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

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

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

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

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

▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+

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

▪ The Pegasus Hotels of Guyana Limited’s rating upgraded to CariBBB

▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+

▪ Home Mortgage Bank’s rating reaffirmed at CariA

▪ NCB Cayman Limited’s rating reaffirmed at CariA

OUR UPCOMING WORKSHOPS!

Fundamentals of Financial Analysis 28th & 29th March 2019 Trinidad

Benefits of a CariCRIS Credit Risk Analysis workshop:

Latest Rating Actions by CariCRIS

• Develop a comprehensive understanding of how to evaluate the risk of common

industries in the Caribbean

• Develop a keen understanding of business/financial risks and their potential impact

on future financial performance

• Develop tools to evaluate management quality, a critical driver of any company’s

performance and its consequent risk profile

DATE

WORKSHOP

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

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

REGIONAL

Trinidad and Tobago

Fisherfolk upset, want help

FISHERMEN protested outside Parliament yesterday, hoping that

Government would consider issuing them cards identifying them as bona

fide fisherfolk and exempting them from paying taxes on gasoline.

$50m investment boost

DOMUS Caribbean uPVC Solutions, a company owned by the Ortt Family

Trust and Arturon Ltd, opened a new factory yesterday in Chaguanas.

After two years of construction, the $50 million facility now employs 55

people in the largest glass-laminating facility in the English-speaking

Caribbean.

Govt to write EU over blacklist

THE Government intends to write to the European Union (EU), objecting 'in

the strongest possible terms' to the 'arbitrary' placement of Trinidad and

Tobago on the blacklist of countries categorised as tax havens or places

where there is money laundering.

Two exporters still owed $$ by Venezuela

TWO of the 12 exporters of 12.6 tonnes of goods worth US$26.9million to

Venezuela are still owed money, Trade and Industry Minister Paula

Gopee-Scoon confirmed last week.

Minister: Don't blame us for late payment

IF there is any question of lateness of Carnival related payments it lies with

the National Carnival Commission (NCC). So said Culture Minister Dr Nyan

Gadsby-Dolly yesterday when asked for comment on late disbursements

of Carnival funds.

Protect scrap iron industry

THE T& T Scrap Iron Dealers Association (TTSIDA) is underlining the industry's

importance as an earner of foreign exchange and as a means of ensuring

T& T complies with its international environmental obligations.

Jamaica

Petrojam's Value Eroded - Oil Refinery's Sale Price Plummets Due To

Inaction On Upgrades

Jamaica’s sole oil refinery, Petrojam, has seen its market value eroded by

nearly US$100 million because of a decade of broken promises, delays

and inaction by the Venezuelan government, the Andrew Holness

administration has revealed.

Access Financial grows asset base by $1.5 billion

ACCESS Financial Services Limited (AFS) has recorded growth in its asset

base of $1.5 billion or 41 per cent to $4.99 billion, partly attributable to the

acquisition of Florida-based microlender Embassy Loans Inc.

Falling dollar pushes up foreign debt

THE country's total central government debt stock increased by $2.3 billion

between the end of March, 2018 and the end of December, 2018,

according to the Fiscal Policy Paper (FPP) tabled in the House of

Representatives on Thursday.

Jamaica companies to benefit from three-year programme

The Jamaica Promotions Corporation (Jampro) says 50 companies will

benefit from capacity building and export promotion support under the

government's three-year Export Max III programme due to begin in April.

Gov't willing to wait on Venezuelan nod on Petrojam shares

Prime Minister Andrew Holness says that the government is willing to wait

until the Senate debate to withdraw the Bill for compulsory acquisition of

Petrojam's shares held by Venezuela's PDVCaribe.

Guyana

GECOM votes to continue business as usual, is not preparing for elections

The Guyana Elections Commission (GECOM) has spoken. It is not ready for

General and Regional Elections and will not be any time soon.

The Bahamas

Customs Moves on Registration Concern

Customs is moving to ensure the one-time registration for its new

automated system is as “efficient and seamless” as possible following

multiple complaints of delayed import clearances.

The Bahamas continued

Bahamas Must Benefit in WTO Sector Openings

The Bahamas will only open up industries to foreign competitors under the

WTO if doing so generates “real economic opportunities” for this nation, its

chief negotiator asserted yesterday.

Renewable Providers Call for Energy Trading

A newly-formed renewable energy association of yesterday branded The

Bahamas’ energy sector model as “outdated” and called for far-reaching

structural reform.

Dominica

Govt and Secret Bay Residencies sign contract for development of Secret

Bay

The Government of Dominica and Secret Bay Residencies (SBR) have

signed a contract for the development of Secret Bay Resort under the

Citizenship By Investment (CBI) Programme.

The Dominican Republic

Dominican Republic sectors to sign Electric Pact

The Economic and Social Council on Mon. announced the signing

Wednesday of the National Pact for the Reform of the Electric Sector

(Electric Pact), which has been on president Danilo Medina’s desk for

several months and has been demanded by sectors across the country.

Venezuela

Venezuela shuts border with Caribbean islands ahead of aid efforts

Venezuela on Tuesday shut the maritime border with nearby Dutch

Caribbean islands ahead of an opposition effort to bring in humanitarian

aid from foreign territories including neighbouring Curacao despite the

protests of President Nicolas Maduro.

INTERNATIONAL

United States

Southwest Airlines Drops as Government Shutdown Hurts Revenue

Southwest Airlines Co. shares slid early Wednesday after saying the U.S.

government shutdown will hit revenue harder than it previously expected.

America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash

America’s surging shale oil production shows little sign of abating, despite

industrywide spending cuts, as explorers learn to do more with less.

United Kingdom

UK manufacturers see stronger orders, average output growth

British factory orders picked up this month after dipping in January, and

output is expected to be solid as Britain leaves the European Union, a

survey from the Confederation of British Industry showed on Wednesday.

May in Brussels again, seeking Brexit movement

British Prime Minister Theresa May makes another trip to Brussels on

Wednesday, hoping European Commission chief Jean-Claude Juncker

may prove more yielding than of late to salvage her Brexit deal.

Europe

ECB to discuss new round of loans to banks soon

The European Central Bank will soon discuss new, multi-year loans to

banks, its chief economist said on Wednesday, but he hinted that a new

round of credit may not be as generous as a previous facility.

Sainsbury's, Swedbank sink while trade talk progress boosts European

shares

Encouraging signs from trade talks between the world’s two biggest

economies helped boost European shares on Wednesday while the threat

of a blocked merger deal sank Sainsbury’s shares.

IMF likely to lower growth forecast for Germany

The International Monetary Fund is likely to further lower its growth forecast

for Germany, Die Zeit weekly newspaper paper quoted IMF chief Christine

Lagarde as saying on Wednesday.

Europe continued

Slack demand, car woes cause Germany's industry share to slip

Slackening international demand for German goods and its car industry’s

difficulties meeting new emissions standards have led to the share of

manufacturing in Germany’s economic value creation falling in 2018 for

the first time since 2013.

China

Tencent to maintain aggressive investment stance in face of challenging

2019

Tencent Holdings Ltd said investment is central to its overall strategy and

so it will maintain its scale of investment after an aggressive 2018, brushing

aside near-term risks such as the bursting of China’s tech bubble as

economic growth slows.

India

Saudi prince sees 'useful returns' from expected $100 billion investment in

India

Saudi Arabia’s Crown Prince Mohammed bin Salman said on Wednesday

he saw investment opportunities of more than $100 billion in India over the

next two years as he began his first official visit amid tensions between

arch foes India and Pakistan.

Global

Oil dips after forecast for record U.S. shale output

Crude oil futures eased on Wednesday in light of the prospect of a

continued boom in U.S. shale oil output, although with OPEC determined

to restrict its own production to prevent a global surplus of unused fuel,

the price held just shy of 2019 highs.

Dollar struggles before Fed minutes; yuan hits 3-week high

China’s yuan rose on Wednesday after the United States pressed Beijing

to prevent a sharp weakening of its currency as part of any trade deal,

while the dollar paused as traders positioned ahead of the release of

Federal Reserve policy minutes.

Global continued

Hedge funds hunt for shipping debt in new market push

A growing number of hedge funds are moving into shipping debt, an

asset class few have invested in before, looking to buy up loans and

bonds as banks cut their exposure to the troubled sector.

Southwest Airlines Drops as Government Shutdown Hurts Revenue Wednesday 20th February, 2019 – Bloomberg

Southwest Airlines Co. shares slid early Wednesday after saying the U.S.

government shutdown will hit revenue harder than it previously expected.

The company now expects to lose $60 million in revenue because of the

shutdown from Jan. 1 through Jan. 23. Previously, the discount airline had

estimated a $10 million to $15 million first-quarter impact, it said in a

regulatory filing on Wednesday.

“The company has continued to experience softness in passenger

demand and bookings as a result of the government shutdown,”

Southwest said. Revenue per available seat mile, a measure of fares, will

rise in the range of 3-4 percent in the first quarter from a year earlier,

where it had previously guided to a 4-5 percent increase.

Southwest shares slipped 2.9 percent in pre-market New York trading. The

stock closed Tuesday at $57.67, giving it a market value of $31.9 billion.

<< Back to news headlines >>

America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash Wednesday 20th February, 2019 – Bloomberg

America’s surging shale oil production shows little sign of abating, despite

industrywide spending cuts, as explorers learn to do more with less.

Almost all the independent producers have reduced their budgets for

2019, but many still expect to deliver double-digit growth in production this

year, fourth-quarter earnings reports show. Growth is slowing but still

strong: the U.S. will add about 1.45 million barrels of oil a day on average

this year, down from 1.6 million in 2018, according to the Energy

Information Administration.

Doing More with Less

U.S. shale drillers are boosting production in 2019 even as budgets get

trimmed.

“The machine still has enough cash available that it can continue to grow

at a rate that’s material,” said Raoul LeBlanc, a Houston-based analyst at

IHS Markit, said by phone. The rest of the world “is now not going to be

flooded with oil, but still mildly glutted.”

The tumble in oil prices at the end of 2018, combined with investor

demands for fiscal discipline, has prompted most shale executives to only

invest what they earn in cash flow, ending years of debt-fuelled growth.

But the scale of past investments and low service costs mean that the

cutbacks will only put a dent in growth projections.

On average, U.S. explorers have cut their capital budgets 4 percent but

are predicting a 7 percent increase in production, according to RS Energy

Group, a Calgary-based researcher.

The latest explorers to announce spending cuts and pledge more returns

to investors were Concho Resources Inc. and Devon Energy Corp. on

Tuesday. Despite the budget trimming, Concho expects oil output to grow

about 28 percent in 2019. Devon lifted oil production 14 percent in

January, compared with the final three months of 2018, but foresees full-

year output trailing the 2018 figure as divestitures take a bite.

The U.S. will likely pump a record 12.4 million barrels a day this year, 13

percent higher than in 2018, according to the EIA. Most of the growth will

come from the Permian Basin of West Texas and New Mexico.

“Operators are putting more attention on capital efficient operations and

focusing more on core holdings,” said Justin Lepore, a research associate

at RS Energy Group. “There’s a focus on modest growth.”

<< Back to news headlines >>

Oil dips after forecast for record U.S. shale output Wednesday 20th February, 2019 – Reuters

Crude oil futures eased on Wednesday in light of the prospect of a

continued boom in U.S. shale oil output, although with OPEC determined

to restrict its own production to prevent a global surplus of unused fuel,

the price held just shy of 2019 highs.

Brent futures were at $66.14 a barrel, down 31 cents on the day by 1049

GMT, still within sight of Monday’s high for the year of $66.83. U.S. futures

were at $55.88 a barrel, down 21 cents, having touched a 2019 peak of

$56.39 earlier.

“Brent is trading in a narrow corridor at around $66.5 per barrel, while WTI

is at around $56,” Commerzbank analysts said in a note.

“This still leaves them within spitting distance of the three-month high they

achieved at the start of the week ... It seems that the sharp rise in oil

production in the U.S. is having a slowing effect after all.”

The U.S. Energy Information Administration said in a monthly report on

Tuesday shale production alone will hit a record 8.4 million barrels per day

next month, suggesting little chance of a near-term slowdown in overall

U.S. crude output.

The oil price has risen by more than 20 percent so far this year, supported

largely by an agreed 1.2 million bpd production cut by the Organization

of the Petroleum Exporting Countries and several other major exporters

such as Russia.

U.S. sanctions on the energy sectors of Iran and Venezuela have added

to the drop in availability of the kind of crude oil that yields more valuable

middle distillates, rather than cheaper fuels, such as gasoline.

Despite the sanctions, Iran’s crude exports were higher than expected in

January, averaging around 1.25 million bpd, according to Refinitiv ship

tracking data. Many analysts had expected Iran oil exports to drop below

1 million bpd after the imposition of U.S. sanctions last November,

although it was much below the peak 2.5 million bpd reached mid-2018.

Barclays said U.S. sanctions meant “although there is no lack of resources,

there is an increasing lack of access to them”.

BNP Paribas said surging U.S. output would feed into lower oil prices

toward the end of the year, with Brent to dip to an average of $67 a

barrel by the fourth quarter and WTI to average $61.

“U.S. oil production growth, driven by shale, will be increasingly exported

in greater volumes to international markets while the global economy is

expected to witness a synchronized slowdown in growth,” the bank said.

<< Back to news headlines >>

Dollar struggles before Fed minutes; yuan hits 3-week high Wednesday 20th February, 2019 – Reuters

China’s yuan rose on Wednesday after the United States pressed Beijing

to prevent a sharp weakening of its currency as part of any trade deal,

while the dollar paused as traders positioned ahead of the release of

Federal Reserve policy minutes.

The yuan has been a strong performer in 2019, helped by the recovery in

emerging market assets broadly and optimism that Washington and

Beijing are close to agreeing a deal to end their trade conflict.

In offshore markets, the yuan rose 0.4 percent to as much as 6.7168, its

strongest since Feb. 1.

The dollar, measured against a basket of currencies, held steady at

96.494, away from two-month highs hit last week.

Demand for the liquid greenback has ebbed on optimism that a fresh

round of talks between China and the United States would help resolve

their trade conflict.

The euro nudged higher to $1.1350 but was stuck within recent ranges -

the common currency has struggled this month as worries about the state

of the euro zone economy grow.

ABN AMRO analyst Georgette Boele said the bank had downgraded its

euro forecasts for 2019 because of economic concerns.

“However, we also expect limited downside in the euro, because weaker-

than-expected euro zone data have had only a limited negative impact

on the euro, suggesting that most of the weakness is reflected in the

price,” she said.

The benchmark 10-year U.S. Treasury yield fell sharply to an 11-day low on

Tuesday ahead of the Fed meeting minutes, which are due later on

Wednesday, further dampening demand for the dollar. [US/]

The minutes from the January Fed meeting will be closely watched

following a dovish statement at that review.

Analysts say weaker than expected U.S. retail sales and industrial

production numbers published this month have, according to MUFG,

“challenged the view that the U.S. economy will continue to hold up

relatively well while overseas economies are displaying more acute

weakness.”

The yen fell another 0.3 percent against the dollar to 110.95 after

disappointing trade numbers showed that Japanese exports fell the most

in two years in January.

The yen had taken a hit on Tuesday after Bank of Japan Governor

Haruhiko Kuroda said the central bank was ready to ramp up stimulus if

sharp yen rises hurt the economy.

Sterling slipped back 0.3 percent but held above $1.30 following

Tuesday’s surge on hopes Prime Minister Theresa May can make progress

in Brussels on Wednesday as she tries to tweak her Brexit withdrawal

agreement.

<< Back to news headlines >>

Hedge funds hunt for shipping debt in new market push Wednesday 20th February, 2019 – Reuters

A growing number of hedge funds are moving into shipping debt, an

asset class few have invested in before, looking to buy up loans and

bonds as banks cut their exposure to the troubled sector.

World economy worries and cost pressures are dampening prospects for a

proper recovery in many segments of the shipping

sector, which has struggled with tough markets for a decade.

Meanwhile European banks, particularly German lenders, are trying to

offload distressed and performing loans to the industry which attracts high

capital requirements.

The European Central Bank’s banking supervisor has flagged troubled

non-performing loans in 2019 as “a concern for a significant number of

euro area institutions”.

In one of the first deals to have been concluded in recent weeks, finance

sources said hedge and private equity firm Avenue Capital together with

asset manager King Street Capital Management bought at least $100

million of loans from investment groups Varde Partners and Oak Hill

Advisors.

In June last year funds managed by Varde and Oak Hill purchased $1

billion worth of legacy shipping loans - which sources said included mainly

performing but also some distressed assets - from Deutsche Bank.

Varde and Oak Hill declined to comment, while Avenue Capital and King

Street did not respond to requests for comment.

Hedge funds clocked up hundreds of millions of dollars in losses from

investments in mainly equities when the shipping industry first turned sour a

decade ago – and have made limited forays for the most part since.

Last year some equity-focused funds bet on a recovery for the global

shipping industry through the stock and futures markets but many are now

retrenching after heavy losses in the fourth quarter.

Debt-focused funds are hoping for more luck.

“There is more hedge fund buying interest in shipping debt than in equity

now. I don’t think anyone believes the (shipping) market will recover any

time soon,” said Basil Karatzas of New York based shipping finance

advisory firm Karatzas Marine Advisors & Co.

“So, if you buy equities the upside potential is limited. You can more easily

make double-digit returns through credit risk investments.”

Deals expected to generate hedge fund interest include a portfolio of

distressed shipping loans that Greece’s Piraeus Bank is seeking to sell,

finance sources said.

A source close to the Piraeus Bank deal said the portfolio of shipping

loans, called Nemo, was made up of non-performing and performing

loans with a nominal value of 500 million to 600 million euros. The source

said a sale was expected to close in the second quarter of 2019, declining

to provide any details on potential bidders.

Other hedge funds looking at distressed loans include York Capital

Management and Cross Ocean Partners, the sources said.

A spokesman for York Capital declined to comment, while Cross Ocean

Partners did not respond to requests for comment.

Och-Ziff Capital Management was amongst the suitors for a 2.7-billion-

euro distressed portfolio of shipping loans that was sold this month by

ailing German state bank NordLB, which sources said was bought by

private equity firm Cerberus.

Och-Ziff did not respond to requests for comment.

NordLB plans to wind down its remaining non-performing shipping loan

portfolio of nearly 4 billion euros almost completely by the end of the year,

which sources said is still likely to involve some loan sell-offs and expected

to generate hedge fund interest.

Germany’s No.2 lender DZ Bank is also trying to offload over one billion

euros of toxic shipping loans from its troubled transport financing division

DVB Bank, although there have been multiple delays with the sales

process, finance sources said.

Others though have opted for other types of investments, viewing toxic

debt as too risky now.

“Hedge funds need to step in to shipping but it’s a bit early for the

distressed cycle. It’s a question of timing,” said Louis Gargour, chief

investment officer at hedge fund firm LNG Capital, which has around 10

to 15 percent of its total exposure focused on bond issuances by shipping

companies.

<< Back to news headlines >>

UK manufacturers see stronger orders, average output growth Wednesday 20th February, 2019 – Reuters

British factory orders picked up this month after dipping in January, and

output is expected to be solid as Britain leaves the European Union, a

survey from the Confederation of British Industry showed on Wednesday.

Although the CBI warned that Brexit talks were rapidly approaching “crisis

point”, its data painted a more positive picture ahead of Brexit than many

recent surveys of the sector.

Official data last week showed the sector contracted by the biggest

amount in in over five years during the final three months of 2018.

The CBI’s factory order book balance rose to +6 this month from January’s

reading of -1, above all forecasts in a Reuters poll of economists and

above the survey’s long-run average.

Export order growth also strengthened, though manufacturers expected

output growth to slow over the next three months from the above-

average rates predicted in December and January.

“UK manufacturing activity has moderated at the same time as

headwinds from Brexit uncertainty and a weaker global trading

environment have grown,” CBI economist Anna Leach said.

Britain’s main manufacturing body, Make UK, warned on Tuesday that a

no-deal Brexit next month would be a “catastrophic prospect” for the

sector.

Finance minister Philip Hammond told Make UK’s annual dinner that

lawmakers and EU leaders needed to listen to industry.

“The clock is ticking quickly towards crisis point,” Leach added. “It is of

critical importance that politicians of all stripes and on both sides of the

channel come to agreement on the terms of a Brexit deal as soon as

possible.”

<< Back to news headlines >>

May in Brussels again, seeking Brexit movement Wednesday 20th February, 2019 – Reuters

British Prime Minister Theresa May makes another trip to Brussels on

Wednesday, hoping European Commission chief Jean-Claude Juncker

may prove more yielding than of late to salvage her Brexit deal.

With Britain set to jolt out of the world’s biggest trading bloc in 37 days

unless May can either persuade the British parliament or the European

Union to budge, officials were cautious on the chances of a

breakthrough.

The key sticking point is the so-called backstop, an insurance policy to

prevent the return of extensive checks on the sensitive border between EU

member Ireland and the British province of Northern Ireland.

May agreed on the protocol with EU leaders in November but then saw it

roundly rejected last month by UK lawmakers who said the government’s

legal advice that it could tie Britain to EU rules indefinitely made the

backstop unacceptable.

She has promised parliament to rework the treaty to try to put a time limit

on the protocol or give Britain some other way of getting out of an

arrangement which her critics say would leave the country “trapped” by

the EU.

A spokesman for May called the Brussels trip “significant” as part of a

process of engagement to try to agree on the changes her government

says parliament needs to pass the deal.

But an aide for Juncker quoted the Commission president as saying on

Tuesday evening: “I have great respect for Theresa May for her courage

and her assertiveness. We will have friendly talk tomorrow but I don’t

expect a breakthrough.”

EU sources aired frustration with Britain’s stance on Brexit, saying Brexit

Secretary Stephen Barclay brought no new proposals to the table when

he was last in Brussels on Monday for talks with the bloc’s chief negotiator,

Michel Barnier.

On Tuesday, the EU responded to UK demands again: “The EU 27 will not

reopen the withdrawal agreement; we cannot accept a time limit to the

backstop or a unilateral exit clause,” said Margaritis Schinas, a spokesman

for Juncker.

“We are listening and working with the UK government ... for an orderly

withdrawal of the UK from the EU on March 29.”

May’s spokesman again said it was the prime minister’s intention to

persuade the EU to reopen the divorce deal.

“There is a process of engagement going on. Tomorrow is obviously a

significant meeting between the prime minister and President Juncker as

part of that process,” he said.

LEGAL ADVICE

Barclay and Britain’s Attorney General Geoffrey Cox are also due back in

Brussels midweek and want to discuss “legal text” with Barnier that would

give Britain enough assurances over the backstop, British sources said.

It is Cox’s advice that the backstop as it stands is indefinite, which May is

trying to see changed by obtaining new legally binding EU commitments.

May needs to convince Eurosceptics in her Conservative Party that the

backstop will not keep Britain indefinitely tied to the EU, but also that she is

still considering a compromise idea agreed between Brexit supporters and

pro-EU lawmakers.

May’s spokesman said the Commission had engaged with the ideas put

forward in the so-called “Malthouse Compromise” but raised concerns

about “their viability to resolve the backstop”.

The EU says the alternative technological arrangements it proposes to

replace the backstop do not exist for now and so cannot be a guarantee

that no border controls would return to Ireland.

Barnier told Barclay the EU could hence not agree to this proposal as it

would mean not applying the bloc’s law on its own border.

Eurosceptic lawmakers said Malthouse was “alive and kicking” after

meeting May on Tuesday.

May has until Feb. 27 to secure EU concessions on the backstop or face

another series of Brexit votes in the House of Commons, where lawmakers

want changes to the withdrawal deal.

EU and UK sources said London could accept other guarantees on the

backstop and the bloc is proposing turning the assurances and

clarifications it has already given Britain on the issue in December and

January into legally binding documents.

<< Back to news headlines >>

ECB to discuss new round of loans to banks soon Wednesday 20th February, 2019 – Reuters

The European Central Bank will soon discuss new, multi-year loans to

banks, its chief economist said on Wednesday, but he hinted that a new

round of credit may not be as generous as a previous facility.

Banks, particularly in Italy and Spain, face a cliff-edge as the ECB’s 739

billion-euro ($839.13 billion) Targeted Long-Term Refinancing Operation

approaches repayment dates in 2020-21.

Peter Praet’s comments suggested a new round of TLTRO will be discussed

as soon as the ECB’s next meeting, on March 7. But a decision, particularly

on the terms of the loans, may have to wait.

“The discussion will come very soon in the Governing Council,” Praet told

a conference in Frankfurt. “It doesn’t mean we’ll take decisions ... at that

time.”

The latest TLTRO was offered at a zero percent interest rate. Banks could

even earn as much as 0.4 percent on the money they borrowed from the

ECB if they passed it on to companies and households.

Praet said discussion of the parameters of any new loans was “a

complicated thing, because it depends on the amount of stimulus you

want to bring or not to bring.”

Providing a key argument for the loans, Praet argued that banks, already

suffering from weak profitability, might cut credit to the real economy

amid the recent slowdown.

That hasn’t happened yet, but new long-term funding would provide an

insurance policy, especially since uncertainty is starting to feed through to

businesses.

Sources told Reuters last year the ECB was considering offering the TLTRO

at a variable rather than fixed rate and was also considering a shorter

duration.

Reducing duration from the current four years and the amount on offer

are some of the other options that analysts have speculated on.

<< Back to news headlines >>

Sainsbury's, Swedbank sink while trade talk progress boosts European

shares Wednesday 20th February, 2019 – Reuters

Encouraging signs from trade talks between the world’s two biggest

economies helped boost European shares on Wednesday while the threat

of a blocked merger deal sank Sainsbury’s shares.

Germany’s trade-sensitive DAX led the way with a 0.6 percent gain and

the pan-European STOXX 600 rose 0.4 percent.

U.S. President Donald Trump said on Tuesday that trade talks with China

were going well and suggested he was open to pushing off the deadline

to complete negotiations, saying March 1 was not a “magical” date.

The autos sector, which has been very vulnerable to rising protectionism,

jumped 1.7 percent and miners gained 1.1 percent.

The top gainers — Glanbia, Simcorp, and Fresenius — were boosted by

well received results.

Fresenius shares jumped 5.9 percent after the German healthcare firm

said it expects earnings to grow faster than sales from 2020 after

investments dent profit this year.

The company’s separately-listed dialysis business Fresenius Medical Care

gained 6.8 percent after announcing a 1 billion euro share buyback.

Irish nutrition company Glanbia jumped 9.5 percent after its fourth-quarter

results, while Danish software company Simcorp also rose 7.4 percent after

reporting.

British supermarket chain Sainsbury’s and Swedish lender Swedbank

marred the positive picture overall.

Sainsbury’s shares sank 12.5 percent after Britain’s competition regulator

said its merger with Asda should either be blocked or require significant

concessions.

Swedbank shares fell 5.6 percent after a Swedish television programme

said it had uncovered documents linking the lender to a money

laundering scandal involving Denmark’s Danske Bank.

<< Back to news headlines >>

IMF likely to lower growth forecast for Germany Wednesday 20th February, 2019 – Reuters

The International Monetary Fund is likely to further lower its growth forecast

for Germany, Die Zeit weekly newspaper paper quoted IMF chief Christine

Lagarde as saying on Wednesday.

Lagarde urged the German government to spend more money for

projects like modernizing public infrastructure in order to bolster growth,

the paper added.

<< Back to news headlines >>

Slack demand, car woes cause Germany's industry share to slip Wednesday 20th February, 2019 – Reuters

Slackening international demand for German goods and its car industry’s

difficulties meeting new emissions standards have led to the share of

manufacturing in Germany’s economic value creation falling in 2018 for

the first time since 2013.

Numbers from the German statistical office reviewed by Reuters highlight

the challenge Economy Minister Peter Altmaier faces if he is to succeed in

his goal of raising the industry share of gross value added to 25 percent by

2030.

The share fell to 23.2 percent in 2018, from 23.4 percent the previous year.

Germany, whose advanced manufacturing sector has fuelled a decade-

long boom in Europe’s largest economy, also faces a stiff challenge from

Chinese manufacturers and from Silicon Valley, which have advantages

in emerging digital technologies where Germany has less of a tradition.

Other temporary factors contributing to the poor results included low

water levels on the Rhine river, a major shipping artery, which caused

supply chains to snag, triggering an industry recession in the second half

of 2018.

Industry is especially important for Germany, whose export-oriented

economy is especially dependent on its commanding lead in the export

of high-value engineering goods to the wider world.

<< Back to news headlines >>

Saudi prince sees 'useful returns' from expected $100 billion investment in

India Wednesday 20th February, 2019 – Reuters

Saudi Arabia’s Crown Prince Mohammed bin Salman said on Wednesday

he saw investment opportunities of more than $100 billion in India over the

next two years as he began his first official visit amid tensions between

arch foes India and Pakistan.

India rolled out the red carpet for the crown prince as it seeks diplomatic

support against Pakistan following a militant attack in the disputed region

of Kashmir.

The crown prince was also given a lavish welcome this week in Pakistan

where the two sides signed memoranda of understanding valued at

about $20 billion to help prop up Pakistan’s economy.

In a joint press appearance after talks with Indian Prime Minister Narendra

Modi, the crown prince said terrorism was a common concern and Saudi

Arabia was ready to share intelligence with India to tackle it.

India blames Pakistan for not doing enough to roll up militant groups that

operate from its soil including the one that claimed responsibility for the

Kashmir car bombing on Thursday last week.

Pakistan denies any involvement in cross-border terrorism and said it

would retaliate against an Indian attack.

“We face similar challenges, chief among them extremism and terrorism

and we reaffirm to India that we are ready to work in the intelligence and

political arenas to coordinate our efforts…” the crown prince said.

Saudi Arabia’s formidable domestic security structure helped put down

an al Qaeda bombing campaign over a decade ago. But the kingdom

continues to face occasional attacks by Sunni Islamic State fighters and

Shi’ite militants in its Eastern Province.

SAUDI ARAMCO IN TALKS

Riyadh also leads a coalition of Arab states fighting in support of Yemen’s

internationally recognized government against the Iranian-aligned Houthi

fighters, who regularly fire rockets across the kingdom’s southern border.

The crown prince also said he wanted to expand commercial relations

with India.

“Today we expect the opportunities we are targeting in India in various

fields to exceed $100 billion in the coming two years… we want to work

with you, Mr Prime Minister, to ensure these investments are made and to

ensure useful returns for both countries.”

Giant petroleum and natural gas company Saudi Aramco said it was in

talks with India’s Reliance Industries Ltd for possible investments and was

seeking other opportunities.

Both India and Pakistan had expected a scaling up of investments on the

crown prince’s first tour of the region since the storm over the murder of

Jamal Khashoggi, a Washington Post columnist, at the Saudi consulate in

Istanbul in October.

The killing of Khashoggi, a known critic of the crown prince, has strained

Saudi Arabia’s ties with the West and battered the prince’s image

abroad. He’s next due in China.

The European Commission has added Saudi Arabia to an EU draft list of

countries that pose a threat to the bloc because of lax controls against

terrorism financing and money laundering, sources told Reuters last

month.

But Modi has sought to use India’s fast-growing economy to attract more

investment from Saudi Arabia and other Islamic nations since he took

office.

During the press briefing, Modi said he had agreed with the prince to

strengthen cooperation on counter-terrorism and naval and cyber

security.

The two countries signed agreements on investment in infrastructure,

housing sector and tourism.

<< Back to news headlines >>

Tencent to maintain aggressive investment stance in face of challenging

2019 Wednesday 20th February, 2019 – Reuters

Tencent Holdings Ltd said investment is central to its overall strategy and

so it will maintain its scale of investment after an aggressive 2018, brushing

aside near-term risks such as the bursting of China’s tech bubble as

economic growth slows.

In the first detailed review of investment performance, President Martin

Lau also said 2018 was Tencent’s best year as a record 16 portfolio

companies went public, and that it had invested in more than 700

companies over the past 11 years.

The comments come as Tencent battles investor concerns of slowing

growth in the video game and social media giant’s core businesses as the

government increases scrutiny of online content and services.

Speaking at a closed-door investor conference in Beijing last month, Lau

said business conditions in China’s internet sector are challenging and are

likely to worsen before improving, according to a transcript of his speech

reviewed by Reuters on Wednesday.

“Every time after major crises or bubbles, those who survive become the

best companies,” Lau said. “So in my view, short-term pressure may

intensify, but I’m optimistic for the long-term... Even though now is a

relatively bad time, the best time awaits afterwards.”

Tencent was unable to make money from new games due to regulatory

change for most of last year, during which time its stock lost 23 percent or

$114 billion in market value after peaking in January 2018.

China’s top content regulator has stopped accepting new applications

to monetize video games as it processes a backlog built up during a nine-

month hiatus last year, Reuters reported on Wednesday citing sources. The

move could further delay the revival of gaming revenue growth at

companies such as Tencent.

Though the decline of Tencent’s market capitalization last year was

staggering, Lau referred to 2018 as Tencent’s best year in terms of

investment since the department was formed in 2008, citing the number

of IPO exits. He said 63 of its portfolio companies over the past 11 years

are now listed, and 122 are “unicorns” valued at more than $1 billion.

The combined market value of companies in which Tencent holds a stake

of 5 percent or more has exceeded $500 billion, he said. Tencent’s own

market capitalization now stands at $409 billion, making the firm Asia’s

second-largest after New York-listed Alibaba Group Holding.

Lau dismissed criticism that Tencent had “turned into an investment bank”

that prioritizes investment than growing its core business. “Investment is a

core strategy for Tencent” and allows it to focus on its core business, he

said.

As such, he said Tencent “would not scale back” investment in 2019

regardless of challenges such as economic slowdown in China and

competition that is set to “increase pressure for the entire (tech) sector”.

Tencent in November posted a better-than-expected 30 percent

quarterly profit rise, as investment gains offset the impact of the freeze on

new game approvals.

It is due to report full-year earnings figures on March 21.

<< Back to news headlines >>

Dominican Republic sectors to sign Electric Pact Tuesday 19th February, 2019 – Dominican Today

The Economic and Social Council on Mon. announced the signing

Wednesday of the National Pact for the Reform of the Electric Sector

(Electric Pact), which has been on president Danilo Medina’s desk for

several months and has been demanded by sectors across the country.

Economic and Social Council (CES) director Iraima Capriles said all sectors

are invited to the event set for 11am Wed. in the National Palace,

headed by Medina and electricity sector representatives.

Although the dialogue for the Electricity Pact concluded in November of

2017, it hadn’t been signed because some sectors insisted that the Punta

Catalina power plant should be included, among other issues, and the

Government argued that the opposition should assume a commitment.

“The Economic and Social Council is made up of 45 members and its

members are being called together, as well as those who participated

and were summoned through decree 389-14, which are the actors of the

National Pact for the Reform of the Electricity Sector, as the experts who

contributed their knowledge to enrich the covenant,” said Capriles.

In recent days several national sectors had expressed through the media

and social networks their demand the signing of the Pact.

<< Back to news headlines >>

Venezuela shuts border with Caribbean islands ahead of aid efforts Tuesday 19th February, 2019 – Reuters

Venezuela on Tuesday shut the maritime border with nearby Dutch

Caribbean islands ahead of an opposition effort to bring in humanitarian

aid from foreign territories including neighbouring Curacao despite the

protests of President Nicolas Maduro.

Maduro has rejected offers of foreign aid, denying there are widespread

shortages and insisting that the country’s economic problems are the

result of sanctions by Washington.

Opposition leader Juan Guaido, who has been recognized by dozens of

countries as the legitimate head of state, has said that food and

medicine provided in part by the United States will enter Venezuela by

land and sea on Saturday.

The closure blocks movement of boats and aircraft between the western

Venezuelan coastal state of Falcon and the islands of Aruba, Bonaire and

Curacao, said Vice Admiral Vladimir Quintero, who heads a military unit in

Falcon. He did not provide a reason.

Venezuela’s Information Ministry did not immediately respond to a request

for comment.

Curacao’s government, which has agreed to receive aid for Venezuela

without being involved in its delivery, said in a statement that the closure

was meant “to prevent humanitarian aid from getting in.”

“Curacao will not force in the aid, but it will continue to function as a

logistical centre,” it said.

The United States has sent tons of aid to Colombia’s border with

Venezuela. Maduro has mocked the effort as a “cheap show” by the

United States, insisting Washington should help his government by lifting

crippling oil sector sanctions.

“OUR DEAD BODIES”

Defense Minister Vladimir Padrino in a televised broadcast on Tuesday

said Venezuelan troops would remain stationed along the country’s

borders to prevent territorial violations.

Padrino, flanked by a cadre of top-ranked military officials, said opposition

leaders would have to pass over “our dead bodies” to impose a new

government. Guaido, who invoked articles of the constitution to assume

the interim presidency, denounces Maduro as illegitimate.

U.S. President Donald Trump on Monday warned members of Venezuela’s

military who remain loyal to Maduro that they would “find no safe

harbour, no easy exit and no way out.”

Padrino said officers and soldiers remained “obedient and subordinate”

to Maduro.

“They will never accept orders from any foreign government. ... They will

remain deployed and alert along the borders, as our commander in chief

has ordered, to avoid any violations of our territory’s integrity,” Padrino

said.

Maduro, who won a second term last year in an election that critics have

denounced as a sham, retains the backing of Russia and China and

control of Venezuelan state institutions.

Leaders of several Latin American nations plan to travel to Colombia’s

border with Venezuela on Friday ahead of the delivery of aid, Chilean

President Sebastian Pinera said on Tuesday, adding that he had

accepted an invitation from Colombia’s president, Ivan Duque.

It was not immediately clear which leaders would attend. Most Latin

American countries now recognize Guaido as president, though Bolivia,

Cuba and Nicaragua still support Maduro.

Billionaire businessman Richard Branson is backing a “Live Aid”-style

concert on Friday in the Colombian border city of Cucuta with a

fundraising target of $100 million to provide food and medicine for

Venezuela. Maduro’s government has announced two rival concerts just

across the border.

<< Back to news headlines >>

GECOM votes to continue business as usual, is not preparing for elections Wednesday 20th February 2019 – Kaieteur News

The Guyana Elections Commission (GECOM) has spoken. It is not ready for

General and Regional Elections and will not be any time soon.

This position was officially taken yesterday by way of a vote.

The Commission voted on three motions in the name of A Partnership for

National Unity (APNU) Commissioner, Charles Corbin.

The first motion considered was one calling for President David Granger to

be informed that GECOM cannot be ready for elections within the 90

days that the constitution prescribes in event that a motion of no-

confidence is passed against the government.

GECOM recorded two People’s Progressive Party (PPP) Commissioners

voting against that motion and one Commissioner abstaining. The three

APNU Commissioners voted in favour of the motion and so it was carried.

Second, the Commission considered a motion that resolved to let it be

registered that GECOM is not financially able to hold elections in the short

term. All three PPP Commissioners voted against while APNU

Commissioners voted for the motion. GECOM Chairman, Justice James

Patterson voted with APNU Commissioners. That motion was therefore

carried.

Third, the Commission considered a motion that gave direction to

GECOM Secretariat for it to continue with its work programme for 2019, as

it were before the passage of the no-confidence motion. That motion was

passed, too, in the same fashion that the second was passed.

The third motion would see GECOM preparing for house-to house

registration as was called for by the APNU and Alliance for Change (AFC).

In this period, until a contradictory decision is made, GECOM will not act

in accordance with any work programme that responds to a call for

elections in the short term.

In the aftermath of yesterday’s vote, this newspaper conducted interviews

with Commissioners Vincent Alexander and Sase Gunraj.

PROGRESS

Alexander sits on GECOM in representation of APNU.

Alexander said that he sees yesterday’s vote as progress in that there is no

longer any uncertainty about the position of GECOM.

He confirmed that there will be house-to-house registration as it forms part

of GECOM’s “normal work programme.”

The Commissioner said, “Our work programme for 2019 has provision for a

cycle of claims and objections and for house-to-house registration.”

He said that, almost instantaneously, GECOM will begin preparatory work

for house-to-house registration, “meaning house-to-house will not begin

tomorrow, but we will be preparing for house to house.”

At a press conference, Chief Elections Officer, Keith Lowenfield, had

stated that if there is to be house-to-house registration, General and

Regional Elections cannot be held before February next year.

Yesterday, Kaieteur News asked Alexander if based on the decision to

continue with the normal work plan which includes house-to-house

registration Guyanese are not to expect elections before next February.

He responded, “People are linking this to the question of election. I do not

know what will become of the elections; but what GECOM is doing in the

meantime, is what we are supposed to do and when those other matters

are settled, we will respond.”

This newspaper asked Alexander if it is to be understood that GECOM is

not continuing its work while ignoring the vote of no-confidence and the

call for elections in three months.

The Commissioner explained, “We are not ignoring the motion. In relation

to the motion, we said that we cannot do it in the stipulated time. There

are routine things that GECOM is doing which will help in the preparation

for elections, but they are not things that are voted for under an election

programme.”

Alexander said, too, that GECOM’s routine work which it is pursuing does

not contradict preparation for election but cannot be considered as

preparing for election.

He said that GECOM was not given any directive that speaks specifically

to preparing for election.

Therefore, GECOM will “continue with its programme for 2019 which does

not inherently conflict with election but is not the election preparation

that the no-confidence motion stipulates. It is a process that will enhance

its readiness for elections.”

The PPP sent out a statement yesterday registering that the “unilaterally

appointed GECOM Chairman, James Patterson” voted with the APNU.

Alexander said that the Chairman indeed voted in favour of the motions.

However, he was keen to note that the Chairman voted in the “normal

course of things.” Alexander said that the Chairman can vote in the

normal course of things and is also empowered to cast a deciding vote.

“(Yesterday) he did not have to use his deciding vote; he voted in the

normal course of things.”

WRONG DIRECT ION

PPP Commissioner, Sase Gunraj is convinced that GECOM is heading in

the wrong direction.

He told Kaieteur News that the Commission recorded him as abstaining to

vote on the first motion when that was not the case. He said that he voted

no.

Gunraj also claimed that house-to-house registration cannot be imminent.

He said that there was no vote on the specific issue. However, as

explained by Alexander, while there was no specific vote on house-to-

house, it forms part of GECOM programme for 2019.

Gunraj disputed this. “It does not have to be house-to-house because

that is not the work plan that GECOM presented to us. There was no such

vote by the commission that house-to-house must start.

“There was supposed to have a continuous registration cycle.”

Pointed to the fact that GECOM’s Budget sets aside money for house-to-

house registration, Gunraj said, “but at this point there is no decision to

start it and it was never GECOM’s intention to start house-to-house at this

time.”

Gunraj even noted that GECOM is behind where it is supposed to be in its

“normal work programme.” He said that the blame for this reality must be

placed solely at the feet of the Chairman.

“The Chairman was away from November 19 until January 22, last and as

a consequence, no step could have been taken in relation to continuous

registration which was planned.”

Gunraj maintained that GECOM has a valid list which will expire on April

30. He reminded that that list was used three times in less than five years.

<< Back to news headlines >>

Customs Moves on Registration Concern Tuesday 19th February 2019 – Tribune 242

Customs is moving to ensure the one-time registration for its new

automated system is as “efficient and seamless” as possible following

multiple complaints of delayed import clearances.

Marlon Johnson, the Ministry of Finance’s financial secretary, told Tribune

Business yesterday that all businesses - not just couriers and brokers - are

required to register with the Department’s new Electronic Single Window

(ESW).

Arguing that this would bring “certainty and accountability” to the import

and goods clearance process, Mr Johnson said Customs needed to “tie it

back” to the ultimate shipment owner since they were responsible for

paying due taxes.

The top Ministry of Finance official acknowledged the need for more

public education on the registration process, and to “streamline” it, after

several businesses complained to Tribune Business about the “four times’

longer than normal” delays incurred in clearing packages vital to their

smooth functioning.

Some said they had to present themselves personally at Customs,

together with incorporation papers and other corporate identity

documents, before they could obtain their shipments.

And concerns have also been raised that Customs may be demanding

valid business licences for 2019 before they will register a company, even

though the private sector still has until March 31 to pay the fee.

Mr Johnson yesterday moved to ease business licence-related fears by

revealing that the government had issued “clarifications” to Customs and

other agencies to confirm that prior year licences were valid until end-

March.

However, with only air freight subject to the registration process to-date,

fresh concerns are likely to mount when the initiative is extended to sea

freight - representing the bulk of The Bahamas’ multi-billion annual imports

- by next month.

Mr Johnson confirmed that plan yesterday and explained: “What’s

happening is that Customs is moving to the Electronic Single Window

(ESW). As part of that, everyone who is going to be importing must be

registered.

“It’s a one-time registration process, and we’ve been talking to Customs

to find out how to simplify it. We call businesses one-time so there is

certainty and accountability as far as imports are concerned, and it helps

to manage Customs’ processes better.

“We do recognise that there needs to be more public education around

that and are looking at how to simplify the process and procedures to

make it happen and make it more efficient and bearable for everyone.”

Pointing out that couriers and brokers were not the actual importers, but

merely acting on behalf of those who were, Mr Johnson said Customs

needed to “tie it back to the persons importing because they’re paying

for it and have ultimate responsibility for it”.

“This is a one-time process as we transition to the system,” he reiterated.

“Airside freight started several months ago, and sea freight will start next

month nationwide. We will be doing more to ensure the public

understand and are aware and will make it streamlined and seamless for

persons as much as possible”.

However, one private sector source, speaking on condition of anonymity,

warned that the “ease of doing business” in The Bahamas again being

undermined due to the extra time taken to clear imports.

“It’s inconvenient, there’s long waiting times, and things that should clear

in a few days are taking four times’ as long as they should,” the source

said. “Because of what they’re trying to implement it’s causing this

backlog and taking much longer for people to get their packages and

whatever.

“It is taking much longer, extremely long, to get your packages once you

submit everything. A FedEx package takes forever. It’s ridiculous how

much of a backlog it’s created. They need to go in and independently

test the system they are putting in place to make business and the

process easier. They can’t continue with what they have now, especially

with sea freight; it will be all over.”

Mr Johnson, meanwhile, said the Government had also addressed

complaints that Customs was departing from standard practice by

refusing to clear goods for companies who do not possess a valid 2019

Business Licence.

While Business Licence revenues have to be “certified” by end-January of

each year, companies have until March 31 to pay the accompanying

fees. Several sources told Tribune Business that Customs was no longer

operating as if prior year Business Licences were valid until end-March - as

has been the normal procedure.

But Mr Johnson, while conceding there was “a point of confusion about a

month ago”, said the issue of “Customs asking for a new Business Licence

even though the law allows it to be current up until the end of March”

had already been addressed.

“We’ve made a clarification - not just with Customs but all government

agencies - to make sure they can accept Business Licences up to March

31,” he told Tribune Business. “The comptroller would have sent a

communication to the Customs team to advise them of that. I’ve seen the

communication.”

One source, speaking on condition of anonymity, expressed concern

about “inconsistencies between Customs and the Department of Inland

Revenue” over the interpretation of Business Licence-related laws and

policies.

“The procedure for business licences is that they need to be ‘certified’ by

January 31 and paid by March 31,” the contact said. “I just received a

call from a client, and they are not being allowed to clear inventory as

they have not yet paid for their business licence.

“It has been a practice in the past for Customs not to enforce the business

licence requirement until March 31. If this is a ‘new’ policy by Customs,

then it in unfair as it only affects businesses that have imports. The services

industries are not affected by Customs changes. As we try to ascend to

WTO, we cannot implement inconsistent policies internally.”

<< Back to news headlines >>

Bahamas Must Benefit in WTO Sector Openings Tuesday 19th February 2019 – Tribune 242

The Bahamas will only open up industries to foreign competitors under the

WTO if doing so generates “real economic opportunities” for this nation, its

chief negotiator asserted yesterday.

Zhivargo Laing, a Cabinet minister under the last two Ingraham

administrations, told Tribune Business that the government will not retreat

from the position that Bahamian-owned businesses must “at the very least

still be competitive” with overseas rivals in any sector that is liberalised

when this nation becomes a full World Trade Organisation (WTO) member.

He added that government, in partnership with the private sector,

wanted to ensure all positions taken in the WTO accession talks are “both

doable and winnable” and resulted in “net gains” for both particular

industries and the wider Bahamian economy.

Speaking ahead of the government’s planned consultations this week

with specific industries and their trade associations, Mr Laing emphasised

that The Bahamas was entirely in control of its own fate in the negotiations

to join global trade’s rules-setting body.

Reassuring that “nobody” can force The Bahamas to do anything, be it

opening up specific services industries to foreign companies or cutting

particular tariffs, Mr Laing said “it’s entirely up to us” how fast the

negotiations proceed and whether this nation ultimately joins the WTO.

He revealed that The Bahamas’ fourth meeting with the WTO Working

Party, made up of nations interested in trading with this country, has now

been pushed back by a further month from March to April 2019.

The Working Party will negotiate the terms of The Bahamas’ accession,

and the delay gives the government extra time to consult with the private

sector and specific industries on how this nation should respond to the

questions and requests prompted by its initial goods and services offers.

This week’s series of consultations are with services sectors that Working

Party members identified in their initial responses, which likely means they

want The Bahamas to further liberalise its position in these areas - possibly

even opening up to the extent that it allows foreign firms to establish a

physical presence in this jurisdiction.

The sectors meeting the Government this week to determine The

Bahamas’ response, and the negotiating stance it should adopt ahead of

the fourth Working Party meeting, are accounting and auditing services;

engineering and architectural services; the construction industry; real

estate; advertising and public opinion services; audio visual services; the

Port Authority; wholesale and retail services (food and beverage); non-

food wholesale and retail; and the auto industry.

Mr Laing yesterday confirmed the meetings will assess “the responses

we’ve gotten from several countries as it relates to their particular sector,

and how they think we ought to respond to these requests”.

The chief negotiator, who oversaw The Bahamas’ application for full WTO

membership back in 2001, said the consultations reaffirmed his and the

Government’s commitment to involve the private sector “at every stage

of the process” given that it drives the country’s trade and will be most

affected by the accession terms.

“We want to be able to have industry-agreed responses to whatever

requests are made, and whatever offers we make. Every set of

consultations is important,” Mr Laing told Tribune Business. “We are seeking

to ensure that every position we take is both do-able and winnable in

terms of gains for industry and the country. That’s really the bottom line.

“Our economy flourishes when our industry players flourish, and that’s both

Bahamian businesses and non-Bahamian businesses we allow into the

country to operate. We want to have negotiated positions that represent

the best opportunity for our industry players.

“If there is an opening [of a particular industry] to be done, that has to be

an opening that represents real economic opportunity for the country

and represents an opportunity for our local businesses to, at the very least,

still be competitive.”

Pledging that no Bahamian sector or businesses will be placed at an

undue disadvantage, Mr Laing said this nation was in full control of its

destiny in the WTO talks and could not be forced into any action that was

against the national interest.

“What’s important for people to know is that openings are negotiated,”

he explained. “Nobody imposes an opening. Nobody demands an

opening. We either say no, concede, or offer an alternative. It’s entirely

up to us. The reality is we are committed to walking these steps together

with industry partners.”

Keva Bain, the acting director of trade, pledged to private sector

participants in this week’s consultations that the Government would be as

transparent as possible over the WTO negotiations and their progress.

She pointed to the disclosure of The Bahamas’ original goods and services

offers as making good on this commitment and said private sector

feedback is “critical” if this nation is to craft the best possible counter to

the Working Party group’s questions.

Ms Bain, in a letter seen by Tribune Business, wrote: “The revised offers

signalled the country’s willingness to lower tariffs on certain goods and to

liberalise certain services sectors with a view that undertaking such

commitments would ultimately benefit the Bahamian economy and the

Bahamian people.

“The Bahamas received feedback on its revised goods and services offer

at the Third Working Party meeting on The Bahamas’ accession to the

WTO held in Geneva, Switzerland, in September 2018.... In its ongoing

efforts at transparency and ensuring the continued input of the private

sector in this important process, the WTO negotiating team intends to

discuss the feedback from WTO states regarding specific services sectors.”

Ms Bain said the fourth Working Party meeting had already been put back

to mid to late March “at The Bahamas’ request to allow additional time

for sector specific consultations on responses to our offer”. That date, Mr

Laing confirmed yesterday, has now been pushed out to April.

“Your favourable response to this [consultation] is therefore critical as it

would assist the negotiating team in formulating The Bahamas’ response

to the requests received from WTO states to our revised offers,” Ms Bain

told the private sector.

<< Back to news headlines >>

Renewable Providers Call for Energy Trading Tuesday 19th February 2019 – Tribune 242

A newly-formed renewable energy association of yesterday branded The

Bahamas’ energy sector model as “outdated” and called for far-reaching

structural reform.

The Sustainable Energy Association of the Bahamas (SEAB), which

represents three renewable providers, said in a statement: “The current

business model of the energy sector is outdated, and has not adapted to

the paradigm of distributed generation. This means that the nation will, for

the foreseeable future, depend on foreign, imported fuel and the

conversion to carbon free technologies, like wind and solar, is not

progressing as it should.”

It added that the Electricity Act currently only allows two power

companies to provide electricity, Bahamas Power and Light (BPL) and the

Grand Bahama Power Company (GBPC). “This Act needs amendments,

mainly to recognise that any citizen can now become a power producer

and that incumbent utilities’ business models need changing,” the

association added.

It argued that BPL’s agreement with Shell for the latter to develop a new

multi-fuel power plant for New Providence will “alter the paradigm of the

energy sector, as the energy cost from the new generation plant (PPA)

should introduce a wholesale price of electricity”.

“From that we should create a market-oriented power trading system

where anyone with the appropriate technical and financial background

could bid for energy delivery,” the association said. “The reform should

also address the trading scheme’s practical organisation into an

independent Utilities Collection Agency, which would collect all revenues

from energy sales and pay participants for their services, such as IPPs

(independent power producers), ISOs (independent systems operators)

and for the upkeep and modernisation of the grid.

“Transactions would be fully digitised similarly to the VAT system, and

further improved by the application of blockchain technology. Blockchain

ledgers would introduce peer-to-peer power trading where, for instance,

a business or hotel could contract a certain amount of energy output

from an IPP and conduct automated transactions between them.”

The SEAB also called for the sale of Family Island infrastructure to

developers who would transform them into solar and wind powered mini-

grids, then transfer them to local communities as co-operatives.

“This would result in the local population getting the benefits of their

investments, as they could purchase shares in the cooperatives and have

a voice in how they are managed. A good example for such a

cooperative is the St George’s Cay Power Company operating in Spanish

Wells that has high customer satisfaction and a service level that is

unparalleled,” it said.

“As policy making is a government task, we would like to ask for

participation in the process of how our energy future is shaped. We are

also asking for a wider participation of businesses and individuals so that

the benefits of distributed energy can be enjoyed by everyone.

“Since everyone can install a solar system and become an independent

power producer (IPP), a cost of ten to 12 cents per kilowatt hour is

achievable. It should be up to us how we want our energy and money to

be managed.”

The SEAB was formed near the end of 2018 through three companies:

Super Green/Compass Energy; Alternative Power Supplies; and Bahamas

Energy and Solar Supplies.

<< Back to news headlines >>

Petrojam's Value Eroded - Oil Refinery's Sale Price Plummets Due To

Inaction On Upgrades Wednesday 20th February, 2019 – Jamaica Gleaner

Jamaica’s sole oil refinery, Petrojam, has seen its market value eroded by

nearly US$100 million because of a decade of broken promises, delays

and inaction by the Venezuelan government, the Andrew Holness

administration has revealed.

According to newly appointed Energy Minister Fayval Williams, Petrojam’s

market value was listed at between US$126 million and US$128 million by

international oil and gas consultants Muse Stancil in 2006 when Jamaica

signed a joint-venture agreement with Petróleos de Venezuela S.A.

(PDVSA), Venezuela’s state-owned oil company that was expected to

finance a major upgrade of the refinery, among other things.

But Williams disclosed yesterday that an evaluation carried out last year

by the same consultants listed Petrojam’s market value at US$34 million.

“The joint venture destroyed value, significant value,” she said during a

marathon debate in Parliament on the proposed legislation that would

allow the Jamaican Government to retake the 49 per cent stake in

Petrojam that was sold to PDVSA under the 2006 agreement.

However, Central Manchester Member of Parliament Peter Bunting

surprised lawmakers with a third evaluation that was conducted by Muse

Stancil in June 2017 that assessed Petrojam’s market value at US$170

million and questioned why it was not disclosed.

“I want the prime minister to explain whether there was such a valuation

and to explain the destruction of value between 2017 and 2018 under

their watch,” Bunting said.

Finance Minister Dr Nigel Clarke quickly intervened and declared “there is

no 2017 valuation”.

But Holness, the prime minister, later confirmed that an evaluation was

conducted in 2017 while his administration contemplated a $100 million

investment in upgrading the Vacuum Distillation Unit (VDU) at Petrojam.

“A valuation was done on the basis of securitising the investment. That

was not done with the intention of using that as the negotiating price for a

sale,” he explained.

The other evaluation, he said, was done in 2018 when the Government

“got to the point when we had to sell”.

Holness, in defending his Government’s decision to retake Venezuela’s

shares in Petrojam, pointed to what he described as the broken promises

and delays by the South American country to honour its commitment to

upgrade the 55-year-old refinery.

He said technical assessments have revealed that by next year, refining

operations at the 55-year-old refinery will be “negatively affected” if the

company was not able to undertake phase one of the upgrading work,

which is the VDU.

Among the reasons, Holness said, was the transition by the Jamaica Public

Service Company to LNG for its 190-megawatt plant in June later this year

and the imminent international obligation regarding sulfur, which takes

effect on January 1 next year.

“Without an upgrade, Petrojam would be unable to further process HFO

[heavy fuel oil] into high-value products, and having lost it major

customer, JPS, Petrojam would become unprofitable,” he warned.

Holness said all of this comes against the background of the difficulties

faced by the energy sector because of sanctions imposed on the Nicolas

Maduro administration by the United States.

The bill was passed by the Lower House and will now go to the Senate for

approval.

<< Back to news headlines >>

Access Financial grows asset base by $1.5 billion Wednesday 20th February, 2019 – Jamaica Observer

ACCESS Financial Services Limited (AFS) has recorded growth in its asset

base of $1.5 billion or 41 per cent to $4.99 billion, partly attributable to the

acquisition of Florida-based microlender Embassy Loans Inc.

On December 15, 2018, AFS completed the acquisition of Embassy Loans

Inc at a cost of US$6.4 million, in keeping with its long-term strategy to

diversify the company's operations and revenue streams.

The transaction was funded from the proceeds of a $900-million global

bond which was issued by the microfinance institution in October 2018.

For the period ending December 31, 2018, AFS raked in net profit of $584

million, a $79-million increase over the comparative period in 2017. The

results, however, only included 15 days of Embassy Loans' operation under

AFS.

“The acquisition is currently being reviewed by our auditors, additional

details of the transactions will be included in our next quarterly release,”

Chief Executive Officer Marcus James said.

The rest of the growth in the company's asset base came from

improvements in its loan portfolio which grew by $1.1 billion or 38 per cent

for the December quarter; moving to $4.0 billion from $2.87 billion for the

corresponding 2017 period.

AFS net operating income for the December period amounted to $1.3

billion, led by interest income from loans disbursed by the company which

increased by $202 million or 20 per cent to $1.2 billion.

However, the microfinance institution's net fees and commission for the

period was slashed by 48.9 per cent to $138 million.

The microfinance institution managed to contain operating expenses,

down 3 per cent or $23 million when compared to the corresponding

period ended December 2018, resulting from reduced allowances for

credit loss.

Cash and cash equivalents of the company dipped to $407 million from

$433 million in 2017.

<< Back to news headlines >>

Falling dollar pushes up foreign debt Wednesday 20th February, 2019 – Jamaica Observer

THE country's total central government debt stock increased by $2.3 billion

between the end of March, 2018 and the end of December, 2018,

according to the Fiscal Policy Paper (FPP) tabled in the House of

Representatives on Thursday.

According to the FPP, the stock of central government debt at the end of

the third quarter of 2018/19 was $1.944 trillion, consisting of external debt

of $1.191 trillion and domestic debt of $752 billion.

Total central government debt increased by $2.363 billion, or 0.1 per cent,

over the end-of-March stock of $1.941 trillion.

“This increase was due to a rise in the external debt stock, largely on

account of the depreciation of the Jamaican dollar relative to the US

dollar, which outweighed the reduction in the domestic portfolio,” the FPP

explained.

December 2018 debt stock saw a reduction in domestic and net public

bodies, while the stock of external debt increased, compared to March,

2018. However, collectively, the stock of debt declined and continues to

trend downward.

“The fall in the domestic debt stock was the result of net outflows from a

large amortisation of a benchmark investment note (BIN), which

exceeded domestic loan receipts for the period,” FPP noted.

The FPP also pointed out that there was a reduction in outstanding loans

that contributed to the lower domestic debt, which was partially offset by

an increase in treasury bill issuances.

The net public bodies debt at the end of December 2018 was $7.5 billion

which was $2.8 billion, or 27.4 per cent lower than the $10.4 billion

recorded at the end of March, 2018. This decrease was driven by a

reduction in guaranteed loans, loans from central government and an

offset due to an increase in non-guaranteed loans held by the public

bodies.

Year over year, the stock of debt also declined. The end of December

2018 debt stock of $1.951 declined by $1.3 billion, or 0.1 per cent,

compared to the $1.952 trillion recorded in December 2017. Central

government debt increased while the stock of non-central government

debt declined.

<< Back to news headlines >>

Jamaica companies to benefit from three-year programme Wednesday 20th February, 2019 – Jamaica Observer

The Jamaica Promotions Corporation (Jampro) says 50 companies will

benefit from capacity building and export promotion support under the

government's three-year Export Max III programme due to begin in April.

The programme is aimed at providing focused capacity, advocacy and

market penetration support to exporters and export-ready firms and is also

intended to competitively position the entities to exploit market

opportunities and ultimately make a greater contribution to the local

economy.

Jampro's Sales Support Unit Manager, Ricardo Durrant, told the Jamaica

Information Service (JIS) that a key objective is identifying specific needs

of the target companies and designing and implementing customised

enterprise development initiatives to improve business performance and

competitiveness.

As a result, Jampro has partnered with the Jamaica Manufacturers and

Exporters Association (JMEA), and the Jamaica Business Development

Corporation (JBDC) will deliver the programme which also includes

mentorship, business development, sales training and export promotion

components.

“We have collaborated with these two super agencies, which will bring

their individual talents and capacities to bear on the programme. The

JBDC deals with business development, [which] they are strong on… and

will bring that to the programme, while the JMEA will offer the mentorship

and market intelligence that these companies will find useful,” he said.

“As you know with most small companies, there is an incubation period

where they need that mentorship to develop and grow and become

super companies, and we expect that the JMEA will deliver to these

companies.”

Durrant said that Jampro, in delivering the export promotion component,

will introduce the companies to various markets in the Caribbean, United

States of America, Canada, and the United Kingdom through trade

shows, expos and other inward or outward missions arranged.

“Entering into an overseas market is not the easiest thing… so capacity

building is going to be very important. We have to ensure that they have

sound management practices, [so] they will go through a productivity

improvement programme and there will also be sales training and access

to financial support,” he added.

The Export Max III programme seeks to attract Jamaican-made products

from agro-processing, manufacturing and services in the categories of

food, that is, processed and manufactured; non-food such as castor oil,

chemicals and cosmetics; and services covering film, animation,

education, music and information technology-enabled services.

<< Back to news headlines >>

Gov't willing to wait on Venezuelan nod on Petrojam shares Tuesday 19th February, 2019 – Jamaica Observer

Prime Minister Andrew Holness says that the government is willing to wait

until the Senate debate to withdraw the Bill for compulsory acquisition of

Petrojam's shares held by Venezuela's PDVCaribe.

“Let me also state for the record that we have at all relevant times prior to

this moment, made it clear to PDV Caribe that if it were to agree to

feasible terms for the sale of the shares, the Government of Jamaica

would suspend this legislative process. Despite our various efforts, we have

not, to date, had success,” Holness said.

“I want to make it clear, that were they to sign the draft Share Purchase

Agreement before this debate is concluded today, the Government of

Jamaica would have been willing to suspend this process and sign the

agreement as well. Furthermore, if they were to do so prior to its passage

in the Senate, this position would still stand,” he added.

The prime minister was opening today's debate in the House of

Representatives on the Compulsory Acquisition (Shares in Petroleum

Limited) Act which seeks to enable the government's right compulsory

acquire the 49 per cent share in the Petrojam Refinery owned by

Venezuelan state-owned oil and natural gas company, PDV Caribe, if

there is a failure to reach a mutual agreement on the recovery of the

shares.

He said that the Bill had been carefully drafted to achieve the primary

purpose of assuring Jamaica's energy security, without threatening its free-

market policies, its promotion of foreign direct investment or its belief in

and appreciation for international cooperation.

Holness noted that the Bill provides for the acquisition of the shares in

Petrojam Limited not held by the Petroleum Corporation of Jamaica, and

is not intended to be of general application to this or any other sector, or

any other company in any sector.

“In fact, our Government is aware that if this Bill were not specific to the

particular circumstances at hand, it could have been perceived as a

potential dissuasion to investors on a whole. And so, we have been

careful in this regard, to ensure that the Bill achieves the primary purpose

of compulsorily acquiring the 49 per cent shareholding in Petrojam

Limited, in the public's interest,” the prime minister added.

<< Back to news headlines >>

Fisherfolk upset, want help Wednesday 20th February, 2019 – Trinidad Express Newspapers

FISHERMEN protested outside Parliament yesterday, hoping that

Government would consider issuing them cards identifying them as bona

fide fisherfolk and exempting them from paying taxes on gasoline.

President of the Guayaguayare-Ortoire Mayaro Fisherfolk Association

Francis Arjoon gathered with 50 other fishermen in front the International

Waterfront Centre in Port of Spain before the Senate sitting.

In December last year the Energy Ministry announced that, with the

closure of Petrotrin, Trinidad and Tobago would now have to import fuel to

meet local needs.

The Paria Fuel Trading Company, which is responsible for the supply of

liquid petroleum fuels on the local market, said the demand for regular

gasoline (used by fishermen to power their outboard engines) was too low

and fluctuated between 8,000 and 10,000 barrels a month and was

therefore uneconomical.

Fishermen have since complained that super gasoline, which costs $4.97 a

litre, is much higher than regular gas at $2.60 per litre and is affecting their

ability to continue their trade.

As a quick-fix measure Arjoon said: 'I am advocating that we be allowed

to pay no VAT on gas.

'They can issue us an identification card as fishermen so that we could be

assigned a quota of gas for the week or the month and we don't pay

taxes and we could live with that small concession.'

Kishore Boodram of Trinidad and Tobago United Fisherfolk agreed with

Arjoon, adding: 'We are seeing hell to fill our tanks because the better gas

they said we are getting burning out faster than before and super gas is

not designed for our engines.'

He lamented that the fishing sector was the poorest sector in Trinidad and

Tobago.

'When I say poorest I mean in profit margin and I don't want to talk about

the other things affecting us because the pirates impacting us and

pollution impacting us so we need the subsidy to help maintain our

livelihood and families,' he said.

<< Back to news headlines >>

$50m investment boost Wednesday 20th February, 2019 – Trinidad Express Newspapers

DOMUS Caribbean uPVC Solutions, a company owned by the Ortt Family

Trust and Arturon Ltd, opened a new factory yesterday in Chaguanas.

After two years of construction, the $50 million facility now employs 55

people in the largest glass-laminating facility in the English-speaking

Caribbean.

Domus chief executive officer Terrance Ortt started the company in 2005

but moved his manufacturing business from St Kitts to T&T after

businessman Arthur Lok Jack convinced him.

Since 2012, Ortt has been going through a Government-expedited

(InvesTT) process to set up the investment in T&T.

Ortt, Rowley, and Lok Jack spoke at the opening ceremony of the Domus

factory.

'Trinis don't need to live in cages. There are options,' Ortt said, referring to

the burglar-proofing the windows provide.

Ortt said the windows are built out of the 'same material at (Arthur Lok

Jack's) house where thieves tried to break in a couple years ago and

couldn't get in'.

Using examples and testimonials, Ortt showed how the high-impact,

hurricane-resistant windows and doors could stand up to gale-force winds

and 'missiles'.

'It'll go through a block wall with half the energy and kill you, but it won't

go through the windows,' he said, referring to a missile of debris that

shattered but did not break the glass.

A lot of Govt business

'We do quite a lot of Government business,' Ortt said.

Domus did the last 12 police stations' windows and is working on the 13th

now. Among hotels, he said the Magdalena Grand hotel in Tobago, and

the Bougainvillea in Barbados are windowed by Domus.

'A lot of those fellows who have their little workshops doing burglar-

proofing better be careful,' Lok Jack quipped as he left the stage.

Lok Jack had told reporters and guests that liquidity and capital in T& T

right now are readily available and relatively cheap.

He said, generally speaking, the T&T market is not 1.3 million but over 100

million, counting Colombia, Central America, the Dominican Republic,

Puerto Rico and the Caribbean Community (Caricom), which he

describes as a five-million-person market.

For this reason Lok Jack said he was proud to add Domus as one of the

companies in which he is involved that are net forex earners.

Plans are afoot for the company to expand to Jamaica and the French

islands of the Caribbean next.

Rowley: Positives in T&T

Prime Minister Dr Keith Rowley was thankful to the Ortt family for investing

$50 million in T& T, saying he was sure the money wasn't scratching them in

their pockets.

'You have chosen T&T to make your investment, despite whatever

problems we have, and I thank you for that,' he said.

Rowley said there are other competitive jurisdictions with crime problems

too, and was pleased to see the company overlook this negative.

'We do have some positives that are not available elsewhere,' he said.

Topping his list was skilled labour, a stable water supply and cheap

electricity.

'So these are some of the things we should package and sell.'

Sometimes the private sector is timid and needs the Government to

partner with it, Rowley said as he responded to Lok Jack's recent

statement that Government has no business being in business.

He admitted, though, that it becomes problematic when 'a government

buys an oil company, and the oil company has a farm, and the farm has

cows, and the government now has to milk the cows'.

Rowley argued: 'The government does have a place in business.'

Still responding to Lok Jack, Rowley said he doubted whether the private

sector would have 'moved out of its bounds' and taken the risks necessary

to enter some of the businesses into which Government has entered.

Rowley closed his speech, noting: 'I'm glad I'm hearing less about

devaluation and more about investment.'

<< Back to news headlines >>

Govt to write EU over blacklist Wednesday 20th February, 2019 – Trinidad Express Newspapers

THE Government intends to write to the European Union (EU), objecting 'in

the strongest possible terms' to the 'arbitrary' placement of Trinidad and

Tobago on the blacklist of countries categorised as tax havens or places

where there is money laundering.

So said Minister of Finance Colm Imbert, in response to an urgent question

from Independent Senator Charrise Seepersad in the Senate yesterday.

'The European Union has arbitrarily and unilaterally included us and the US

territories on this so-called blacklist. We do not agree,' Imbert said.

'We have no reports of any impact on Trinidad and Tobago banks in their

dealings with European banks at this point in time. We continue to monitor

that situation.

'We do intend to communicate with the European Union and object in

the strongest possible terms, just like the US has done,' he said.

Asked by Independent Senator Deoroop Teemul what measures T& T

intended to take to get its name off the blacklist, Imbert said: 'This so-

called blacklist came out of the blue. We are still studying it... It appears

that the European Union is developing its own set of criteria in addition to

FATF criteria and in addition to Global Forum criteria.

'T& T agreed with US'

'The EU is developing its own set of criteria, so we would need to look at

this very seriously and determine how we deal with this.

'But the first thing you would do is to make representation at the highest

level and object in the strongest possible terms to this arbitrary event.'

Imbert said the US Treasury Department had scolded the European Union

for including US territories on the list of tax havens or areas where there is

money laundering.

The Treasury Department has told US banks to ignore EU directives 'in a

very unusual technocratic spat that shows continued friction between

Washington and Brussels'.

He said Attorney General Faris Al-Rawi issued a statement on February 15,

which stated Trinidad and Tobago wholeheartedly agreed with the

analysis of the United States which laid four compelling reasons for the

rejection of the European Commission's publication.

The reasons were:

1. the commission's process did not include a sufficiently in-depth review

necessary to conduct an assessment related to such a serious and

consequential issue;

2. the commission provided affected jurisdictions with only a cursory basis

for its determination;

3. the commission notified affected jurisdictions that they would be

included on the list only days before issuance; and

4. the commission failed to provide affected jurisdictions with any

meaningful opportunity to challenge their inclusion or otherwise address

issues identified by the commission.

<< Back to news headlines >>

Two exporters still owed $$ by Venezuela Wednesday 20th February, 2019 – Trinidad Express Newspapers

TWO of the 12 exporters of 12.6 tonnes of goods worth US$26.9million to

Venezuela are still owed money, Trade and Industry Minister Paula

Gopee-Scoon confirmed last week.

In Chaguanas, at the launch of a T& T Bureau of Standards (TTBS)

metrology exercise throughout the National Petroleum (NP) network of

gas stations, Gopee-Scoon was asked for an update on a June 23, 2016-

announced programme to export T& T-manufactured products to the

Bolivarian Government of Venezuela.

She said in August last year that the two local companies were owed

approximately US$979,000 by Corporación Venezolana de Comercia

Exterior (CORPOVEX) - the Venezuelan trade agency responsible for

paying for TT goods shipped to the South American nation. Gopee-Scoon

identified the companies then as VEMCO, the Mouttet-family company,

and Langston Roach Industries Ltd. The original arrangement was for a

US$50 million revolving fund of $50M USD to facilitate the purchase of a

specific list of Trinidad and Tobago manufactured products.

'At the last occasion we spoke, the situation is pretty much the same.

There is an amount outstanding but the amount outstanding I believe it is

to two (out of) the 12 businesses that had been involved from the

beginning. So the substantial part of it has been satisfied, and of course,

you know the situation that has overcome Venezuela, and it is, I think,

largely for that reason those two debts have not yet been satisfied, but it's

something that we have always been bringing to their attention, and

we're trusting that it could be satisfied pretty soon," she said.

'Amidst the inclement weather, rice, frozen chicken, ketchup, powdered

milk, mayonnaise and pasta totalling 68 tonnes of food have left Trinidad

and will be received by the President of the Bolivarian Republic of

Venezuela Nicolas Maduro Moros who will be visiting the Eastern Zone of

Venezuela today," a Trade Ministry statement had said June 23, 2016.

'These products came from our local manufacturers Arawak and

Company Ltd, VEMCO Ltd, and Trinidad Parboil Ltd/Old Mac Agro

Supplies Ltd. The shipment is estimated to continue throughout the

coming upcoming week with products from John Dickinson and Co (WI)

Ltd; National Canners Ltd; National Flour Mills and Coconut Growers

Association Ltd," the Trade Ministry added.

The exports were agreed to, after three days of negotiations, June 18-20,

2016, for the 12 products from T& T to be sent, over an initial three-month

period for use in the eastern Venezuelan cities of Cumana, Carupano and

Guiria. The T& T Government assisted with logistics to get the products to

Venezuela.

Gopee-Scoon was in Chaguanas for a joint NP-T& T Bureau of Standards

metrology event last Wednesday.

She said 19 NP service stations were verified in January and eight up to

February 13.

She said it is projected that by June, 2019, all the remaining fuel dispensers

at all NP service stations throughout T& T will be verified.

Gopee-Scoon said: 'This would conclude the nationwide fuel verification

exercise Trinidad and Tobago which commenced in 2018 ultimately

bringing an improvement in the quality of fuel provided by stations

operating in the country. The national community is advised that in order

to ensure that the desired quantity of fuel is dispensed, and consumers

receive value each time they visit the pumps, continuous monitoring

would be essential.

Therefore this verification exercise will continue on a six month rotation

cycle over the next few years."

'The next moves is towards market scales, and that's another exciting

prospect, but again it favours the consumer to ensure that they, in fact,

are getting value for money," she added.

Asked if she was in receipt of complaints, she said: "I'm not sure whether or

not they have received complaints, but whether or not they have, that's

immaterial. We have to ensure that the right thing is being done, in line

with international standards, and in line with the national quality policy

which the Cabinet has approved."

<< Back to news headlines >>

Minister: Don't blame us for late payment Wednesday 20th February, 2019 – Trinidad Express Newspapers

IF there is any question of lateness of Carnival related payments it lies with

the National Carnival Commission (NCC). So said Culture Minister Dr Nyan

Gadsby-Dolly yesterday when asked for comment on late disbursements

of Carnival funds.

She also said both the Culture and Finance ministries have processed

NCC's requests in a timely manner.

Finance Minister Colm Imbert yesterday responded to a Sunday Express

editorial (February 17, 2019) on Carnival funding, saying it had accused

the Ministry of Finance of 'arbitrarily' determining funding for Carnival whilst

having no transparent processes for application and receipt of Carnival

funding by entities.

To date, Imbert said the ministry has provided funding to the tune of $88.9

million for 2019 Carnival celebrations.

Gadsby-Dolly explained that the Culture Ministry processes requests from

the NCC.

She added: 'The Ministry of Finance (Colm Imbert) has responded to the

NCC requests. If there is any issue it has to do with the NCC. Both Culture

and Finance have responded expeditiously.

'If there is any question of lateness it lies with the NCC. There is no issue of

misunderstanding. There is no issue of under-resourcing at the NCC. NCC

is in a position to run the NCC.'

She also said the NCC would have received a tranche of money, and

other sums would be released in the post-Carnival period.

She said: 'NCC got want they have asked for thus far. They would have

received part of the money. Not all the money is released before

Carnival.

'Some people and service providers would be paid after Carnival.'

Moving to regional bodies, she said: 'They are the same people who get

money every year. They are well accustomed to the processes. The

suppliers are the same people. I am confident the regional bodies can

execute Carnival with the money they have been given.'

When contacted, NCC chairman Winston Gypsy Peters said: 'I am not

going to contradict my minister. If she says so is so.'

Lucas, who paused from a meeting with Trinbago Unified Calypsonians'

Organisation (TUCO) to respond, added: 'We got another disbursement

this week. Thus far, we have gotten $25 million. And this week $27 million.

'Further payments are going to be paid this week. It is normal for some

people to be paid in the post-Carnival period. People who put up

infrastructure and people who provide goods and services are paid after

Carnival.'

Payments for community camps coming

And on the other issue of outstanding payments for community-based

camps held in August, Gadsby-Dolly said: 'It is outstanding, and they are

making every effort to pay the mentors. It is not related to Carnival. I don't

have the exact request in front of me. It is at the Ministry of Finance. We

expect to pay them soon.'

<< Back to news headlines >>

Protect scrap iron industry Wednesday 20th February, 2019 – Trinidad Express Newspapers

THE T& T Scrap Iron Dealers Association (TTSIDA) is underlining the industry's

importance as an earner of foreign exchange and as a means of ensuring

T& T complies with its international environmental obligations.

Speaking at a news conference at Signature Hall in Longdenville on

Monday, signalling their importance to the macro-economy, TTSIDA vice

president Erros Seejattan said the 126 scrap iron dealers are also net

foreign exchange (forex) earners. Roach said 100 per cent of the scrap

iron collected in T& T is for export to countries 'all over the world.' Pressed

for specifics, Asia topped the list.

'Some government agencies are studiously putting stop gaps on the

association,' said Roach. Ferguson said the scrap iron business is the last

business left in poor people's hands, in the hands of waste collectors. He

listed a number of businesses that no longer employ large numbers of

poor people.

The scrap iron dealers maintain that the actions of a female public

servant are threatening their business.

They said the public servant, who they did not wish to name, has been

holding up the renewal of their licences at the Chaguanas Magistrates

Court, demanding a Certificate of Environmental Clearance (CEC) in

order to process their renewals. They are asking for a grace period of

three years to get the CECs, and for Prime Minister Dr Keith Rowley and

Attorney General Faris Al-Rawi to intervene.

The scrap iron dealers said the poor will lose and crime will rise if their

businesses are shut down for lack of certificates of environmental

clearance (CECs).

'You think it have crime now? Close down this industry and you'll see,' said

TTSIDA President Allan Ferguson, at the press conference.

He called on the public to help avert what he said would be a period of

high crime in the country if scrap iron dealers and their 25,000 dependents

end up unemployed.

The uncollected ferrous waste will also harm the environment, which is not

in keeping with international environmental conventions T& T signed,

TTSIDA consultant Kenneth Roach added. AG Al-Rawi previously indicated

many of the international conventions T& T signs are not locally binding as

they have to be ratified by the Parliament of T& T.

Roach and Ferguson protested they were never informed of any CEC

requirement by either the Trade Ministry nor the Environmental

Management Authority (EMA) after seven years of meetings.

'It's hurting, you know. You know why? Because we had sit-down

(meetings) with them from 2012 to 2018; met with EMA more than six times,

and they never advised us (we) needed a CEC in the starting month of

the year,' said Ferguson.

He said scrap iron dealers in Chaguanas have not made any money for

the year as they have no licences.

Asked how much business they were losing, he and Roach kept saying just

'millions,' declining to be more specific. However, Seejattan said in excess

of US$1 million. 'There are some people in the Chaguanas (Magistrates)

Court who want to destroy our industry, and we will not help them be

successful in doing that,' said Ferguson. Asked repeatedly who was the

court official, and who was the person he suggested the official might be

working for, he declined.

They said the official also made TTSIDA members listen to a lecture from a

member of the T& T Fire Service (TTFS), who ended his presentation by

telling the TTSIDA members they also needed certification from the TTFS.

'Why are we being treated in a manner like we're the enemy of the state?

We're not,' said Seejattan. He said, 'If we have to be regularized, we have

no problem with that,' but a grace period is necessary for the members to

get the CECs.

Painstaking process

'In the economic climate we are in, this is very stressful,' Seejattan said. He

said the process to get the CEC is not truly 30 days as the EMA claims.

'Obtaining a CEC is a painstaking process,' said Seejattan.

Ferguson and Roach said they have also engaged attorneys to initiate

legal proceedings against the Magistrates Court and is prepared to take

the matter to the highest Appeal Court of the land.

Roach said the scrap iron industry still operates under 1904 law. He called

for new laws to be written to protect scrap iron dealers. 'Is everything they

want to take from poor people?' asked Ferguson. He said Chaguanas has

the majority of scrap iron yards and is the hub for scrap iron dealers across

the country.

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Govt and Secret Bay Residencies sign contract for development of Secret

Bay Tuesday 19th February, 2019 – Dominica News Online

The Government of Dominica and Secret Bay Residencies (SBR) have

signed a contract for the development of Secret Bay Resort under the

Citizenship By Investment (CBI) Programme.

The contract was signed during a special ceremony held at Ti-Bay in

Portsmouth on Monday.

Prime Minister Roosevelt Skerrit said, while addressing the ceremony, that

following completion, 120 Dominicans will be employed at the resort.

“The project comprises of 42 villas and at the end of completion will

provide direct, permanent, sustainable employment for 120 Dominicans,”

he said.

He expressed confidence that the project would succeed, “and we are

going to see one of the best resorts in the western hemisphere here in

Dominica.”

He stated, “We are not here to simply sign a document that will stay in a

filing cabinet in the government and will stay on the coffee table…”

Skerrit added that under the contract, actual commencement of

construction will begin within 90 days.

“This is no pie in the sky agreement… this is not a show. It is a practical

undertaking between the government of Dominica and Secret Bay

Residences,” he said.

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