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

▪ The Government of the British Virgin Islands’ rating reaffirmed at CariAA-

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

▪ 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+

OUR UPCOMING WORKSHOPS!

Enterprise Risk Management 26th & 27th June 2019 Jamaica

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

Career Opportunity As we expand our operations through the Caribbean, CariCRIS is

seeking to recruit a high-calibre credit risk professional to join our team

in the following position:

Research & Fixed Income Analyst

Position Summary

Conducts research on the key sectors and industries driving the economies of the Caribbean and

compiles sector studies and industry reports. Also carries out valuation of fixed income securities

using CariCRIS’ proprietary valuation models.

Qualifications & Experience

• First degree in Finance/Economics/Business Management from an accredited University

• Postgraduate qualification/specialization in Finance such as an MBA, or M.Sc. and/or

studying toward the CFA charter would be an asset

• 2-3 years’ professional research experience, preferably in the financial sector

• Good working knowledge of the financial and capital markets of the Caribbean

• Prior experience in the valuation of regional fixed income securities would be an asset

Required Skills

• Strong analytic and critical thinking skills

• Exceptional written, oral, and presentation communication abilities

• Expertise with Microsoft Excel including VBA, PowerPoint and other Office-Related

software

If you are interested in joining the CariCRIS team, please submit a detailed resume and cover

letter by May 31st, 2019 to https://caricris.com/index.php/about/careers.

Tel: 1 868 627-8879 Fax: 1 868 625-8871

Only short-listed applicants will be acknowledged.

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

REGIONAL

Trinidad and Tobago

Sagicor in front

Overall stock market activity yesterday resulted from trading in 15

securities of which two advanced, five declined and eight traded firm.

Trinidad Petroleum secures US$850m deal

Trinidad Petroleum Holdings Ltd (TPHL), the parent company of Heritage

Petroleum and successor of oil company Petrotrin, has secured US$850

million to cover the first of its two billion dollar bonds.

T&T NGL gains $2.24

The Activity on the First Tier Market increased marginally by 2.64 per cent

on a total of 1,353,501 shares crossing the floor compared to 1,318,666

shares in the previous week.

$230m allocated for water upgrade

Robert Le Hunte, Minister of Public Utilities centre, is flanked by Alan Poon-

King Ag CEO, Wasa left, and Kenneth Kerr, climatologist, TT Met Service.

Cabinet has approved some $225 million for the Ministry of Public Utilities

to improve the water supply to citizens.

Barbados

$3 billion boost

A BEAUTIFUL Bridgetown is coming. Prime Minister Mia Amor Mottley last

night rolled out the initial plans for a new-look City, saying revitalising the

capital would be the first and most important thing on her agenda now

that the economy had been stabilised.

Increase in Petroleum prices effective midnight

Barbadians will be paying more for petroleum products effective midnight

Sunday, June 2.

BWA: Pay Up

The Barbados Water Authority (BWA), which is trying to collect $60 million

in debts, has launched a crackdown on businesses that owe thousands of

dollars.

Barbados Continued

Govt reinstates full benefits

After weeks of protests on call-in programmes and on social media,

persons who recently found their invalidity benefits suddenly cut, can

breathe a little easier. Government is to revisit the policy which left

hundreds with one of their income streams dried up.

Below par

Barbados still has some ways to go before it can be regarded as one of

the tougher anti-money laundering jurisdictions, a high-ranking official of

the Central Bank of Barbados has revealed.

Trust Loan Fund a success, says Commerce Minister

Government has provided 1,843 loans valued at $8.5 million under its Trust

Loan Programme, Minister of Small Business, Entrepreneurship and

Commerce Dwight Sutherland disclosed this evening.

‘Farmers discount’ on GSC coming, says Abrahams

Farmers paying the Garbage and Sewage Contribution (GSC) levy, which

is set at 50 per cent of their water bill, are to receive a discount, said

Minister of Water Resources Wilfred Abrahams.

BRA taking filing constraints into consideration

The Barbados Revenue Authority says it will be implementing measures so

employees will not be negatively impacted by their inability to file by May

31.

Jamaica

VM links improved performance to Jamaica's economic performance

Victoria Mutual (VM) Group on Friday reported a significant improvement

in its performance in 2018 with an after-tax surplus of $1.2 billion.

Construction starts on phase 2 of NHT's $1.6 billion Hummingbird housing

project

Prime Minister Andrew Holness broke ground for the construction of 406

housing solutions in phase two of the National Housing Trust’s (NHT) $1.66

billion Hummingbird Meadows development in Birds Hill, Clarendon on

Friday.

Jamaica Continued

First Rock locks in new real estate deals

First Rock Capital Holdings Limited has approved US$30 million worth of

real estate deals, but is still in the process of wrapping up some of the

negotiations.

Portland buys stake in Chukka

Portland Private Equity has increased its holdings in Chukka Caribbean

Adventures Limited, this time through a direct injection of equity under

Portland Caribbean Fund II into the tour company founded by the Melville

family.

Guyana

High-level Ghanaian delegation in Guyana to explore investments

The government of Guyana is forging stronger commercial ties with the

African continent. Progress is being made through a large Ghanaian

delegation headed by deputy energy minister Mohammed Amin Adam

and a 15-member delegation currently in Georgetown exploring

investment opportunities.

Technical institutes must develop skills to harness oil wealth

GUYANA is being advised to either strengthen existing skills training

institutes or establish a large-scale national technical institute to prepare

its people to benefit from an expected increase of job opportunities in the

service sector.

The Bahamas

‘Nowhere Near Out of The Fiscal Woods’

The Bahamas is “nowhere near out of the woods” with its fiscal woes, the

deputy prime minister admitted yesterday, with the government still

confronting several “ticking timebombs”.

Antigua and Barbuda

Antigua-Barbuda government signs ten-year cruise line agreement

Minister for tourism, investment and economic development, Henry

Charles Fernandez has signed a ten-year agreement with president and

chief executive officer (CEO) of Royal Caribbean International, Michael

Bayley, which will see increased cruise passengers visiting Antigua and

Barbuda’s ports and the development of the facilities.

British Virgin Islands

VI records strongest Inc. numbers in 3 years - BVI Finance

BVI Finance is reporting that the size and scale of deals facilitated by the

British Virgin Islands’ international business and the financial centre has

increased both in value and quality as the BVI reports its strongest

incorporation numbers in three years. Photo: Internet Source

Dominica

Dominica’s effort to rebuild its tourism after Hurricane Maria recognized

Director of Tourism and CEO of Discover Dominica Authority, Collin Piper

has said that Dominica’s collective effort in rebuilding its tourism product

after Hurricane Maria has been recognized by the regional and

international media.

St. Kitts and Nevis

American Airlines increased airlift to St Kitts-Nevis

American Airlines will fly a second weekly non-stop flight from New York’s

John F Kennedy international airport (JFK) to St Kitts on Wednesdays,

complementing the carrier’s existing non-stop Saturday service from JFK

and continuing to expand upon a successful airline-destination

partnership.

INTERNATIONAL

United States

Goldman Sachs arm to buy Capital Vision Services

Goldman Sachs Group Inc said on Monday that West Street Capital

Partners VII, a fund managed by the company’s merchant banking unit,

will acquire Capital Vision Services LP, to bolster their portfolio in the

healthcare services sector.

Import tariffs on China not pushing up U.S. inflation

U.S. President Donald Trump said the tariffs that his administration has

imposed on Chinese imports were not pushing up U.S. inflation and were

prompting manufacturers in the Asian powerhouse to move elsewhere.

Stock futures drop as trade tensions spark recession fears, flight to safety

U.S. stock index futures fell on Monday, signaling Wall Street’s main indexes

would extend last month’s losses at the open, as the multi-front trade war

made investors increasingly risk averse and fueled worries of a recession.

United Kingdom

Britain's May to press future trade ties with Trump during visit

Prime Minister Theresa May will discuss future economic ties with U.S.

President Donald Trump during his visit to Britain, her spokesman said on

Monday, adding that both have repeatedly expressed a shared desire for

a trade deal after Brexit.

Europe

Infineon digs deep to buy Cypress in $10 billion deal

Infineon has agreed to buy Cypress Semiconductors in a deal that values

the U.S. maker of microchips used in cars and electronic devices at 9

billion euros ($10.1 billion) including debt, sending shares in the German

company sharply lower on concerns over the cost.

Infineon plunge, trade woes send European shares to 3-month lows

European shares took another leg down on Monday as China sent

another shot across Washington’s bows on trade, stirring fears of recession,

while German chipmaker Infineon’s deal to buy a U.S. peer dragged

down the technology index.

Global

Global recession fears grow as factory activity shrinks

Factory activity contracted across Asia and Europe last month as an

escalating trade war between Washington and Beijing raised fears of a

global economic downturn and heaped pressure on policymakers to roll

out more stimulus.

Oil prices rebound on Saudi supply reassurances

Oil prices rebounded from last week’s heavy losses on Monday after

reassurances over production from top oil exporter Saudi Arabia, the de-

facto leader of the Organization of the Petroleum Exporting Countries

(OPEC).

Emerging central banks keep cutting rates in May

Interest rate cuts by emerging market central banks outstripped rate hikes

for a fourth straight month in May, taking their cue from the dovish turn of

major central banks as fears over the health of the global economy and

trade tensions take their toll.

Global recession fears grow as factory activity shrinks Monday 3rd June, 2019 – Reuters

Factory activity contracted across Asia and Europe last month as an

escalating trade war between Washington and Beijing raised fears of a

global economic downturn and heaped pressure on policymakers to roll

out more stimulus.

Such growth indicators are likely to deteriorate further in coming months

as higher trade tariffs take their toll on global commerce and further dent

business and consumer sentiment, leading to job losses and delays in

investment decisions.

Some economists predict a world recession and a renewed race to the

bottom on interest rates if trade tensions fail to ease at a Group of 20

summit in Osaka, Japan at the end of June, when presidents Donald

Trump and Xi Jinping could meet.

The U.S.-China trade war, slumping automotive demand, Brexit and wider

geopolitical uncertainty took their toll on manufacturing activity in the

euro zone last month. It contracted for a fourth month in May - and at a

faster pace.

“The additional shock from the escalated trade tensions is not going to be

good for global trade. In terms of the monetary policy response, almost

everywhere the race is going to be to the downside,” said Aidan Yao,

senior emerging markets economist at AXA Investment Managers.

IHS Markit’s May final manufacturing Purchasing Managers’ Index for the

euro zone was 47.7, below April’s level and only just above a six-year low

in March.

In Britain, the Brexit stockpiling boom of early 2019 gave way last month to

the steepest downturn in British manufacturing in almost three years as

new orders dried up, boding ill for economic growth in the second

quarter.

After an official gauge on Friday showed contraction in China, Asia’s

economic heartbeat, the Caixin/IHS Markit Manufacturing PMI showed

modest expansion, offering investors some near-term relief.

The outlook, however, remained grim as output growth slipped, factory

prices stalled and businesses were the least optimistic on production since

the survey series began in April 2012.

Central banks in Australia and India are expected to cut rates this week,

with others around the world are seen following suit in coming weeks and

months.

While U.S. manufacturing is expected to grow steadily, economists expect

the global malaise to eventually feed back into the U.S. economy. Fed

funds rate futures are now almost fully pricing in a rate cut by September,

with about 50 percent chance of a move by end-July.

J.P. Morgan now expects the Federal Reserve to cut rates twice this year,

a major change from its previous forecast that rates would stay on hold

until the end of 2020.

Meanwhile, Monday’s survey adds to evidence that the euro zone

economy is under pressure and will likely be of concern to policymakers at

the European Central Bank, who have already raised the prospect of

further support.

There is little likelihood of them hiking interest rates before 2021, according

to economists in a Reuters poll last week. They said the bank’s next policy

move would be to tweak its forward guidance toward more

accommodation.

RECESSION FEARS

The trade conflict between China and the United States escalated last

month when Trump raised tariffs on some Chinese imports to 25% from 10%

and threatened levies on all Chinese goods.

If that were to happen, and China were to retaliate, “we could end up in

a (global) recession in three quarters”, said Chetan Ahya, global head of

economics at Morgan Stanley.

Washington’s new tariff threats against Mexico last week also contributed

to global recession fears, with stock markets tumbling around the world.

The 10-year U.S. Treasuries yield fell to 2.121%, a nadir last seen in

September 2017.

Tensions flared again between the United States and China at the

weekend over trade, technology and security.

China’s Defence Minister Wei Fenghe warned the United States not to

meddle in security disputes over Taiwan and the South China Sea, while

acting U.S. Defence Secretary Patrick Shanahan said Washington would

no longer “tiptoe” around Chinese behavior in Asia.

“We take this seriously. It means that the trade war has not only become a

technology war but also a broad-based business war. There will be more

retaliation actions from China, especially for the technology sector,” said

Iris Pang, Greater China economist at ING.

<< Back to news headlines >>

Oil prices rebound on Saudi supply reassurances Monday 3rd June, 2019 – Reuters

Oil prices rebounded from last week’s heavy losses on Monday after

reassurances over production from top oil exporter Saudi Arabia, the de-

facto leader of the Organization of the Petroleum Exporting Countries

(OPEC).

Saudi Arabia indicated that the group of oil producers, together with

Russia, would continue managing global crude supplies to avoid a surplus.

“We will do what is needed to sustain market stability beyond June. To

me, that means drawing down inventories from their currently elevated

levels,” Energy Minister Khalid al-Falih was quoted as saying by the Saudi-

owned Arab News newspaper.

Front-month Brent crude futures were at $62.40 at 1150 GMT, up 41 cents,

or 0.66%, above Friday’s close. Prices dropped by more than 3% on Friday,

with May recording the biggest monthly loss in six months.

U.S. West Texas Intermediate (WTI) crude futures were at $54.17 per barrel,

up 67 cents, or 1.25%.

“Saudi Arabia’s preference for continuing with, or even deepening, the

OPEC+ output cut commitment has also provided a lift to prices,” said

Abhishek Kumar, head of analytics at Interfax Energy in London.

“Nevertheless, the escalating trade war of the United States with China,

the European Union and Mexico will cap price gains in the run-up to the

OPEC+ meeting.”

The group’s next meeting is scheduled for late June.

Brent crude prices have dropped almost 20% from their 2018 peak as

global supplies tighten following output curbs by OPEC and Russia, as well

as a drop in Iranian exports, due to U.S. sanctions, and Venezuelan

production.

Saudi Arabia pumped 9.65 million barrels of oil per day (bpd) in May, a

deeper cut than its production target under the global pact to reduce oil

supply, a Saudi oil industry source said on Monday.

The Saudi output target under the OPEC-led pact is 10.3 million bpd.

Oil prices since 2000: tmsnrt.rs/2KsgZK2

U.S. oil drilling, production & storage levels: tmsnrt.rs/2DxgF8W

A planned June 4 strike by Norwegian workers could also lead to tighter

global supply and buttress prices, potentially cutting Norway’s oil and gas

output by about 440,000 barrels of oil equivalents per day if mediation

efforts fail.

Global markets have skidded in recent weeks on concerns the economy

could stall amid rising trade tensions between the United States and

China, the world’s two largest economies and biggest energy consumers.

“Traders are increasingly pricing in a prolonged trade war hitting the

global economy,” said Jasper Lawler, head of research at futures

brokerage London Capital Group.

<< Back to news headlines >>

Emerging central banks keep cutting rates in May Monday 3rd June, 2019 – Reuters

Interest rate cuts by emerging market central banks outstripped rate hikes

for a fourth straight month in May, taking their cue from the dovish turn of

major central banks as fears over the health of the global economy and

trade tensions take their toll.

Interest rate moves by central banks across a group of 37 developing

economies showed two net rate cuts last month after recording three net

rate cuts in the three months prior.

The fourth month of net rate cuts follows a tightening cycle that ended in

early 2019 during which interest rate hikes by emerging market central

banks outstripped or matched cuts for nine straight months to battle the

fallout from a strong dollar, rising inflation and softer currencies.

Below is a list of recent emerging market central bank monetary policy

changes:

SRI LANKA - The central bank cut its key interest rates by 50 basis points on

May 31, as widely expected, to support its faltering economy as overall

business and consumer confidence slumped following last month’s

deadly bomb attacks.

TAJIKISTAN - The central bank reduced the refinancing rate to 13.25% from

14.75% on May 31.

KYRGYZSTAN - Policy makers in the Central Asian nation cut the

benchmark rate to 4.25% from 4.50% on May 28, citing slowing inflation.

ANGOLA - Angola’s central bank cut its benchmark lending rate by 25

basis points to 15.5% on May 24.

COSTA RICA - The central bank cut the key policy rate to 4.75% from 5%

on May 23.

ZAMBIA - The central bank in Lusaka raised the benchmark lending rate to

10.25% from 9.75% on May 22 to counter inflationary pressure and support

macroeconomic stability.

PAKISTAN - Soaring inflation prompted Pakistan’s central bank to raise its

key interest rate to 12.25% on May 20 with policy makers flagging further

rises on the back of higher oil prices and reforms required for a bailout

from the International Monetary Fund.

JAMAICA - Jamaica's central bank cut its interest rate by 50 basis points to

0.75% on May 19 - the third cut since the start of the year.

THE PHILIPPINES - The central bank cut its benchmark interest rate on May

9 by 25 basis points to 4.50%, on expectations inflation will ease after the

economy grew at its slowest pace in four years in the first quarter.

MALAYSIA - The central bank on May 7 became the first in Southeast Asia

to cut its key interest rate this year, by 25 basis points to 3.0%, moving to

support its economy at a time of concern about global growth.

RWANDA - Rwanda’s central bank cut its key repo rate by 50 basis points

on May 6 to 5.0%.

MALAWI - Malawi’s central bank cut its benchmark lending rate by 100

basis points on May 3 to 3.5%.

CZECH REPUBLIC - The Czech National Bank raised interest rates on May 2,

using a window of opportunity created by easing economic risks abroad

to stem rising domestic inflation by fine-tuning a tightening cycle it had

paused at the end of 2018.

AZERBAIJAN - The central bank cut its refinancing rate by 25 basis points to

8.75% on April 26, citing an improved macroeconomic situation and

higher global oil prices.

UKRAINE - Ukraine’s central bank trimmed its main interest rate to 17.5% on

April 25, the first decrease in the past two years.

KAZAKHSTAN - Policymakers cut the policy rate by 25 basis points to 9.00%

on April 15 in an expected move taken after President Kassym-Jomart

Tokayev ordered them to make credit more affordable.

INDIA - The central bank cut the interest rate as expected by 25 basis

points on April 4, a move to lift the economy a week before voting began

in a marathon election that will decide whether Prime Minister Narendra

Modi gets a second term. Inflation remains subdued, though falling farm

incomes and record high unemployment have seen economic growth

slide to 6.6% in December - its slowest in five quarters.

NIGERIA - In a surprise move, the central bank cut its benchmark interest

rate to 13.5% from 14% on March 26 as part of an attempt to stimulate

growth in Africa’s biggest economy and signal a “new direction”.

PARAGUAY - Paraguay’s central bank cut its policy rate by 25 basis points

to 4.75% on March 22.

GEORGIA - The central bank cut its refinancing rate to 6.5% from 6.75% on

March 13, citing forecasts suggesting that annual inflation would stay

close to its 3% target this year.

TUNISIA - Policymakers in Tunisia raised the key interest rate to 7.75% from

6.75% on Feb. 19 to combat high inflation - the third such hike in the past

12 months.

EGYPT - Egypt’s central bank made a surprise cut to its overnight deposit

rate on Feb. 14, citing a strong drop in inflation and an improvement in

other macroeconomic indicators. The bank lowered its deposit rate to

15.75% from 16.75 and its lending rate to 16.75% from 17.75%, its first rate

cuts since March 2018.

<< Back to news headlines >>

Goldman Sachs arm to buy Capital Vision Services Monday 3rd June, 2019 – Reuters

Goldman Sachs Group Inc said on Monday that West Street Capital

Partners VII, a fund managed by the company’s merchant banking unit,

will acquire Capital Vision Services LP, to bolster their portfolio in the

healthcare services sector.

The fund will buy Capital Vision, which manages MyEyeDr. optometry

centers, from private equity firm Altas Partners LP and Canadian pension

fund Caisse de dépôt et placement du Québec, Goldman Sachs said.

Goldman did not reveal terms of the deal, which was earlier reported by

the Wall Street Journal. The paper said it was valued it at $2.7 billion,

including debt.

Capital Vision supports independent optometrists and practices affiliated

with the optometry practice management company MyEyeDr.

The deal is expected to close in the third quarter of 2019, Goldman Sachs

said.

<< Back to news headlines >>

Import tariffs on China not pushing up U.S. inflation Monday 3rd June, 2019 – Reuters

U.S. President Donald Trump said the tariffs that his administration has

imposed on Chinese imports were not pushing up U.S. inflation and were

prompting manufacturers in the Asian powerhouse to move elsewhere.

“Many firms are leaving China for other countries, including the U.S. in

order to avoid paying the tariffs,” Trump said on Twitter shortly after

beginning a state visit to Britain.

“No visible increase in costs or inflation, but U.S. is taking billions."

<< Back to news headlines >>

Stock futures drop as trade tensions spark recession fears, flight to safety Monday 3rd June, 2019 – Reuters

U.S. stock index futures fell on Monday, signaling Wall Street’s main indexes

would extend last month’s losses at the open, as the multi-front trade war

made investors increasingly risk averse and fueled worries of a recession.

May kicked off with a sharp escalation in U.S.-China trade tensions as the

two sides imposed tit-for-tat tariffs and the month ended with the United

States threatening to levy duties on all Mexican imports unless it curbs

illegal immigration, adding to global growth worries.

Wall Street’s three main indexes lost at least 6% last month, their first

negative monthly performance this year. The S&P 500 is now 7.3% off its

record high hit on May 1.

Investors’ flight to the security of government bonds and other safer bets

continued on Monday as the war of words between the world’s two

largest economies ramped up over the weekend.

This pushed yields on U.S. two-year notes toward their biggest two-day fall

since the start of the global financial crisis in 2008, reflecting growing

conviction that the Federal Reserve will start cutting interest rates to stave

off recession.

Yields on 10-year notes have been firmly below those on three-month

notes, an inversion that is now at its deepest since 2007. The inversion of

the yield curve is seen as a warning of recession.

Shares of Wall Street’s big lenders - JPMorgan Chase & Co, Bank of

America Corp and Morgan Stanley - were down between 0.3% and 1.3%.

Boeing Co, the largest U.S. exporter to China, dropped 0.8% in premarket

trade.

Factory activity contracted in most Asian countries and the euro zone last

month, the latest evidence of the fallout of the U.S.-China trade war.

In the United States, the ISM manufacturing activity survey, due at 10:00

a.m. ET, is likely to show the reading on the index rose to 53 in May from

52.8 a month earlier.

At 7:17 a.m. ET, Dow e-minis were down 78 points, or 0.31%. S&P 500 e-

minis were down 9 points, or 0.33% and Nasdaq 100 e-minis were down

39.5 points, or 0.55%.

Among stocks, FedEx Corp shares dropped 3.0% after Chinese media

reported that Beijing would investigate whether FedEx damaged the legal

rights and interests of its clients, after telecoms giant Huawei said parcels

intended for it were diverted.

Alphabet Inc dropped 3.1% after sources said the U.S. Justice Department

is preparing an investigation of the Google-parent to determine whether

the company broke antitrust laws in operating its sprawling online

businesses.

Shares of health insurer Centene Corp slipped 6.8% after bigger rival

Humana Inc said it would not make a proposal to combine with the

company.

Cypress Semiconductor Corp surged 25.1% after German chipmaker

Infineon Technologies agreed to buy the U.S. peer in a deal valued at 9

billion euros ($10.1 billion), including debt.

<< Back to news headlines >>

Infineon plunge, trade woes send European shares to 3-month lows Monday 3rd June, 2019 – Reuters

European shares took another leg down on Monday as China sent

another shot across Washington’s bows on trade, stirring fears of recession,

while German chipmaker Infineon’s deal to buy a U.S. peer dragged

down the technology index.

The pan-European STOXX 600 was down 0.7% by 0827 GMT, hitting its

lowest level since mid-February and adding to a more than 6% slide in

May as President Donald Trump’s trade war with China and others

hammered global stock markets.

Beijing added to existing tensions over the weekend by warning the

United States not to meddle in security disputes over Taiwan and the

South China Sea.

A survey showed manufacturing activity in the euro zone contracted for a

fourth month in May, and at a faster pace, as the trade war, slumping

automotive demand, Brexit and wider geopolitical uncertainty took their

toll.

“The concern is the inherent unpredictability these talks (between the

United States and China) can take,” said Ned Rumpeltin, European head

of FX strategy at TD Securities in London.

“People have to take into consideration the worst case scenario where

you have disruption to the global supply chains, significant drags on

growth as these tensions persist.”

The data from Europe followed a weak set of surveys in Asia, adding to

fears that the world economy could be sliding toward recession.

A main drag on Germany’s DAX was chipmaker Infineon which slid 6.1%

after agreeing to buy U.S. peer Cypress Semiconductors in a deal valuing

the company at 9 billion euros, including debt.

Infineon fell to the bottom of the STOXX 600 as some traders questioned

whether the company was overpaying.

The tech sector, also heavily exposed to the trade issue, was down 1.1%,

with other chipmakers STMicroelectronics and ASM International also

taking a hit.

“We wonder ... whether shareholders had expected such a large deal,”

Neil Campling, Head of TMT Research at Mirabaud, wrote in a note.

“We can see the industrial logic ... but there are bigger issues at play

which could kibosh the deal. The last time Infineon attempted to acquire

U.S. assets the deal was terminated citing security concerns raised by the

U.S. government back in 2017.”

Limiting losses on the DAX was a near 1% gain for Wirecard AG after its

chief executive tweeted over the weekend that the payments company

was seeing record sign-ups to its financial commerce platform.

Auto stocks added to Friday’s sharp falls on Trump’s threat of tariffs on all

Mexican imports, dropping more than 1% as global manufacturers

scrambled to put together contingency plans.

A big decliner on London’s FTSE was construction company Kier Group

which slumped 40% to its lowest level in nearly two decades after warning

2019 operating profit would be 25 million pounds lower than previously

expected.

<< Back to news headlines >>

Infineon digs deep to buy Cypress in $10 billion deal Monday 3rd June, 2019 – Reuters

Infineon has agreed to buy Cypress Semiconductors in a deal that values

the U.S. maker of microchips used in cars and electronic devices at 9

billion euros ($10.1 billion) including debt, sending shares in the German

company sharply lower on concerns over the cost.

The cash offer of $23.85 per share represents a 46% premium to Cypress’

share price over the last month, the Munich-based maker of power-

management chips said on Monday.

That equates to a multiple of 4.5 times sales at San Jose, California-based

Cypress. “It’s a proud price, no doubt,” said Infineon CEO Reinhard Ploss.

“From our point of view it was an acceptable price, and if you look at the

synergies, it represents an additional gain in value,” Ploss told reporters on

a conference call.

Chief Marketing Officer Helmut Gassel said discussions had been

triggered by interest expressed in Cypress by another unidentified party.

Infineon was invited to take part in the process around five weeks ago.

Infineon was among the few companies in a sector facing headwinds

that could finance a deal that in more prosperous times might have been

out of its reach, veteran CEO Ploss said.

Investors took a dimmer view, however, sending shares in Infineon almost

8% lower on fears that it was overpaying in a transaction that will be 30%

financed through equity, with the rest paid for in debt and cash. Cypress

shares jumped 27% to $22.74 in U.S. pre-market trading, below Infineon’s

offer.

“Our initial view is that the overall risk-reward profile of the deal is

unfavorable,” Citi analysts said in a note, highlighting execution and

regulatory risks, and promised long-term synergies that were hard to

substantiate.

One trader speculated that Infineon could itself become a takeover

target after the company twice lowered its revenue guidance this year as

demand in China slowed and trade frictions escalated between

Washington and Beijing.

Infineon shares traded at 14.82 euros in Frankfurt, representing a fall of

nearly 30% since they peaked in April, to value the business at 17 billion

euros.

The deal made sense on a technology basis, but represented “a cycle

peak price” at a time when the industry is at a cyclical trough and visibility

is low, said Mirabaud Securities analyst Neil Campling.

DEAL SURGE

The deal to create the world’s No.8 chipmaker ranks as one of the biggest

takeovers led by a European company this year and follows a slowdown

in activity in the first quarter.

A recent surge in major deals — which includes the proposed merger of

Fiat Chrysler and Renault as well as EQT’s acquisition of Nestle’s skin health

business - will boost investment banking fees which suffered from

companies’ recent caution.

In semiconductors, global deals activity slowed to $23 billion last year from

a peak of $107 billion in 2015, according to IC Insights, as the Trump

administration stepped up scrutiny of tech mergers relevant to U.S.

national security.

Infineon said it expected the deal, subject to regulatory approval, to close

by the end of this or in early 2020, creating a leader in the automotive

sector with a global market share of more than 13%.

Cypress said, for its part, that it would have to pay a $330 million break fee

if Infineon is outbid. Infineon should pay $425 million, in other situations, if

the deal falls apart.

Infineon played down concerns that the takeover might be blocked by

CFIUS, the U.S. panel that reviews whether deals might compromise

national security, saying that Cypress’s focus on automotive products

meant its products were not sensitive.

Infineon has curbed deliveries of U.S.-sourced products to Huawei in

response to Washington’s imposition of export controls on the Chinese

telecoms giant. It says that most of its business with Huawei remains

unaffected.

SYNERGIES, FINANCING

The deal represents a bet on the growth of the so-called Internet of Things

(IoT), the universe of connected devices ranging from robots to

refrigerators that is expected to expand rapidly in the years ahead.

Infineon expects the deal to add to earnings in the first full year after

closing.

It nudged up its long-term revenue forecast to 9% or more, lifted its main

margin target by 2 percentage points to 19% and said its investment-to-

sales ratio would decrease to 13 percent.

Expected economies of scale would deliver 180 million euros in annual

cost savings by 2022, while long-term revenue synergies would reach 1

billion euros by 2025 and 1.5 billion towards the end of next decade.

Infineon’s leverage ratio, measured as gross debt to earnings before

interest, taxation, depreciation and amortization (EBITDA) will exceed a

target of two times before returning to that level in late 2022.

Still, Infineon expects to keep its investment grade credit rating after the

deal, which Schneider said had been fully underwritten by banks Credit

Suisse, J.P. Morgan and Bank of America Merrill Lynch. Cypress was

advised by Morgan Stanley.

Law firms Kirkland & Ellis and Freshfields Bruckhaus Deringer advised

Infineon, while Cypress worked with Simpson Thacher & Bartlett.

<< Back to news headlines >>

Britain's May to press future trade ties with Trump during visit Monday 3rd June, 2019 – Reuters

Prime Minister Theresa May will discuss future economic ties with U.S.

President Donald Trump during his visit to Britain, her spokesman said on

Monday, adding that both have repeatedly expressed a shared desire for

a trade deal after Brexit.

Trump’s visit takes place as May is stepping aside to make way for a new

leader after she failed to deliver Britain’s departure from the European

Union on time, plunging the country’s politics into further uncertainty.

May’s spokesman told reporters she would have substantial bilateral

discussions with Trump during his visit. Both leaders will host a round table

with British and U.S. businesses early on Tuesday.

<< Back to news headlines >>

Sagicor in front Saturday 1st June, 2019 – Trinidad Express Newspaper

Overall stock market activity yesterday resulted from trading in 15

securities of which two advanced, five declined and eight traded firm.

Trading activity on the First Tier Market registered a volume of 109,090

shares crossing the floor of the Exchange valued at $1,874,562.54.

Sagicor Financial Corporation Ltd was the volume leader with 32,264

shares changing hands for a value of $298,559.50.

Trinidad Cement Ltd contributed 22,000 shares with a value of $56,100.

Trinidad and Tobago NGL Ltd registered the day's largest gain, increasing

$0.38 to end the day at $28.24.

Conversely, Unilever Caribbean Ltd registered the day's largest decline,

falling $0.20 to close at $25.55.

On the Mutual Fund Market 17,367 shares changed hands for a value of

$372,717.83. CLICO Investment Fund was the most active security, with a

volume of 13,367 shares valued at $311,517.83.

The SME Market did not witness any activity.

The USD Equity Market did not witness any activity.

<< Back to news headlines >>

Trinidad Petroleum secures US$850m deal Sunday 2nd June, 2019 – Trinidad Express Newspaper

Trinidad Petroleum Holdings Ltd (TPHL), the parent company of Heritage

Petroleum and successor of oil company Petrotrin, has secured US$850

million to cover the first of its two billiondollar bonds.

The first-a US$850 million bond-becomes due in August.

TPHL chairman Wilfred Espinet told the Sunday Express yesterday: 'The

board is extremely pleased with the performance of the operations of the

new entities that have been created to own and operate the State's oil

industry.

'Special recognition must be given to the outstanding performance of all

the participants in this endeavour as it is world class and demonstrates

what can be achieved with proper management.

'The financing now accessible will remove the uncertainty associated with

the bonds maturing in August 2019 and give us the chance to focus on

maximising value.' On Friday, TPHL announced it had received loan

commitments of up to US$720 million from a syndicate of financial

institutions led by Credit Suisse AG, Cayman Islands branch, as global co-

ordinator.

The loans are guaranteed by TPHL's three companies-Guaracara Refining

Company Ltd, Heritage Petroleum Company Ltd and Paria Fuel Trading

Company Ltd.

The loan, which will have multiple tranches, is for three years. The

company had already reorganised part of its debtUS$130 million-by

issuing new bonds. In an interview with Newsday last week, Espinet had

said: 'TPHL chose to approach existing bondholders to participate in the

settlement of existing bonds. The proposal is to exchange a portion of the

existing bonds for new ones.

'In spite of all the challenges, our assessment continues to be that we will

succeed in raising the finance, and the payment of the bonds due in

August will be made.'

An international report yesterday said: 'TPHL intends to use the net

proceeds from borrowings under the term loan, together with funds from

operations, to repay at maturity any 2019 notes that remain outstanding

after its previously announced offers to exchange any and all of its

outstanding notes for newly issued debt securities (the 'exchange offers'),

including the payment of any principal, premiums, accrued interest,

additional amounts, if any, and costs and expenses incurred in

connection therewith. For clarification, the first interest payment date of

the new notes (as defined in the offering memorandum) will be

September 15, 2019.'

In an interview with the Sunday Express in February when it was first

announced that TPHL was seeking funding for the bullet payment, Espinet

had explained: 'We have been on a programme, and have made it

public, the refinancing of the enterprise is the major undertaking that the

board and the company has to achieve. Without finance, you don't have

a company.

'We have done a number of things where we are redesigning the

company from what it used to be to what it should be. All of that could

only be sustained if we put the financing in place to sustain it. You would

be aware-overhang of a number of debt obligations which are coming

due and that have impacted on the company's ratings and how it's

viewed by financial organisations.

'Its attachment to the Government also has the potential to bring the

Government's reputation into the scheme of things. One of the first

courses of action-remove (the debt) from the Government's portfolio.'

The loan agreements are governed by the US Securities and Exchange

Commission.

<< Back to news headlines >>

T&T NGL gains $2.24 Monday 3rd June, 2019 – Trinidad Express Newspaper

The Activity on the First Tier Market increased marginally by 2.64 per cent

on a total of 1,353,501 shares crossing the floor compared to 1,318,666

shares in the previous week.

The value of the shares traded was down by 13.70 per cent to

$16,195,386.22 from the previous week's value of $18,765,480.06. JMMB

Group Ltd (JMMBGL) was the volume leader this week capturing 45.39 per

cent of the market activity or 614,339 shares traded, followed by Sagicor

Financial Ltd (SFC) with 27.75 per cent or 375,629 shares traded, which has

been in the top three for the entire month of May. In third place for the

third consecutive week was Guardian Holdings Ltd (GHL) with 8.52 per

cent or 115,291 shares traded.

The Indices ended the week in mixed territory. The Composite Index fell by

0.09 per cent or 1.26 points to close at 1,355.28. The All Trinidad and

Tobago Index decreased by 0.20 per cent or 3.52 points to end at

1,796.19. The Cross Listed Index close at 123.40, up 0.11 per cent or 0.14

points and the Small and Medium Enterprise Index ended at 99.50. This

week there were seven stocks advancing and nine stocks declining, while

three stocks were at their 52 week high and four stocks at their 52 week

low.

JMMBGL was the major decline

The major advance was Trinidad and Tobago NGL Ltd (NGL) up 8.62 per

cent or $2.24 to close the week at $28.24. For the second consecutive

week Prestige Holdings Ltd (PHL) was in second place with an increase of

2.63 per cent or $0.25 to close at $9.75, followed by National Enterprises

Ltd (NEL) up 1.49 per cent or $0.10 to close at $6.80.

JMMBGL was the major decline last week, down 7.51 per cent or $0.16 to

close at $1.97, followed by Grace Kenndey Ltd (GKC) with a decrease of

2.99 per cent or $0.10 to close at $3.25. In third place was Unilever

Caribbean Ltd (UCL) down by 2.85 per cent or $0.75 to close at $25.55.

There was no activity on the Second Tier Market this week.

On the TTD Mutual Fund Market 70,865 CLICO Investment Fund (CIF) units

traded with a value of $1,657,175.11. CIF's unit price closed at $23.30, a

decrease of 0.64 per cent or $0.15 from last week. Also, 7,520 units in

Calypso Macro Index Fund (CALYP) traded with a value of $115,056.00.

CALYP's unit price closed at $15.30, unchanged from last week.

On the Small and Medium Enterprise Market, CinemaONE Ltd (CINE 1)

closed the week at $9.95, unchanged from last week.

On the USD Equity Market, MPC Caribbean Clean Energy Ltd (MPCCEL)

closed at US$1 with no shares traded.

<< Back to news headlines >>

$230m allocated for water upgrade Saturday 1st June, 2019 – Trinidad and Tobago Newsday

Robert Le Hunte, Minister of Public Utilities centre, is flanked by Alan Poon-

King Ag CEO, Wasa left, and Kenneth Kerr, climatologist, TT Met Service.

Cabinet has approved some $225 million for the Ministry of Public Utilities

to to improve the water supply to citizens.

With an additional $5 million from the last PSIP, there is actually $230 million

for the programme.

This was divulged by Robert Le Hunte, Minister of Public Utilities, at the

ministry in St Clair yesterday.

He said: “The standard set by the RIC is for each person to get water three

to four times a week but about 35 per cent are below that standard.

"To fix this problem requires a multi-faceted approach. We have to deal

with some water-production issues, the fixing of leaks, storage issues, and

additional focus on conservation. If we do all of these things together we

will increase the amount of supply.”

Le Hunte said $30 will be spent on well rehabilitation, $70 million on drilling

new wells, $70 million for Tobago, $44 million in pipe replacement and $15

million for the Paramin/Maraval area.

“Over the past six months," he said, "in an attempt to increase

groundwater production, Wasa had done rehabilitation work on some 55

wells. And going forward we are going to rehabilitate a further 20 wells.

When we are finished that particular work, we expect that will cost $30

million, and it will increase the production of water by four million gallons

of water. These rehabilitated wells are in Las Lomas, Chatham, Granville,

Sangre Grande, Tucker Valley, Goodwood and Arima.

“We are also looking at drilling some new wells. There are some aquifers

that could hold more water and we are going on an extensive drilling

programme targeting about 22 new wells in Arima, Aripo, Moka, Piarco,

Matura, Sangre Grande, Las Lomas, Chatham, to name a few, increasing

water production by at least 7.2 million gallons of water a day, thus

increasing groundwater supply.”

Le Hunte said WASA was also starting an extensive drilling programme in

Tobago and within the next 18 months, and together with the dredging of

the Hillsborough dam, it will result in self-sufficiency on the island. By the

end of next year, he said all of Tobago should have water at least 24/4,

but very close to 24/7.

In the Paramin and Maraval area, he said, there is a need to increase

storage and pumps to get the water up those hills.

“We have put a special plan in place centred around pipes going to

Paramin, storage capacity, drilling of some more wells in the Moka area to

supply that Maraval/Paramin area to take them up to 24/4 by the end of

this period.”

In addition, there are pipes that need changing or fixing. Le Hunte said

some 23 km of pipe throughout TT inGuapo, Point Fortin, Arima, St

Augustine, San Fernando and Fyzabad will be attended to.

Earlier, Le Hunte saidthe 2019 dry period had been the harshest in the last

16 years and the third harshest in the last 74 years. Not much rainfall is

expected between June and August, so coming out of that dry period,

“We are starting from a position where our rivers are low and our dams are

not at the level where we would like them to be. In the case of Hollis, we

are 40 per cent below the long-term average; Caroni: 32 per cent; Navet:

52 per cent; Tobago: 24 per cent.

"The bottom line is, we are entering the wet season where the dams are

not up to capacity. So we will not be going out there and immediately

changing the schedules.”

He said perhaps by Augustm depending on the rainfall, the schedule can

be changed.

Alan Poon-King acting CEO of WASA, called for the continued

conservation of water.Kenneth Kerr, climatologist at the Meteorological

Service, is urging people to use the Met Office forecast for ample

preparation for the rainy season..

<< Back to news headlines >>

VI records strongest Inc. numbers in 3 years - BVI Finance Saturday 1st June, 2019 – Virgin Island Online News

BVI Finance is reporting that the size and scale of deals facilitated by the

British Virgin Islands’ international business and the financial centre has

increased both in value and quality as the BVI reports its strongest

incorporation numbers in three years. Photo: Internet Source

According to Elise Donovan, Chief Executive Officer (CEO) of BVI Finance,

“We are delighted to see that 2018 was a strong year for incorporations as

more businesses and individuals chose to take advantage of the strategic

and administrative benefits that our global financial centre offers. The

noted increase in the quality business happening on-island is a reflection

of the type of businesses and professionals making the BVI stronger."

Finance is reporting that the size and scale of deals facilitated by the

British Virgin Islands’ international business and the financial centre has

increased both in value and quality as the BVI reports its strongest

incorporation numbers in three years.

“The strength of this BVI sector is exemplified by recent activity, such as

the counsel provided by BVI-based law firm Ogier on a US$350 million

biopharmaceutical merger,” the institution noted in a press release on

Friday, May 31, 2019.

BVI a Market Leader - Elise Donovan

According to Elise Donovan, Chief Executive Officer (CEO) of BVI Finance,

“We are delighted to see that 2018 was a strong year for incorporations as

more businesses and individuals chose to take advantage of the strategic

and administrative benefits that our global financial centre offers. The

noted increase in the quality business happening on-island is a reflection

of the type of businesses and professionals making the BVI stronger."

Further, she said, “The BVI continues to be a leader for M&A, public listings

and innovative areas like initial coin offerings. More than 400,000

organisations recognise that our strong legal system, business-friendly laws

and world-class corporate services sector means we are an indispensable

hub for global trade.”

Earlier this year Harneys, the BVI-based firm, represented an IT services

provider on a US$2 billion merger acquisition. This transaction set a new

BVI record for the largest ever takeover of a publicly-listed BVI company

by transaction value.

The quality of business on-island is also increasing as new technologies

come to the fore, “Appleby, another BVI-based law firm, recently acted

as advisers on a private token sale, raising approximately US$1 billion in just

10 days,” they noted.

Increase in On-Island Business

“This increase in quality on-island business is reflected in the latest quarterly

figures from the BVI Financial Services Commission (FSC). It found that

nearly 1,000 Limited Partnerships (940) were registered on-island in 2018,

following the new Limited Partnership Act enacted in December 2017 to

meet modern businesses’ commercial requirements and to reflect the

flexibility and simplicity of BVI’s popular incorporation rules,” BVI Finance

also notes.

According to the Q4 2018 FSC quarterly statistical bulletin, company

incorporations grew 4.4% year-on-year (8,916 vs. 8,538 in Q4 2017), while

quarterly figures fell by 6.9% after a particularly strong Q3 2019 (8,916 vs.

9,575).

The company implored that the strong year for registrations comes as the

BVI enjoyed its strongest year for overall new incorporations in three years.

The BVI recorded a total of 37,415 incorporations in 2018, up 15% on 2017’s

incorporations (32,493) and up 18% on 2016 (31,769).

<< Back to news headlines >>

Antigua-Barbuda government signs ten-year cruise line agreement Friday 31st May, 2019 – Caribbean News Now

Minister for tourism, investment and economic development, Henry

Charles Fernandez has signed a ten-year agreement with president and

chief executive officer (CEO) of Royal Caribbean International, Michael

Bayley, which will see increased cruise passengers visiting Antigua and

Barbuda’s ports and the development of the facilities.

Fernandez, in making the announcement recently said that

simultaneously, Royal Caribbean Cruises Limited and Global Ports Holding

Plc signed an agreement establishing a partnership between the two

entities.

The agreement includes:

A strategy to double passenger volumes, increasing to 500,000 annually

within five years. The increase will commence annually upon completion

of the fifth berth;

Throughout the summer months, a strategy to schedule at least 30,000

(thirty thousand) passengers, in addition to the regular winter months

schedule upon completion of the fifth berth;

Executives will travel to Antigua, to explore several locations, to potentially

establish, invest and develop experiences to enhance the destination

offerings;

Upon completion of the fifth berth, Royal Caribbean will schedule its oasis

class vessels to call regularly into Antigua. The Oasis class ships carry

approximately 6,000 passengers and 2,100 crew members, making the

oasis Class Ships the largest in the world;

An increase in head tax starting in October 2019 and Royal Caribbean will

partner with the Antigua government to develop job opportunities for

Antiguans and Barbudans on their vessels;

In welcoming the signing of the agreement, Bayley outlined, “We are

pleased to have concluded this agreement that will bring millions of

guests to Antigua over the next ten years. We look forward to having

more of our guests enjoy the beauty of Antigua and Barbuda for many

years to come and we are also looking forward to working with our

partner, Global Ports Holdings in completing the Antiguan project.”

“I am delighted that having concluded meetings and productive

dialogue over the past month with all the major cruise lines, Antigua and

Barbuda stands at the forefront to becoming the number one destination

in the Caribbean, upon completion of our cruise port facility,” stated

Fernandez.

Fernandez outlined that the cruise industry remains an integral part of the

country’s tourism product and with the current positive outlook, it will

provide much-needed opportunities and jobs for the people of our twin-

island nation.

“Prime Minister Gaston Browne and my Cabinet colleagues must be

commended for their constant support and assistance in getting us to this

stage. The teams from the ministry of tourism, the Antigua Port Authority

and the ministry of legal affairs and ambassador Gilbert Boustany all

worked tirelessly in the interest of getting the best deal for Antigua and

Barbuda,” Fernandez said.

He also expressed commendations to the top executives of the cruise

lines for their commitment to Antigua and Barbuda over the past years

and look forward to a fruitful relationship in the coming years, while

improving the tourism product to becoming the leading destination within

the Caribbean. He also had special words of gratitude for the executives

of Global Ports Holdings for their valuable contribution and commitment

to assisting Antigua and Barbuda in creating one of the finest cruise port

facility in the Caribbean.

Commenting on the successful negotiations, Browne who is on an official

visit to Suriname said that he is pleased that the government has secured

an agreement that is a win-win for all parties.

“This agreement affirms the wisdom of adding an oasis class pier to our

facilities in St John’s. The cruise industry is vital for all Antiguans and

Barbuda who will continue to offer the warmest welcome to our visitors.

The future of Antigua and Barbuda and the cruise industry is very bright

indeed,” Browne stated.

The government has invested over US$110 million in the cruise facilities in St

John’s and the further investment by Global Port Holdings Limited and

Royal Caribbean Cruise Limited will bring the total investment to

approximated EC $500 million (US $200 million).

<< Back to news headlines >>

Dominica’s effort to rebuild its tourism after Hurricane Maria recognized Friday 31st May, 2019 – Dominica News Online

Director of Tourism and CEO of Discover Dominica Authority, Collin Piper

has said that Dominica’s collective effort in rebuilding its tourism product

after Hurricane Maria has been recognized by the regional and

international media.

Speaking at the Ministry of Tourism and Culture and Discover Dominica

Authority’s Tourism Awareness Month Award Ceremony at Fort Young

Hotel on Wednesday, Piper revealed that accolades were received from

the UK Telegraph, National Geography, Caribbean Journal and

Mattador.com.

“These accolades are a testament to the collective efforts of all tourism

stakeholders who worked tirelessly to get the sights and attractions open,”

Piper said.

He said because of this collective effort, Dominica was able to host a

cruise ship 100 days after the passage of Hurricane Maria.

Piper said the Tourism Awareness Month awards “are an integral part of

activities for Tourism Awareness Month where we recognize stakeholders

who have made a significant contribution to the promotion of Dominica

and increasing visitor arrivals.”

Robert Tongue

Minister for Tourism and Urban Renewal, Robert Tonge, remarked that

“Tourism plays an essential role in economic development through the

provision of employment, generation of tax revenues and foreign

exchange and it is critical that we all understand the role that we each

play in developing and supporting Tourism in Dominica.”He said that

during this year’s Tourism Awareness Month, the focus was on public

education at various schools.

“We have continued the focus on public education, at our educational

institutions, to ensure that our children and youth have a greater

appreciation of the role of the tourism sector,” Tonge said. “The education

material showcased the impact that harmful practices has on the

environment and how it affects the tourism industry.”

This year the award categories included School Beautification

Competitions with the Morning Star PreSchool claiming first place;

Community Tourism Enhancement Competitions won by Zone B which

comprised of Marigot and Woodfordhill and Musicians Awards presented

to Ophelia Marie, Chubby and the Midnight Groovers, Gordon Henderson

& Exile One, and the Swinging Stars Band.

Social Media Awards were presented to Dorival James of Shyguys

Dominica Tours, Shepherd Fregiste of Sheppee Fun Tours, Lennox Cadette

of Shawaly Tours and Andrew O’brian of Cobra Tours.

Broadcast media awards were also presented to DBS Radio, Q95Fm, Kairi

Fm and Vibes Radio and the Tourism Service Providers Awards were

presented to The Tamarind Tree Hotel, Maureen Horrick and the Fort

Young Hotel.

A Special Award was given to outgoing Permanent Secretary Careen

Prevost and other participants received participatory awards.

<< Back to news headlines >>

VM links improved performance to Jamaica's economic performance Sunday 2nd June, 2019 – Jamaica Observer

Victoria Mutual (VM) Group on Friday reported a significant improvement

in its performance in 2018 with an after-tax surplus of $1.2 billion.

Speaking at the society's 140th Annual General Meeting held at the

Jamaica Pegasus Hotel, Chairman Michael McMorris said this represents

an increase of almost $200 million when compared to the prior year of

$1.033 billion. He added that the Group's assets increased by eight per

cent or $9.943 billion.

“The Victoria Mutual Group had an eventful and successful 2018,” he said.

“The year of our 140th anniversary featured many big moments and

demonstrated that the new VM is more committed, focused and

determined more than ever to fulfil our mission of helping our members

own their own homes and achieve financial independence”.

McMorris indicated that the cause for VM's performance is Jamaica's

economic growth.

“Throughout 2018, Jamaica solidified gains it had made in previous years

and accelerated its programme of economic stimulus,'' he said.

“Businesses maintained a positive outlook, with more businesses planning

to increase investment.”

Over the course of 2018, VM created a formal digital transformation

strategy to increase member value, improve efficiency, grow revenue

and assets and maintain adequate capital. This included upgrading

architecture to improve the performance of servers to reduce downtime

and installing intelligent automated banking machines in almost all the

branches to facilitate a new online banking platform.

Members of the public who do not already have a pension plan are now

allowed to invest up to 20 per cent of their income tax-free with the VM

Pension Management new Approved Retirement Scheme. VM also

introduced the VM Drive Auto Loan, unsecured loan product, and

specialised lending in the UK.

“Members' financial inclusion is key to achieving sustainable and

equitable economic growth in Jamaica,” said Courtney Campbell,

president and CEO of the Victoria Mutual Group.

He added that in an effort to empower members with knowledge to

make financial decisions, VM held nine mortgage expos and pensions

seminars, introduced the Victoria Mutual Wealth Management 'Wealth

Talk' series and hosted a post-budget forum.

Launched last year, the VM Foundation in partnership with the British

Council will introduce a new programme that will expose students

between the ages of 12-14 in 14 schools to social enterprise skills.

Campbell said this will equip them with the financial skills and knowledge

to own and manage businesses and compete in the local market.

<< Back to news headlines >>

Construction starts on phase 2 of NHT's $1.6 billion Hummingbird housing

project Sunday 2nd June, 2019 – Jamaica Gleaner

Prime Minister Andrew Holness broke ground for the construction of 406

housing solutions in phase two of the National Housing Trust’s (NHT) $1.66

billion Hummingbird Meadows development in Birds Hill, Clarendon on

Friday.

The project will comprise of 100 one-bedroom and 236 two-bedroom

houses, and 70 serviced lots.

The solutions will be developed on 289 acres of land at the Birds Hill

Plantation, which is located approximately 10.43 kilometres northwest of

May Pen.

Speaking at the ground-breaking ceremony, Holness said the

development forms part of NHT’s goal to provide 23,000 housing solutions

by 2021, in a bid to reduce Jamaica’s housing deficit.

He added that the development will assist in reducing squatting, and

providing houses for new entrants in the housing market, particularly

young professionals, and other persons seeking to own a home.

Against this background, the prime minister said he was elated that 406

families will benefit from the latest development at Hummingbird

Meadows.

“There will be 406 new households that have prosperity within their grasps.

I am elated that, once again, the NHT is delivering on our promise to build

houses,” he said.

Infrastructure work has already been completed for phase one of

Hummingbird Meadows, which will comprise 130 one-bedroom and 10

two-bedroom houses, and 10 serviced lots.

<< Back to news headlines >>

First Rock locks in new real estate deals Sunday 2nd June, 2019 – Jamaica Gleaner

First Rock Capital Holdings Limited has approved US$30 million worth of

real estate deals, but is still in the process of wrapping up some of the

negotiations.

The investments, approved up to the start of May, comes two months

behind a fundraising drive in which the year-old start-up raised $2.5 billion

in capital from private investors.

More than a third of the deals approved by First Rock relates to

investments in Jamaica, according to the breakdown provided by First

Rock’s head of real estate business, Pierre Shirley.

First is investing more than US$8 million in Jamaican operations; US$19

million in the wider Caribbean; and US$3 million in North America,

specifically Florida.

Nearly two-thirds of the funds, US$19 million, will back residential

developments, and the other US$11 million will fund commercial real

estate projects.

First Rock hung its shingle in 2018 as an investor in income-producing real

estate, and other companies.

Earlier this year, Pierre and partner Ryan Reid said 80 per cent of the new

funds raised by First Rock would be poured into real estate, while the other

20 per cent will be used for equity investments.

As to the deals identified up to the start of May, Shirley said that US$24

million was going into income-producing projects.

He added that the structure of the deals varied, but generally amounted

to US$18 million in equity and US$12 million as debt.

“Of the total deal book, we are still in negotiations on 30 per cent,” Pierre

added.

The $2.5 billion of equity raised by First Rock in March, which translated to

around US$19.8 million, was arranged by Sygnus Capital.

<< Back to news headlines >>

Portland buys stake in Chukka Sunday 2nd June, 2019 – Jamaica Gleaner

Portland Private Equity has increased its holdings in Chukka Caribbean

Adventures Limited, this time through a direct injection of equity under

Portland Caribbean Fund II into the tour company founded by the Melville

family.

Chukka, which offers adventure tours in its home market of Jamaica and

the region, will use the US$5 million injected by Portland for expansion. The

company currently operates nine locations in Jamaica, as well as tours in

Turks & Caicos and Belize.

The new equity funding from Portland follows its additional investment last

year June in Diverze Assets Inc – the DAI Group – which is the holding

company for businesses owned by the Melvilles.

The year before that, in June 2017, Diverze received US$8 million of

financing from Portland, under a deal that was structured for Portland to

make additional investments in the company down the line.

Diverze holds a 40 per cent stake in Chukka Caribbean Adventure

Limited; 100 per cent of Tropical Batteries Company Limited; and 100 per

cent of Diverze Properties Limited.

Another Jamaican company, the Facey family-controlled PanJam

Investment Limited, also owns 20 per cent of Chukka.

Vice-president of Investments at Portland Private Equity, Ricardo

Hutchinson, told the Financial Gleaner on Thursday that PCF II bought

common shares in Chukka, investing cash which will be used to support

the acquisition of local and regional targets as the tour company

diversifies its operations.

He declined to comment on the size of the stake acquired.

Portland Caribbean Fund II, or PCF II, raised US$200 million in 2016 for

investments across the region. The fund is now invested in eight

companies, Hutchinson said.

Portland Private Equity says PCF II is targeting an “overlooked and

underserved regional market of high quality, growth businesses”.

PPE Managing Partner Rob Almeida adds that Portland sees a lot more

promise in Chukka as a regional operation.

“Since our original investment in the DAI Group we have had a chance to

deepen our understanding of the businesses and believe that Chukka is

strategically poised to grow its leadership position in the regional tourist

attraction landscape,” he said.

The companies did not specify the acquisition targets being considered

by Chukka.

Chukka Caribbean CEO Marc Melville said in a joint release with Portland

that they were strengthening the company’s capital base to go after

opportunities and diversity its products to meet the needs of its cruise ship

and hotel partners.

The adventure company had its beginnings in 1983 when founder Danny

Melville opened a polo and equestrian centre and added Horseback

Ride ‘N’ Swim as one of the first adventure tours in Mammee Bay, St Ann.

He named the company Chukka, which describes a period of play in a

polo match.

According to Chukka’s website, it now operates over 60 tours in Jamaica,

Belize, and Turks & Caicos. Most of the tours are offered in Jamaica. The

adventure tour company employs 700 people, including nearly 500 in

Jamaica, the website says.

Tours include zip lines, catamaran cruises, climbing waterfalls, snorkelling,

horseback rides, tubing, cave and historic tours and beach adventures.

One of its newest offerings is in Montpelier, St James, which includes a zip

line canopy tour of rainforests, jeep safaris, nature walks, exploration of a

150-year-old dam, and river tubing through rainforest.

Hutchinson says PPE is considering listing on the Jamaica Stock Exchange

as a way of exiting its investments in DAI Group and Chukka Caribbean,

down the line.

“This is being contemplated, but we currently don’t have a timeline as we

would like to see the growth strategy executed before looking at an exit,”

he said.

<< Back to news headlines >>

$3 billion boost Monday 3rd June, 2019 – Nation News

A BEAUTIFUL Bridgetown is coming.

Prime Minister Mia Amor Mottley last night rolled out the initial plans for a

new-look City, saying revitalising the capital would be the first and most

important thing on her agenda now that the economy had been

stabilised.

In addition, she revealed Government would soon be seeking over 300

acres of land specifically to provide 3 000 housing solutions, mostly for

Barbadians earning less than $4 000 monthly and working in the public

service.

Mottley said that within the next seven years, a total of $3 billion would be

pumped into a special Carlisle Bay project with hotels to be constructed

between Batts Rock, St Michael and the Savannah Hotel in Hastings, Christ

Church.

<< Back to news headlines >>

Increase in Petroleum prices effective midnight Sunday 2nd June, 2019 – Nation News

Barbadians will be paying more for petroleum products effective midnight

Sunday, June 2.

The retail price of gasoline will increase from $3.88 per litre to $3.93 per

litre, while diesel will rise from $3.08 per litre to $3.14 per litre. Kerosene will

also increase from $1.41 per litre to $1.43 per litre. This represents increases

of five cents per litre for gasoline, while kerosene and diesel increase by

two cents and six cents, respectively.

Similarly, the prices of liquefied petroleum gas have increased. The 100lb

cylinder will retail for $158.71, up from $149.60. The 25lb cylinder will now

be sold at $44.78, up from $42.50, while the 22lb cylinder will cost $39.57,

an increase of $2.01. Additionally, the 20lb cylinder will retail at $35.97, up

from $34.15.

These price adjustments are in keeping with government’s policy of

allowing retail prices to be reflective of those on the international market.

<< Back to news headlines >>

BWA: Pay Up Saturday 1st June, 2019 – Nation News

The Barbados Water Authority (BWA), which is trying to collect $60 million

in debts, has launched a crackdown on businesses that owe thousands of

dollars.

They either have to pay up or face disconnection.

The programme targeted 20 entities last week, including six hotels, three

spas associated with a hotel, three farms, and a construction company

which collectively owed nearly $3 million.

One of the hotels was about $800 000 in arrears, another over $400 000,

while a manufacturing company owed close to $500 000.

<< Back to news headlines >>

Govt reinstates full benefits Saturday 1st June, 2019 – Barbados Today

After weeks of protests on call-in programmes and on social media,

persons who recently found their invalidity benefits suddenly cut, can

breathe a little easier. Government is to revisit the policy which left

hundreds with one of their income streams dried up.

Today, Minister of Labour and Social Partnership Relations confirmed that

the administration will not jeopardize the condition of Barbadians living on

a combined income of invalidity benefits and pension by removing the

former from their monthly income, Social Security Minister, Colin Jordan

has assured.

He cleared the air on the popular call-in programme Down to Brass Tacks

after public outcry which this week included a protest outside Parliament

by a woman who said she was forced to live on just under $50 because of

the change.

During the discussion, Jordan said the change went against current social

security regulations and government’s overall philosophy. He then

promised the issue would be reversed in the coming days.

“The invalidity benefit was cut and only a cost of living allowance was

paid. That change of approach to how payments are made to people is

not one that this Government supports and so we’ve made a decision

that what happened before will continue to happen. The cut will be

reversed,” he said.

On Tuesday, 55-year-old Janice Harris, a former maid at the Queen

Elizabeth Hospital (QEH) demanded urgent answers from lawmakers after

receiving just $47.51 in Government pension for the month of April.

The single mother argued that the previous month she was getting $628

from the Treasury as part of her Government pension and an invalidity

benefit of over $800, but was left virtually empty-handed without warning.

“We as a government have to do what is necessary to protect people,

because to move a person from in some cases, $1100 down to $600 a

month is not tenable for us,” said Jordan.

“As a party in office expected by the people of the country to look out for

them, that is something that you cannot just force on people and so we

decided to reverse it.

“I am saying in a few days, because I am not entirely versed on all the

processes that need to go into making that a reality,” added the Minister,

while revealing the NIS had already started reversing the issue in its system.

On Wednesday, Harris reportedly met with Minister of Blue Economy, Kirk

Humphrey but said she thought Prime Minister needed to address the

issue.

“I am going to be real with you, Mia has to touch this. However, it turns

out, Mia Mottley has to address it and deal with it. This is month end; all

the treasury is telling us is that the National Insurance Scheme cannot

change the rule. The only body that could change it in this country for all

of the people that are in this position is the Prime Minister Mia Mottley. The

Prime Minister needs to take it back to Parliament. What the Prime Minister

Mia Mottley needs to do is to address this issue and come and speak to

the people of Barbados who are medically unfit, cannot get their bills

paid and cannot get food to eat because this is a serious crisis in

Barbados,” she said.

Harris complained that if the situation is allowed to persist, she could be

forced to live on the street.

<< Back to news headlines >>

Below par Saturday 1st June, 2019 – Barbados Today

Barbados still has some ways to go before it can be regarded as one of

the tougher anti-money laundering jurisdictions, a high-ranking official of

the Central Bank of Barbados has revealed.

The Central Bank’s Deputy Director of the Bank Supervision Department

Jennifer Clarke-Murrell said that in its last mutual evaluation process,

Barbados scored more than 50 per cent in the area of technical

compliance, but there were still key areas where the country came up

short.

Clarke-Murrell revealed that in the assessment released in 2018, which

compared the country’s anti-money laundering protocols against the 40

recommendations of the Financial Action Task Force (FATF), Barbados got

low marks for effectiveness.

She said: “That process involved several questionnaires looking at the

effectiveness with respect to technical compliance as well as the

effectiveness on how we rolled out our programme with respect to AML

CFT (Anti-Money Laundering and Countering Financing of Terrorism).”

Clarke-Murrell, who was speaking at ACAMS Anti-Financial Crime

symposium at the Lloyd Erskine Sandiford Centre this morning further

explained: “In December 2017 we also had an on-site visit by the assessors

and then the issuance of the report came in February 2018.

“Barbados would have scored low effectiveness and moderate

effectiveness in all 11 of the effectiveness ratings of the standard.

“With respect to technical compliance, we would have gotten 25 largely

compliant and 15 partially compliant or not compliant at all.”

But while it was important to correct all deficiencies, Clarke-Murrell said

she was especially concerned about the criteria relating to the risk

relating to the jurisdiction and having policies in place to mitigate such

risk.

“We were partially compliant as it relates to confiscation and dealing with

high-risk jurisdictions. We also were partially compliant with reporting

suspicious activity and these are all at the national level.

“Because of Barbados’ overall rating, we ended up in enhanced follow-

up process of the Caribbean Financial Action Task Force. One of the key

findings to me is the one relating to us understanding the risk to our

jurisdiction.

“It was felt that on a national level Barbados did not have a collaborative

approach as it relates to understanding its risks and vulnerabilities.

“Also, there was recognition of the fact that we did the self-assessment

but at the national level, we did not have an over-arching view of trends

and vulnerabilities.

“There was also concern about the levels of on-sight inspection at the

national level, not just at the Central Bank or the FSC (Financial Services

Commission), but also in sectors such as gaming that could have an

impact.”

Clarke-Murrell explained that the assessors were of the view that gaming

arcades here, which are made up mainly of slot machines and do not

meet the level of casinos, still needed to be better supervised. The report

also expressed concern about the deterrent factor, noting that penalties

for deficient entities may not be strong enough.

<< Back to news headlines >>

Trust Loan Fund a success, says Commerce Minister Sunday 2nd June, 2019 – Barbados Today

Government has provided 1,843 loans valued at $8.5 million under its Trust

Loan Programme, Minister of Small Business, Entrepreneurship and

Commerce Dwight Sutherland disclosed this evening.

Expressing his satisfaction with the initiative, which was announced by

Prime Minister Mia Mottley in the June 11, 2018 Mini Budget, Sutherland

also reported that applicants have already started to repay their loans.

“114 successful applicants have begun to repay their loans and indeed

we can account for 170, 000 thus far in receipts as a result of persons who

have begun to repay their loans,” said Sutherland as he reported on his

ministry’s achievements before Barbados Labour Party supporters

attending a rally marking the party’s first year in office.

Sutherland noted that half of the loans were distributed to females and a

wide cross-section of businesses from a range of sectors including

manufacturing, tourism, retail and distribution, metal work, auto body

repair, beauty, word work, sign making, print shops, construction, and

child care have benefitted.

“My mission is to give back life to business and to create intergenerational

wealth,” he told the crowd at Carlisle Car Park.

Sutherland also reported that his ministry was able to launch three new

co-operatives, including the Barbados Taxi Cooperative and the

Cooperative Investment Fund that provides loans to members.

<< Back to news headlines >>

‘Farmers discount’ on GSC coming, says Abrahams Thursday 30th May, 2019 – Barbados Today

Farmers paying the Garbage and Sewage Contribution (GSC) levy, which

is set at 50 per cent of their water bill, are to receive a discount, said

Minister of Water Resources Wilfred Abrahams.

Government is in the process of putting a cap on the levy, said Abrahams,

who did not reveal the extent of the cap but stressed that Government

was determined to apply the tax more equitably.

He said: “The Barbados Water Authority is working hard with the Minister of

Agriculture and for the farmers we accept that some people may be

disadvantaged because of the increased rates.

“Some of these people cannot manage to recover their input cost and

this would largely include farmers.

But the Minister noted that Government was not in a position to grant any

further reduction on new commercial use rates.

Abrahams said: “So, we are looking at a cap on the GSC. We may not

necessarily be able to make an adjustment on the water rate for them,

but we are looking at finding a cap for the GSC that would be a bit more

equitable to those who have to use a certain amount of water.”

Commercial entities, including farms using water from the BWA supply, are

expected to pay $4.66 per cubic metre up to 40 cubic metres. The rate

moves to $7.78 for every cubic metre above 40 cubic metres of water, up

12,000 cubic metre, after which the rate reverts to $4.66 per cubic metre.

But even as he promised relief, Abrahams suggested that Government

was seeking to make farms that go off the BWA grid pay for water they

privately draw from underground wells for irrigation.

He said: “There is private abstraction from the systems that we are all

supplied from and these persons are not paying a cent for it.

“There are a lot of farmers that benefit from that water and we are

looking at ways to regulate that because every drop of water has to be

accounted for and in a way that provides equity to as many people.”

Last August, the head of the Barbados Agricultural Society James Paul

revealed commercial farmers fear that the tax would make it virtually

impossible for them to compete against international producers.

“In terms of livestock farmers and those who use a lot of water for

processing at their farms, the impact is going to be severe for them,” Paul,

the BAS general manager and former Government backbencher in the

Freundel Stuart administration, said.

“Any farmer who is registered commercially is worried because it carries

up the price of the product and they have to compete with international

producers,” he said last year.

Paul further contended that farmers were being taxed for waste disposal

services that they do not use as they were levied the Garbage and

Sewage Contribution at 50 per cent of their total water bill.

<< Back to news headlines >>

BRA taking filing constraints into consideration Thursday 30th May, 2019 – Barbados Today

The Barbados Revenue Authority says it will be implementing measures so

employees will not be negatively impacted by their inability to file by May

31.

In a statement today, Manager of Communications and PR at the

Authority Carolyn Williams-Gayles said both employees and employers

have been experiencing challenges.

“Over the last few days leading up to the deadline, we have seen a

steady stream of persons coming to our offices for assistance and

reporting that their information is not in the system. Some of the major

challenges for this year have been the tardy submission of TINs to

employers and third-party providers as well as the late upload of

employee information,” she explained.

“During this week we also saw persons still coming to register and submit

TINs to employers. As these numbers are submitted, the providers have to

replace the information, which was previously uploaded into TAMIS with

an updated file. This all contributes to delays in persons seeing their

information.”

Williams-Gayle also issued a reminder that all individuals earning income

over $25,000, pensioners in receipt of a pension over $40,000 and all self-

employed persons, including those who have made under $25,000 are

required to file personal income tax.

She noted that members of the public coming to the Authority for

assistance should walk with their identification card, TAMIS username and

password as well as their banking information and where applicable, a

valid TAMIS number for their spouse to help the process go much faster.

<< Back to news headlines >>

High-level Ghanaian delegation in Guyana to explore investments Friday 31st May, 2019 – Caribbean News Now

The government of Guyana is forging stronger commercial ties with the

African continent. Progress is being made through a large Ghanaian

delegation headed by deputy energy minister Mohammed Amin Adam

and a 15-member delegation currently in Georgetown exploring

investment opportunities.

On Tuesday the director of the department of energy of Guyana, Dr Mark

Bynoe, met with the Ghanaian delegation to discuss areas of mutual

interest in the oil and gas sector. The delegation also called on Minister of

State, Dawn Hastings-Williams and minister of natural resources, Raphael

Trotman.

“I think anybody who says Guyana is not the hottest place to be and I am

not speaking about climatologically but in terms of what we have found

thus far in the oil and gas sector would not be lying. It’s a time in which

also, we are keen to ensure that as a department though young…we

seek as best we can to ensure that these resources are managed in an

efficient manner and an effective manner for all of Guyana,” Bynoe said.

Bynoe noted too that the department does not underestimate the

momentous task ahead and it continues to seek partnerships to ensure

that it obtains the best value for the nation.

“We do not pretend to have all the answers to all the challenges that are

before us but we are very much positioned and we are keen to learn from

others; the good, the not so good and even the indifferent experiences so

we do not have to trod the same path which others may have trod

before us,” he said.

Meanwhile, Dr Adam said he was pleased for the opportunity to discuss

issues relative to cooperation with the department.

“We are bound by so many factors [that] unites us because as you know,

the …formation in your offshore bases is analogous to what we have in

Ghana. So, it’s not surprising that Exxon, which is here, has also entered

Ghana and so we are united by so many factors and …will be able to

leverage that for the benefit of the people of our two countries,” Dr Adam

said.

The delegation’s meeting with the ministers of state and natural resources,

discussed areas of collaboration, particularly in mining, oil and gas,

capacity building and training in the oil and gas sector, forestry and

timber production, according to the press statement.

Minister Hastings-Williams said that the two countries share similar

characteristics and sectors and can, therefore, look to each other for best

practices, expertise and guidance where the need exists.

The minister of state also noted that the government of Guyana is serious

about youth empowerment and would, therefore, welcome insight on

initiatives that are geared at youth mainly through science and

technology.

Dr Adam echoed similar sentiments, noting that Guyana and Ghana

have shared strong ties since 1957 and he is looking forward to taking

same to a higher level of collaboration.

“We would be happy to take it to a different level of diplomacy. We have

so many things that unite us… we are here to share our experiences and

also learn from you,” he said.

Technical advisor at Ghana’s ministry of energy, Edwin Provencal director

of programmes at the office of the president (Ghana), Nana Ama Ntim;

chief executive officer of Ghana National Petroleum Corporation, Dr KK

Sarpong, manager of sustainability Ghana National Petroleum

Corporation Patrick Ofori, CEO (Ag) Petroleum Commission – Ghana

Egbert Faibille Jnr, CEO Ghana Gas, Dr Ben Asante and managing

partner, Cromwell Gray LLP Kissi Agyebeng and others also attended the

meeting.

Meanwhile, Ghana’s ambassador to Brazil, Abena Pokua Adompin Busia,

a former professor of Women’s and Gender Studies, and English at

Rutgers-New Brunswick’s School of Arts and Sciences, is also expected to

be accredited to Guyana.

“Guyana, in this regard, extends a warm welcome to the visiting high-level

delegation and private sector delegation from Ghana. We anticipate

that this visit will lay a solid foundation for cooperation between our

states,” President David Granger said.

<< Back to news headlines >>

Technical institutes must develop skills to harness oil wealth Monday 3rd June, 2019 – Guyana Chronicle

GUYANA is being advised to either strengthen existing skills training

institutes or establish a large-scale national technical institute to prepare

its people to benefit from an expected increase of job opportunities in the

service sector.

With 2020 earmarked as ‘first-oil’ for Guyana and with substantial growth

expected for the economy within the next five years, many experts have

long projected significant growth in the service sectors.

There are currently several technical and skills training institutes dotted

across Guyana, but what Local Content Consultant on Oil and Gas and

Mining, Rene Roger Tissot recommended surpasses what now exists.

The economist, also an energy analyst, has worked for years in Africa,

Latin America, the Middle East and Canada.

He spoke with the Guyana Chronicle on the topic while attending the

15th annual Institute of the Americas’ pre-La Jolla conference workshop

hosted in San Diego, last week.

“What Guyana absolutely needs, like any developing country, is a

national technical institute. Not for oil,” Tissot said, but “for everything.”

He stated that other countries on the continent have done the same,

such as Colombia, preparing themselves to benefit from a similar

projected job increase in the sector.

“The idea is to develop the skills because oil itself is not wealth. What

Guyana needs to do right now is to think about how they are going to

transform oil wealth — which will be received in financial wealth or

money– into another form of wealth. That other form of wealth is human

capital or investiture, but human capital is perhaps the most important

right now,” he advised.

Tissot said that instead of creating various tailored and small programmes

or even small institutes across the country, a sizable institution is needed to

cater for all forms of jobs across the service sector.

Jobs in the service sector can fall in the category of information sector

services, securities and other investment services, professional,

warehousing and truck transportation services, health care and social

assistance services, arts and entertainment, technical and scientific

services, waste management services and recreation services.

ACCESSIBLE AND AFFORDABLE

The consultant told this publication that, preferably, such a multi-service

training institution should be managed by the government, while ensuing

that it is accessible and affordable for all members of the public.

It would also target persons unable to, or uninterested in attending

university, exposing them to a viable skill which can guarantee financial

income.

“Barmen in hotels, massage therapists, hair dressers, whatever makes

sense. If you build that, then what you’re doing is transforming the oil

wealth into the capacity of your workforce to work in whatever sector

there is,” Tissot explained.

“The reality is, oil business is not going to generate that many jobs. That’s

something that needs to be very clearly understood, especially

[regarding] offshore oil which does not generate that many jobs,” he said.

This resolve is what caused the expert to also recommend that Guyana

ensure that its National Development Plan – perhaps one which stretches

to 2040—includes the country’s plans for skills training, based on the

expected economic activities.

“It’s now you need to develop that,” he said, adding: “Right now, you

need to think about what type of post-oil economy you want to develop

and the most important thing is to develop technical skills, because that’s

what is going to be in most demand.”

Tissot said it is regrettable that in some developing oil-rich countries, these

skills-related jobs have been snatched away by non-nationals who meet

the need.

He reasoned that even if the government is of the opinion that provisions

are already in place to cater for such large-scale training, efforts should

still be geared towards making such systems stronger, and as soon as

possible.

He recommended that, as revenues flow, the financial capabilities of

such an institution/ institutions be fortified through the more readily

available finances.

“If you train your people, not only will they have skills to get a job, but also

they will have the skills to perhaps start their own businesses. It’s not going

to be a solution for every problem, but it’s going to be a necessary first

step. If you don’t have the skills for your people to be able to work on any

type of activity, the development is much more complicated and it

doesn’t matter how much money you receive from oil,” the consultant

said.

<< Back to news headlines >>

‘Nowhere Near Out of The Fiscal Woods’ Friday 31st May, 2019 – Tribune 242

The Bahamas is “nowhere near out of the woods” with its fiscal woes, the

deputy prime minister admitted yesterday, with the government still

confronting several “ticking timebombs”.

KP Turnquest told Tribune Business that issues with the potential to “throw

us out of whack” include the presently-unknown Bahamas

Telecommunications Company (BTC) pension liability plus the unfunded

retirement obligations owed to civil servants generally.

While acknowledging that the government had expected to be “a little

further ahead” at this point in eliminating the persistent annual fiscal

deficit, he added that it was “on the right path” to correcting the

country’s finances and setting them back on a sustainable path.

The 2019-2020 budget, unveiled by Mr Turnquest in the House of Assembly

on Wednesday, effectively sent the message that the government intends

to hold its present fiscal course and faithfully stick to its three-year

consolidation plan despite the ongoing domestic and foreign pressures.

It deliberately avoided any further shocks or disruption to the Bahamian

economy following last year’s VAT hike and other revenue-raising

measures, seemingly recognising that businesses and consumers cannot

shoulder any greater burden, with the government instead targeting

untapped revenue streams already on the books together with greater

compliance and administrative efficiency.

Mr Turnquest yesterday withdrew a suggestion that these measures alone

could yield an extra $100m in annual revenue for the Public Treasury, but

conceded that the government had reached a stage where it needed to

“plug all the holes” before introducing any new taxes.

Voicing optimism that the government will hit its 2019-2020 revenue

targets despite the $238m under-shoot projected for the current fiscal

year, Mr Turnquest described the budget projections as “reasonable” due

to the Bahamian economy’s growth forecast and the number of foreign

direct investment (FDI) projects set to kick-in.

Acknowledging that he does not possess “a crystal ball”, he added that

budget estimates were based on the best available information at the

time they were made. Responding to Opposition criticism of the missed

revenue target for 2018-2019, Mr Turnquest retorted that the narrowed

fiscal deficit - currently projected to beat its initial forecast - is “the number

that counts”.

Tribune Business reported on Thursday how the 2019-2020 Budget

projections show the Government now believes it will take a little longer

than initially thought to eliminate the annual GFS deficit, which measures

by how much government spending exceeds revenue (income), a

conclusion confirmed yesterday by Mr Turnquest.

“Dynamics change,” he told Tribune Business. “This year we expected to

be a little bit further ahead, but the reality is we were not able to do that,

and we had to push back a bit. There’s a little bit of softening, but we’re

going to be working very hard to bring those numbers in.

“There are still a few ticking time bombs out there from the sins of the past.

Until they can be resolved one way or the other we’re nowhere near out

of the woods, but are on the right path assuming we can manage those

little bombs so they don’t throw us out of whack.”

Those “ticking time bombs” include the Government’s failure to fulfill its

commitment to inject $39m into the now-closed BTC defined benefit

pension plan to fill its deficit - something it agreed to in 2011 when Cable

& Wireless Communications (CWC) bought a controlling interest, and is still

not settled some two administrations and eight years later.

Comparing the Government’s Budget projections to the prior year shows

it feels fiscal consolidation will be achieved more gradually. The Minnis

administration had last year forecast it would eliminate the deficit and run

a $10m surplus by 2020-2021, but the revised estimates project modest

deficits of $73m and $19m for that year and 2021-2022 respectively.

An $85m deficit, rather than yesterday’s $137m, had also been projected

for the upcoming 2019-2020 fiscal year. The projections indicate the

Government is making slower progress than desired on eliminating the

deficit, but it is nevertheless heading in the right direction, although it is

also conceding that revenue yields will not reach the previously forecast

20.1 percent of GDP.

Mr Turnquest yesterday revealed that the Government cannot introduce

any new or increased taxes until it maximises existing revenue sources,

although he walked back a projection that planned enforcement

measures alone can yield an extra $100m annually.

“The truth of the matter is we are at the point where we need to maximise

and plug the holes for all taxes before we contemplate any additional

taxes,” he told Tribune Business.

“If all goes well we can recognise $100m from getting real property tax

fully compliant and correct, and the revenue from yacht charters and

cruising permits, and compliance issues with VAT and Business Licences. I

wouldn’t say $100m, but we can make some significant progress.”

Considerable scepticism surrounds the Government’s 2019-2020 revenue

projection, which at $2.628bn - a $215m increase upon the prior year -

takes the Public Treasury’s income back close to the level originally

forecast for the current fiscal year. That is now projected to come in at

$2.413bn, some $238m or 9 percent below target.

Mr Turnquest, though, expressed confidence that the 2019-2020 revenue

target will be achieved because the factors that caused this year’s under-

performance are no longer present. He added that the “VAT impact

shock would have started to dissipate for consumers”, while the transition

periods afforded the hotel and construction sectors ended earlier this

year.

The Revenue Enhancement Unit’s (REU) creation, which was supposed to

have occurred for last fiscal year, will now kick-in for 2019-2020 and

potentially generate $80-$100m in revenues, while the Government has

also concluded settlements with web shop operators.

Pointing to the anticipated increase in economic activity through FDI

projects either approved or in the pipeline, Mr Turnquest said: “Between

these projects, the improvement in compliance ratios hopefully, as well as

collecting those taxes on the books that are not being paid, we will be

able to catch up to that goal.

“I think it is reasonable,” he added of the 2019-2020 revenue estimates.

“There were some factors that would have stymied revenue collection last

year, and those factors have gone away. The VAT impact shock would

have started to dissipate also, so we should see some real rebound this

year.”

Mr Turnquest added that the 2018-2019 revenue under-performance

should have been no mystery to anyone, as he had revealed in

February’s mid-year Budget that the Government’s income was likely to

miss its target by $185m or 7 percent.

That gap has now further widened to $238m or 9 percent. Based on the

Government’s nine-month fiscal “snapshot”, it has to collect some $724m

worth of revenue during the fiscal year’s final quarter to hit the lowered

$2.413bn goal.

Based on Mr Turnquest’s revelation that revenues for the first 10 months

stood at $1.9bn, it appears the Government collected almost $211m in

April given that end-March’s figure stood at just over $1.689bn. However,

the Opposition has seized on the figures to argue that the Minnis

administration faces a tall order to collect the $500m needed over May

and June to hit the revised 2018-2019 figures.

Mr Turnquest accused the Opposition of “making hay” and failing “to

understand that projections are just that; projections”. Pointing out that

revenue estimates could easily be blown off course by hurricanes,

international economic developments and internal factors, he said this

aspect of the Budget was often subject to adjustments because it lay

outside the Government’s control.

Arguing that revenue estimates are “not an exact science”, the deputy

prime minister said The Bahamas was “on tap for another year of solid

economic growth” and, should forecasts not materialise, the Government

always retained the option to reduce its discretionary spending to match

income - as it has done in 2018-2019.

Mr Turnquest said the Opposition’s focus on revenue also ignored the

halving of the fiscal deficit, year-over-year, to $122m for the first 10 months

of the 2018-2019 fiscal year despite the income shortfall.

“At the end of the day that’s the number that counts,” he told Tribune

Business, although the full-year 2018-2019 forecast of a $229m deficit

suggests the “red ink” will increase by more than $100m in the final two

months of the year.

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American Airlines increased airlift to St Kitts-Nevis Friday 31st May, 2019 – Caribbean News Now

American Airlines will fly a second weekly non-stop flight from New York’s

John F Kennedy international airport (JFK) to St Kitts on Wednesdays,

complementing the carrier’s existing non-stop Saturday service from JFK

and continuing to expand upon a successful airline-destination

partnership.

Lindsay FP Grant, minister of tourism, international trade, industry and

commerce, said “I am very pleased to welcome the addition of this mid-

week flight by American Airlines. It’s wonderful to receive this additional

service from a valued partner, which provides visitors and diaspora alike

with more ways to get to [the] island from our primary source market. This

is a testament to American’s confidence in our tourism product.”

American Airlines will operate the flight utilising a 176-seat Boeing 757 with

16 business class seats from December 18, 2019, through February and

then a 160-seat Boeing 738 with 16 business class seats.

St Kitts Tourism Authority, Racquel Brown added, “The timing of this

additional flight is particularly significant, as American just launched

summer non-stop service from Dallas this past weekend and expanded

twice-daily service from Miami International Airport (MIA) to five days a

week in 2017. The addition of mid-week service year-round from the New

York metropolitan area indicates a growth in the marketplace concurrent

with our marketing initiatives. This new service is part of our specific

strategy to grow our tourism industry by building out airlift from select

target gateways with our air partners to support the destination’s

expanding hotel product.”

American Airlines is the carrier serving the most seats into St Kitts. In

addition to the new Wednesday non-stop service from JFK, American also

serves St Kitts non-stop on Saturdays from JFK and Charlotte Douglas

International Airport (CLT) year-round. The carrier also flies to St Kitts non-

stop on Saturdays from Dallas Fort Worth International Airport (DFW) in the

summer, with service having just launched May 25, 2019.

American further provides year-round, non-stop daily service to St Kitts

from MIA, with twice-daily flights operating five times weekly (Wednesday

through Sunday).

American’s new Wednesday JFK flight provides extra capacity to carry

passengers to island, thereby supporting potential air arrivals growth for St

Kitts for 2020. Already for the first four months of 2019, St Kitts is reporting a

systemwide increase in air passenger arrivals of +14.5 percent as

compared to the same period in 2018. From all North American carriers, St

Kitts’ air passenger arrivals increased +17.2 percent for January through

April 2019 as compared to the same period in 2018.

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