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

National Commercial Bank Jamaica Limited’s rating upgraded to CariBBB+

NCB (Cayman) Limited’s initial corporate credit rating assigned at CariA

The Government of the Commonwealth of Dominica placed on Rating Watch – Developing

Dominica AID Bank’s rating downgraded by 1-notch and placed on Rating Watch – Negative

The Government of the British Virgin Islands placed on Rating Watch – Developing

The Government of Anguilla placed on Rating Watch – Developing

NCB Capital Markets Limited’s rating upgraded to CariBBB

Trinidad and Tobago Mortgage Finance Limited’s rating reaffirmed at CariAA-

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

The Government of the Republic of Trinidad and Tobago’s rating reaffirmed at CariAA+

The Government of Saint Lucia’s ratings for its proposed bond issues assigned at CariBBB

Goddard Enterprises Limited’s rating reaffirmed at CariAA-

Development Bank of Jamaica Limited’s rating reaffirmed at CariBBB+

Operational Risk Management in 16 & 17 November 2017 Trinidad

Financial Institutions

Please contact Prudence Charles (pcharles@caricris.com) or Sita Sonnyram (ssonnyram@caricris.com) to register

OUR UPCOMING WORKSHOPS!

Benefits of a CariCRIS Rating to a Credit Union:

Demonstrate to members the institution’s financial strength and

soundness

Demonstrate to members its investing capabilities

Employ it as a marketing tool to attract new members

Know where the company stands and use it as a motivation for

growth

DATE

Latest Rating Actions by CariCRIS

WORKSHOP COUNTRY

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

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

REGIONAL

Trinidad and Tobago

Cudjoe says expect bumper cruise season in 2018

Renewed efforts by the Ministry of Tourism to showcase T&T as an ideal

travel destination is already reaping success as the 2017/2018 cruise

season promises to be a bumper one with 71 calls scheduled to put into

port.

Scotiabank appoints new managing director

Scotiabank has announced the appointment of Stephen Bagnarol as

Managing Director of its operations in T&T, as well as Senior Vice-President

and Head of the bank's Caribbean South and East operations.

Unilever declines $4.07

Overall Market activity resulted from trading in 16 securities of which 2

advanced, 5 declined and 9 traded firm.

Jamaica

FHC, Oppenheimer facilitate access to global capital markets

The Kingston-based FHC Investments Limited (FHCIL), a subsidiary of First

Heritage Credit Union, has entered a partnership with New York-based

Oppenheimer Asset Management Inc. which provides a range of services

to banks and high net worth individuals.

PCJ exploring offshore wind farm

Petroleum Corporation of Jamaica (PCJ) has got foreign backing for a

prefeasibility study on the prospect of setting up another wind farm, but

one that would be anchored out at sea.

Barbados

IMF u-turn on economy

Government’s most recent austerity measures have prompted the

International Monetary Fund (IMF) to reverse its growth projections for the

Barbados economy.

Barbados cont’d.

Carnival cruise liner drops out

Hundreds of Barbadians booked to cruise on the Carnival Fascination for

the next three months have had their plans smashed.

Tourism arrivals, bookings up with US market key

Barbados’ tourism officials are reporting a promising tourism performance

for the first eight months of this year.

The Bahamas

Gov't Not Targeting IMF's $70m Slash

The Government is not targeting the IMF's recommended $70 million

wage bill slash, the Deputy Prime Minister said yesterday, but it must right

the Bahamas' "upside down" economy.

BDB Chair: 'Days of $50k Hand-Outs Over'

The Bahamas Development Bank's (BDB) chairman yesterday pledged to

tighten lending protocols, adding: "The days of giving someone $50,000

and saying: 'Go get it done' are gone".

BDB: 'Everything Turns' on $64m Debt Restructure

The Bahamas Development Bank's (BDB) chances of meeting the

Government's three-year 'self-sufficiency' target depend entirely on its

ability to restructure $64 million in long-term debt.

Central Bank Back in Compliance on Gov't Debt Limits

The Central Bank yesterday said its government debt holdings are back in

compliance with its governing Act, with medium and long-term maturities

equal to 12.52 per cent of its demand liabilities.

Baha Mar Launches Hospitality Academy

Baha Mar has launched its Hospitality Academy in a bid to equip

Bahamians with the necessary skills and expertise for a career in the resort

and tourism industries.

BPL Develops Bahamian management Strategy

Bahamas Power and Light's (BPL) Board has developed a plan that will

place the monopoly electricity provider back under Bahamian

management, its chairwoman revealed yesterday.

Guyana

GuySuCo to slash workforce by 7,000

Cash-strapped Guyana Sugar Corporation (GuySuCo) is already letting

go of staffers from two estates that it will close before the year is out.

Amidst worry by sugar workers, GuySuCo officials yesterday confirmed

that 1,500 could be let go from Rose Hall and the East Demerara estates

by the end of the crop. The industry has 17,000 workers. It wants to reduce

that by at least 5,500 more, a total of 7,000 – to finish at 10,000.

Antigua & Barbuda

New agreement to access development assistance

Prime Minister Gaston Browne has signed the Agreement for

Encouragement and Protection of Investment with the Director General of

OPEC Fund for International Development (OFID), Suleiman Jasir Al-

Herbish.

Hello new Barbuda

A Chinese firm has shown interest in establishing a new town on Barbuda,

the government has announced.

Cost of citizenship cut in half – Visa-free loss coming back to haunt?

The loss of visa-free access to Canada continues to haunt Antigua and

Barbuda, according to the Citizenship by Investment Unit (CIU). This is

what eventually led to the need to slash the cost of citizenship by half.

St. Lucia

Increase in tourist arrivals and accommodation expansion – Saint Lucia

growing from strength to strength in 2017

Saint Lucia has recorded strong and steady growth in its tourism sector, so

far for 2017.

Saint Lucia receives almost US$3 million from CDB’s poverty reduction

programme BNTF 9

The BNTF Programme, CDB’s flagship programme for poverty reduction,

has contributed significantly to national development in St. Lucia since it

commenced operations on the island in 1979.

St. Kitts and Nevis

More Cruise Ships are coming to St. Kitts

While the passing of Hurricane Irma and Maria respectively did not have

serious negative impact on St. Kitts, the devastation to major ports of call

in the Northern Leeward Islands has impacted itineraries for cruise calls to

St. Kitts since September 7.

British Virgin Islands

BVI seeks loans, investors after some $3.3B damage

While noting that damage to the territory as a result of recent natural

disasters is estimated at some $3.3 billion across all sectors, Premier Dr D

Orlando Smith said his administration will use an appropriate mix of

financing including grants and affordable borrowing to fund

reconstruction.

No import duties on vehicles, food, clothing

Food, clothing, vehicles and other non-luxury items have been added to

the list of goods on which Government is waiving customs duties, Premier

and Minister of Finance Dr D Orlando Smith announced yesterday,

October 12.

Haiti

Haiti seeks funding with its partners

On Thursday, a delegation of the Government of Haiti (GdH) led by Jude

Alix Patrick Salomon, Minister of Economy, accompanied by Aviol

Fleurant, Minister of Planning and Jean Baden Dubois Governor of the

Central Bank held discussions with leaders of multilateral and bilateral

institutions (henceforth development partners) involved in development

efforts in Haiti. The meeting was convened by the International Monetary

Fund (IMF) as a follow-up to conversations between the the President of

Haiti Jovenel Moïse and Christine Lagarde, Managing Director of the IMF,

in the margin of the recent United Nations General Assembly in New York.

INTERNATIONAL

United States

White House pitches corporate tax cut as win for workers

The Trump administration said in an analysis released on Monday that

middle-class Americans would see incomes eventually rise more than

$4,000 if President Donald Trump’s corporate tax cuts were enacted,

seeking to counter Democratic criticisms that its tax proposals

overwhelmingly benefit the rich.

Fed's Yellen says watching inflation closely but economy is strong

The U.S economy remains strong and the strength of the labor market calls

for continued gradual increases in interest rates despite subdued inflation,

Federal Reserve Chair Janet Yellen said on Sunday.

United Kingdom

Sterling strengthens as investors bet on data boost

The pound edged up on Monday, as investors bet that economic data

this week would put the Bank of England on track for a rate rise by the

end of the year and - at least for the time being - overshadow Brexit.

Europe

Stronger currency shrinks euro zone trade surplus in August

Euro zone’s trade surplus shrank in August as the stronger euro fueled an

import boom that was only partly offset by a rise in exports, official

estimates released on Monday showed.

Euro falters after biggest weekly rise in month as ECB eyed

The euro edged lower on Monday after posting its biggest weekly loss in a

month though prices clung to well-worn trading ranges before a central

bank meeting next week where policymakers are set to unveil a plan to

roll back its record stimulus policies.

China

China data boosts world stocks and commodities, oil jumps

World stocks and commodities rose on Monday, boosted by upbeat

Chinese data, while U.S. oil futures jumped to a near six-month high as an

escalation in fighting between the Iraqi government and Kurdish forces

threatened supply.

China new yuan loans rise more than expected in September

Chinese banks extended more loans than expected in September,

buoyed by demand from home buyers and companies, even as the

government tightened the screws to wean the economy off its years-long

addiction to cheap debt.

China central bank chief surprises with gravity-defying 7 percent second-

half growth forecast

China’s central bank governor said the economy could grow 7 percent in

the second half of this year, accelerating from the first six months and

defying widespread expectations for a slowdown.

Japan

Nikkei rises for 10 straight days as dollar-yen stable; large caps gain

Japan’s Nikkei share average rose to a fresh 21-year high on Monday as

the dollar stayed steady against the yen, while index-heavyweight

SoftBank surged on news that T-Mobile and Sprint plan to merge.

Global

Oil rises as fighting escalates in Iraq's oil-rich Kirkuk

Oil markets jumped on Monday as Iraqi forces entered the oil city of

Kirkuk, taking territory from Kurdish fighters and raising concerns over

exports from OPEC’s second-largest producer.

Asia oil buyers turn to U.S. in hunt for cheap supply

Asia is set to ramp up crude oil imports from the United States in late 2017

and early next year, with buyers searching out cheap supplies after

hurricanes hit U.S. demand for the commodity at a time of rising

production in the country.

Global cont’d.

As the quartet breaks up, central banking leadership flux looms

The leaders of the world’s top central banks who risked trillions of dollars

and their reputations to rescue the global economy are now set to walk

off stage at a time when the lingering effects of the crisis, evolving

technology and a combustible political landscape will challenge their

successors.

Oil rises as fighting escalates in Iraq's oil-rich Kirkuk Monday 16th October, 2017 – Reuters

Oil markets jumped on Monday as Iraqi forces entered the oil city of

Kirkuk, taking territory from Kurdish fighters and raising concerns over

exports from OPEC’s second-largest producer.

Iraq launched the operation in the multi-ethnic region on Sunday as the

crisis between Baghdad and the Kurdish Regional Government (KRG)

escalated. Tensions have been building since the KRG voted for

independence in a Sept. 25 referendum.

Brent crude futures LCOc1 were at $58.10 per barrel at 1053 GMT, up 93

cents from the previous close. U.S. WTI crude was at $52.14 per barrel, up

69 cents.

“The escalation in Northern Iraq is the main driver,” Commerzbank analyst

Carsten Fritsch told the Reuters Global Oil Forum. “Oil supply from this

region is at risk.”

The government said its troops had seized Kirkuk airport and taken control

of Iraq’s North Oil Company. While an Iraqi oil ministry official said oil and

gas production in Kirkuk was “proceeding normally”, and that Kurdish

leaders had agreed to avoid fighting in oil and gas facilities, the action

unsettled the market.

Kirkuk accounts for 200,000 barrels per day (bpd) of the some 600,000 bpd

of oil produced in the KRG region, and Turkey has threatened to shut a

KRG-operated pipeline that goes to the Turkish port of Ceyhan at

Baghdad’s request.

Renewed worries over U.S. sanctions against Iran also drew attention in

the market.

U.S. President Donald Trump on Friday refused to certify that Tehran is

complying with the accord even though international inspectors say it is.

Under U.S. law, the president must certify every 90 days that Iran is

complying with the deal. Congress now has 60 days to decide whether to

re-impose economic sanctions on Tehran.

During the previous round of sanctions, roughly 1 million bpd of Iranian oil

was cut off. Analysts said that while renewed sanctions were unlikely to

curtail that level of exports again, they warned that such a move would

be disruptive.

U.S. OIL RIG EXPLOSION

Cuts to U.S. drilling rigs, and an explosion overnight at an oil rig in

Louisiana’s Lake Pontchartrain, also boosted prices.

Drillers cut five oil rigs in the week to Oct. 13, bringing the total count to

743, the lowest since early June, Baker Hughes (GE.N) energy services firm

said late on Friday.

Oil consumption has also been strong, especially in China, where the

central bank governor said on Monday that the economy is expected to

grow by 7 percent in the second half of this year, defying widespread

expectations for a slowdown.

(Additional reporting by Henning Gloystein in Singapore; editing by Jason

Neely)

<< Back to news headlines >>

Stronger currency shrinks euro zone trade surplus in August Monday 16th October, 2017 – Reuters

Euro zone’s trade surplus shrank in August as the stronger euro fueled an

import boom that was only partly offset by a rise in exports, official

estimates released on Monday showed.

Although the euro has depreciated against the dollar from a 2017 peak in

early September, it is still up more than 12 percent this year. Cheaper

imports have complicated European Central Bank’s plans to raise inflation

in the euro zone.

The European statistics office Eurostat said the 19-country currency bloc’s

surplus in goods trade dropped to 16.1 billion euros ($18.9 billion) in August

from 23.2 billion in July. It was also lower than in August 2016 when it stood

at 17.5 billion euros.

The lower surplus was caused by a surge in imports from countries outside

the euro zone, which grew 8.6 percent on the year, according to

seasonally unadjusted data.

This rise outstripped the 6.8 percent increase in exports, resulting in a

smaller surplus for the euro zone. The August surplus was the lowest

recorded this year, excluding a temporary deficit in January.

The strong euro, which peaked at nearly 1.20 dollars in August,

contributed to the reduced surplus, as it made imports cheaper.

This in turn capped inflation, making it harder for the ECB to tighten

monetary policy.

Inflation in the euro zone was 1.5 percent in September, according to

Eurostat preliminary estimates, the same rate as in August and below the

ECB target of a rate close to 2 percent.

The ECB is expected to extend its stimulus program for nine months at its

next meeting on Oct. 26 while scaling back the monthly purchases,

sources said.

(Reporting by Francesco Guarascio; editing by Philip Blenkinsop)

<< Back to news headlines >>

White House pitches corporate tax cut as win for workers Monday 16th October, 2017 – Reuters

The Trump administration said in an analysis released on Monday that

middle-class Americans would see incomes eventually rise more than

$4,000 if President Donald Trump’s corporate tax cuts were enacted,

seeking to counter Democratic criticisms that its tax proposals

overwhelmingly benefit the rich.

The White House and top Republicans in Congress have released a

framework for tax reform that lacks details but is intended to serve as a

guidepost for congressional committees that are crafting tax legislation.

Trump has said he would like to see the U.S. corporate income tax rate

reduced to 20 percent from the current 35 percent rate.

An analysis by the White House Council of Economic Advisers said lower

corporate taxes would incentivize companies to invest in new machines

that would require more skilled workers. Companies would then pay

higher wages to these skilled workers.

Kevin Hassett, Chairman of the CEA, told reporters in a conference call

that those benefits would take five years to fully “phase in.”

Hassett also said lower corporate rates would give companies incentives

to build plants in the United States, rather than overseas.

According to the analysis, middle-class earners would see incomes rise

$4,000. Under Hassett’s explanation of the timing, the full increase would

be realized in five years.

Fiscal policy analysts the Tax Policy Center, a non-partisan research

organization, said the overall benefits of lower corporate taxes tilt heavily

toward those with higher incomes.

The Tax Policy Center said middle-income taxpayers would receive less

than 10 percent of the benefit of a corporate rate cut while the top 20

percent would receive about 70 percent. The top 1 percent would see

about one-third of the benefits and the top 0.1 percent would get about

one-fifth, the TPC has said.

Democratic lawmakers have lambasted the Trump tax plan’s intended

tax relief for corporations and small businesses as a giveaway for the

wealthy.

Delivering the Democrats’ weekly policy address on Saturday, Senator

Bernie Sanders, a former 2016 presidential candidate, said Trump’s budget

and tax proposals were “the most destructive and unfair” in U.S. modern

history.

“Donald Trump and Republicans in Congress claim that their tax plan

would benefit the middle class. Nothing could be further from the truth,”

Sanders said.

(Reporting by Mike Stone in Washington, DC; Editing by Cynthia

Osterman)

<< Back to news headlines >>

Sterling strengthens as investors bet on data boost Monday 16th October, 2017 – Reuters

The pound edged up on Monday, as investors bet that economic data

this week would put the Bank of England on track for a rate rise by the

end of the year and - at least for the time being - overshadow Brexit.

Sterling recorded its best week in four against the dollar in volatile trade

last week, with the currency subject to big price swings on apparently

conflicting reports on the negotiations on Britain’s departure from the EU.

On Friday, the pound dropped almost half a cent against the dollar in less

than a minute after a German government spokesperson said time was

running out for a deal, before recovering after British Prime Minister

Theresa May said she could have more to say on a financial settlement

between London and Brussels at this week’s EU summit.

Trading appeared calmer on Monday, with the pound up 0.1 percent at

$1.3296 by 0830 GMT, staying in a trading range of $1.3270 to $1.3310. It hit

a 12-day high of 88.57 pence against a broadly weaker euro.

Société Générale Macro Strategist Kit Juckes said this was “not a good

week to short the pound”, given several data releases that could paint an

upbeat picture of the UK economy, and because BoE Governor Mark

Carney was likely to strike a hawkish tone when appearing in front of the

Treasury Select Committee on Tuesday.

“I think we will react more to ‘good’ UK data than ‘bad’,” he said.

Data on Friday showed speculators slightly trimmed their long positions on

the pound - bets that it would rise - in the week up to last Tuesday. But

they were still net-long on the currency for a third week running, having

been short for almost two years.

That turnaround in positioning has been driven largely by a repricing of

Bank of England interest rate expectations, after the BoE last month hinted

rates could rise as soon as November.

Inflation data due on Tuesday is expected to show consumer price growth

hitting a five-year high of 2.8 percent year-on-year, which would firm up

expectations of a near-term hike. Labour market data due on

Wednesday will also be closely watched, as will retail sales numbers on

Thursday.

May travels to Brussels on Monday for talks with European Commission

chief Jean-Claude Juncker, after a deadlock in Brexit talks appeared to

dash British hopes that a summit later in the week could launch

negotiations on future trade ties.

MUFG currency economist Lee Hardman said market expectations of

progress at the summit were low.

“The balance of risks for the pound could be more titled to the upside

ahead of the summit,” he said. “Downside risks for the pound would

increase if ‘sufficient progress’ (on negotiations) has still not been made

by the end of this year.”

(Editing by John Stonestreet)

<< Back to news headlines >>

Fed's Yellen says watching inflation closely but economy is strong Sunday 15th October, 2017 – Reuters

The U.S economy remains strong and the strength of the labor market calls

for continued gradual increases in interest rates despite subdued inflation,

Federal Reserve Chair Janet Yellen said on Sunday.

“We will be paying close attention to the inflation data in the months

ahead,” Yellen said in prepared remarks at an international banking

seminar in Washington. “My best guess is that these soft readings will not

persist.”

Yellen also said she expected the U.S. economy to exceed its long-term

trend during the second half of the year and repeated the impact of

recent hurricanes on the economy should be temporary.

The U.S. central bank voted to hold interest rates steady at its last policy

meeting in September. Since then, Yellen has repeatedly acknowledged

rising uncertainty on the path of inflation, which has been retreating from

the Fed’s 2 percent target rate for much of the year.

Minutes from the meeting, released last Wednesday, showed

policymakers had a broad debate about recent soft inflation and the

impact on interest rates if it fails to rebound.

However, Yellen and some other key policymakers have also made plain

they expect to continue to gradually raise interest rates given the strength

of the overall economy and continued tightening of the labor market.

Fed officials largely shrugged off a weak jobs report for September and

pinned the decline in employment on Hurricanes Harvey and Irma

temporarily displacing workers.

In her speech, Yellen said the most recent wage gains contained in the

September jobs report were encouraging and that she expected the

central bank to raise interest rates further.

“We continue to expect that the ongoing strength of the recovery will

warrant gradual increases in that rate to sustain a healthy labor market

and stabilize inflation around our 2 percent longer-run objective.”

The central bank has raised interest rates four times in its tightening cycle

which began in late 2015. The Fed currently predicts one more rate rise

this year and three the next.

The Fed has two more scheduled meetings this year, in November and

December. Investors currently see the Fed raising interest rates in

December.

(Reporting by Lindsay Dunsmuir; Editing by Mark Potter)

<< Back to news headlines >>

Asia oil buyers turn to U.S. in hunt for cheap supply Monday 16th October, 2017 – Reuters

Asia is set to ramp up crude oil imports from the United States in late 2017

and early next year, with buyers searching out cheap supplies after

hurricanes hit U.S. demand for the commodity at a time of rising

production in the country.

As many as 11 tankers, partly or fully laden with U.S. crude, are due to

arrive in Asia in November, with another 12 to load oil in the United States

later in October and November before sailing for Asia, according to

shipping sources and data on Thomson Reuters Eikon.

U.S. West Texas Intermediate crude benchmark stands at its largest

discount in years against the Atlantic Basin’s Brent, with local appetite

curbed as U.S. refineries are still pushing to get back on track in the wake

of hurricanes such as Harvey.

“Between November and January, there is a very big volume of U.S.

crude heading to Asia,” said a Chinese trader who has bought 4 million

barrels of medium-sour U.S. oil to arrive in December. He declined to be

identified as he was not authorized to speak with media.

The price-spread between the two crudes had already pushed U.S. crude

exports to a record 1.98 million barrels per day by late September,

according to the Energy Information Administration in the United States.

Exports in the next two to three weeks could hit 2.2 million bpd, Marco

Dunand, Chief Executive of Trading House Mercuria, said last week.

That has also been driven as some Asian governments look to diversify

supply sources and reduce trade surpluses with the world’s top economy.

India joined China, Japan and South Korea when it imported its first U.S.

crude in October.

And high premiums for Middle Eastern grades of crude are also stoking

Asian appetite for U.S. supplies.

“U.S. medium sour grades can replace most Middle East grades and the

light sweets may replace some African crude,” said the Chinese trader.

DESTINATION ASIA

The tankers to arrive in Asia in November include eight Very Large Crude

Carriers (VLCC), capable of carrying 2 million barrels of oil each, and

three Suezmaxes that can load half that volume, according to shipping

data in Eikon.

China remains the largest buyer with four tankers, followed by three to

South Korea and two to India. The remaining two could head to

Singapore, the data shows.

Unipec, the trading arm of Asia’s largest refiner Sinopec, dominates the

trade with imports set to hit 5.7 million tonnes in 2017, up from 3.6 million

tonnes in the first eight months, a source familiar with the matter said. The

company buys about 8 million barrels of U.S. crude on average per

month, the source said. Reuters could not immediately reach the

company for comment.

Another 12 tankers are provisionally chartered to load U.S. oil in October

and November, the data showed.

Four of these are super-tankers chartered by South Korean buyers to load

Mexican and U.S. crude. The country’s top refiner SK Energy [SKENGG.UL]

has bought 6.5 million barrels of U.S. crude to be delivered between

November and January.

Several Indian refiners have also purchased their first U.S. crude for delivery

in the fourth quarter, including the country’s largest refiner Indian Oil Corp.

Japan’s largest refiner JXTG Holdings has provisionally chartered a VLCC

to load crude in Mexico and the U.S. Gulf in November. The company

declined to comment on individual trades.

(Reporting by Florence Tan in Singapore and Catherine Ngai in New York;

Additional reporting by Jane Chung in Seoul and Osamu Tsukimori in

Tokyo; Editing by Joseph Radford)

<< Back to news headlines >>

As the quartet breaks up, central banking leadership flux looms Monday 16th October, 2017 – Reuters

The leaders of the world’s top central banks who risked trillions of dollars

and their reputations to rescue the global economy are now set to walk

off stage at a time when the lingering effects of the crisis, evolving

technology and a combustible political landscape will challenge their

successors.

The Federal Reserve, the Bank of Japan and the People’s Bank of China

may all have new bosses in early 2018 and there will be a new head of

the European Central Bank the following year.

The new leaders will have to deal with the hangover from the 2007-2009

crisis and its immediate aftermath as well as newly emerging risks.

Some $10 trillion in assets bought by the Fed, the ECB and the BOJ to prop

up their economies remains on the books and will have to be pared back.

Stubbornly low global inflation and weak growth complicate the return to

more conventional policies. There are unfinished reforms in China and

Europe, while the rise of nationalism could erode central bank

independence.

Further ahead, the spread of cryptocurrencies and other technologies

threatens to weaken central bank control over the financial system.

“The bad news is that in a crisis people learn by doing,” said Vincent

Reinhart, chief economist at investment firm Standish Mellon and a long-

time official at the Federal Reserve. “Will the next set of people have the

set of experiences that allows them to do that? Will they have a test?”

The changing of the guard could veer in unpredictable directions. China’s

president is considering a provincial official to succeed Zhou Xiaochuan, a

veteran policymaker who has led the central bank since 2002 and whom

analysts regard as a champion of reforms that could falter without his

leadership.

In the United States, President Donald Trump will have the opportunity to

infuse his “America First” sensibility at the Fed, an institution with an

undeniable global role, when Chair Janet Yellen’s term ends in early

February.

BOJ Governor Haruhiko Kuroda’s shock-and-awe record monetary

stimulus gets credited for helping Japan snap out of years of stagnation.

He will see his term end next April with the economy expected to keep

growing, but inflation still far from his target, fueling doubts about the

overall effectiveness of his policy.

ECB President Mario Draghi will be around until late 2019, but the

succession battle could renew tensions over Britain’s departure from the

European Union, ways of aligning the interests of economic superpower

Germany with the rest of Europe, and concerns that the rise of nationalism

could impair the ECB’s ability to set monetary policy for 19 countries.

“Given the divisions in Europe both politically and economically, you

could have a very large swing in ECB behavior,” said Adam Posen,

President of the Peterson Institute for International Economics.

Yellen, Kuroda and Zhou appeared together on Sunday to talk about the

global economy on the sidelines of the International Monetary Fund and

World Bank annual meetings.

It was a “farewell concert” of sorts for a group whose tenure has

transformed central banking.

With rare exceptions, monetary policymakers from different countries

avoid any hint of direct coordination with each other, and primarily tailor

policies to domestic needs. Still, the four in charge now have shared years

at the helm of the global financial system, met and talked at countless

international meetings, and managed a major crisis together.

Along the way they deployed open-ended central bank asset purchases,

introduced negative interest rates, salvaged the euro zone from a

possible fracture, and steered China, now the world’s second largest

economy, toward more openness and currency reforms. Yellen, a top Fed

official since 2004, both helped craft the crisis response and steered the

Fed’s to a more conventional policy.

NEW SCORE FOR A NEW BAND

Some continuity is possible. Yellen and particularly Kuroda could be

reappointed when their terms expire next spring, and one of the top

candidates to run the PBOC is cut from the same reformist mold as Zhou,

who is expected to retire in the first half of 2018.

“I am not sure that all three will actually leave,” Jeroen Dijsselbloem, the

Chairman of Euro Zone Finance Ministers, who will himself leave his post in

January, told Reuters.

“In general, losing experience is always a risk. But it is also a fact of life.”

But the odds now seem that by early next year the world’s two largest

economies will have new and potentially more inward looking, central

bank leadership.

Zhou’s successor will face an immediate choice of how aggressively to

continue the policy transition toward market-based norms, and how to

resolve a suspected mountain of bad debt on provincial and corporate

books.

In the United States, some of the candidates being considered to replace

Yellen are at odds with her on interest rates, inflation, and how to fight

severe downturns.

Bank of Japan Board Member Sayuri Shirai said the Fed’s smooth transition

from the era of near zero rates and bond buying to one of steadily tighter

monetary policy was a testament to Yellen’s steady hand and good

communication.

The calm “is attributable to the Fed’s improved communications skills with

markets under Yellen’s leadership,” she said.

Reinhart said that in a sense major central banks are already in a transition

as the current leaders tackle issues in a way that could help make the

handoff smooth.

Whoever Trump names to run the Fed, for example, will have a clear

“gradual” interest rate path and a balance sheet reduction plan to rely

on, at least at first. Draghi is also expected to reduce the ECB’s bond

buying and take the initial steps toward more conventional monetary

policy over the remainder of his term.

Zhou set the stage for the renminbi’s broader use as a global currency

whose value is determined by market forces, sparing his successor the

internal and international tensions over China’s managed exchange rate.

It will be up to the newcomers, though, to be vigilant about new

problems. Financial regulation is still evolving, and few governments

appear willing to tackle high debts and rising entitlement spending, or

have successfully confronted the changing nature of work and wages.

Posen warned that with inflation and interest rates still very low,

governments hamstrung, and financial connections between nations

“very dense and complicated,” incoming policymakers won’t have a

tried and tested playbook.

“We don’t yet have the right set of tools and ideas to tackle that.”

(Reporting by Howard Schneider and Leika Kihara; Additional reporting by

Gernot Heller, Balazs Koranyi and Jan Strupczewski; Editing by David

Chance and Tomasz Janowski)

<< Back to news headlines >>

China data boosts world stocks and commodities, oil jumps Monday 16th October, 2017 – Reuters

World stocks and commodities rose on Monday, boosted by upbeat

Chinese data, while U.S. oil futures jumped to a near six-month high as an

escalation in fighting between the Iraqi government and Kurdish forces

threatened supply.

Asian shares rallied to a decade high after figures showed China’s

producer prices beat market expectations to rise 6.9 percent in

September from a year earlier.

Copper hit three-year highs. Prices of iron ore and coke, key ingredients in

steel-making, jumped with Dalian iron ore futures, [DCIOcv1] rising 2.5

percent to a 2-1/2 week high while coke for January delivery [DCJcv1]

gained 1.6 percent.

Oil prices also jumped, pushed up as Iraqi forces entered the oil city of

Kirkuk, taking territory from Kurdish fighters.

U.S. crude CLc1 rose 1.3 percent to $52.12 a barrel, not far from $52.85

touched late last month - a level not seen since April. Brent crude LCOc1

climbed 1.5 percent to $58.03 per barrel.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS

gained for a fifth day running to its highest level since late 2007.

Japan's Nikkei .N225 climbed for a sixth day to a level not seen since

November 1996. Australian shares extended their winning streak to a

fourth straight session to rise 0.6 percent, while South Korea's stock index

.KS11 set a new record. Wall Street was set to open higher.

Upbeat data from China came before the Communist Party Congress on

Wednesday and third-quarter economic data on Thursday. Figures

showed China’s producer prices beat market expectations to rise 6.9

percent in September from a year earlier.

“What has helped risk appetite this morning is that the Chinese inflation

data suggests the world’s second biggest economy is doing much better

than people expected this time a year ago for 2017,” said Michael

Hewson, Chief Markets Analyst at CMC Markets.

“When we’ve got palladium prices at their highest levels since 2001, oil

prices edging higher, copper edging higher - it’s not doing anything to

undermine the perception that the global economy is actually doing fairly

ok.”

The IMF last week upgraded its global economic growth forecast for 2017

by 0.1 percentage points to 3.6 percent, and to 3.7 percent for 2018, from

its April and July outlook, driven by a pickup in trade, investment, and

consumer confidence.

Forecasts for the euro zone, Japan, China, emerging market Europe and

Russia were all revised upwards.

CATALAN UNCERTAINTY

Uncertainty over Catalonia failed to put a significant dent in European

stocks, although Spain lagged the broader index.

The pan-European STOXX600 added 0.2 percent, while Spain's IBEX .IBEX

fell 0.7 percent.

The MSCI world equity index, which tracks shares in 47 countries, was up

0.1 percent, fuelled by the earlier gains in Asia and those in Europe.

Catalonia worries also pushed up the yield on Spain’s 10-year government

bond. The gap between Spanish and German 10-year borrowing costs

widened 2.5 basis points.

Catalan leader Carles Puigdemont failed on Monday to clarify whether

he had declared independence from Spain last week, paving the way for

the central government to take control of the wealthy region.

“Further gains in Asia and the relentless march higher in US equities have

provided the impetus for European equity markets to push forward –

despite Carles Puigdemont’s failure to provide a Yes or No response to

whether Catalonia has declared independence,” said Rebecca

O‘Keeffe, head of investment at Interactive Investor.

In Austria, conservative Sebastian Kurz is on track to become the next

leader after Sunday’s election. He is seen as likely to seek a coalition with

the resurgent far right because his party is far short of a majority.

The developments threaten to disrupt a move by German Chancellor

Angela Merkel and French President Emmanuel Macron to draw up a

roadmap to deeper European Union integration.

The euro took a knock for the third straight day on the uncertainty, falling

0.2 percent to $1.1801 EUR=EBS.

The dollar index, which measures the greenback against a basket of

currencies, was 0.1 percent higher at 93.172 .DXY.

Gold XAU= was up 0.1 percent at $1,305.37 per ounce.

(Reporting by Ritvik Carvalho; additional reporting by Dhara Ranasinghe

in London and Asia markets team; Editing by Andrew Heavens)

<< Back to news headlines >>

China new yuan loans rise more than expected in September Saturday 14th October, 2017 – Reuters

Chinese banks extended more loans than expected in September,

buoyed by demand from home buyers and companies, even as the

government tightened the screws to wean the economy off its years-long

addiction to cheap debt.

September loan data released on Saturday indicates that China has

continued to give significant credit support for its economy ahead of a

key Communist Party congress that opens on Oct. 18.

The next day, China releases third-quarter economic growth data. For the

April-June quarter, Beijing reported stronger than expected growth of 6.9

percent from a year earlier.

Both bank lending and total social financing, a broad measure of credit

and liquidity, look set to hit another record high this year.

People’s Bank of China Governor Zhou Xiaochuan, in a statement posted

on its website on Saturday, said the economy this year is stabilizing and

growing more strongly, and the momentum may continue in the second

half.

In September, banks extended 1.27 trillion yuan ($193.05 billion) in net new

yuan loans, central bank data showed. Analysts polled by Reuters had

predicted 1.1 trillion yuan, compared with August’s 1.09 trillion yuan.

Household loans, mostly mortgages, rose to 734.9 billion yuan in

September from 663.5 billion yuan in August, according to Reuters

calculations based on the central bank’s data.

SHORT-TERM LOAN SPIKE SEEN

Household loans accounted for 58 percent of total new loans last month,

down from 61 percent in August.

Short-term loans soared in the third quarter, increasing by 1.53 trillion yuan,

almost three times higher than in the year-ago period, according to

calculations by Wen Bin, an economist at Minsheng Bank in Beijing.

“A part of these funds are flowing illicitly to the property market and stock

market,” said Wen.

Corporate loans in September were 463.5 billion yuan, down from 483

billion yuan a month earlier.

Broad M2 money supply (M2) in September grew 9.2 percent from a year

earlier, beating forecasts for an 8.9 percent expansion, as August had.

The growth was in part due to a “seasonal increase in credit and fiscal

deposits,” said Wen.

China’s central bank has said that the slowing M2 growth could be a

“new normal” due to regulators’ stepped-up crackdown on risky shadow

lending activities.

Total social financing (TSF), a broad measure of credit and liquidity in the

economy, rose to 1.82 trillion yuan in September from 1.48 trillion yuan in

August.

Capital Economics had expected TSF to pick up to 2 trillion yuan in

September.

WALKING A TIGHTROPE

Chinese authorities are trying to walk a fine line by containing riskier types

of financing and slowing an explosive build-up in debt without stunting

economic growth.

For the first time this year, banks were required to start reporting off-

balance sheet wealth management products to the central bank every

quarter to give authorities a better sense of potential risks to the financial

system.

But results of their “de-risking” campaign have been mixed.

Regulators appear to have made good inroads into reducing risks in the

financial system from interbank and shadow bank lending -- which were

arguably China’s most immediate systemic threat -- and they have

allowed borrowing costs to creep up.

Lenders have also shifted more credit back onto their books and shed

some lower quality assets.

However, credit growth has remained elevated and there is little

evidence that companies are using windfall earnings this year to

significantly reduce massive debt burdens.

Indeed, consultancy China Beige Book International (CBB) cautioned

about the prevailing market view that China’s economic growth has so

far been resilient to government policy tightening, arguing that it has yet

to really kick in.

“The mistake is that deleveraging hasn’t gotten off the ground,” said CBB,

which surveys thousands of firms quarterly. “If 2018 sees actual tightening,

it will be far more traumatic to firms than most analysts realise.”

S&P downgraded China’s sovereign rating in September, saying its

attempts to reduce debt risks are not working as quickly as expected and

credit is still expanding too fast.

The International Monetary Fund warned this year that China’s credit

growth was on a “dangerous trajectory” and called for “decisive action”,

while the Bank for International Settlements said in late 2016 that excessive

debt growth was signalling a banking crisis in the next three years.

REFORM PUSH

The PBOC has been steadily moving to contain financial system risks, while

reiterating that it will maintain prudent and neutral monetary policy and

continue with interest rate reform.

Governor Zhou, in the statement posted on Saturday, said positive

progress has been achieved in economic transformation.

Analysts at Société Générale believe the PBOC took pre-emptive action

in recent weeks to offset strains from further tightening measures planned

for next year.

The PBOC in late September cut the amount of cash that some banks

must hold as reserves (RRR) for the first time since February 2016. The

move, effective in January, offers an earnings boost to banks if they lend

more to struggling smaller firms and the private sector.

Still, SocGen does not expect the reserve cut alone will be enough to

offset an expected slowdown in China next year.

China is likely to accelerate its implementation of reforms after a twice-in-

a-decade Communist Party Congress, if President Xi Jinping strengthens

his power as widely expected, Capital Economics said in a note last week

But, it added, “given Xi’s reluctance to relinquish state control over key

parts of the economy, China’s structural problems are likely to remain

unresolved.”

Policymakers’ efforts to push debt-to-equity swaps, securitise bad loans

and increase financial market regulation may only provide temporary

relief from deep underlying problems such as the poor allocation of

resources, such as state life support for loss making government firms, it

said.

(Reporting by Lusha Zhang and Kevin Yao; Writing by Engen Tham; Editing

by Kim Coghill and Richard Borsuk)

<< Back to news headlines >>

China central bank chief surprises with gravity-defying 7 percent second-

half growth forecast Monday 16th October, 2017 – Reuters

China’s central bank governor said the economy could grow 7 percent in

the second half of this year, accelerating from the first six months and

defying widespread expectations for a slowdown.

The uncharacteristically explicit growth forecast by Zhou Xiaochuan came

just days ahead of a twice-in-a-decade Communist Party Congress,

where President Xi Jinping is expected to strengthen his grip in a

leadership reshuffle.

While China produced forecast-beating growth of 6.9 percent in the first

half, many economists and investors had expected momentum would

start to fade later in the year.

Those views are largely predicated on three factors: higher borrowing

costs; increasing curbs on home buying to cool soaring prices; and

government-mandated shutdowns of some steel mills and factories in

coming months to reduce winter air pollution.

But the driving force behind growth has been mainly rising household

consumption, Zhou said in remarks published on the People’s Bank of

China’s (PBOC) website on Monday.

“China’s economic growth has slowed over the past few years...but

economic growth has rebounded this year, with GDP reaching 6.9

percent in the first half, and may achieve 7 percent in the second half,”

Zhou was quoted as saying at the G30 International Banking Seminar in

Washington on Sunday.

Zhou, the country’s longest-serving central bank chief, is likely to step

down next year, sources told Reuters.

Investors are waiting to see if sustained economic growth this year will give

China’s leaders the confidence to quicken and deepen reforms, though

many say Beijing continues to rely too heavily on debt-fueled stimulus.

The government had set a 2017 growth target of around 6.5 percent.

Zhou’s estimate implies an expansion of about 6.95 percent, topping

growth rates in 2015-2016.

Economists had expected growth to ease to 6.8 percent in the third

quarter and 6.6 percent in the fourth quarter, but the impact of the

pollution shutdowns is a major wild card.

“Growth in the second half will be slower...I don’t think 7 percent growth is

very possible,” said Xu Hongcai, Deputy Chief Economist at China Center

for International Economic Exchanges (CCIEE), a prominent think-tank in

Beijing.

“Investment and consumption growth have eased. And foreign trade is

not likely to be as strong as in the first half.”

The International Monetary Fund last week reiterated its stance that there

may now be a now greater chance of a sharp slowdown in China, if

authorities delay the withdrawal of hefty stimulus as they focus on

achieving growth targets.

FIRING ON ALL CYLINDERS?

China will report third-quarter gross domestic product (GDP) on Thursday.

September data so far has shown imports and bank lending grew more

than expected, while exports picked up.

On Monday, data showed producer prices jumped 6.9 percent in

September on-year, confounding views that producer inflation had

peaked.

A year-long construction boom has helped boost prices for building

materials and resources from steel and copper to iron ore, helping to

create a reflationary pulse worldwide in commodities markets and

manufacturing.

Prices have turned wildly volatile in recent weeks on fears of shortages as

Beijing embarks on its biggest environmental crackdown yet to reduce

the country’s notorious winter smog.

Some steel mills, smelters and chemical plants have cranked up output

ahead of curbs on production or outright shutdowns.

Shanghai steel futures surged to a one-month high on Monday along with

raw materials iron ore and coking coal, and the ripples are spreading

globally, with LME copper futures hitting a three-month high.

Other data on Thursday is expected to reinforce the view that China is still

in high gear, with growth in industrial output and retail sales seen

accelerating while fixed investment may hold at a roughly steady pace.

Private business surveys, however, suggest the recovery has not been

balanced, with large state-run firms reaping more of the benefits from

robust growth than smaller, private companies who don’t enjoy the same

access to cheap and ample credit.

Moreover, a recent Reuters analysis showed few of China’s listed

companies are using windfall profits this year to reduce massive debts

despite Beijing’s campaign to rein in risks.

DEBT BATTLE

Zhou also said China remains confident in its ability to fend off systemic

risks and keep its fundamentals healthy and stable.

Risks in so-called shadow banking have somewhat eased, while non-

performing loans are still at a relatively low level, the central bank said.

Chinese authorities are trying to walk a fine line by containing riskier types

of financing and slowing an explosive build-up in debt without stunting

economic growth.

But authorities have also frequently kept the system well supplied with

cash to avoid interest rates spiking too rapidly, which could slam the

brakes on growth, and some market watchers fear “deleveraging” efforts

aren’t progressing fast enough.

Raymond Yeung, Greater China chief economist at ANZ in Hong Kong,

said that China needs to pay attention to high loan growth even if more

funds are now flowing into real investment rather than speculative

activity.

“In any economy, if you see very strong loan growth, you have to be very

cautious about where the money is going...”

(Reporting by Brenda Goh and Ryan Woo; Additional reporting by Elias

Glenn; Editing by Sam Holmes and Kim Coghill)

<< Back to news headlines >>

Nikkei rises for 10 straight days as dollar-yen stable; large caps gain Monday 16th October, 2017 – Reuters

Japan’s Nikkei share average rose to a fresh 21-year high on Monday as

the dollar stayed steady against the yen, while index-heavyweight

SoftBank surged on news that T-Mobile and Sprint plan to merge.

The Nikkei climbed 0.5 percent to 21,255.56, the highest closing level since

late 1996. The Nikkei extended its winning streak to 10 days, its longest

since May 2015.

The dollar was flat at 111.89 yen.

Traders said that belief that Japan’s ruling party bloc will win the general

election later this month continued to underpin market sentiment, and a

weaker yen raised hopes that Japanese companies will report strong

earnings.

While companies will start reporting first half earnings later this month, “the

current foreign exchange level suggests that manufacturers’ earnings will

be bright,” said Takuya Takahashi, a strategist at Daiwa Securities.

Takahashi said Daiwa analysts expect Japanese companies to post a 14

percent rise in their pre-tax profits for this year under the assumption that

the dollar will trade at 110 yen.

SoftBank Group Corp soared 1.3 percent after people familiar with the

matter told Reuters that T-Mobile U.S. Inc. and Sprint Corp plan to

announce a merger agreement without any immediate asset sales, as

they seek to preserve as much of their spectrum holdings and cost

synergies as they can before regulators ask for concessions.

Sprint shareholders are expected to receive little to no premium in the

deal, meaning that SoftBank, which controls Sprint, and other Sprint

shareholders will own around or more than 40 percent of the combined

company.

Other large cap stocks such as tech shares also attracted buyers, with

Advantest Corp rising 3.1 percent, Hitachi Ltd advancing 1.8 percent and

Sony Corp adding 1.1 percent.

Banks also gained ground. Mitsubishi UFJ Financial Group rose 1.5 percent

and Mizuho Financial Group added 1.4 percent.

The broader Topix gained 0.6 percent to 1,719.18.

(Editing by Sam Holmes)

<< Back to news headlines >>

Euro falters after biggest weekly rise in month as ECB eyed Monday 16th October, 2017 – Reuters

The euro edged lower on Monday after posting its biggest weekly loss in a

month though prices clung to well-worn trading ranges before a central

bank meeting next week where policymakers are set to unveil a plan to

roll back its record stimulus policies.

With political uncertainty in the form of Catalonia’s bid for independence

and Austria’s election outcome having a very muted impact on the

currency relative to the bond markets, investors moved to the sidelines to

focus on economic data.

“It is all over to the ECB now and Catalonia and Austria are being

discounted as local problems rather than regional concerns,” said Thulan

Nguyen, a Currency Strategist at Commerzbank in Frankfurt.

The single currency fell 0.1 percent to $1.1814 but was hemmed in a tight

0.3 percent range. It rose 0.8 percent last week, its biggest weekly rise in a

month, according to Thomson Reuters data.

Catalan authorities must drop a bid for independence by Thursday, the

Spanish government said, moving closer to imposing direct rule over the

region after its leader missed an initial deadline to back down.

Despite a raft of euro negative news in recent weeks, the euro has

remained broadly stable against the dollar and even chalked up gains

against sterling and other currencies, indicating some buying from

institutional investors.

Long euro positions rose for a third consecutive week to more than $14.47

billion, its biggest in more than five years, according to Commodity Futures

Trading Commission data released last week.

“ECB expectations will be the main driver and we see the overall

trajectory of the euro higher, though there may be some consolidation

after the heavy buying in recent weeks,” said Manuel Oliveri, an FX

strategist at Credit Agricole in London.

But the euro’s losses have been limited thanks to a broadly muted dollar

as subdued inflation data raised expectations the U.S. Federal Reserve will

not strike an overtly hawkish tone at its policy meeting at the end of the

month.

Although U.S. consumer prices rose the most in eight months in

September, as gasoline prices soared in the wake of hurricane-related

refinery disruptions, underlying inflation remained muted.

The dollar index was flat at 93.11, lacking momentum after falling last

week.

(Reporting by Saikat Chatterjee, editing by David Evans)

<< Back to news headlines >>

BVI seeks loans, investors after some $3.3B damage Friday 13th October, 2017 – BVI News

While noting that damage to the territory as a result of recent natural

disasters is estimated at some $3.3 billion across all sectors, Premier Dr D

Orlando Smith said his administration will use an appropriate mix of

financing including grants and affordable borrowing to fund

reconstruction.

He will also be making a case for the British Virgin Islands (BVI) as soon as

today when he meets with World Bank officials.

The premier, who also is the finance minister, was invited to Washington

DC to participate in discussions as it relates to recent hurricanes that

battered sections of the Caribbean, including the BVI.

“My administration has decided the best way forward for the territory is to

utilise an appropriate mix of financing, including grants and affordable

borrowing, to fund our reconstruction. We continue to foster relationships

with private investors and companies, donor agencies, countries, lending

institutions, international investors, and the United Kingdom government to

facilitate the funding needed. In addition, we have already received

some financial contributions and pledges from our regional and

international friends,” Premier Smith said.

“In light of the effects of the recent hurricanes around the Caribbean, the

World Bank will be hosting a discussion this weekend as part of its annual

meetings. In attendance will be the President of the World Bank, Jim Yong

Kim. I will be using this opportunity, which is facilitated through the United

Kingdom’s membership, and participating in a round-table discussion in

Washington DC on Friday October 13 to highlight the territory’s position. I

will be making a case for the Virgin Islands to have greater access to

financial support to fund our reconstruction.”

Premier Smith also reassured that, although he will seek investors as a

means of helping the BVI to get back on its feet, such action will be done

responsibly.

“We are also exploring options with international investors to look at

reasonable and responsible opportunities for financing our rebuild. While

we are reminded daily of the importance to get our islands back to its

pristine landscape, we also know that our financial actions will have a

significant impact on our future development.

To this end, we are seeking all possible options to fund our rebuilding

responsibly,” added Premier Smith.

The BVI, within the last three month, has been affected by a devastating

tropical wave, followed by Hurricane Irma that caused widespread

destruction, and then Hurricane Maria that caused minimal damage.

“Based on preliminary assessments, the estimated damages to the

territory is in the area of $3.3 billion across all sectors,” Premier Smith said

yesterday, October 12.

<< Back to news headlines >>

No import duties on vehicles, food, clothing Friday 13th October, 2017 – BVI News

Food, clothing, vehicles and other non-luxury items have been added to

the list of goods on which Government is waiving customs duties, Premier

and Minister of Finance Dr D Orlando Smith announced yesterday,

October 12.

He said the move is aimed at providing financial ease for residents as they

continue to rebuild following widespread destruction caused by Hurricane

Irma on September 6.

“Immediately following the passage of Irma and even now, it continues to

be a priority for my office to ensure that local businesses continue so that

goods and services can be provided to residents, and so that jobs remain

in our economy. To support the rebuild for residents and to provide some

level of financial ease, we have waived customs duties on building

supplies, generators, and now we have also added items such as food,

clothing, vehicles and other non-luxury items,” the premier said.

He, in the meantime, noted that the territory’s Gross Domestic Product

(GDP) will be substantially impacted.

“While our financial services industry has successfully continued serving

clients, we know that with losses to our tourism sector and to our local

economy our Gross Domestic Product will be substantially impacted. Yet

we must fund our rebuild,” Premier Smith further said.

<< Back to news headlines >>

Gov't Not Targeting Imf's $70m Slash Friday 13th October, 2017 – Tribune 242

The Government is not targeting the IMF's recommended $70 million

wage bill slash, the Deputy Prime Minister said yesterday, but it must right

the Bahamas' "upside down" economy.

K P Turnquest told Tribune Business that the Minnis administration will use 'a

scalpel rather than a shotgun' to right-size the public sector, suggesting

that the former government had used it as an employment agency

during its five-year term.

This, he argued, had turned the economy "upside down" by making the

Government - rather than the private sector - "the major employer" and

job creator, while placing an ever-increasing burden on Bahamian

taxpayers and the "productive sector" to finance a bloated public service.

Mr Turnquest said reversing this situation was among the Government's top

priorities, but any civil service downsizing would be done "organically" by

not replacing non-essential positions when staff leave or retire.

The International Monetary Fund (IMF), in its Article IV report, had

recommended that the Government could achieve more than $200

million in Budget savings through a combination of reducing the civil

service wage bill to its 2005-2016 average; requiring public servants to

contribute to their own pensions; and cutting subsidies to state-owned

corporations by a sum equivalent to 1.25 per cent of GDP.

The Fund targeted wage bill savings equivalent to 0.8 per cent of GDP, or

just below $70 million, and its recommendation set off alarm bells among

many Bahamians and public sector workers, who feared instant - and

widespread - redundancies if the Government adopted its suggestions.

Mr Turnquest, though, yesterday pledged that civil service cuts would first

be sought through "natural attrition" rather than forced lay-offs, adding

that the Government had set no savings target.

As for state-owned enterprises (SOEs), he said the Minnis administration

had told them to focus on supply-side solutions and become more

efficient, rather than impose "dramatic rate increases" on Bahamian

consumers to cover their costs.

"At the end of the day I don't know that it's going to be $70 million in cuts,"

the Deputy Prime Minister told Tribune Business, when asked if the

Government planned to follow the IMF's recurrent spending reduction

'road map'.

"We do intend to make the system more efficient and more affordable.

We hope to do that through natural attrition, and that's our focus."

Mr Turnquest, speaking from Washington DC where he is attending IMF

and World Bank annual meetings, said the Government was following its

own fiscal consolidation plan, rather than being dictated to by the IMF

and credit rating agencies.

"The Government of the Bahamas has outlined a plan for the IMF and

Moody's, and will do the same when Standard & Poor's comes," he

added. "We're not going to be reactive with our response to any of the

agencies.

"We're going to be disciplined in our approach and follow our plan..... It's

one where we recognise we have to keep recurrent expenditure down at

a sustainable level, because at the current trajectory it's unsustainable,

and that's why the debt has skyrocketed.

"We will take corrective measures, but will not take any decision that

hampers the economy or the creation of opportunities and jobs."

Mr Turnquest's comments are a recognition that the Government will 'bite

off more than it can chew' if it tries to right-size the public sector in one go,

as this would produce a significant increase in unemployment and cut

disposable incomes/spending power, with negative implications for the

economy and Bahamian society.

The IMF's Article IV report blamed the Christie administration's "lax

spending controls" prior to the May 10 general election for the spike in

recurrent spending, which comprises the Government's fixed costs -

wages, benefits and rents.

The Deputy Prime Minister yesterday said this had resulted in an unhealthy

'role reversal', where the Government had taken over from the private

sector as the main economic growth engine.

"With the lack of growth, and the inability of the private sector to absorb

the capacity in the system, the Government has been absorbing that

over the past five years to keep the unemployment rate artificially down,"

Mr Turnquest told Tribune Business.

"The funnel is upside down. The public sector is the major employer and

being funded by the lower end, the private sector. It's unsustainable, and

we have to figure out how broaden the base through the private sector

so that we relieve the burden from the average citizen and productive

sector."

He added that the Government was assessing how to "graduate" veteran

civil servants from the public service once they reached retirement age, in

a bid to enable the recruitment of younger workers and to allow the

private sector to benefit from their skills.

"It is intended that it will be very organically done," Mr Turnquest said,

"meaning that as civil servants reach time and age, they will be

graduated out of the system and it will build capacity with the private

sector."

He added that the Government was also examining the issue of public

servants contributing to their retirement income, which would replace the

current 'pay as you go' defined benefit scheme that is 100 per cent

financed by the taxpayer.

And, with some $429 million in subsidies being provided to state-owned

enterprises (SOEs) during the 2017-2018 fiscal year, Mr Turnquest said all

had been "challenged" by the Minnis administration to "wean themselves

off the public purse".

"One of the challenges we've put out to the SOEs is that they must come

up with plans that ensure they are not dependent on the public sector for

support," he told Tribune Business.

"We want to look at ways to have cost recovery at these entities without

creating dramatic increases in rates. They have to become more

efficient."

Mr Turnquest continued: "We're saying to them that you have to wean

yourself off the public purse, otherwise we will have to make some

decisions about whether to privatise, and take them to a private sector

mentality. Become competitive and efficient engines of growth."

He added that "sacrifice" and support from the Bahamian public were

vital to turning the country's fiscal and economic situation around, and

said: "I'm confident better days are ahead of us if we can impose the kind

of financial discipline every family has to go through."

<< Back to news headlines >>

BDB Chair: 'Days of $50k Hand-Outs Over' Friday 13th October, 2017 – Tribune 242

The Bahamas Development Bank's (BDB) chairman yesterday pledged to

tighten lending protocols, adding: "The days of giving someone $50,000

and saying: 'Go get it done' are gone".

Lynden Nairn told Tribune Business that the BDB had little choice but to re-

examine "the entire lending regime" given that more than 60 per cent of

its $34 million credit portfolio is non-performing, or more than 90 days past

due.

While the high loan delinquency levels have prevented the BDB from

fulfilling its mandate to Bahamian entrepreneurs, Mr Nairn said the

institution - once reformed - still had a vital role to perform in filling the void

left by commercial banks.

He pointed out that outstanding credit extended to the agriculture,

fisheries and manufacturing sectors had declined by 56.4 per cent since

the turn of the century, falling from $106 million in 2000 to $46 million

today, as Bahamas-based commercial banks withdrew from lending to

the productive sectors in favour of consumer credit.

In an earlier speech to the Rotary Club of West Nassau yesterday, Mr Nairn

sought to both define and redefine the BDB's future role, explaining that it

would stay relevant - once cleaned-up - by supporting foreign exchange-

earning industries central to the Government's announced policy goals.

To get there, he explained to Tribune Business that the BDB was seeking to

restructure $64 million in long-term debt (see other article on Page 1B) plus

revamp its lending approach by focusing on borrowers' business plan

sustainability and corporate governance.

"We have to do a better job assessing credit," Mr Nairn told Tribune

Business.

"We are certainly looking at our protocols generally. We do know that we

are going to require our borrowers to have a strong corporate

governance element. "We need to understand the level of accountability

that our borrowers will have with a Board or advisory team. We need to

know who those people are, and have a sense of the extent to which

they've been successful. Gone are the days of giving someone $50,000

and saying: 'Go get on with it'."

Mr Nairn continued: "We're looking at the entire lending regime. The bank

has always had a committee that examines all of the loan applications.

We're strengthening that committee.

"Frankly, we're more concerned with the strength of the business plan than

we are about the underlying collateral. That ought to be the root of

development banking anyway.

"Historically, we have insisted on collateral in most cases.

"But just because someone has collateral doesn't mean they will get a

loan from the bank.

"You have to have a solid business plan."

Despite its problems, Mr Nairn argued that an institution such as the BDB

remained relevant to the modern Bahamian economy and its

entrepreneurs as there were precious few financing sources for Bahamian

start-ups.

Tying the commercial bank withdrawal from start-up lending to a lack of

growth and economic diversification, he added: "We've not been able to

support entrepreneurs. They've had no real access to funding."

Pointing out that developed world nations such as Canada, as well as the

likes of Jamaica and Barbados, all have development banks, Mr Nairn

said the BDB planned to focus on lending to entrepreneurs in the energy,

tourism, cultural, agriculture, marine, technology and natural resources

sectors.

"They've got significant foreign currency earning potential," he told Tribune

Business. "We believe the barriers to entry are very, very low, and we think

they can generate a significant amount of new employment."

Mr Nairn said the BDB had partnered in the development of eco-tourism in

the southern Bahamas, starting with Inagua. "The objectives of the

programme include increasing sales and promotion of the selected island

as an eco-tourism centre, increasing overnight tourist arrivals sufficient to

deliver occupancy rates above 60 per cent for participating guesthouses,

and establishing 15-20 small tourist-related businesses that provide

activities for guests," he added.

Given the restrictions imposed by the BDB's own Act, Mr Nairn said it also

planned to target the agricultural distribution and processing sector,

arguing that this would potentially relieve the Government of responsibility

via its packing houses and produce exchanges.

"A business that improves distribution, meets the quantity and quality

needs of the marketplace, pays farmers in a timely manner, effectively

allowing farmers to do what they are best able to do, farm, would do

wonders for our economy," the BDB chairman added.

Mr Nairn said the BDB had also worked with the Inter-American Institute for

Cooperation on Agriculture (IICA), Prime Minister's Office on Grand

Bahama and the Department of Cooperatives to create the Youth

Apiculture Development Programme.

"This programme is intended to create 20 apiarist entrepreneurs per year

over the next three years, with a view to creating a minimum of 100 jobs

for persons between the ages of 16- 25 while substituting imports or

generating exports of $4 million in product value, and establishing at least

three commercially viable apiary cooperatives in Grand Bahama," he

explained.

Mr Nairn said the BDB was also developing a three-year strategic plan in a

bid to become profitable within that timeframe, and is seeking to

become more transparent and accountable via regular public updates

starting next month.

He added that the BDB was well-placed to administer public-private

partnership (PPP) arrangements on the Government's behalf, serving "as

an intermediary between the.... sectors with respect to identifying

potential PPPs, locating various sources of funding and initial and long-

term administration".

"We think that's an exciting opportunity," Mr Nairn told Tribune Business of

PPPs. "We think that we can perhaps identify opportunities for the

Government, put the two sides together and actually administer them as

well.

"We think that would do wonders, and we are well-suited for that. As a

bank we have people who can assess these things. We've got lenders,

financial people who can make the assessment, follow up with both sides

and, on a long-term basis, obtain reports and liaise with lawyers. We've

got the infrastructure for it."

<< Back to news headlines >>

BDB: 'Everything Turns' On $64m Debt Restructure Friday 13th October, 2017 – Tribune 242

The Bahamas Development Bank's (BDB) chances of meeting the

Government's three-year 'self-sufficiency' target depend entirely on its

ability to restructure $64 million in long-term debt.

Lynden Nairn, the institution's newly-appointed chairman, told Tribune

Business yesterday that "everything turns" on negotiations with the National

Insurance Board (NIB) and other holders of the BDB's $43 million bonds in

the quest for "breathing room".

Emphasising that the BDB was not asking institutional investors to write-off

their investments, Mr Nairn revealed that recapitalisation plans also rely on

the Government agreeing to convert a $21 million debt into a larger

equity position in the bank.

With more than 60 per cent of the BDB's $34 million loan portfolio rated

'non-performing', the institution has been in "a holding position" for several

years, unable to engage in lending to new entrepreneurs simply because

it lacks the liquidity to do so.

Mr Nairn said the BDB's new Board had initiated efforts to collect on "100

per cent" of the security/collateral for non-performing loans, where

borrowers failed to settle or agree a payment plan, as it seeks to place

the bank in a position where it can again begin to fulfill its mandate.

This task, though, pales in importance compared to the long-term debt

restructuring, which Mr Nairn said was critical if the BDB is to stand on its

own feet by 2020.

This was the deadline set by K P Turnquest, the deputy prime minister, for

ceasing the annual $3 million bond interest payments the Government

has been making on the BDB's behalf - a practice that appears to have

been in existence for seven years.

"What we are aiming to do is to effectively recapitalise the bank by

seeking to convince our long-term lenders to restructure their facilities," Mr

Nairn told Tribune Business.

"For example, we are seeking to persuade the Government to convert the

bank's indebtedness to it into equity. We're asking the Government to

convert $21 million or so that would have arisen from the annual payment

of $3 million or so for bond interest."

The Bahamian taxpayer, via the Public Treasury, has been forced to

finance interest payments to the bondholders as a result of the BDB's

weak financial performance, which has left it unable to meet its

obligations.

Mr Nairn yesterday confirmed the BDB had begun discussions with NIB and

other bond holders to restructure its debt. While he declined to confirm

specifics, this is likely to involve extending the maturity/principal

repayment date and lowering the interest rate coupon.

This would reduce the BDB's debt servicing costs, and the chairman told

Tribune Business: "We do have a significant bond obligation, which today

stands at $43 million.

"They are held by NIB and others. We have commenced discussions with

them with respect to restructuring. We're certainly not asking them to do

write-offs of any of it, but we do need some breathing room so we can

grow the performing loan book."

Asked whether the BDB could achieve the Deputy Prime Minister's three-

year 'self-sufficiency' target, Mr Nairn replied: "We think that it's possible.

"Frankly, Neil, with a lot of the plans we have, everything turns on our

ability to restructure our long-term debt. That's the major thing that needs

to happen, and if that doesn't happen, and we can't restructure, then the

answer is that's not achievable. If we are able to restructure, there's a very

good possibility we will be able to do it."

Mr Nairn declined to give a precise ratio for the BDB's current non-

performing loans, saying: "I do know what it is. I'm almost hesitant to tell

you. Let me say that the non-accrual rate is in excess of 60 per cent."

In an earlier address to the Rotary Club of West Nassau, Mr Nairn said the

BDB was unable to fulfill its mandate - financing the entrepreneurial

dreams of Bahamians - due to a combination of high loan delinquencies,

high indebtedness and under-capitalisation.

"Having amassed significant losses over the decades, the bank has

essentially been in a holding position, primarily because it lacks the

liquidity to engage in meaningful new lending," he added. "The bank is

saddled with debt and an extremely high level of non-performing loans.

"The reality is that even if the bank never had a single bad loan, it still

would have been unprofitable. That is so because the bank was

undercapitalised from the beginning, and was/is operationally inefficient -

in part because of a lack of economies of scale."

Mr Nairn added that the BDB's long history of high non-performing loan

levels was "no secret", and the Board had little choice but to secure all

loan collateral pledged by delinquent borrowers if it was to engage in

new lending.

"The bank is patently aware of the need to institute measures that would

minimise non-accrual loans," the chairman said. "With respect to existing

non-accrual loans, the bank has embarked on an initiative designed to

liquidate 100 per cent of collaterals held for non-accrual loans in the

shortest possible time.

"Those measures are essential so that the bank might recover some of its

capital for the purpose of new advances."

<< Back to news headlines >>

Central Bank Back in Compliance on Gov't Debt Limits Friday 13th October, 2017 – Tribune 242

The Central Bank yesterday said its government debt holdings are back in

compliance with its governing Act, with medium and long-term maturities

equal to 12.52 per cent of its demand liabilities.

The regulator, responding to the IMF's Article IV report, confirmed that

proposals to impose limits on "the total value" of government debt that it

can hold will be circulated for public consultation before year-end 2017.

It added that it was "continuing to focus" on reducing its lending to the

Government through selling its Bahamas Government Registered Stock

(BGRS) holdings to private investors through the secondary market, which

has reduced its holdings by $80 million since its creation in 2017.

And John Rolle, the Central Bank's governor, last night confirmed that "at

least" $150 million of $200 million in 'bridge financing' - extended to the

Government in June 2017 via Treasury Bills - will be repaid "in the short

term".

The Central Bank was responding after the IMF's Article IV full report

disclosed that it breached its legal limits when it increased its government

debt holdings in the wake of Hurricane Matthew.

"Following the passage of Hurricane Matthew, the Central Bank of the

Bahamas increased its holdings of long-term government bonds to $200

million, about 2 per cent of GDP, breaching statutory limits," the Fund said.

"However, Central Bank's main target - on maintaining a level of reserves

of at least 50 per cent of the monetary base - continued to be met, albeit

with smaller margins than in the past. [The IMF] noted that increases in

these holdings should be reversed to ensure compliance with statutory

limits."

The Government and Central Bank, in response, argued that the limit was

only broken in extraordinary circumstances - namely to assist the Christie

administration with "emergency financing" in Matthew's wake, so that it

could provide disaster relief and infrastructure repairs.

The Central Bank, moving quickly to respond to Tribune Business's article,

yesterday said its own Act limited government debt holdings with maturity

terms of five years or more to 20 per cent of demand liabilities. These are

"the stock of Bahamian currency issued" by the Central Bank, plus deposits

placed with it.

The regulator admitted that its holdings had "trended very close" to this

ceiling for several years, but it acted in 2016 to achieve "a permanent

reduction" in government debt holdings regardless of maturity.

However, these plans were temporarily thrown off course by Hurricane

Matthew, with the Central Bank's $20 million bond investment - part of the

$150 million in emergency financing raised by the Christie administration -

taking it "marginally" beyond the 20 per cent limit for several months

earlier this year.

Emphasising that it was now back in compliance with the Central Bank of

the Bahamas Act, the regulator said in a statement: "In light of the Bank's

ongoing efforts to reduce its exposure to Government debt by, inter alia,

selling certain tranches of its medium and long-term securities' holdings to

the public, the statutory ratio has been gradually reduced to 12.52 per

cent at the end of September 2017."

Mr Rolle confirmed last night that the 12.52 per cent referred to the

Central Bank's medium to long-term bond holdings, with maturities of five

years-plus, and did not include short-term government paper.

The Central Bank, though, added that it was not unusual to provide the

Government with financing given that it was one of its bankers. "The

Central Bank continues to focus on reducing total lending to the Bahamas

Government in a comprehensive fashion, both in co-ordination with the

Ministry of Finance and through direct engagement with the investor

community," it added.

"This addresses the legal constraint on holdings of medium and longer

term debt issued by the Government, which is stipulated in the current

Central Bank Act. It also addresses holdings of other debt of a shorter-term

nature."

Referring to the 20 per cent ratio 'cap' on medium and long-term

government debt holdings, the Central Bank conceded: "This ratio has

trended very close to the ceiling for a number of years, before the Bank

took action in 2016 to begin the process of achieving a permanent

reduction in the measure and in total holdings of debt over time,

irrespective of maturity.

"Indeed, an initial restructuring of the Central Bank's balance sheet

resulted in a reduction in longer-term bond holdings in June 2016. This

transaction, with institutional investors, swapped $25 million of long bonds

for shorter-term instruments.

"Afterwards, the programme of secondary sales was launched in August

2016, resulting so far in total sales of $80 million off the Central Bank's

balance sheet. At least another $150 million is destined to be repaid by

the Government in the short-term under the terms of the bridge financing

that was provided during 2017."

Explaining how its plans were blown off course temporarily, the Central

Bank said: "This goal notwithstanding, it is important to note that following

the passage of Hurricane Matthew in October 2016, the Bank

participated in the Government's subsequent $150 million hurricane relief

facility, investing in a $20 million Bahamas Government Registered Stock

(BGRS) issue, while the commercial banks provided $130 million in

financing via a long-term loan.

"This transaction, when added to the Bank's prior holdings of Government

securities, contributed to the ratio of Government securities to demand

liabilities rising marginally above the 20 per cent ceiling for a few months

during 2017."

The Central Bank said consultations with the IMF had resulted in the

development of a tougher legal framework, which would impose limits on

the total value of government debt that it can hold.

"The present limits on holdings of government debt, referenced by the IMF,

are less comprehensive than those which a new governance framework

for the Central Bank would introduce," it added. "The current operations

targets for Central Bank are also more comprehensive, and are geared

towards strengthening the overall backing for the Bahamian dollar."

<< Back to news headlines >>

Baha Mar Launches Hospitality Academy Thursday 12th October, 2017 – Tribune 242

Baha Mar has launched its Hospitality Academy in a bid to equip

Bahamians with the necessary skills and expertise for a career in the resort

and tourism industries.

The Baha Mar Hospitality Academy is a four-week programme aimed at

developing future workers. The programmes will offer a variety of courses,

ranging from personal and professional development to customer service,

plus practical exposure to all areas of luxury hotel operations.

Select courses will offer targeted training for specific careers in food and

beverage, housekeeping and guest services. Courses will also include

instructions on resume writing and interviewing to improve prospects for

securing employment in the resort industry.

"We've made it a priority to dedicate significant resources towards training

Bahamians to give them the skills they'll need for a successful career in the

hospitality industry," said Graeme Davis, Baha Mar's president.

"Baha Mar Hospitality Academy is representative of our commitment to

the Bahamas and its people, as well as their career development and

well-being."

The training programme is designed to prepare potential recruits for

positions at Baha Mar, as the destination resort ramps up recruitment

ahead of its full opening in Spring 2018, but is open to all Bahamians -

even those seeking successful careers elsewhere in the hospitality industry.

Currently at over 3,000 employees, Baha Mar will increase its workforce to

4,000 by the end of this year, and is on track to double current numbers -

reaching up to 6,000 associates - by the grand opening in April 2018.

There is no guarantee of employment upon completion of the Hospitality

Academy programme.

In addition, all students will have access to an on-site job fair for Grand

Hyatt, SLS Baha Mar, Rosewood Baha Mar, and Grand Hyatt Baha Mar

during the four-week programme.

<< Back to news headlines >>

BPL Develops Bahamian management Strategy Thursday 12th October, 2017 – Tribune 242

Bahamas Power and Light's (BPL) Board has developed a plan that will

place the monopoly electricity provider back under Bahamian

management, its chairwoman revealed yesterday.

Darnell Osborne told Tribune Business that the Board's proposal also

includes a revision of the business plan from BPL's former manager,

PowerSecure.

"We have come up with a plan on the way forward which includes

revising the business plan, which was already done, but revising it minus

PowerSecure. We will have that revised," said Mrs Osborne.

Power Secure's BPL plan, which had been kept confidential for months

under the former administration, was tabled in Parliament last month

when Works Minister, Desmond Bannister, announced the Government

had severed its management services agreement (MSA) with the US utility.

Mrs Osborne told Tribune Business: "The Board has also made other plans in

terms of the restructuring of the company. We have had some discussions

with the Minister. "We have proposed a restructure in terms of the best

way forward for managing the company under Bahamian management.

Some aspects of that have already been approved by the Minister. There

should be more coming out on that next week."

PowerSecure, now a part of Southern Company, had a five-year

operating agreement, which it signed in early 2016. That agreement

provided for a maximum $25 million pay-out.

Since taking the helm, PowerSecure's efforts at restructuring the cash-

strapped utility provider were marred by island-wide power outages in the

capital, and on some Family Islands.

PowerSecure's BPL 'business plan' identified numerous areas of cost

savings aimed at providing the energy cost reduction long sought by

Bahamian businesses and households.

Besides fuel costs, the plan revealed that Bahamians were being billed for

"as much as $14 million annually" for energy they do not consume, as a

result of losses and pilferage from BPL's system.

PowerSecure had also suggested that BPL was over-staffed by about 30

per cent, and recommended that it slash the workforce by nearly 300

persons in a staggered downsizing to save $13 million per year.

<< Back to news headlines >>

Haiti seeks funding with its partners Saturday 14th October, 2017 – Haiti LIBRE

On Thursday, a delegation of the Government of Haiti (GdH) led by Jude

Alix Patrick Salomon, Minister of Economy, accompanied by Aviol

Fleurant, Minister of Planning and Jean Baden Dubois Governor of the

Central Bank held discussions with leaders of multilateral and bilateral

institutions (henceforth development partners) involved in development

efforts in Haiti. The meeting was convened by the International Monetary

Fund (IMF) as a follow-up to conversations between the the President of

Haiti Jovenel Moïse and Christine Lagarde, Managing Director of the IMF,

in the margin of the recent United Nations General Assembly in New York.

The Government of Haiti (GoH) and development partners agreed that

economic and social stability are paramount to achieve sustainable

growth and development objectives. Accordingly, the Haitian Authorities

and the IMF committed to work toward completing an agreement on a

six-month Staff-Monitored Program (SMP). Under this SMP, fiscal policy will

focus on mobilizing domestic revenue to make room for needed increases

in public investment, including investments in health, education, and

social services. The program will benefit from development partners’

support to ensure the concessional financing of key strategic sectors and

implementation of structural reforms while mitigating social impacts in

order to allow for the success of the program. The SMP is to be designed

to build a track record and support a future request by the GoH for an

arrangement under the IMF’s Extended Credit Facility (ECF).

The GoH and development partners agreed that coordinated efforts are

essential to address structural bottlenecks and implement key reforms in

the energy sector, where large losses arising from the operations of the

public electricity utility (EDH) have in recent years been responsible for

approximately half of the public sector deficit. These reforms include

increased flexibility in supplier pricing, reduction of administrative costs,

improvement of billing and collection rates, rehabilitation and expansion

of the national grid, and transition to lower-cost and renewable energy

sources.

The GoH and development partners also identified improvements in

public finance management as crucial to ensure long-term debt

sustainability. Mobilization of domestic resources and institutional

strengthening are also priorities. Haitian representatives cited agriculture,

road and hydraulic infrastructures, reforestation and seed production, low

income and affordable housing, information technology and technical

and vocational training as areas where greater support is needed. All

parties noted the need for the government of Haiti to foster a climate

which facilitates investment and economic opportunity.

All parties agreed to maintain strong engagement to capitalize on the

momentum for reform and economic development in Haiti. To facilitate

investments and make optimal use of both domestic and development

partner resources, the GoH committed to develop, in cooperation with

domestic stakeholders and international partners, a long-term investment

plan in order to sequence and prioritize needed investments.

<< Back to news headlines >>

More Cruise Ships are coming to St. Kitts Thursday 12th October, 2017 – SKN Vibes

While the passing of Hurricane Irma and Maria respectively did not have

serious negative impact on St. Kitts, the devastation to major ports of call

in the Northern Leeward Islands has impacted itineraries for cruise calls to

St. Kitts since September 7.

Cruise lines are in the process of adjusting their itineraries and diversifying

their ports of call following extensive damage received in San Juan, which

is the homeport to vessels including the Carnival Fascination and Royal

Caribbean’s Adventure of the Seas, where repairs are ongoing. Further,

cruise lines such as Royal Caribbean have modified sailings to aid in

delivering humanitarian relief to islands in need. Both outcomes have

resulted in the revision of many cruise lines’ Caribbean itineraries’

cancellations and additions to St. Kitts.

On Wednesday, October 4, 2017, Minister of Tourism the Hon. Lindsay F.P.

Grant led a delegation of Ministers of Tourism including The Hon. Asot A.

Michael of Antigua-Barbuda and St Lucia’s Minister of Tourism, The Hon.

Dominic Fedee, other cruise tourism officials from St. Kitts & Nevis, St. Lucia

and Antigua, and the Chairman of the St. Kitts Tourism Authority Mr.

Nicholas Menon to meet with Royal Caribbean and Carnival Cruise Line in

a collaborative effort to reassure the cruise lines about post-hurricane port

and destination capabilities and receive updates on short- and medium-

term alterations to cruise line itineraries.

Royal Caribbean has scheduled an additional 35 vessels between

October 8th and December 31st 2017, and an additional 40 vessels

between January 1 and April 30th 2018. Other cruise lines such as Princess,

Holland America, Aida, Costa, MSC, Viking, Thompson Cruises, P&O and

Celebrity have not cancelled calls and have scheduled their vessels to

include St. Kitts as a port of call on existing or revised itineraries over the

coming months. It is important to note that Royal Caribbean has not

scheduled any Oasis class vessels until mid to late November on itineraries

including St. Kitts.

The St. Kitts Tourism Authority Cruise Ship Schedule will be updated

accordingly to reflect the changes upon receipt of notifications from

cruise lines. There will be additional calls from various cruise line vessels.

Therefore, a net increase in the number of projected ship calls to island is

expected for the 2017-2018 season. An estimated 115 vessels up from 96

are scheduled to visit St. Kitts from October 7 to December 31st, a net

increase of 19.

Stakeholders are advised changes may occur and the St. Kitts Tourism

Authority will provide updates as soon as information becomes available.

<< Back to news headlines >>

Increase in tourist arrivals and accommodation expansion – Saint Lucia

growing from strength to strength in 2017 Thursday 12th October, 2017 – St. Lucia News Online

Saint Lucia has recorded strong and steady growth in its tourism sector, so

far for 2017.

Year to date Saint Lucia has recorded an increase of 94,432 visitor arrivals,

representing 14.5% growth over 2016. Stay over arrivals as of August 2017

are up 9% and cruise arrivals are 21% above the previous year.

The cruise sector has continued to show very strong growth and this is

expected to significantly increase when construction is competed on a

new berth at the end of the year. This expansion will allow Saint Lucia to

accommodate Quantum class vessels with passenger capacities of

above 4900 per port call.

Saint Lucia Open for Business

Having thankfully been spared from the recent hurricanes, our tourism

industry continues to operate as normal. Importantly, the Saint Lucia

Tourism Authority has partnered with key public and private sector

agencies to provide assistance to our sister islands in need. One initiative

worthy of note is the Saint Lucia Hotel and Tourism Association’s

establishment of the Tourism Employee Relief Fund (TERF) for the medium

term assistance of displaced tourism workers.

Growing Accommodation Offerings

Saint Lucia’s tourism sector is poised to undergo significant expansion

within the next few years. Due to several major hotel projects, the island’s

tourism room stock is to increase by 2000 rooms over the next 4 years

thereby creating more variety in the accommodation offering. Already for

this year, the Royalton Saint Lucia Resort and Spa has opened its doors

with 455 rooms in two hotels one catering to families and the other, adults

only. Serenity Villas at Coconut Bay Resort, has also unveiled its 36 luxury

villas and the Harbour Club is to open in December with 117

waterfront/marina rooms.

Work commenced on the Fairmont Saint Lucia Resort in Sabwisha,

Choiseul in September this year. This resort will be a unique space that

integrates local nature, a low-rise building complex and a wide range of

recreational facilities. The hotel will include 120-five-star hotel rooms, 37

villas, 3 restaurants, a spa, commercial areas for local producers and

traders and 3 swimming pools. A special central place within the

development will be dedicated for local tradition with several of shops for

carvings and paintings.

The Reduit beach will be redeveloped and will become the home of a

luxury five-star dual branded hotel called Curio by Hilton. This property will

be built where the Rex Resorts was previously located. The Curio by Hilton

will feature 500 luxury rooms; 350 rooms assigned to the Hilton and 150

assigned to the Curio by Hilton. Work on this property will begin within the

last quarter of 2017.

Work should commence on the Honeymoon Bay Resort in Cannelles very

soon. This resort will consist of two hotels; the first is a 250 room 5-star luxury,

family all-inclusive hotel and the second is an 80 room, 5-star luxury hotel.

This resort will feature an 18-hole golf course and clubhouse and a

museum.

The Range Developments signed an agreement with the Government of

Saint Lucia to acquire the Black Bay lands and develop Black Bay into an

integrated master planned luxury touristic community. The Black Bay

Master Development will consist of a Ritz Carlton branded hotel and villas

with other amenities set on 180 acres on the southern tip of the island. The

hotel is expected to have 180 rooms and will be the central anchor of the

Black Bay Master Development. Initial site works are expected to

commence in the fourth of quarter of 2017 or the first quarter of 2018 and

the hotel is expected to be complete by the end of 2020.

Sandals Resorts International has confirmed plans to add a fourth resort on

Saint Lucia. The property will offer 350 rooms and suites inclusive of the

exotic Sky Pool Butler Suites, all-butler signature swim-up Rondoval Suites

and an infinity-edge sky pool bar. Ground-breaking for the project is set to

begin in 2018.

Negotiations are nearing closure with AM Resorts on the development of

two of its brands – a 250 room Secrets Resorts and Spa and another 250

room Dreams Resorts and Spa.

In addition to hotel developments, the island will create and capitalize on

the concept of village tourism. Eight fishing villages will be transformed

into unique tourism villages based on their attributes and strengths. These

villages will be uniquely themed and development plans will be

established in a participatory manner which address the villages’

infrastructure, culinary assets, architecture and capacity.

Winter is the time to say ‘I Do’

Lauded as the World’s Leading Honeymoon Destination for the ninth time

this year, Saint Lucia boasts some of the finest wedding and honeymoon

settings imaginable, providing a lifetime of cherished memories including:

• Beautiful Beaches – With over 30 stunning beaches throughout the

island. Picture your wedding day set on a palm-fringed beach.

• Cascading Waterfalls – A popular choice for younger couples and the

more adventurous types, the backdrop of the waterfall speaks for itself

and depicts the uniqueness of the island.

• Historical Parks – The cultural history of Saint Lucia provides a fabulous

rustic back drop to any wedding, stunning scenes amongst ruins of naval

forts, sugar plantations, and cocoa plantations to name a few.

• Mountain Tops – The Piton Mountains in Soufriere offer a breath-taking

backdrop for your wedding.

• Botanical Gardens – Tropical island scents and home to special flora

and fauna, Saint Lucia’s botanical gardens are ideal settings for a

beautiful wedding.

The island’s wedding coordinators can also recommend one of many

private garden locations and hotel properties to provide the perfect

setting for a destination wedding.

Soleil Saint Lucia Summer Festival

In 2017, Saint Lucia has launched an ambitious initiative – a Summer of

Festivals – aimed at bringing tangible and lasting economic, social and

cultural benefits to the country and its people. The Festival builds on Saint

Lucia’s outstanding artistic talent and rich cultural heritage and on its

experience in designing and hosting unique events and celebrations:

• Food & Rum Festival – a gastronomic event to attract the best chefs,

wine connoisseurs, rum fanatics and food critiques from the Caribbean

and internationally.

• The Saint Lucia Jazz Festival – Caribbean and international jazz music,

an eclectic mix of renowned and up and coming talent, with indoor

concerts, dinner sets, and outdoor, open air events

• Roots & Soul – A festival dedicated to musicians who are setting new

trends in reggae, conscious hip-hop, Afro-punk and R&B.

• Saint Lucia Carnival – Pumping rhythms, sexy costumes and the people

dancing under the warm Caribbean sun; welcome to Saint Lucia

Carnival.

• Country & Blues – Influenced by African roots, the Blues tells of a rich,

powerful history of people and created one of the most influential genres

of popular music.

• Arts & Heritage Festival – Building on the celebration of Creole Day,

which began in Saint Lucia in 1981, this month-long Festival is a

celebration of the richness and diversity of Saint Lucia’s cultural, ethnic

and artistic heritage.

<< Back to news headlines >>

Saint Lucia receives almost US$3 million from CDB’s poverty reduction

programme BNTF 9 Thursday 12th October, 2017 – St. Lucia news Online

The BNTF Programme, CDB’s flagship programme for poverty reduction,

has contributed significantly to national development in St. Lucia since it

commenced operations on the island in 1979.

In-keeping with the theme ‘Partnering Against Poverty’ the implementing

agency for the BNTF programme, the Saint Lucia, Social Development

Fund (SSDF) held an opening ceremony on Wednesday October 4th, 2017

at the Golden Palm Resort Rodney Bay to Launch the BNTF 9 Programme.

Saint Lucia received an initial grant allocation of US$2.97million dollars.

George Yearwood is the Caribbean Development Bank Portfolio

Manager (Ag): “After extensive discussions CDB has negotiated for the

Special Development Fund (SDF) to secure grant resources for a more

nimble BNTF 9 programme, with a yet more ambitious agenda for tackling

poverty in the region. Countries in the region stand to benefit from a grant

allocation of US$40.8 million dollars, of which Saint Lucia receives

US$2.97million Dollars. And a portion of an unallocated amount of US$5.2

million dollars to be distributed at midterm based on project

performance.”

Minister for Equity, Social Justice, Empowerment, Youth Development,

Sports, Culture and local Government Hon. Leonard Montoute expressed

his gratitude to the Caribbean Development Bank for their continued

support: “I am not aware of any donor funded programme that has

spawn so many cycles of almost 4 decades of BNTF. The support that we

have received here in Saint Lucia is very rare and so I would like to thank

the Caribbean Development Bank (CDB) for their continued support and

commitment in assisting our poor and vulnerable. I have no doubt that this

will be reflected in this new Cycle.”

The Basic Needs Trust Fund (BNTF) Programme has been contributing to

poverty reduction in Saint Lucia by providing infrastructure and livelihood

enhancement services.

<< Back to news headlines >>

Cudjoe says expect bumper cruise season in 2018 Monday 16th October, 2017 – Trinidad and Tobago Guardian

Renewed efforts by the Ministry of Tourism to showcase T&T as an ideal

travel destination is already reaping success as the 2017/2018 cruise

season promises to be a bumper one with 71 calls scheduled to put into

port.

Officially declaring the season open yesterday as she welcomed the

early-morning arrival of 3,756 passengers aboard the Caribbean Princess

in Port-of-Spain, Tourism Minister Shamfa Cudjoe said despite the recent

destruction wrought by Hurricanes Irma and Maria, all was not lost.

She declared, "Cruise tourism is still alive and kicking in the Caribbean, all

is not lost and we are open for business."

Cudjoe added, "Not just a handful of islands in the Caribbean, but 70 per

cent of our territories are still open for business."

With rebuilding efforts underway in islands such as Dominica, Turks and

Caicos, Montserrat, and St. Kitts and Nevis, Cudjoe reinforced that tourism

was the backbone of many Caribbean nations as she quoted recent

sentiments by chairman of the Caribbean Tourism Organisation, Hugh

Riley who said, "If you want to help the Caribbean, you should travel to

the Caribbean."

Cudjoe described the cruise industry as the fastest growing segment of

worldwide leisure travel, having experienced an average passenger

growth rate of seven per cent per annum since 1980.

She said for the period January to June 2017, Caribbean cruise arrivals

stood at 15.3 million, which was a four per cent increase for the

corresponding period in 2016.

Admitting the recent natural disasters had, "Put a damper on this year's

cruise season," Cudjoe said it had also managed to bring the region closer

as governments and people worked together to rebuild and promote the

viability of the Caribbean brand.

She said T&T had originally been scheduled to receive 47 calls - 23 in

Trinidad and 24 in Tobago - but negotiations by local shipping

stakeholders had resulted in an additional 24 calls being added to the

books, with 23 in Tobago and one in Trinidad.

The 71 calls from vessels operating Seabourne Cruise Lines, Carnival UK, TUI

Cruises, Fred Olsen Cruises, Thomson Cruises and Princess Cruises among

others, is expected to generate passenger arrivals of approximately

60,958 in Trinidad and 75,451 in Tobago.

Providing a taste of T&T's local culture and culinary delights for visitors

yesterday, Cudjoe promised, "We want to wow our guests from the

moment they arrive so that they return again and again."

Passengers were able to sample treats from The Lopinot Chocolate Co,

doubles and coconut water as they danced to the steelpan music of the

Caribbean Airlines Invaders.

Cudjoe expressed delight after speaking with one of the visitors who said it

was his 85th cruise to the Caribbean and 39th to T&T, but the welcome,

"Had been the best he ever received."

The minister said over 20 visitor guides were trained and would be

strategically stationed around the capital as vessels put into port over the

next few weeks.

She said efforts were also being made to secure translators as persons

from as far away as Germany and Italy were expected.

Efforts afoot to restore T&T’s glory days

Commenting on the opening of the 2018 cruise season, chief executive

officer of Carvalho’s Agencies, Charles Carvalho noted that steps were

underway to bring back the allure of T&T as a cruise destination of choice

in the region.

He said, “We are trying to make T&T what it was years ago.”

Carvalho added that in the 1970’s, Trinidad was the “mecca” of cruise

shipping in the Caribbean.

He said: “People did not even know Barbados, St. Lucia and Grenada,

they had known Trinidad.”

“Trinidad was a home port destination for ships going to South America

but that has gone because other destinations developed faster than we

could but we are trying to bring that back.”

Carvalho pointed out that they had redoubled efforts in recent weeks to

encourage ships looking for ports of calls to come to T&T, following the

hurricanes.

He said, “We went to them and said T&T has the space and we had some

negotiation to make it happen, but many of them are on-board now.”

Captain of Caribbean Princess Marco Fortezze, who will celebrate his 55th

birthday next month, agreed T&T had “something special” to offer to

visitors.

Originating from Fort Lauderdale, Florida, the Caribbean Princess

departed Trinidad at 5 pm yesterday, headed for Curacao.

<< Back to news headlines >>

Scotiabank appoints new managing director Friday 13th October, 2017 – Trinidad and Tobago Guardian

Scotiabank has announced the appointment of Stephen Bagnarol as

Managing Director of its operations in T&T, as well as Senior Vice-President

and Head of the bank's Caribbean South and East operations.

The appointment will take effect November 1, 2017

In a statement yesterday, Brendan King, chairman, board of directors and

senior vice-President of International Banking at Scotiabank said,

"Stephen's extensive knowledge and experience leading teams and

driving results position him well to lead our team in the Caribbean South

and East."

Bagnarol's appointment follows the Bank's announcement on September

19th that Anya Schnoor, who held the position as managing director since

2012, has been promoted to the position of executive vice-president,

retail payments, deposits, and unsecured lending for Canadian banking

from November 1, 2017.

King added that Bagnarol would continue to develop and implement

local business strategy for the region in alignment with the bank's strategy

and risk appetite and in compliance with government and regulatory

laws.

Bagnarol joined Scotiabank in 1998 and had his first international

assignment in Mexico.

In 2005, he relocated to New York as Managing director, Derivatives and

Capital markets.

In 2008, he was appointed to Senior Vice-President, Wholesale banking in

Panama.

In 2011 Bagnarol was appointed to his current role as senior vice-

president, Wholesale banking in Peru

<< Back to news headlines >>

Unilever declines $4.07 Friday 13th October, 2017 – Trinidad and Tobago Guardian

Overall Market activity resulted from trading in 16 securities of which 2

advanced, 5 declined and 9 traded firm.

Trading activity on the First Tier Market registered a volume of 562,514

shares crossing the floor of the Exchange valued at $7,370,026.50.

Angostura's Holdings was the volume leader with 300,000 shares changing

hands for a value of $4,500,040.00, followed by Trinidad Cement Limited

with a volume of 81,873 shares being traded for $344,478.36.

Sagicor Financial Corporation contributed 67,500 shares with a value of

$540,876.00, while GraceKennedy added 50,020 shares valued at

$145,058.00.

NCB Financial Group registered the day's largest gain, increasing $0.05 to

end the day at $5.30.

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

$4.07 to close at $41.95.

Clico Investment Fund was the only active security on the Mutual Fund

Market, posting a volume of 3,500 shares valued at $75,180.00.

Clico Investment Fund declined by $0.02 to end at $21.48

<< Back to news headlines >>

New agreement to access development assistance Monday 16th October, 2017 – Antigua Observer

Prime Minister Gaston Browne has signed the Agreement for

Encouragement and Protection of Investment with the Director General of

OPEC Fund for International Development (OFID), Suleiman Jasir Al-

Herbish.

According to the prime minister, the signing of this agreement is important

to the future development of Antigua and Barbuda as it places the twin

island state in a position to gain financial assistance for development

projects.

This agreement, signed on Friday, is also designed to assist in financing

private sector activities in Antigua and Barbuda involving investors from

OPEC member states and other developing nations.

The signing exercise occurred as the prime minister lead a high powered

delegation to Washington to attend the IMF/World Bank annual meetings.

During a High Level Ministerial session, the prime minister, criticised the

international banking system as he stressed that the vulnerability of small

states has increased because the international payment system is

controlled by the developed countries and they have set up artificial

impediments that undermine the development of small states.

He referred to the recent wide spread destruction of several Caribbean

territories by Category 5 hurricanes as he emphasised the impact of those

hurricanes, challenges faced in the rebuilding effort, and the need for

building resilience.

“Correspondent Banking is a global public good and should be available

to all countries and all regions,” the prime minister stressed.

He elaborated that banking relations “is a fundamental human right that

is just as important as the provision of other basic services such as water,

electricity and broadband services”.

He told the high-level audience that “the socio-economic impact of de-

risking is more severe than any hurricane.

“We are being de-banked from the international payment system,” the

PM charged. “The provision of correspondent banking service cannot be

seen exclusively through the lens of risk and profitability.”

His statements were widely supported by leaders of other small states from

Africa, the Caribbean and the Pacific as well as representatives of

international agencies, attending the meeting, which was also graced by

the presence of the World Bank President, Deputy UN Secretary General,

Sir Richard Branson and a number of donors.

Several delegations at the forum called on the Antigua and Barbuda

prime minister to set up a proposal, which could tackle the perceived

problems in a global way. In response, he has recommended the

establishment of a “high-level working group on De-risking and

Developmental Funding for Small Island States.”

Prime Minster Browne also met with the World Bank Regional Director for

the Caribbean, Tahseen Sayed and held discussions on the rebuilding

programme on Barbuda and the Antigua and Barbuda economy.

On the margins of the High Level Ministerial event, Senator Lennox Weston

held a similar meeting with the Secretary General of the Commonwealth

Baroness Patricia Scotland.

On Saturday, the prime minister joined his regional colleagues and other

leaders at a Small States Forum to discuss Climate Change, the recent

destruction caused by hurricanes, and the eligibility criteria for the

Caribbean for development assistance among other things.

The prime minister returned to the state yesterday. He was accompanied

on his busy weekend trip to Washington by Minister of State in the Ministry

of Finance and Corporate Governance, Senator Lennox Weston;

Ambassador Sir Ronald Sanders; Financial Secretary Whitfield Harris and

Deputy Financial Secretary Rasona Davis-Crump.

<< Back to news headlines >>

Hello new Barbuda Saturday 14th October, 2017 – Antigua Observer

A Chinese firm has shown interest in establishing a new town on Barbuda,

the government has announced.

This was revealed on Thursday by government’s chief of staff, Lionel Hurst,

in his weekly post-Cabinet statement.

The firm, which was not identified by name, reportedly has expertise in

energy and housing and had been invited to brief the Cabinet by the

Minister of Works and Housing Eustace “Teco” Lake.

“They proposed to construct a complex of several high-rise apartment

buildings that could resist hurricane winds exceeding 200 miles per hour,”

the statement read.

The release added that the complex would include a supermarket,

cleaners, a drug store, a restaurant, a movie theatre, clothing stores, a

church, car parks and other kinds of amenities that are common to new

complexes.

“The team agreed to return in a week with prices,” and according to the

statement, “assured the Cabinet that it could arrange financing that is

low cost, and living spaces that would also be within the reach of families

with limited means”.

The revelation is yet another indication that the plans for the island are a

far cry from what existed prior to the devastation wreaked by Hurricane

Irma on September 5. Barbuda Representative and Agriculture Minister,

Arthur Nibbs, last week told his regional counterparts that the government

planned to establish an agro-industrial complex on a rebuilt Barbuda.

Nibbs painted a picture of a modern agricultural sector that employs

sustainable use of the island’s natural resources while luring investors with

attractive terms.

But financing this re-imagined Barbuda could put paid to the dreams of

the government. According to Nibbs, they plan to adopt “a blended

approach” to secure the resources in both cash and in kind from the

Barbuda recovery fund, private investors, bilateral assistance from friendly

governments, and development partners and donor agencies.

So far the government has secured less than half of a US $50-million target

in relief aid from friendly governments and organisations. Reconstruction

of Barbuda’s public infrastructure alone has been pegged at upwards of

US $200 million.

<< Back to news headlines >>

Cost of citizenship cut in half – Visa-free loss coming back to haunt? Friday 13th October, 2017 – Antigua Observer

The loss of visa-free access to Canada continues to haunt Antigua and

Barbuda, according to the Citizenship by Investment Unit (CIU). This is

what eventually led to the need to slash the cost of citizenship by half.

Prime Minister Gaston Browne announced in Parliament on Thursday that

citizenship under the National Development Fund (NDF) will soon be sold

for U.S. $100,000.

OBSERVER media asked a CIU representative why the reduction was

necessary. She replied that visa-free access to Canada was “the

country’s most compelling advantage” and that since its rescission,

investors are “forced to make a decision purely based on price.”

Meanwhile, Harold Lovell, Political Leader of the United Progressive Party

(UPP) has again argued the programme should be halted and

rebranded.

“Look at the areas where you’ve made mistakes and do everything

possible to regain visa-free access to Canada,” he said adding, “We will

soon hear that they are selling citizenship for U.S. $20,000. What will we say

then? It will be the destruction of the programme.”

Lovell has said the loss of visa free access to Canada was “because of

reckless actions by the government” that put the CIP “in dire straits.”

Currently, the lowest price for Antigua and Barbuda’s citizenship through

the Citizenship by Investment Programme (CIP) is the U.S. $200,000 asked

for under the CIP’s NDF with additional diligence and processing fees.

Grenada is the only other Caribbean island selling citizenship at U.S.

$200,000 in addition to fees.

The CIU representative stated that “the market has determined that the

most attractive amount is U.S. $100,000” and this is evidenced by a

staggering 95 percent decline in NDF applications.

<< Back to news headlines >>

FHC, Oppenheimer facilitate access to global capital markets Friday 13th October, 2017 – The Gleaner

The Kingston-based FHC Investments Limited (FHCIL), a subsidiary of First

Heritage Credit Union, has entered a partnership with New York-based

Oppenheimer Asset Management Inc. which provides a range of services

to banks and high net worth individuals.

FHCIL confirmed the relationship during its investor forum at the Courtyard

Marriott Hotel in New Kingston recently.

FHC Chief Executive Officer Roxann Linton put the new relationship in the

context of her organization’s programme to facilitate portfolio

diversification beyond national borders on behalf of the FHCIL clientele.

"An investment in knowledge pays the best interest,” she said, arguing

that the partnership with Oppenheimer will strategically enable FHCIL to

offer an expanded menu of global investments.

“Oppenheimer is a reputable, well-established brokerage in the USA

whose services include offering their clients from all over the globe world-

class investment research, and the efficient and speedy settlement of

transactions,” Linton said.

She also highlighted the timing of the intervention, noting the policy

uncertainties arising from the various political elections in Europe and the

new and unconventional US presidency of Donald Trump.

Add to that the volatility in the international oil markets and you have an

interesting cocktail of conditions which are not exactly conducive to fairer

weather in the investment climate, she said.

The effects of at least some of these factors are bound to have a

continued impact on the investment momentum going into 2018, Linton

said.

For Oppenheimer’s chief investment strategist, John Stoltzfus, however,

the outlook is optimistic.

“We now have some significant momentum. We also see opportunities in

European stocks, in Asia, Latin America and elsewhere around the world

as we go forward and the economic recovery continues. The wonderful

thing about it is that in the many trends around the world that are very

positive much of it has nothing to do with politics,” he said.

Stoltzfus argued that gains were primarily driven by technology because it

has become ubiquitous.

On September 19, 2011 FHC became the first Jamaican credit union to

offer alternative financial support services through a subsidiary after FHCIL

was licensed by the Financial Services Commission.

<< Back to news headlines >>

PCJ exploring offshore wind farm Sunday 15th October, 2017 – The Gleaner

Petroleum Corporation of Jamaica (PCJ) has got foreign backing for a

prefeasibility study on the prospect of setting up another wind farm, but

one that would be anchored out at sea.

An American outfit called Keystone Engineering Inc. has been invited to

do the study, which PCJ Group General Manager Winston Watson

indicated should be finalised by around December 2018.

The study for the offshore wind farm is being financed by a grant from the

US Trade and Development Agency (USTDA).

"Preliminary work should begin during the final quarter of 2017 and the

study is scheduled to last for 12 months," said Watson. "The results of the

study will give an indication of the cost and viability of developing an

offshore wind farm for Jamaica," he told Gleaner Business.

The study is expected to evaluate the viability of installing the wind farm,

which would represent one of the first offshore wind installations in

Jamaica and the greater Caribbean region.

USTDA links US businesses to export opportunities by funding project-

planning activities, pilot projects, and reverse trade missions. The US

agency said in a release on the project that the development of the wind

farm offers potential export opportunities for a range of American

equipment and services related to the design, development, and

operation of offshore wind power generation and transmission

infrastructure.

Keystone is a Louisiana-based energy firm specialising in the engineering,

design, procurement, project management and construction support for

offshore wind and oil and gas platforms. The company was the

foundation design-engineer for the first offshore wind farm installed in the

United States, the 30 MW Block Island Wind Farm off the coast of Rhode

Island, USTDA noted.

Watson told Gleaner Business that it was the US agency that approached

the PCJ about overseeing the implementation of a grant-funded

feasibility study on the prospective offshore wind farm.

He did not indicate the size of the grant, who would develop the facility,

nor what the plans were beyond the study.

"At this point it is still too early to comment on the ownership or operational

arrangements for any future projects that might be implemented as a

result of the study," the PCJ boss said.

The PCJ currently owns and operates the Wigton wind farm, based at

Rose Hill in Manchester. The facility, first established in 2004 and expanded

over time, now has generating capacity of nearly 63 MW. Wigton's total

output is now 164,775 MWh per year. It accounts for 6.2 per cent of

installed capacity on the national power grid, and 3.7 per cent of

Jamaica's electricity generation

Wigton sells the electricity it generates to the Jamaica Public Service

Company, operator of the national grid.

As for the offshore farm, Watson said it was possible the facility could feed

both local energy needs and exports.

"It is anticipated that any facilities that may result will provide energy for

domestic usage," he added.

In the USTDA release, Watson was quoted as saying the study would "help

the PCJ to get valuable data that can attract overseas investment for the

development of our offshore wind resources".

<< Back to news headlines >>

IMF u-turn on economy Sunday 15th October, 2017 – Nation News

Government’s most recent austerity measures have prompted the

International Monetary Fund (IMF) to reverse its growth projections for the

Barbados economy.

Not only has the IMF revised downward its forecast for economic growth

in Barbados this year, but it is even more pessimistic about the economy’s

prospects in general election year 2018.

The same goes for the financial institution’s prediction about consumer

prices here. It expects inflation to escalate by the end of the year and

worsen next year because of the fiscal measures introduced in the May 30

Budget.

The IMF officially made the revision in its latest World Economic Outlook

(WEO), released during last week’s annual meetings which also involved

the World Bank. (SC)

<< Back to news headlines >>

Carnival cruise liner drops out Friday 13th October, 2017 – Nation News

Hundreds of Barbadians booked to cruise on the Carnival Fascination for

the next three months have had their plans smashed.

Carnival Cruise Line yesterday announced the cancellation of all Carnival

Fascination cruises from October 15 through January 28, 2015.

The e-mail from the cruise line sent shock waves through the local travel

agency business yesterday, stating in part:

“We are writing today to let you know that we have been asked by the

Federal Emergency Management Agency (FEMA) to support the relief

and rebuilding efforts and Carnival Fascination has been chartered to

provide housing for relief workers in the US Virgin Islands. This means the

ship’s departures from October 15, 2017 through January 28, 2018 will be

cancelled.”

The cruise line advised travel agents their clients would “receive a full

refund of their cruise fare, as well as air purchased through our Fly2Fun

programme, pre-purchased shore excursions, beverage packages and

Fun Shop items”.

Director of cruise at the Barbados Tourism Marketing Inc., Cheryl Franklyn,

described Carnival’s decision “to lend the Fascination to the rebuilding

effort “as honourable.

She said that given Barbados’ “very strong” cruise performance to date,

“we are still in a position of growth over last year and we should still end

2017 well ahead of 2016”.

<< Back to news headlines >>

Tourism arrivals, bookings up with US market key Friday 13th October, 2017 – Barbados Today

Barbados’ tourism officials are reporting a promising tourism performance

for the first eight months of this year.

Chairman of the Tourism Development Corporation (TDC) Martin Ince told

the 30th annual general meeting and luncheon at the Accra Beach

Resort, Rockley, Christ Church on Thursday that figures for January to

August show long-stay visitor arrivals up by 7.4 per cent.

“[This is] being driven by the United States market, up 16 per cent and

Canada, 12 per cent. The UK market this year was flat so far,” Ince

reported.

However, the tourism executive noted that in spite of flat performance of

the British market so far, the United Kingdom remained this country’s major

source for long-stay visitors.

He also revealed there was a 20 per cent year-on-year rise in cruise

arrivals for the first eight months.

“Certainly, the winter season will be a very busy one. The airlines are

seeing solid bookings. From all reports, the forward bookings are strong,”

he said, crediting the TDC for its role in the achieving the increases.

Despite the positive news, the TDC official said the non-profit body, which

helps to maintain some tourism related infrastructure, was not happy that

contributors had lost some of the tax concessions once granted.

Ince said the TDC deserved greater attention from Government because

of its contribution to the growth of tourism.

“We have been lobbying the ministries of finance and tourism for the last

two years. We used to get a 150 per cent tax incentive for any

contributions made to the TDC and that was reduced to 100 per cent

about two years ago.

“We have lobbied to have this reinstated. So I am appealing to the

Ministers of Finance and Tourism to please relook reinstating this. The TDC is

providing key funding and we are taking pressure from the tourism funding

bodies in Barbados,” the TDC chairman contended.

“The TDC is providing critical funding for the tourism product in Barbados.

We are working very closely with the [Barbados Tourism Marketing Inc.],

the [Barbados Hotel and Tourism Association] and the [Barbados Tourism

Product Authority] in many, many initiatives,” Ince said.

At the same time, Ince told tourism stakeholders they must continue to

raise the bar and reject mediocrity. He called on partners to ensure the

country remained world-class.

The meeting was also addressed by representatives from several

organizations which benefited from TDC financing and who touted the

contributions it has made to tourism revenues.

The presenters included Andre Miller of the Barbados Dive Fest, Barney

Gibbs of Enterprise Sea View, Palms on the Highway and the Bridgetown

Lamp Refurbishment project, Cicely Walcott of the World Flower arranging

show and Mark St Hill of the Barbados Hockey Festival and Hockey

Astroturf.

<< Back to news headlines >>

GuySuCo to slash workforce by 7,000 Saturday 14th October, 2017 – Kaieteur News

Cash-strapped Guyana Sugar Corporation (GuySuCo) is already letting

go of staffers from two estates that it will close before the year is out.

Amidst worry by sugar workers, GuySuCo officials yesterday confirmed

that 1,500 could be let go from Rose Hall and the East Demerara estates

by the end of the crop. The industry has 17,000 workers. It wants to reduce

that by at least 5,500 more, a total of 7,000 – to finish at 10,000.

This past week alone, 300 staffers were affected between the two, it was

disclosed yesterday.

The state-owned sugar company is also planning to use the remaining

three estates – Blairmont and Albion in Berbice and Uitvlugt, West

Demerara – to produce up to 150,000 tonnes of sugar, come 2020.

The remaining three estates – Enmore (East Demerara) and Rose Hall and

Skeldon (East Berbice) will be up for offers of divestment and privatization.

The 150,000-tonne target from the three estates will be similar to the lowly

150,000-160,000 tonnes that is being announced for this year.

The disclosures of making GuySuCo profitable or “cash positive” in three

years were made yesterday during a press conference by senior officials

at the National Communications Network studios, Homestretch Avenue.

With Wales Estate, West Bank Demerara, closed last December as part of

the re-organisation of the sugar industry, which has been struggling badly

to stay alive, the questions of what is happening at Rose Hall and Enmore,

two factories earmarked to be closed, have been up in the air.

Present at the press conference yesterday were Finance Director and

Deputy Chief Executive Officer (CEO), Paul Bhim; Gavin Ramnarain, Head

of the Agricultural Research Department; Yusuf Abdul, Technical Services

Manager; Deodat Sukhu, Chief Industrial Relations Manager, and

Audreyanna Thomas, Senior Public Relations Officer.

With some protected markets in the region, a re-organised, lean-and-

mean GuySuCo, minus its troubled new kid-on-the-block, Skeldon, will be

targeting CARICOM for higher prices, through value-added packaged

sugar and what is known as ‘plantation white sugar’- a lesser quality of

refined sugar.

Rose Hall is confirmed to be close this year-end, GuySuCo said yesterday.

GuySuCo is facing major problems, with little answers now, and is $82B in

debt. It is producing at high of US$0.42 cents per pound but selling at a

massive loss, at US$0.17.

The government has given and committed $21B to GuySuco for the past

12 months, a situation that is angering taxpayers, but defended by the

sugar unions, whose existence is under threat.

At Wales Estate, 200 acres of rice was planted under a $200M

diversification project, and funded by the Guyana Rice Development

Board. The project fell short of the 35 bags-per-acre target, with 28 bags

recorded.

Already, a special purpose unit has been established and has invited

expressions of interest for Wales, Skeldon, Rose Hall and Enmore estates.

At the Albion Estate, GuySuCo will focus on bulk sugar, plantation white

sugar, co-generation, and molasses. Production of bagged and

packaged sugar will be done at Blairmont while at Uitvlugt Estate,

GuySuCo will focus on bagged and plantation white sugar.

GuySuCo is also hoping to supply the local market, which consumes

approximately 20,000 tons of bagged and packaged sugar yearly.

“In addition to that, we have a small US quota of about 13,000 tons…so

we’re going to be satisfying that quota as well,” Bhim noted.

The corporation is also looking to move into new markets, particularly

plantation white sugar which is a substitute for refined white sugar. There is

potential at Uitvlugt Estate for increased sugarcane cultivation with

private cane farmers, senior PRO Audreyanna Thomas noted.

GuySuCo is looking to tap into the Caribbean market for plantation white

sugar. Bhim pointed out that the Caribbean Community (CARICOM)

annually imports approximately 190,000 tons of refined white sugar. While

10% of refined sugar is used for manufacturing of food and beverages,

“the rest could come from plantation white sugar”.

The sugar entity is collaborating with Jamaica and Belize, members of the

Sugar Association of the Caribbean (SAC), to urge CARICOM

governments to grant a Common External Tariff (CET).

“Where white sugar is coming in extra-regionally, some sort of a tariff will

be imposed. We’re not sure as yet what percentage we’re looking at…in

order to make our plantation white sugar competitive,” Bhim explained.

To be competitive the tariff the sugar corporation is seeking has to be in

the range of the charge attached to brown sugar, which is in the range of

30-40%.

The officials made it clear the GuySuCo as a business should be re-

oriented to run as a profitable one.

Already, GuySuCo is targeting sugar-dependent communities to find out

ways to ready them from the fallout of factories being closed.

Almost 500 workers have indicated they wanted training that GuySuCo

was offering as part of the severance deal – from sewing, catering,

masonry, electrical works and computer training.

According to Bhim, 70 percent of Guyana’s overseas market is in Europe,

where prices have almost halved to just US$300 per tonne. With regards to

Wales, another 285 acres will be put to more seed paddy.

Sukhu said that some 389 workers have received severance pay of over

$338M. However, the official said, about 200 Wales workers are refusing to

take up jobs at the Uitvlugt estate.

The officials made it clear yesterday that GuySuCo will be offering

contracts of planting, transportation, and harvesting. There will even be

contracts for uniforms.

According to Sukhu, the major problem facing GuySuCo is the number of

strikes and protests by workers – one of the highest this part of the

hemisphere.

At Skeldon, when divestment or privatization comes, almost 2,000 workers

will have to be treated when the time comes, the officials said.

The reduction of the workforce, a bruising subject for the Opposition and

a touchy one for Coalition Government, would see GuySuCo saving in

about $5B-6B – the current wage bill is over $18B annually.

Recently, to rescue GuySuCo with monies to pay workers and other

expenses, government agreed to buy some lands for housing. GuySuCo

will be asking for more before year-end, Bhim admitted.

GuySuCo is targeting land sales to raise money for expansion and critical

repairs to its aging factories.

<< Back to news headlines >>