSA - controlled by military officers loyal to Maduro - has continued the

exports.

The most recent fuel shipment to Cuba left Venezuela’s Jose port on April

4, carrying liquefied petroleum gas, according to Refinitiv Eikon data. In

the second half of March, two tankers carrying crude and two tankers

carrying refined products left for Cuba.

The only tanker sanctioned on Friday, the Despina Andrianna, is currently

returning to Jose after unloading crude at Cuba’s Cienfuegos refinery in

March. Another three vessels are waiting off Venezuela to load with

shipments destined for Cuba.

<< Back to news headlines >>

Fund sues Venezuela for $26 million in unpaid bonds, interest Tuesday 9th April, 2019 – Reuters

Global fund manager Pharo has sued Venezuela for $26 million in unpaid

bond principal and interest, a U.S. court filing showed, as legal claims by

creditors piled up against the OPEC nation whose economy is suffering

from a hyperinflationary collapse.

In a complaint filed with the New York State Supreme Court late on

Monday, Pharo said two funds that it controls own $1.5 million in bonds

that matured in 2018 and more than $200 million in bonds set to mature in

October 2019. Venezuela failed to pay interest and principal on the 2018

bonds and missed three interest payments on the 2019 bonds, it added.

Pharo manages around $10 billion from offices in London, New York and

Hong Kong, according to its website.

Venezuela’s information ministry did not respond to a request for

comment.

The government of President Nicolas Maduro stopped making payments

on nearly all bonds issued by the South American country and state oil

company Petroleos de Venezuela last year, and has accumulated some

$8 billion in pending interest and principal.

Investors had taken few concrete actions in response to the default until

last December, when a group of creditors demanded payment on a $1.5

billion bond, though they did not take the claim to court. Later that

month, a little-known Florida firm sued Venezuela for $34 million in

defaulted bonds.

A group of bondholders in January said they would not negotiate a

potential restructuring of debt with Maduro, saying the opposition-

controlled National Assembly was the country’s “only legitimately elected

body.” Western countries and the domestic opposition deride Maduro’s

2018 re-election as a sham, while Maduro, a socialist, argues Venezuela is

the victim of a U.S.-led “economic war.”

Maduro in 2017 invited creditors to a brief meeting in Caracas to discuss a

potential debt renegotiation, but no agreement was reached, and

sanctions placed on Venezuela by the United States will complicate any

effort to reach an agreement.

<< Back to news headlines >>

Two of Venezuela's four crude upgraders restart after blackout: document Tuesday 9th April, 2019 – Reuters

Two of Venezuela’s four crude oil upgraders, which are necessary to

process the country’s extra-heavy crude into exportable grades, have

restarted after halting activities due to blackouts in March, according to a

document seen by Reuters on Tuesday.

The Petrocedeno upgrader, a joint venture between state oil company

PDVSA, France’s Total SA and Norway’s Equinor ASA, and the Petropiar

joint venture with U.S. Chevron Corp both restarted, according to the

document.

The upgraders, together with the Petrosinovensa mixing facility, were set

to produce 298,000 barrels of upgraded crude on Tuesday.

Activities at the Petromonagas upgrader, a joint venture with Russia’s

Rosneft, along with PDVSA’s Petrosanfelix upgrader remained halted.

<< Back to news headlines >>

Exclusive: Venezuela removes eight tonnes of gold from central bank –

sources Tuesday 9th April, 2019 – Reuters

Venezuela removed eight tonnes of gold from the central bank’s vaults

last week, and the cash-strapped socialist state is expected to sell the

bullion abroad as it seeks to raise hard currency in the face of U.S.

sanctions, a lawmaker and one government source said.

With sanctions imposed by Washington choking off revenues from exports

by state oil company PDVSA, President Nicolas Maduro’s increasingly

isolated administration has turned to sales of Venezuela’s substantial gold

reserves as one of the only sources of foreign currency.

The government source said the central bank’s reserves had fallen by 30

tonnes since the start of the year before U.S. President Donald Trump

tightened sanctions, leaving the bank with around 100 tonnes in its vaults,

worth more than $4 billion.

At that rate of decline, the central bank’s reserves would nearly disappear

by the end of the year, leaving Maduro’s government struggling to pay

for imports of basic goods.

Venezuela’s central bank and its information ministry responded to

requests for comment.

Trump’s administration has declared Venezuela part of a “troika of

tyranny” in Latin America, including left-leaning governments in Cuba and

Nicaragua. It is seeking to cut off cash flow to Maduro’s government,

foster dissent in the armed forces and oust him from power in the OPEC

nation.

The United States and 50 other Western nations have recognized

opposition leader Juan Guaido as Venezuela’s legitimate president.

Asked to comment on the new removal of gold, a U.S. State Department

spokesman said, “The United States condemns all attempts by Maduro

and his supporters to steal resources from the Venezuelan people.”

“We encourage companies, banks, and other entities, whether in the

United States or in other countries, not to participate in the former Maduro

regime’s fire sale of Venezuelan resources,” the spokesman said.

Guaido invoked the Constitution in January to assume an interim

presidency, saying Maduro’s May 2018 re-election vote was a sham.

Maduro has branded Guaido a U.S. puppet and accused him of

collaborating with Washington to sabotage the economy.

Opposition lawmakers have blasted companies buying Venezuelan gold

or holding it as collateral for loans, saying they are giving Maduro a

financial lifeline during an economic and humanitarian crisis.

Aside from the reserves held by the central bank in Caracas, Guaido is

attempting to freeze bank accounts and gold owned by Venezuela

abroad. This includes 31 tonnes in the Bank of England worth an estimated

$1.3 billion.

BLACKOUTS AND WATER SHORTAGES

Venezuela’s economy is in a sixth year of recession, suffering

hyperinflation and shortages of basic goods like food and medicine.

Maduro eased restrictions on foreign exchange this year, but the

economy remains desperately short of hard currency needed to import

goods.

Last week’s operation took place while only high-level officials were

present at the central bank’s offices, given that most rank-and-file

employees stayed home due to blackouts and water shortages that have

plagued Venezuela in the past month, the government source said.

“They moved gold out while the central bank was in contingency mode,”

opposition lawmaker Angel Alvarado said, adding that the bars would be

sold abroad, though he did not know the destination.

A similar quantity of gold was removed from the central bank’s vaults in

February.

Washington in January asked foreign gold buyers to stop doing business

with the Venezuelan government. This prompted Venezuela to cancel a

planned sale of 29 tonnes of gold to the United Arab Emirates.

But in February and March the central bank continued to authorize the

movement of gold, the government source said, adding that it was

aiming to sell small quantities.

Earlier this year, Abu Dhabi investment firm Noor Capital said it bought 3

tonnes of gold from Venezuela on Jan. 21, but would not buy more until

the situation in the country stabilized.

And in March, Ugandan authorities said they were investigating the

country’s biggest gold refinery over imports of an estimated 7.4 tonnes of

gold - valued at around $300 million - after state-run media reported it

could have originated from Venezuela.

The State Department spokesman said countries should take “appropriate

legal measures” to stop “corrupt individuals” from selling off Venezuelan

assets.

<< Back to news headlines >>

Venezuela congress allows parallel PDVSA board to negotiate foreign

debt Tuesday 9th April, 2019 – Reuters

Venezuela’s opposition-controlled National Assembly on Tuesday allowed

a parallel board of directors of state-run oil company PDVSA to negotiate

foreign debt ahead of a looming payment deadline that could put its

crown jewel overseas asset, U.S. refiner Citgo, at risk.

The ad hoc board, which the Assembly on Tuesday expanded to nine

members from five, is part an effort by opposition leaders who have

disavowed the government of President Nicolas Maduro to control

PDVSA’s overseas assets. Maduro’s ruling Socialist Party continues to

control the company’s day-to-day operations.

The move will allow the board to decide whether or not to make a $71

million interest payment due April 27 on PDVSA’s 2020 bond, which is

backed by a 49 percent stake in Citgo, said opposition lawmaker Elias

Matta, the head of the Assembly’s energy commission.

“They will evaluate if they are going to pay the bonds. That is now their

decision,” Matta said in a telephone interview, adding that the board

would have to inform the Assembly should it decide to pay. “We will do

everything we have to do to protect the republic’s assets.”

Failure to pay the bond could allow bondholders to seize shares in Citgo

as compensation. PDVSA has a 30-day grace period following the April 27

deadline to make the payment.

The board’s new head will be former PDVSA executive Luis Pacheco,

Matta said.

National Assembly leader Juan Guaido, who invoked the country’s

constitution to assume an interim presidency in January, appointed the

ad-hoc board in February to protect PDVSA’s assets from “continued

destruction” by Maduro.

Guaido, who is recognized by most Western countries including the United

States, as Venezuela’s rightful leader, argues Maduro’s May 2018 re-

election was a sham.

Maduro, who retains control of the military and basic operations of

government, calls Guaido a puppet of the United States and accuses the

opposition of trying to “steal” Citgo.

Neither PDVSA nor Venezuela’s oil or information ministries responded to

requests for comment.

Oil production is the lifeblood of Venezuela’s economy, but its crude

exports have tumbled sharply in recent years as the country suffers a

hyperinflation collapse.

In the past month, that has been compounded by a wave of nationwide

blackouts, which have led the main oil export terminal, Jose, and the

country’s four crucial crude upgraders to halt operations in March.

Two of those upgraders - which convert extra-heavy crude from the

country’s Orinoco Belt into exportable grades - have restarted, according

to a document seen by Reuters on Tuesday.

The Petrocedeno upgrader, a joint venture between PDVSA, France’s

Total SA and Norway’s Equinor ASA, and the Petropiar joint venture with

U.S. Chevron Corp both restarted. The Petromonagas upgrader, a joint

venture with Russia’s Rosneft, along with PDVSA’s Petrosanfelix upgrader,

remained halted.

The upgraders, together with the Petrosinovensa mixing facility, were set

to produce 298,000 barrels of upgraded crude on Tuesday. That was still

below the 326,000 barrels that PDVSA expected them to produce,

according to the document.

The document also shows that PDVSA has a deficit of 70,700 barrels of

naphtha, a light oil product that it uses to dilute its extra-heavy crude into

an exportable grade when the upgraders are out of service. Most of

Venezuela’s naphtha is imported.

<< Back to news headlines >>

Cuba Proclaimed Its New Constitution Wednesday 10th April, 2019 – Prensa Latina

The new Constitution of the Republic of Cuba was proclaimed in Havana

on Wednesday in a solemn session of Parliament, after a speech

pronounced by the First Secretary of the Central Committee of the

Communist Party, Raul Castro.

The leader pointed out at the Convention Centre and before almost 600

MPs that once the Magna Carta is proclaimed, it will be published in the

Official Gazette of the Republic for its entry into force.

The Cuban leader insisted in his speech that the set of laws approved at

the polls, in the February 24 referendum, by a large majority of Cubans,

meets the purpose of achieving an increasingly prosperous, sustainable,

inclusive and participative socialism.

It establishes changes in the structure of the State such as the

establishment of the position of Prime Minister, recognizes various forms of

ownership, including the private one and the importance of foreign

investment, strengthens popular power from the municipalities and

expands individual and collective rights and guarantees.

Raul Castro stressed Cuba is committed to its vocation for peace, but

does not fear threats such as those arising from the aggressiveness of the

US Government.

He also said that this position has been conveyed to the current White

House administration through diplomatic channels and in a public

manner.

Faced with the threat posed by the hostility of the White House and its

policies of domination and meddling, he said Cuba is working on two

priorities of equal importance, to ready for defence and work for

developing national economy.

Raul Castro drew attention to the challenge Cuba could face due to a

possible worsening of the situation, based on the actions by Washington

that is tightening the blockade to cause economic suffocation and

hardship.

However, he explained that the scenario does not mean a return to the

so-called special period that in the 1990s after the collapse of the socialist

camp in Eastern Europe, because the Cuban economy presents a

different scenario, considering its diversification.

<< Back to news headlines >>