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

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

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

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

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

▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+

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

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

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

▪ Home Mortgage Bank’s rating reaffirmed at CariA

▪ NCB Cayman Limited’s rating reaffirmed at CariA

OUR UPCOMING WORKSHOPS!

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

Benefits of a CariCRIS Rating to an SME:

Latest Rating Actions by CariCRIS

• Access a loan or line of credit from a financial institution

• Access credit from international suppliers

• Improve your business operations for greater efficiency and profitability

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COUNTRY

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REGIONAL

Trinidad and Tobago

JMMB leads trading

OVERALL stock market activity yesterday resulted from trading in 17

securities of which three advanced, seven declined and seven traded

firm.

Deyalsingh: Value for money

'BY ANY stretch of the imagination' the country is getting value for $1.1

billion being spent on the construction of the Port of Spain General

Hospital Central Block, Health Minister Terrence Deyalsingh said yesterday.

PM signs intra-regional travel agreement

The Prime Minister on Wednesday signed TT on to the Caricom Multilateral

Air Services Agreement, intended to boost the regional transportation.

Minister: ‘We are managing water problems’

PUBLIC Utilities Minister Robert Le Hunte said steps are being taken to

ensure the population has an adequate water supply during the current

drought conditions.

Barbados

Cane cut

Cane farmers will be in for a $9.7 million payday at the end of next week.

Jamaica

JSIF Signs $43.9m MOU

The Ministry of National Security (MNS) has signed a memorandum of

understanding (MOU) with the Jamaica Social Investment Fund (JSIF) for a

further $43.9 million in financial support for the Jamaica Crime

Observatory Enhancement Project.

Sygnus Weighs Fundraising Options In Hunt For US$15m

SYGNUS CREDIT Investments Limited, SCI, issued credit to an additional six

companies in the December quarter, bringing its deals since inception to

16, and is signalling that it has more prospects lined up.

Guyana

Monitoring Metered Oil … Guyana should require Exxon, others to use

independent certifying firms, standards – Int’l Consultant

With a plethora of capacity issues facing the country in its bid to prepare

for oil, there is still a chance that it can ensure transparency and

accountability when it comes to monitoring metered oil. This came to the

fore when Kaieteur News conducted an interview with International Oil

and Gas Consultant, Anthony Paul.

Guyana Goldfields announces mill expansion

Guyana Goldfields Inc. has announced that the second phase of its mill

expansion is mechanically complete and was fully commissioned as of

February 25, 2019.

The Bahamas

Underspend Helps Hit Deficit Target

The government yesterday forecast it will narrowly beat this year’s fiscal

deficit target despite a $185m revenue shortfall caused by VAT, gaming

and enforcement underperformance.

Govt Targets ‘Value’ For Its $400m Soes

The government yesterday unveiled plans to ensure it gets “value for

money” from the near-$400m in annual subsidies it pumps into state-

owned enterprises (SOEs).

Antigua and Barbuda

ABTA expects increased tourist arrivals during the summer

The Antigua and Barbuda Tourism Authority (ABTA) is projecting a five

percent growth in tourist arrivals by air during the upcoming summer

months.

UPP protests GPH agreement, calls for gov’t to scrap deal

Leaders of the main opposition United Progressive Party (UPP) and

approximately 60 of their supporters staged a protest yesterday against

the agreement that the Government of Antigua and Barbuda entered

into recently with international cruise port developers, Global Ports

Holding LLC.

Antigua and Barbuda Continued

PM blasts Dundas over Global Ports comments

Prime Minister Gaston Browne has criticized the President of the Antigua

and Barbuda Cruise Tourism Association over comments he made on

OBSERVER AM yesterday.

British Virgin Islands

Public-private partnership being considered for Palm Grove development

City Manager Janice Braithwaite-Edwards has said a public-private

partnership with investors is to be employed to undertake a development

at the now-demolished Palm Grove Shopping Centre in Road Town.

Hon Marlon A. Penn to be appointed Opposition Leader

Following a crushing and devastating defeat from the Virgin Islands Party

(VIP) in the February 25, 2019, General Elections, National Democratic

Party (NDP 1) Deputy Chairman, Hon Marlon A. Penn (R8) will become the

new Opposition Leader in the new House of Assembly (HoA).

Grenada

Prime Minister signs two agreements at Caricom meeting in St.Kitts

Grenada has become signatory to the CARICOM Multilateral Air Services

Agreement which is intended to make the Caribbean Community a more

liberalised environment for CARICOM airlines.

Dominican Republic

Social Security redo cuts AFP’s profits, saves workers US$800M

Amid applause from the audience in the National Assembly, president

Danilo Medina said he sent to Congress a bill to amend the Social Security

Law which would significantly cut the profits of the Pension Fund

Administrators. (AFP), whose commissions will drop from 30 percent to

0.85%.

St. Kitts and Nevis

Integration movement momentum continues with renewed interest says

CARICOM Chairman, Dr Harris

A renewed interest was generated in the integration movement during

the successful 30th Inter-Sessional Meeting of the Conference of Heads of

Government of the Caribbean Community (CARICOM) held over a two-

day period (February 26-27) in St. Kitts and Nevis.

Venezuela

IMF Says Venezuela Crisis Worse Than Expected as Sanctions Burn

The worst economic crisis in modern Latin American history has gotten

"even worse" than expected as new U.S. sanctions exacerbate pain on

Venezuela, according to the International Monetary Fund.

INTERNATIONAL

United States

Tesla debuts $35,000 Model 3, sees loss in first quarter

Tesla Inc said on Thursday it would not be profitable in the first quarter, as

it offered for the first time a $35,000 version of its Model 3 sedan and said

its global sales would now be online-only, steps designed to increase

demand and cut overhead costs for the electric vehicle maker.

JPMorgan keeps Venezuela in emerging bond indexes

JPMorgan has retained dollar-denominated debt issued by Venezuela

and its state-run oil company PDVSA in a key emerging market bond

index as part of its monthly rebalancing, according to two fund

managers.

United Kingdom

UK factories slash jobs, stockpile at record pace before Brexit

British factories slashed jobs in February and braced for Brexit by

stockpiling goods at the fastest pace seen in any Group of Seven country

since records started in the early 1990s, a survey showed on Friday.

United Kingdom Continued

UK pays Eurotunnel 33 million pounds over 'secretive' no-deal Brexit ferry

contracts

Britain has paid out 33 million pounds ($43.7 million) to settle a claim with

Eurotunnel which runs the Channel Tunnel between Britain and France

after the firm took legal action over the process to award ferry contracts

to cope with a no-deal Brexit.

Europe

EU banks watchdog urges protection of deposits in case of no deal Brexit

The EU banking watchdog has urged member states to offer deposit

account protection for customers of branches of British banks in the rest of

the European Union in case Britain crashes out of the bloc this month with

no deal.

Euro zone inflation's rise is a mixed bag for ECB

Euro zone inflation inched up last month, Eurostat said on Friday, mild

comfort for the European Central Bank as it prepares fresh measures to

mitigate an unexpectedly deep and long economic slowdown.

European shares start March on a high as Moncler, WPP shine

European shares rose to five-month highs in the morning of the first trading

day of March as a fresh batch of corporate updates helped drive a risk-

on mood after U.S. President Donald Trump earlier fueled some concerns

over trade talks with China.

German jobless drop, retail sales rise bode well for household spending

Germany’s jobless total fell far more than expected in February and retail

sales surged in January, data showed on Friday, boosting expectations

that private consumption will prop up growth in Europe’s largest economy

in the first quarter.

Euro zone February factory growth slammed into reverse

Euro zone manufacturing activity went into reverse for the first time in over

five years last month as trade war worries, slowing global growth and

Britain’s imminent departure from the European Union hit demand, a

survey found.

China

China says Canada has questions to answer on judicial independence

China’s Foreign Ministry grabbed a chance to question the state of

judicial independence in Canada on Friday, as Prime Minister Justin

Trudeau’s government faced accusations at home that it had tried to

intervene to stop a corruption trial.

India

India approves $1.4 billion electric vehicle incentive scheme

India’s cabinet has approved a scheme to spend $1.4 billion to subsidize

sales of electric and hybrid vehicles as part of efforts to curb pollution and

reduce dependency on fossil fuels.

Global

Brent prices slip but OPEC tightening supplies support

Brent crude fell on Friday, weighed down by surging U.S. supply and

concerns of a global economic slowdown, but falling OPEC supplies put a

floor under prices.

Brent prices slip but OPEC tightening supplies support Friday 1st March, 2019 – Reuters

Brent crude fell on Friday, weighed down by surging U.S. supply and

concerns of a global economic slowdown, but falling OPEC supplies put a

floor under prices.

International Brent crude futures were at $66.08 per barrel at 1037 GMT,

down 23 cents from Thursday’s settlement.

U.S. West Texas Intermediate (WTI) crude oil futures were at $57.24 per

barrel, up 2 cents.

The U.S. Energy Department said on Thursday it was offering up to 6 million

barrels of crude from national emergency reserves to raise funds to

modernize U.S. strategic oil reserves.

Canada’s main oil-producing province of Alberta on Thursday raised the

amount of crude that companies can produce in April to 3.66 million

barrels per day, an increase of 100,000 bpd from the limit imposed in

January.

But those moves were partially offset by reductions elsewhere.

In Venezuela, oil exports have plunged by 40 percent to around 920,000

barrels per day (bpd) since the U.S. government slapped sanctions on its

petroleum industry on Jan. 28.

The drop comes as the Organization of the Petroleum Exporting Countries

(OPEC), of which Venezuela is a founding member, leads efforts to

withhold around 1.2 million bpd of supply to prop up prices. Venezuela is

exempt from the cuts.

“OPEC and its 10 allies are doing their job and this time they are

stubborn,” London-based brokerage PVM said in a note, referring to the

supply restrictions which have been in place since the start of the year.

On the demand side, a Reuters poll showed analysts expect global fuel

demand to slow this year amid a broad economic slowdown.

China’s February factory activity fell for a third month as the world’s

second-largest economy continued to struggle with weak export orders, a

private survey showed on Friday.

The weakness is also being felt across the wider region. South Korea’s

exports contracted at their steepest pace in nearly three years in February

as demand from China cooled further.

Despite this, fuel consumption, especially in Asia’s developing economies

which are key drivers of global oil demand, is so far holding up.

India’s diesel consumption, for example, is expected to rise to a record

this year amid economic growth of around 7 percent.

<< Back to news headlines >>

Tesla debuts $35,000 Model 3, sees loss in first quarter Friday 1st March, 2019 – Reuters

Tesla Inc said on Thursday it would not be profitable in the first quarter, as

it offered for the first time a $35,000 version of its Model 3 sedan and said

its global sales would now be online-only, steps designed to increase

demand and cut overhead costs for the electric vehicle maker.

Chief Executive Elon Musk’s warning on profit during a conference call

with members of the media, which did not include Reuters, contrasted

with Tesla’s statements last month that it was expecting a “very small” net

profit in the first quarter.

Shares of Tesla fell 3.4 percent after hours. Investors have voiced concerns

about whether Tesla would be able to maintain profit margins through

cost cutting - such as recent layoffs - as it reduces prices of its newest

vehicle.

Still, the price drop could quell concerns from some analysts that demand

for the higher-priced versions of the Model 3 was beginning to dry up in

the United States, especially after a federal tax credit was cut in half this

year.

“Tesla wants to drum up demand,” said Elazar Advisors’ Chaim Siegel.

“There was a slowdown in the U.S. as the tax credits dropped. (There are)

more tax credit hits later in the year too so they are trying to be

proactive.”

Musk has often shared that his strategy for Tesla was to build higher-priced

cars - the Model S and X - whose success would ultimately usher in a

$35,000 mass-market car, followed by an SUV, the Model Y, which is

currently in development. But customers who reserved the Model 3 at that

lower price have waited nearly three years since Musk first promised it.

An online-only sales strategy, along with other changes, would allow

vehicle prices to fall by about 6 percent on average, Tesla said in a blog

on its website bit.ly/2IHjLw4. Over the next few months, Tesla will wind

down "many" of its stores, while investing in its service system, it said.

Online-only sales represent a dramatic shift for the company that has

prided itself on its boutique retail stores. In June 2017, Musk pledged to

increase the number of stores, saying they had “barely touched the

surface” of what was possible.

As of the fourth quarter, Tesla said it recently opened 27 new locations,

bringing its total of stores and service centers to 378.

Thursday was the third time this year that Tesla lowered the price on the

Model 3, which recently started at $42,900.

The new $35,000 version has a top speed of 130 miles per hour (209 km per

hour) and can go from zero to 60 mph in 5.6 seconds, Tesla said. For

$2,000 more, Tesla offers a version with a range of 240 miles (386 km) and

a top speed of 140 mph.

GAME CHANGER WITH SPEED BUMPS

A $35,000 Model 3 is a major shot in the arm for Tesla sales during a period

of major challenges, including deliveries of the Model 3 to Europe and

China and construction of a factory in Shanghai.

“This is a game changer,” said Wedbush Securities analyst Daniel Ives.

Since tax credits will continue to decline over 2019, “this is really exactly

what the doctor ordered,” he said.

He warned, however, there could be “more speed bumps ahead,” if

more sales volume exacerbates prior problems with deliveries and service

to customers.

Musk declined to answer a question on what the profit margins of the

$35,000 vehicle would be, according to the New York Times. Gross margins

on the car were above 20 percent in the fourth quarter.

“The margin on the vehicle obviously is going to be very small if there’s

any margin there at all,” said David Kudla, CEO of Mainstay Capital

Management, which has a short position in Tesla.

As part of cost-cutting efforts, Tesla last month reduced its full-time

headcount by 7 percent, following a similar cut of 9 percent to its

workforce in June 2018.

The price cut on the Model 3 comes three days after renewed tensions

between Musk and U.S. Securities and Exchange Commission. The agency

petitioned a judge this week to have Tesla’s CEO found in contempt of an

October settlement between the parties. The SEC accuses Musk of having

made material statements about production levels on Twitter without first

having them vetted internally.

That settlement between Musk, Tesla and the SEC concerned Musk’s

August Twitter post in which he claimed to have “funding secured” to

take Tesla private at $420 per share.

On Friday, Tesla is due to repay a $920 million convertible bond.

Convertible issues give bondholders the right to trade their debt for equity

after shares rise over a certain price. Tesla shares are currently about $40

below the $359.87 conversion price.

Tesla had $3.7 billion in cash and cash equivalents at the end of

December.


JPMorgan keeps Venezuela in emerging bond indexes Friday 1st March, 2019 – Reuters

JPMorgan has retained dollar-denominated debt issued by Venezuela

and its state-run oil company PDVSA in a key emerging market bond

index as part of its monthly rebalancing, according to two fund

managers.

Investors have been concerned about the status of debt issued by

Venezuela and its oil firm after Washington imposed sweeping sanctions

earlier this year.

With the curbs, trade in Venezuelan debt has ground to a halt, leaving

some investors concerned the price is not reflective of the assets’ true

value and making it harder for passive funds to accurately reflect the

indexes.

JPMorgan, which declined to comment on its monthly rebalancing, had

sent out a survey to its clients ahead of the rebalancing asking more

specific questions about Venezuela, Tina Vandersteel, Boston-based head

of emerging country debt at Grantham Mayo Van Otterloo & Co, told

Reuters.

“JPM had launched a survey, which I’d completed, about what to do

about VENZ. The feedback I gave them was, per their index liquidity rules,

while the sanctions prevailed, they should be removed,” Vandersteel said

in an email.

Investment managers’ willingness to support the eviction of Venezuelan

debt from the indexes is also influenced by the flexibility of their funds’

investment mandates.

A leading exchange-traded fund from BlackRock, the iShares JPMorgan

USD Emerging Markets Bond ETF, for example, is allowed to invest up to 20

percent of its assets in securities not in the index, its prospectus showed.

Yet making changes to portfolios in reality is not easy.

“To actually exit the exposure is nearly impossible - especially for larger

funds - as there is no trading,” said Uday Patnaik, Head of Emerging

Market Debt at Legal & General Investment Management.

“Placing the country weight to 0 percent while freezing the price of the

securities makes the most sense,” he added.

At the end of January, PDVSA had a weight of 0.53 in JPMorgan’s EMBI

Global Diversified index while Venezuela Republic bonds were at 0.66,

according to the index provider.

Reuters did not have access to February index weight data.

Venezuela - the country with the largest oil reserves in the world - has

defaulted on most of its $63 billion of debt as it has spiraled into its worst-

ever economic crisis. The International Monetary Fund has forecast

inflation will hit 10 million percent this year.

Since the start of the year, bonds issued by Venezuela and PDVSA

chalked up steady gains amid weeks of protests that saw pressure mount

on President Nicolas Maduro.

However, trading in bonds ground to a halt after Washington imposed a

swathe of sanctions, including a ban on U.S. investors from trading in the

secondary market, other than divestment.

JPMorgan communicates any changes of index constituents to its clients

on the last trading day of the month. The EMBI Global index includes $24.1

billion of dollar-denominated PDVSA debt, according to the index

provider.


EU banks watchdog urges protection of deposits in case of no deal Brexit Friday 1st March, 2019 – Reuters

The EU banking watchdog has urged member states to offer deposit

account protection for customers of branches of British banks in the rest of

the European Union in case Britain crashes out of the bloc this month with

no deal.

Bank deposits are protected by national deposit guarantee schemes so

that if a lender went bust, sums up to 100,000 euros remain safe under EU

law - but that does not extend to branches of a bank that would be

outside the EU.

The European Banking Authority - itself having to move from London to

Paris because of Brexit - said it was calling on the schemes in EU states to

ensure that depositors in the branches of UK banks in the bloc are

adequately protected in case of a no-deal departure by Britain on March

29.

“The withdrawal of the UK from the EU is not likely to have an impact on

the protection of deposits in the vast majority of credit institutions

operating in the EU,” EBA said in an “opinion” published on Friday.

“It may affect branches of UK credit institutions in the EU depending on

the decisions taken by the UK authorities on the potential exclusion of

such branches from the scope of the UK depositor protection scheme,

after the UK’s withdrawal from the EU.”

EBA said it had to take action in an “unprecedented” situation, given that

the EU law on deposit protection does not set out how cross-border

payouts involving a non-EU branch should be carried out.

It noted that the Bank of England proposed in October that EU branches

of UK banks would no longer be protected by Britain’s deposit protection

scheme.

The BoE has not yet made a definitive statement on this, EBA said.

Britain’s intended approach would mean customers of UK banks in the EU

would lose protection unless the branches joined the local deposit

guarantee scheme, EBA added.


Euro zone inflation's rise is a mixed bag for ECB Friday 1st March, 2019 – Reuters

Euro zone inflation inched up last month, Eurostat said on Friday, mild

comfort for the European Central Bank as it prepares fresh measures to

mitigate an unexpectedly deep and long economic slowdown.

Consumer inflation in the 19 countries sharing the euro picked up to 1.5

percent in February, as expected, from 1.4 percent in January, as food

and energy costs continued to rise.

But underlying inflation, closely watched by the ECB, failed to rise. Price

growth excluding food and energy held steady at 1.2 percent, short of

the central bank’s overall inflation target of almost 2 percent.

This may be especially concerning for the ECB, because it has long

predicted a pick-up in core inflation. The weak readings suggest a poor

understanding of how inflation dynamics changed after the euro zone’s

debt crisis.

They also give the ECB yet another reason to delay removing any further

stimulus, especially since the bloc’s growth weakness points to a dire need

of more support, not less.

Indeed, the ECB, which just ended a 2.6 trillion-euro bond-buying scheme

aimed at pushing down borrowing costs, is already contemplating new

support measures, with the first possibly coming at its next policy meeting,

on March 7.

Wanting to combat a slowdown in bank lending, the ECB is likely to signal

more long-term loans to banks, in the hope of maintaining the flow of

credit and investments.

While the bank continues to signal for steady rates only through the

summer, few believe rates will rise this year. Markets have already moved

their expectations for an increase to mid-2020.

In a separate release, Eurostat reported the euro zone’s unemployment

rate was 7.8 percent in January, unchanged from a revised figure a

month earlier, although 23,000 fewer people were unemployed than in

December.

The 7.8 percent reading was the lowest since October 2008. December’s

number had previously been estimated at 7.9 percent.


European shares start March on a high as Moncler, WPP shine Friday 1st March, 2019 – Reuters

European shares rose to five-month highs in the morning of the first trading

day of March as a fresh batch of corporate updates helped drive a risk-

on mood after U.S. President Donald Trump earlier fueled some concerns

over trade talks with China.

The pan-regional STOXX 600 index was up 0.7 percent by 0926 GMT to

above 375 points, a level not see since Oct.8.

“Momentum has flagged slightly in recent sessions and concrete news of

an agreement between the U.S. and China is now needed to prolong the

rally in risk assets,” wrote Peel Hunt analyst Ian Williams, noting that in the

meantime it was up to corporate earnings to maintain morale.

Gains spread across all regional bourses with Germany’s exporter-heavy

DAX leading the charge thanks notably to rising car makers stocks.

“If corporate profits do grow, which I think they will, equities look

reasonably good value,” said Edward Rumble, European equity portfolio

manager at RWC Partners.

The optimism on markets came despite mixed news from economic

indicators.

Data showed euro-zone manufacturing activity went into reverse for the

first time in over five years, but German retail sales jumped and the bloc’s

powerhouse unemployment remained at record lows.

All sectors were on the rise but telecoms were flat. The sector, a traditional

defensive play, has suffered from the 5-percent fall experienced by

Belgium’s Proximus after it published disappointing results.

Italian luxury group Moncler stole the spotlight with its 2018 results, which

broker Jefferies called “remarkable”, and rose 8.7 percent.

Moncler peer benefited from the rally with Gucci owner Kering up 3

percent, LVMH up 2.1 percent and Burberry rose 1.8 percent.

In the less fashionable food industry, Spanish sausage casing producer

Viscofan was up 7.6 percent after it struck an upbeat note on 2019

guidance and Kepler Cheuvreux upgraded it to “hold” from “reduce”.

Britain’s WPP, the world’s biggest advertising company, rose 6.6 percent

after its full-year results came as a relief amid fears the industry is facing

structural headwinds.

Investors have been cautious about the company since French rival

Publicis earlier this month results alarmed the market.

Among financials, Jupiter Fund Management was another big gainer, up

8.5 percent after its dividend beat estimates.

“The company paid out 90 percent of underlying earnings, driving the

beat,” write KBW analysts.

It was a different story for hedge fund manager Man Group which lost 3.6

percent after reporting funds under management fell last year.

Another disappointment came in from and Rightmove which fell 5

percent.

The property website reported its slowest full-year underlying operating

profit growth in nine years, sending its shares down nearly 7 percent at the

bottom of London’s blue-chip index.


German jobless drop, retail sales rise bode well for household spending Friday 1st March, 2019 – Reuters

Germany’s jobless total fell far more than expected in February and retail

sales surged in January, data showed on Friday, boosting expectations

that private consumption will prop up growth in Europe’s largest economy

in the first quarter.

Household spending has become a key growth driver in recent years as

Germans benefit from record-high employment and low borrowing costs

and a GfK survey published this week showed the good mood among

German shoppers was unchanged going into March.

The number of people out of work in Germany decreased by 21,000 to

2.236 million in February, seasonally-adjusted data from the Labour Office

showed. That compared with the forecast for a drop of 5,000.

The unemployment rate remained at 5.0 percent, the lowest since

German reunification in 1990.

Separate data from the Statistics Office showed German retail sales

jumping by 3.3 percent on the month in January, marking their strongest

rise since October 2016. But retail sales are a volatile indicator often

subject to revision.

“Low unemployment, rising incomes and low interest rates are supporting

consumption and housing construction,” said Joerg Zeuner, economist at

KfW bank.

But he warned that trade conflicts caused by the United States and

uncertainty related to Britain’s expected departure from the European

Union were likely to take their toll.

“The economic engine is stuttering, which will slow employment growth

this year,” he said.

Negotiated wages in Germany rose by 2.9 percent on average in 2018

compared with the previous year, data from the Statistics Office showed

on Friday.

They rose more sharply than consumer prices which increased by 1.8

percent during the same period, the data showed, suggesting consumers

have more money in their pockets to spend despite rising inflation.

The German economy posted its weakest growth in five years in 2018 and

a survey published on Friday showed slumping exports contributed to the

second successive monthly contraction in Germany’s manufacturing

sector in February.


Euro zone February factory growth slammed into reverse Friday 1st March, 2019 – Reuters

Euro zone manufacturing activity went into reverse for the first time in over

five years last month as trade war worries, slowing global growth and

Britain’s imminent departure from the European Union hit demand, a

survey found.

The downbeat survey, which showed the slowdown was being led by

Europe’s powerhouse Germany, will likely concern European Central Bank

policymakers, coming just two months after they drew a line under their

2.6 trillion euro stimulus programme.

Faced with a further slowdown in euro zone growth, the ECB will re-launch

cheap bank loans as early as June and delay rate hikes to 2020 in a bid to

stave off a recession, a Reuters poll predicted on Friday. [ECILT/EU]

IHS Markit’s February final manufacturing Purchasing Managers’ Index fell

for a seventh month, coming in at 49.3 from January’s 50.5, just above a

flash reading but its first time below the 50 level separating growth from

contraction since June 2013.

An index measuring output which feeds into a composite PMI due on

Tuesday - seen as a good gauge of economic health - fell to 49.4 from

50.5, its lowest since May 2013.

Earlier figures from Germany, Europe’s largest economy, showed factory

growth contracted for a second month. France’s manufacturing PMI

showed growth slowed sharply while Spain’s went sub-50 for the first time

in over five years.

“Euro area manufacturing is in its deepest downturn for almost six years,

with forward-looking indicators suggesting risks are tilted further to the

downside as we move into spring,” said Chris Williamson, chief business

economist at IHS Markit.

Giving little hope for a turnaround in the bloc’s fortune anytime soon, new

orders fell at the fastest rate in almost six years, backlogs of work were run

down, purchases of raw materials were curtailed and hiring remained

weak.

Perhaps unsurprisingly, optimism was at one of its lowest levels since IHS

Markit began collecting the data in July 2012. The future output index fell

to 56.7 from 57.4.

“In addition to widespread trade war worries, often linked to U.S. tariffs,

and concerns regarding the outlook for the global economy, companies

report that heightened political uncertainty, including Brexit, is hitting

demand and driving increased risk aversion,” Williamson said.


India approves $1.4 billion electric vehicle incentive scheme Friday 1st March, 2019 – Reuters

India’s cabinet has approved a scheme to spend $1.4 billion to subsidize

sales of electric and hybrid vehicles as part of efforts to curb pollution and

reduce dependency on fossil fuels.

Reuters reported earlier on Thursday that the government could approve

the scheme, known as Faster Adoption and Manufacturing of Hybrid and

Electric Vehicles (FAME), as early as this week.

Under the scheme, subsidies would be offered based on the battery

capacity of the vehicle, ranging from buses and cars to three-wheelers

and motorbikes, a government statement said. The incentives would be

applicable only on vehicles costing less than 1.5 million Indian rupees

($21,177).

The benefits of the incentives will be extended to only those vehicles fitted

with advanced batteries using lithium ion or other new technologies, the

government said.

India, one of the world’s fastest-growing car markets, still has negligible

sales of electric vehicles (EVs).

The government had set a target in 2017 for all new vehicles to be electric

by 2030, but critics said the high cost of batteries and a lack of charging

points were major obstacles. Carmakers also said the target was too

ambitious.

The transport ministry later scaled back that target to EVs making up 15

percent of vehicle sales in five years.

India will spend 100 billion rupees ($1.4 billion) over three years on

incentives, the government said.

A source had earlier told Reuters that subsidies would amount to 10,000

rupees for each kilowatt hour (kWh) of battery capacity in a vehicle,

amounting to about 50 percent of the battery cost.

The average price of an electric car in India is now about 1 million rupees.

Cars typically have a battery up to 20 kWh, so the discount under the new

scheme would be 200,000 rupees.

Automakers Mahindra & Mahindra and Tata Motors both produce electric

cars in India. Maruti Suzuki and Toyota Motor Co build hybrid cars.

Maruti, controlled by Japan’s Suzuki Motor Corp, last year said it would

start testing 50 electric vehicle prototypes. It plans to launch EVs in India

around 2020, in cooperation with Toyota.


UK factories slash jobs, stockpile at record pace before Brexit Friday 1st March, 2019 – Reuters

British factories slashed jobs in February and braced for Brexit by

stockpiling goods at the fastest pace seen in any Group of Seven country

since records started in the early 1990s, a survey showed on Friday.

The IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI),

a gauge of activity in British industry, fell to 52.0 from 52.6 in January, as

expected in a Reuters poll of economists.

Although stronger than French and German factory PMIs, IHS Markit said

the boost to British factory output mostly reflected stockpiling and a drive

to cut work backlogs in case the country fails to get a transition deal to

smooth the shock of Brexit.

The PMI’s stocks of purchases index rose in February to 59.1, the highest

level on record for any G7 PMI.

Some 70 percent of factories cited Brexit as the reason behind the record

drive to build up stocks of parts and materials, survey compiler IHS Markit

said.

Britain’s departure from the European Union is scheduled to take place on

March 29, but lawmakers in London have yet to agree on the terms of a

divorce deal, leaving open the possibility of a no-deal Brexit.

The country’s economy slowed sharply in late 2018, hit by a loss of

momentum in the global economy as well as Brexit concerns. Economists

say the weakness has continued in 2019.

Prime Minister Theresa May opened up the possibility of a short extension

to the exit date this week.

Business groups have expressed exasperation at the lack of clarity around

Brexit and Friday’s PMI of the manufacturing sector - representing about

10 percent of total British economic output - added to signs that the

impasse is hurting companies.

Factories cut jobs at the fastest pace in six years and were increasingly

downbeat about the future, the survey showed.

“Official data confirm that manufacturing is already in recession, and the

February PMI offers little evidence that any short-lived boost to output

from stock-building is sufficient to claw the sector back into growth

territory,” IHS Markit director Rob Dobson said.

Stockpiling is likely to take a chunk out of manufacturers’ operating profit,

leaving less money for investment even in the event that Brexit goes

smoothly from here.

The PMI showed export orders declined for a fifth month out of the last

seven, reflecting in part a pronounced slowdown in the global economy,

especially in Europe.

“Manufacturing and the broader UK economy therefore face a difficult

2019, with the slowdown being exacerbated later in the year as inventory

positions are unwound and Brexit-related headwinds likely to linger,”

Dobson said.

PMI data for the construction and dominant services sector are due on

Monday and Tuesday.


UK pays Eurotunnel 33 million pounds over 'secretive' no-deal Brexit ferry

contracts Friday 1st March, 2019 – Reuters

Britain has paid out 33 million pounds ($43.7 million) to settle a claim with

Eurotunnel which runs the Channel Tunnel between Britain and France

after the firm took legal action over the process to award ferry contracts

to cope with a no-deal Brexit.

Eurotunnel had begun court action after the Department for Transport

contracted ferry companies in December to ensure supplies to the state-

run National Health Service (NHS) and other critical imports should Britain

leave the European Union on March 29 without a deal.

One of the companies awarded a contract was Seaborne Freight, a

decision that provoked criticism as the company did not have any ships

and the deal was subsequently terminated last month.

In a statement, the British government said it had reached agreement

with Eurotunnel, whose holding company is Getlink, to settle the case and

ensure the Channel Tunnel would continue to keep passengers and

freight moving after Brexit.

“The agreement with Eurotunnel secures the government’s additional

freight capacity, helping ensure that the NHS has essential medicines in

the event of a no-deal Brexit,” British Transport Secretary Chris Grayling

said.

“While it is disappointing that Eurotunnel chose to take legal action on

contracts in place to ensure the smooth supply of vital medicines, I am

pleased that this agreement will ensure the Channel Tunnel is ready for a

post-Brexit world.”

In 2018, Eurotunnel carried 21 million passengers, 17 million trucks, 2.7

million cars and 26 percent of trade between Britain and the EU, and

there are fears that a no deal Brexit could disrupt supplies and choke

supply chains.

“Eurotunnel has concluded an out of court agreement ... that will ensure

the Channel Tunnel remains the preferred route for vital goods to travel

between the EU and the UK,” Eurotunnel said in a statement.

“The agreement enables the development of infrastructure, security and

border measures that will guarantee the flow of vehicles carrying urgent

and vital goods, thereby keeping supply chains essential to both industry

and consumers moving.”

Businesses have been warning of long tailbacks for lorries transporting

goods between Britain and mainland Europe, and the British government

has said most goods from the EU will be allowed into Britain without full

customs checks for at least three months if there is no Brexit deal.

In January, Eurotunnel said it was taking steps to ensure that a no-deal

Brexit would have minimum impact on its transport network and in

February Getlink said it had spent 13 million euros in Brexit preparations in

2018 and so far in 2019.


China says Canada has questions to answer on judicial independence Friday 1st March, 2019 – Reuters

China’s Foreign Ministry grabbed a chance to question the state of

judicial independence in Canada on Friday, as Prime Minister Justin

Trudeau’s government faced accusations at home that it had tried to

intervene to stop a corruption trial.

Trudeau’s domestic troubles have attracted attention in Chinese state

media due to his previous assertion that his government cannot interfere

in the case of a senior Huawei Technologies Co Ltd executive arrested in

Canada and now fighting extradition to the United States.

China has repeatedly called for the release of Meng Wanzhou, the

telecommunication giant’s chief financial officer, arrested in Vancouver in

December at Washington’s request. In late January the U.S. Justice

Department charged Huawei and Meng with conspiring to violate U.S.

sanctions on Iran.

At a regular daily news briefing in Beijing, China’s Foreign Ministry took the

opportunity to take Canada to task over possible double standards, by

commenting on a domestic Canadian political issue that does not

otherwise involve China.

Trudeau has disputed allegations by his former justice minister that

government officials inappropriately pressured her to help the SNC-Lavalin

construction firm avoid a corruption trial.

Asked by a state media journalist if it was contradictory for Trudeau to say

he couldn’t interfere in Meng’s case and yet his government be accused

of trying to intervene in the SNC-Lavalin case, Foreign Ministry spokesman

Lu Kang said he “really liked this question”.

“Of course I think that this is a question that should be asked of the

Canadian government,” Lu said.

“In fact on this case you have mentioned, people in Canada are paying

it a great deal of attention,” he added. “In fact, not only Chinese and

Canadian citizens, but the whole world are extremely interested to hear

how the Canadian government answers this question.”

Both Meng and Huawei have denied the U.S. allegations.

Ottawa has until midnight on Friday (0500 GMT Saturday) to announce

whether it will issue an authority to proceed, which would allow a court in

the Pacific province of British Columbia to start a formal extradition

hearing.


JMMB leads trading Friday 1st March, 2019 – Trinidad Express Newspapers

OVERALL stock market activity yesterday resulted from trading in 17

securities of which three advanced, seven declined and seven traded

firm.

Trading activity on the First Tier Market registered a volume of 154,538

shares crossing the floor of the Exchange valued at $877,473.78.

JMMB Group Ltd was the volume leader with 112,693 shares changing

hands for a value of $202,182.11.

Massy Holdings Ltd registered the day's largest gain, increasing $3.84 to

end the day at $52.00. Conversely, Republic Financial Holdings Ltd

registered the day's largest decline, falling $5.00 to close at $120.00.

On the Mutual Fund Market 160,958 shares changed hands for a value of

$3,243,488.00.

CLICO Investment Fund was the most active security, with a volume of

160,758 shares valued at $3,240,768.

The Second Tier Market did not witness any activity.

The SME Market did not witness any activity.

The USD Equity Market did not witness any activity.


Deyalsingh: Value for money Friday 1st March, 2019 – Trinidad Express Newspapers

'BY ANY stretch of the imagination' the country is getting value for $1.1

billion being spent on the construction of the Port of Spain General

Hospital Central Block, Health Minister Terrence Deyalsingh said yesterday.

'The cost per bed at the PoS Central block is significantly less than what

we have built other facilities for in the recent past,' Deyalsingh stated. He

said the Central Block is a 'complete hospital and the only thing we that

was not being recreated was an Accident and Emergency Unit, because

there was already one at PoS General Hospital. He said Central Block

which should have been 'priority number one' for any Government from

2009'.

Deyalsingh was speaking at the post-Cabinet news conference at the

Diplomatic Centre, St Ann's.

'I want you as responsible members in the media to juxtapose $1.1 billion

for a 540-bed hospital with $1.2 billion for a 100-bed hospital in Point Fortin

and $1.6 billion for a 150-bed hospital in Arima and a $1.5 billion for a 240-

bed hospital in Couva,' he said.

He dismissed as 'UNC misinformation' reports that the savings made by this

Government on the contracts for the Point Fortin and Arima hospitals were

due to a reduced the scope of works. Government was able to

renegotiate the contract price for the Arima Hospital from $1.8 billion (the

price agreed to by the last Government) to $1.6 billion and the Point Fortin

Hospital from $1.5 billion to $1.2 billion. Deyalsingh said the reductions

were achieved by renegotiating the cost of UDeCOTT's (Urban

Development Corporation of Trinidad and Tobago) fees. 'This government

did not touch one square foot' of either building, he said.

Deyalsingh said the PoS Central Block which would have 540 beds was

five times the size of Point Fortin and over two and half times the size of

Arima, would cost significantly less than both hospitals.

He also refuted reports that $1.1 billion price tag did not include

equipment. He said the hospital would come equipped with an MRI,

('which PoS hospital currently does not have'), two new CT scanners, two

new X-ray machines, a catheterisation lab (to do angioplasty), a machine

for bone density testing. Included in the Central Block would be ten new

operating theatres, ten ICU beds, ten high dependency beds, a coronary

unit, an ICU for children, haematology unit, internal medicine unit, full

rehab facilities, a neurosurgery unit, an orthopaedic unit, radiology and

full lab facilities.

Deyalsingh also announced that Cabinet approved a confirmed a note

on the creation of a position of National Director of Mental Health. This

individual would advise the Minister of Health on policy to treat with

mental health and would drive the policy directive for the

decentralisation of mental health away from the St Ann's hospital and into

the communities, Deyalsingh said.

'This would change the landscape of how we deal with mental health,' he

added.


PM signs intra-regional travel agreement Thursday 28th February, 2019 – Trinidad and Tobago Newsday

The Prime Minister on Wednesday signed TT on to the Caricom Multilateral

Air Services Agreement, intended to boost the regional transportation.

Dr Rowley and his fellow Caricom Heads of Government signed the

agreement on the final day of their latest Inter-sessional Meeting in St Kitts

and Nevis.

The Caricom Multilateral Air Services Agreement expands the scope for

airlines owned by Caricom nations to provide air services throughout the

Community, the Office of the Prime Minister said in a release.

The agreement will allow for no restriction on routes, capacity or traffic

rights and should facilitate increased intra-regional travel as well as

provide more cargo options for exporters and importers with resulting cost

savings.

When fully implemented this should provide a major boost to the regional

transportation sector, which is a critical aspect of the Caricom Single

Market and Economy (CSME). Discussions on the agreement was first

announced at a CSME meeting in Port of Spain last December.


Minister: ‘We are managing water problems’ Thursday 28th February, 2019 – Trinidad and Tobago Newsday

PUBLIC Utilities Minister Robert Le Hunte said steps are being taken to

ensure the population has an adequate water supply during the current

drought conditions.

Le Hunte said the drought not something which was created by the Water

and Sewerage Authority (WASA) or himself and is "well documented" by

the Meteorological Office.

This is not the first time the country has faced a drought, he said, recalling

that in 2010, water production dropped from 240 million to 180 million

gallons per day, and drastic cutbacks were made. Water production

currently stands at 215 million gallons per day, Le Hunte said, and efforts

are being made to ensure that water resources are properly managed.

This includes rehabilitating old wells, drilling new wells and talking with

Desalcott about boosting its production from the desalination plant.

Twenty-seven wells were identified for rehabilitation and 25 have been

rehabilitated to date. He said a further 15 wells are also being looked at.

With 60 per cent of the country's water resources being surface water, Le

Hunte said drought conditions will affect them.

He acknowledged that WASA has aged infrastructure and steps are

being made to upgrade it. Compared to other countries, TT has a high

water usage, he said, and of the 240 million gallons per day the country

produces, it should only be using 115 million gallons.

Not all parts of the country have a 24/7 water supply and changes in the

water schedules have inconvenienced some communities, he admitted,

but to have a 24/7 water supply and high usage, the country would need

to produce 270 million gallons a day.

To cater for the harsh dry season, Le Hunte said WASA has developed a

water management supply plan, which includes redistributing water from

unaffected areas with high pressures to more water-stressed areas on the

periphery of the distribution system, enhanced leak repairs and increased

water trucking.

Le Hunte also stressed the need for everyone to play their part in water

conservation and not engage in blame games, because this creates a

false reality. The water problems will not be solved overnight by magic, he

stressed, but by addressing those problems systematically.

In a release, Gary Aboud, secretary of the activist group Fishermen and

Friends of the Sea, said water is a human right, and successive

governments have contributed to the current problem over time.

WASA said in a statement that amended water schedules will be released

on its website, Facebook and Twitter pages on Friday.


ABTA expects increased tourist arrivals during the summer Thursday 28th February, 2019 – The Antigua Observer

The Antigua and Barbuda Tourism Authority (ABTA) is projecting a five

percent growth in tourist arrivals by air during the upcoming summer

months.

Speaking at a recent press conference, ABTA’s Chief Executive Officer

Colin James said achieving this level of growth will require key

stakeholders in the tourism industry to collaborate with the authority in its

summer campaign.

“The ability of [the summer campaign] to succeed is just getting the

resources we need in a timely manner and executing all the campaigns

and the strategies that we said we will be doing. It is incumbent on us to

get the buy-in from all the partners and it is already communicated that

everyone is willing to work and support this summer campaign,” he said.

The five percent growth projection is expected to equate to 5,000 new air

arrivals during May through October. Incoming chairperson of the ABTA

Board of Directors, Lorraine Headley-Raeburn, said the increase in air

arrivals was projected to inject US $12 million into the Antigua and

Barbuda economy.

“We actually did some projections in terms of the numbers that we expect

to make as a result of the campaign based on previous ones done by the

Tourism Authority. [Based on previous] spending of each

visitor on island, for the US $1 million we would invest in this campaign – if

we were to see 5,000 growth [in visitors] – we would be looking at US $12

million that we would see on island spend across the destination,” she

said.

The projected growth is part of the ABTA’s summer campaign initiative

through which the Tourism Authority hopes to highlight various activities in

Antigua and Barbuda that are geared towards health and wellness,

yachting and romance.


UPP protests GPH agreement, calls for gov’t to scrap deal Friday 1st March, 2019 – The Antigua Observer

Leaders of the main opposition United Progressive Party (UPP) and

approximately 60 of their supporters staged a protest yesterday against

the agreement that the Government of Antigua and Barbuda entered

into recently with international cruise port developers, Global Ports

Holding LLC.

The protesters assembled early Thursday morning at Heritage Quay to

show their dissatisfaction with what the party termed a deal that

amounted to a “massive sellout” by the Gaston Browne administration.

Former Prime Minister and former political leader of the UPP, Baldwin

Spencer, said this agreement is not in the interest of Antigua and Barbuda

and called on the government to scrap it.

“We are drawing attention to the massive sellout of Antigua and Barbuda

by this government over the GPH agreement and we are making a

statement that this agreement must be scrapped,” Spencer said.

He said he did not understand why the government would ever sign the

agreement in the first place.

“In fact, it strikes at the very heart of what we have been seeking to do,

which is to empower our people and to change this idea that we have to

give everything away every time we want to develop [the country],” he

said.

OBSERVER media also spoke to the Leader of the Opposition and the

UPP’s Deputy Political Leader, Jamal Pringle, who said that the number of

people at the protest was representative of the level of discontent that

the public has with the Global Ports Agreement.

“It goes to show that there is a lot people against what is happening and

are willing to stand up to the government and protest against [the

agreement],” Pringle said.

According to reliable sources, taxi drivers, store owners, tourists, and

employees of the St. John’s Development Corporation (SJDC) also joined

in the protest.

Since the announcement of the US $83 million agreement with the

London-based Global Ports Holding LLC to hand-over the St. John’s cruise

facility – exclusive of Heritage Hotel, Newport Holdings, Downtown

Development and the Vendors Mall – opposition leaders have been quick

to criticize the agreement.


PM blasts Dundas over Global Ports comments Thursday 28th February, 2019 – The Antigua Observer

Prime Minister Gaston Browne has criticized the President of the Antigua

and Barbuda Cruise Tourism Association over comments he made on

OBSERVER AM yesterday.

During an interview on the show, Nathan Dundas expressed his belief that

the Prime Minister was poorly advised regarding the recently signed

Global Ports Holdings LLC Agreement.

Dundas said that as a major cruise stakeholder the association has serious

concerns about what he termed the threat to the job security of direct

and indirect local employees.

“We have hundreds of taxi drivers in Antigua and Barbuda; stakeholders in

Heritage Quay; we have single mothers who depend on the cruise tourism

business and it is really something that affects us considerably and we

really believe that it wasn’t handled in the way it should have been

handled,” he said.

He said news of the Global Ports agreement had caused one major cruise

line to deploy its vessels and services elsewhere.

However, PM Browne was quick to respond and told OBSERVER media

that Dundas had been aware of the negotiations with Global Ports during

the past seven months, and should also be fully aware that Antigua has

the worst service quality and visitor experience in the region, and one of

the lowest cruise tourism return on capital in the region.

Based on the fiscal constraints facing the country and the poor service

quality, private management and capital is required to transform our

mediocre cruise product into a globally competitive one, Browne added.

“If Mr. Dundas has a better and more viable funding/investment option to

develop the cruise facilities, I would have been happy to explore that

option before execution of the GPH deal,” he said.

The prime minister pointed out that, as an agent for the cruise lines,

Dundas would have been in a conflict of interest situation if he had been

allowed to participate in the negotiations with Global Ports Holdings.

Meantime, during his earlier interview on OBSERVER AM, and in response

to government’s claims that cruise lines were not making any significant

contribution to the local economy, Dundas pointed out that the total

cruise expenditure for Antigua and Barbuda was one of the highest in the

Caribbean, which includes port charges, tours and head tax.

“Total expenditure by the cruise lines for the last year was for [British Virgin

Islands] $2 million; St. Lucia was $5 million; St. Kitts and Nevis was $7 million;

Martinique was $6 million; Grenada was $1.2 million; Guadeloupe –

because they do homeporting with Barbados – was $10 million; St. Vincent

was $3 million; and Antigua and Barbuda’s figure was $23 million,” he said

“This is what Global Port saw; they saw services,” he added.

Dundas is also of the view that resources and money were wasted over

the years by both the current and previous administrations in dredging.

“We recall that Prime Minister [Browne] had to pay $4 million for the lack

of dredging by the previous administration. This current administration

where, in speaking to the port authority, they hired a Trinidadian company

that never did major dredging in the Caribbean before,” he said.


Public-private partnership being considered for Palm Grove development Thursday 28th February, 2019 – BVI News Online

City Manager Janice Braithwaite-Edwards has said a public-private

partnership with investors is to be employed to undertake a development

at the now-demolished Palm Grove Shopping Centre in Road Town.

The city manager, however, said she does not know what development

will be constructed at the location.

“There are no designs but there are things that people have in mind.

Nothing has come to fruition as yet,” Braithwaite-Edwards told BVI News

on Wednesday.

“We are in the process of getting the documentation done so that we

can decide how we are going to move forward with it … It is a document

that helps what it is you want to achieve, and what are the pieces

involved to get the achievement done so that somebody can bid for the

project,” she added.

The city manager gave the indication on the heels of a change in the

government of the BVI. The government was changed from an NDP

administration to a VIP administration.

Reports suggest that discussions for a new development at Palm Grove

began under the NDP government. Now that VIP leader Andrew Fahie

has been sworn in as the new Premier of the Virgin Islands, it is yet to be

seen whether his administration will halt whatever agreement that is

currently underway for the location.

What happened to Palm Grove

Palm Grove was demolished since last August after authorities labelled it

unsafe. In late 2017 all tenants were vacated after the old structure was

weakened by the 2017 hurricanes.

Palm Grove was also affected by crystallite asbestos, a mineral commonly

used in building construction, and by inhaling small particles of asbestos, it

can lead to cancer and respiratory illnesses.

Local experts said that type of the mineral found in Palm Grove was not

dangerous.


Hon Marlon A. Penn to be appointed Opposition Leader Thursday 28th February, 2019 – Virgin Islands News Online

Following a crushing and devastating defeat from the Virgin Islands Party

(VIP) in the February 25, 2019, General Elections, National Democratic

Party (NDP 1) Deputy Chairman, Hon Marlon A. Penn (R8) will become the

new Opposition Leader in the new House of Assembly (HoA).

Hon Penn will commence the role at the First Sitting of the First Session of

the Fourth House of Assembly (HoA) after Chairman of the NDP, Mr Myron

V. Walwyn lost his At-Large seat by over 600 votes.

Senior sources within the NDP 1 told our news centre that Hon Penn got

support from both Hons Mark H. Vanterpool (R4) and Alvera Maduro-

Caines (R6) in a letter to Governor Augustus J. U. Jaspert, giving him a

majority.

Another member with interest?

According to sources, there was another Opposition Member lobbying to

hold the post, however, the person did not get the support.

Meanwhile, new Premier and Minister of Finance, Hon Andrew A. Fahie

(R1) has not named his Deputy Premier nor the person expected to take

up the post of Speaker of the HoA.

It is believed the announcements will be made in the coming days as the

Cabinet is expected to be sworn in on Tuesday, March 5, 2019.


Social Security redo cuts AFP’s profits, saves workers US$800M Thursday 28th February, 2019 – Dominican Today

Amid applause from the audience in the National Assembly, president

Danilo Medina said he sent to Congress a bill to amend the Social Security

Law which would significantly cut the profits of the Pension Fund

Administrators. (AFP), whose commissions will drop from 30 percent to

0.85%.

The AFPs’ high gains and the affiliates low profitability is one of the aspects

most criticized by Social Security sectors, who demand a reduction,

above all experts and labor.

In his speech Medina said the bill he was sending to Congress would

improve social security coverage.

“Another great news is that this law will significantly reduce AFP

commissions, from two commissions of up to 30% profitability, a

commission of 1.4% of balances, decreasing each year up to 0.85%,” he

said.

Medina added that the amendment will save RD$40.0 billion (US$800)

over the next 12 years, which he affirms will go directly to the affiliated

workers fund.


Prime Minister signs two agreements at Caricom meeting in St.Kitts Thursday 28th February, 2019 – gov.gd

Grenada has become signatory to the CARICOM Multilateral Air Services

Agreement which is intended to make the Caribbean Community a more

liberalised environment for CARICOM airlines.

Prime Minister, Dr. the Right Honourable Keith Mitchell signed the

agreement at the just concluded Inter Sessional Meeting of the

Conference of Heads of Government of CARICOM in St. Kitts and Nevis.

Dr. Mitchell was among four CARICOM leaders who signed the

agreement Wednesday, bringing to nine the number of countries that

have now become signatories.

As explained on the CARICOM website, the “CARICOM Multilateral Air

Services Agreement expands the scope for airlines owned by CARICOM

nationals to provide air services throughout the community.”

Further, the agreement “allows for no restriction on routes, capacity or

traffic rights and should facilitate increased intra-regional travel and

provide more cargo options for exporters and importers with resulting cost

savings.”

Meeting in a special session on transportation, Dr. Mitchell and his

CARICOM colleagues agreed that “member states should undertake a

review of their domestic taxes and other charges related to the air

transportation sector, with a view to simplifying and streamlining the

relevant tax structure.”

CARICOM leaders are seeking to provide travellers in the region with

adequate, competitive and efficient air transportation services at

affordable prices.

Dr. Mitchell also signed the Declaration of Intent to Provisionally Apply the

Protocol on Contingent Rights on Wednesday. According to the

communique from the meeting, this would “apply the measures that

would allow their nationals to benefit in those countries from the provisions

of that agreement on contingent rights which allows for spouses and

dependents of skilled workers who move to another country to access

services such as education and health on the same basis as nationals.”


IMF Says Venezuela Crisis Worse Than Expected as Sanctions Burn Thursday 28th February, 2019 – Bloomberg

The worst economic crisis in modern Latin American history has gotten

"even worse" than expected as new U.S. sanctions exacerbate pain on

Venezuela, according to the International Monetary Fund.

There’s more downside risk in the region after the Trump administration

slapped a de facto oil ban on Venezuela and tightened restrictions on

state oil giant PDVSA, said the IMF’s Western Hemisphere Director

Alejandro Werner.

“Venezuela is going through a humanitarian crisis, an economic crisis,

hyperinflation and a debt crisis,” Werner said in an interview in

Bloomberg’s New York office. “We have seen a combination of these

things in many nations, but seeing the four of these things together makes

for an extremely complicated case.”

Werner said the IMF is ready to help if Venezuela’s government seeks the

fund’s expertise in formulating policy. The nation is currently mired in a

political crisis as autocrat Nicolas Maduro and U.S.-backed opposition

leader Juan Guaido both claim the presidency. The IMF has said it could

put together a loan package for Venezuela "in less than six months" if

there were to be a political transition. Bondholders expect a credit line

would help put the nation on a more sustainable path to recover from

what the IMF estimates was a 50 percent contraction over the past five

years, according to Werner.

“If you look at the pricing of bonds today, obviously no one is expecting

full recovery,” he said. “But what they would expect, and that’s why

they’re holding these bonds, is that eventually a package will be put

together and that a country with the wealth of Venezuela can lay out the

policies to go back to a sustainable, inclusive growth process.”

Werner said he’s more optimistic on Brazil, Argentina and other Andean

nations.

He said Brazilian Economy Minister Paulo Guedes’s pension overhaul

proposal will probably win approval in the second half of 2019, spurring a

“decent amount” of savings for South America’s largest economy. Still,

Werner said recent data indicates economic growth may be “a bit

weaker” than his 2.5 percent annual forecast. Local economists have

already begun cutting their outlooks. That may create some space for

Brazil’s new central bank president, Roberto Campos Neto, to ease the

key rate that’s already at a record low, he said.

“To the extent that economic data continues to surprise on the downside,

there might be some space to move,” Werner said. “The current rate was

set with an expectation that the economy would be growing slightly faster

at this time.”

Meantime, he said Argentina’s new monetary policy framework has

helped stabilize financial markets after the peso led global currency losses

last year. Werner said he doesn’t expect the IMF’s commitment to the

nation to waver if President Mauricio Macri were to lose his re-election bid

in October, as the fund has support from different parts of the political

spectrum. Jose Luis Espert, a fringe right-wing candidate, has said as

president he’d ask for an additional $30 billion so Argentina could honor

its commitments through 2021.

“Financial markets are sending the signal that they think the course is right,

and what I am expecting is an inflection point in which annual inflation will

start to come down,” Werner said. ”The government has the right

approach.”


Monitoring Metered Oil … Guyana should require Exxon, others to use

independent certifying firms, standards – Int’l Consultant Friday 1st March 2019 – Kaieteur News

With a plethora of capacity issues facing the country in its bid to prepare

for oil, there is still a chance that it can ensure transparency and

accountability when it comes to monitoring metered oil. This came to the

fore when Kaieteur News conducted an interview with International Oil

and Gas Consultant, Anthony Paul.

This publication asked Paul to share how Trinidad and Tobago keeps track

of the volume of oil produced, the price at which it was sold, and the

costs incurred by oil companies.

With respect to the volume of oil produced, Paul noted that TT’s Ministry of

Petroleum and Mines, as it was then called, had established a Petroleum

Inspectorate, whose role and function was to measure and certify

quantities produced and sold.

The Chatham House Advisor said that TT’s Customs Department also

witnesses shipments. Paul said, “There are standard industry methods for

measuring and certifying volumes, and the physical and chemical

properties of oil and gas, which affect the price. T&T uses these.”

Further to this, Paul noted that in Joint Ventures, non-operating parties

require that the operator engage an independent certifying firm to

validate the reported volumes and composition being sold and/or

exported.

Based on checks with local authorities, Guyana is far from making use of

such systems and mechanisms. But all hope is not lost. Guyana still has a

chance to protect itself says Paul. He noted that the Government may

not need the internal capacity to do this themselves, but rather, require

that independent certifying firms, methods and standards be used by the

oil majors.

Further to this, the international Oil Consultant said that this is an area into

which locals should be promoted very rapidly, as it is an ongoing business

for many years and can bring additional value to Guyana, inclusive of the

requisite analytical laboratories that must be certified to internationally

acceptable standards.

TRAINING FOR GUYANESE

Last April, this newspaper raised the issue of having systems in place to

monitor oil offshore with the Guyana Revenue Authority’s Commissioner-

General, Godfrey Statia.

Statia had said that special officers would be trained to monitor metered

oil production by ExxonMobil. But efforts to follow up with him on this

matter recently proved futile.

Be that as it may, the tax chief on several occasions said to Kaieteur News

that he is aware of how important meter monitoring is to ensuring

accountability and transparency in the oil and gas sector. The Chartered

Accountant had said that this type of monitoring is imperative, as there

are documented cases where the failure to do so has cost nations billions

of dollars in revenue.


Guyana Goldfields announces mill expansion Friday 1st March 2019 – Kaieteur News

Guyana Goldfields Inc. has announced that the second phase of its mill

expansion is mechanically complete and was fully commissioned as of

February 25, 2019.

“Based on the highly encouraging results from trials supplementing mill

feed with pre-crushed ore, as well as the higher than expected

performance in throughput from the completion of the first phase mill

expansion in 2018 [average 2018 mill throughput of 7,000 tonnes per day

(“tpd”) versus a design template of 6,600 tpd], the scope of the second

phase of the mill expansion was reduced to include only the addition of a

pre-crushing circuit.”

The original scope included the addition of the pre-crush circuit along

with a 1,000 tpd ball mill, representing a total 2018 capital savings of US$2

million.

The company said it expects that the second phase of the mill expansion

will further improve recovery by up to two percent throughput by 10% and

allow for 75% redundancy of the primary crusher.

Scott A. Caldwell states: “Mill performance has continuously exceeded

our expectations. The anticipated enhanced capacity and redundancy

of the primary crushing circuit will further lower our per unit costs in our

efforts to optimize and continuously improve our operations.”

Guyana Goldfields Inc. is a Canadian based mid-tier gold producer

primarily focused on the exploration, development and operation of gold

deposits in Guyana. It is the single largest gold producer, moving now to

develop the country’s first underground mine. However, it is facing

troubles from a number of shareholders with a key general meeting in a

number of weeks.

The operations are at Aurora, Cuyuni, Region Seven.


Underspend Helps Hit Deficit Target Thursday 28th February 2019 – Tribune 242

The government yesterday forecast it will narrowly beat this year’s fiscal

deficit target despite a $185m revenue shortfall caused by VAT, gaming

and enforcement underperformance.

Deputy Prime Minister K Peter Turnquest, unveiling the 2018-2019 mid-year

budget in the House of Assembly, said the Minnis administration was on

track to limit the full-year deficit to around $230m - some $5-$10m less than

the “red ink” target set last May.

He said the Government will be able to achieve this, and offset its

revenue gap, through “significant spending restraint” projected to slash

recurrent expenditure by five percent compared to initial forecasts.

This, based on Tribune Business’s calculations, amounts to a $130m cut to

projections that it would spend some $2.589bn on its recurrent or fixed-

costs - typically civil service salaries, benefits and rents - this fiscal year.

Mr Turnquest yesterday identified the 12 percent VAT rate’s delayed

introduction in key sectors such as hotels and construction, coupled with

the Government’s web shop taxation settlement and later-than-expected

creation of the Revenue Enhancement Unit, as the key factors behind

why revenues are now forecast to fall 7 percent short of Budget

predictions.

This amounts to a $185.43m undershoot of the initial $2.649bn target, this

newspaper has calculated, although Mr Turnquest implied that the VAT

rate hike and other tax measures had still produced their desired effect

because full-year recurrent revenues will be more than $400m ahead of

2017-2018.

However, he confirmed long-standing predictions that VAT collections will

be “somewhat under the Budget forecast” for 2018-2019 as a result of the

transition period granted to the likes of hotels and contractors, which

enabled them to honour reservations and contracts that were in effect

prior to the budget at the former 7.5 percent rate.

Mr Turnquest added that the revised web shop taxation structure, which

has reduced the “sliding scale” levy from six to two lower rates, and the

switch to taxing patrons on their winnings rather than deposits and ticket

sales, was forecast to reduce the Government’s tax take from the sector

by $18m compared to initial estimates.

And he revealed there will be a “dip” in the $80m that was forecast to be

collected via enhanced compliance/enforcement due to the delayed

creation of the Revenue Enhancement Unit, which is supposed to target

tax evasion relating to VAT, Business Licence fees, Stamp Duty and real

property tax.

The deputy prime minister did not provide a figure for the projected VAT

shortfall, although based on the total undershoot - and the losses relating

to web shops and the Revenue Enhancement Unit - this is likely to be

around $90m or half of the $185m.

“All told, we now estimate that revenues will fall short of the Budget

projection by some 7 percent, but still come in some $400m higher than

the last fiscal year,” Mr Turnquest told the House of Assembly.

However, he said “significant expenditure restraint” had kept the

Government on course to hit the $237.6m full-year deficit target,

equivalent to 1.8 percent of Bahamian GDP, as mandated by the Fiscal

Responsibility Act’s goals.

“Based on expenditure trends in the first half of the fiscal year, it is now

estimated that both recurrent and capital expenditure will come in

somewhat lower than had been projected at the time of the 2018-2019

Budget,” Mr Turnquest said. “That, in large measure, reflects the

Government’s dedicated commitment to stringent expenditure restraint.

“Accordingly, recurrent expenditure is now projected at a level some 5

percent below the Budget forecast. Capital expenditure was particularly

subdued in the first half of the fiscal year but, with our commitment to

significantly invest in new and modern public infrastructure, we expect the

pace of spending in this area to pick up appreciably in the second half of

the year. The estimated outturn for capital expenditure is nonetheless now

expected to come in below the amount budgeted for the entire year.”

The deputy prime minister did not produce a revised full-year estimate for

capital spending, which was initially forecast to total just under $300m.

Just $86.949m, or less than one-third of this sum, had been spent at the

fiscal mid-year point of end-December 2018 - thus giving the Government

enough room to increase this and still come in under projections.

Confident that spending controls will offset the revenue shortfall, Mr

Turnquest said: “With the fiscal outturn in the first half and projected

developments in the second half, we now foresee a fiscal deficit in 2018-

2019 slightly under the Budget forecast by some $5-10m. Thus, we project

presently a budget deficit of somewhere near $230m, which means we

remain firmly on target.”

A further indication of the Government’s optimism that it will not be

thrown off-target comes from the fact that no new borrowing measures,

above and beyond what was approved in May’s budget, were unveiled

in the House of Assembly yesterday.

Pledging to maintain the Minnis administration’s cost-cutting focus, Mr

Turnquest said it was “taking a hard look” at all government programmes

and services “to see where we can cut spending, enhance value for

money, improve services to make them more efficient and effective, and

identify savings and reallocations to accommodate higher priority policy

objectives”.

He added that the Ministry of Finance was poised to take its regular

monthly meetings with government agencies a step further by

“mandating the creation of monthly spending plans by agencies, so as to

foster proper financial planning and cash management and minimise the

accumulation of further arrears”.

Mr Turnquest added that the Government was continuing to work on a

Public Debt Management Bill to improve governance of its existing $8bn-

plus national debt and ensure its “prudent management”.

This, he said, will lead to the creation of a Public Debt Management

Office within the Ministry of Finance and, under it, a Public Debt

Management Unit to co-ordinate strategy for minimising The Bahamas’

debt servicing costs.

“This development will eradicate the past practice of inefficiently

managing the country’s debt portfolio and will instead create a

framework for actively managing the country’s debt, with the aim of

achieving the overarching goal of the Fiscal Responsibility Act of reducing

the debt-to-GDP ratio to a more sustainable level,” Mr Turnquest told the

House.

He added that the Government was also set to complete its transition to

its new Chart of Accounts by July 1 this year, bringing it more into line with

international standards and setting the stage for accrual-based

accounting come 2022.

“Last May, this government accepted the difficult decision of raising taxes

and the tax burden on Bahamians,” the deputy prime minister said. “We

did this knowing full well the political consequences and the harsh

criticism that the Government would face, even from our own side.

“We realised that this sacrifice asked of Bahamians was not the politically

popular thing to do, but it was the right thing to do. It was the right thing

to do.”


Govt Targets ‘Value’ For Its $400m Soes Thursday 28th February 2019 – Tribune 242

The government yesterday unveiled plans to ensure it gets “value for

money” from the near-$400m in annual subsidies it pumps into state-

owned enterprises (SOEs).

K Peter Turnquest, deputy prime minister, lamented that while some $398m

in recurrent spending was allocated to SOEs for the 2018-2019 fiscal year,

there was no framework to properly monitor whether these entities are

spending taxpayer monies wisely.

Unveiling the mid-year budget statement in the House of Assembly, Mr

Turnquest said the government will next month launch a project to

evaluate its state-owned enterprises.

“Historically, successive governments have not had the effective means

to evaluate the fiscal stewardship of state-owned enterprises (SOEs),” he

added. “Some 15.4 percent of the government’s recurrent expenditure is

allocated to these SOEs, which translates to some $398m.

“Yet, even as their share of the public purse has grown, the framework to

obtain the timely and consistent information necessary to assess the value

for money obtained by these SOEs simply has not been developed. We

intend to change this.”

Mr Turnquest continued: “The project is expected to take place over three

phases, the first being an analysis of SOEs, authorities, and other quasi-

government entities and their operations, so as to provide forward looking

strategies for each entity.

“The second phase will include the formation of a comprehensive

strategy for cost rationalisation and cost recovery for SOEs - in line with

international best practices - as well as an efficient financial and

management reporting model. The third stage will include the

implementation of the strategic model, and the roll out of new budgeting,

accounting and performance management.”

Mr Turnquest added that there have been “significant developments” in

the government’s efforts to instill prudent fiscal management via the

drafting of several bills focused on strengthening governance.

“Specifically, the Public Financial Management Bill (or PFM Bill) is being

drafted with assistance from the IMF’s Caribbean Technical Assistance

Centre (CARTAC) and is expected to modernise and eventually replace

the Financial Administration and Audit Act, 2010,” said Mr Turnquest.

“Its main objective is to provide a more comprehensive legal framework

that will provide the necessary support to strengthening the oversight,

management and control of public funds.”


Integration movement momentum continues with renewed interest says

CARICOM Chairman, Dr Harris Thursday 28th February 2019 – Skn Vibes

A renewed interest was generated in the integration movement during

the successful 30th Inter-Sessional Meeting of the Conference of Heads of

Government of the Caribbean Community (CARICOM) held over a two-

day period (February 26-27) in St. Kitts and Nevis.

Addressing a press conference on Wednesday evening February 27 at the

Royal Ballroom of the St. Kitts Marriott, Chairman of the Conference Prime

Minister Dr the Hon Timothy Harris advised that all member states

participating in the Caribbean Single Market and Economy (CSME) have

now signed the Protocol on Contingent Rights.

“Nine countries have agreed to apply, provisionally, the protocol,” said Dr

Harris. “This means that the nationals of those countries, their spouses and

dependants will benefit from additional rights such as primary education

when they move from one-member state of the Community to another.”

Countries participating in the Caribbean Single Market and Economy are

Antigua and Barbuda, Barbados, Dominica, Grenada, Guyana, St. Kitts

and Nevis, Saint Lucia, St. Vincent and the Grenadines, and Trinidad and

Tobago.

“We have also reached agreement on a protocol to deal with Public

Procurement that will open the regional market for goods and services

procured by public entities,” said Prime Minister Harris. “Two countries

signed this agreement during the course of the meeting.”

The Heads of Government at the two-day 30th Inter-Sessional Meeting of

the Conference of Heads of Government of the Caribbean Community

are said to have welcomed the opening of the Agreement on the

Protocol for Public Procurement and noted that the Protocol can be

provisionally applied when seven Member States have signed a

declaration of intent.

Prime Minister Harris who assumed the CARICOM chairmanship on

January 1 this year was flanked at the press conference by CARICOM’s

Secretary General Ambassador Irwin LaRocque, and Jamaica’s Foreign

Affairs Minister Hon Kamina Johnson-Smith. Jamaican Prime Minister the

Most Hon Andrew Holness, who attended the two-day meeting was the

immediate past CARICOM Chairman.

While Dr the Hon Ralph Gonsalves, Prime Minister of St. Vincent and the

Grenadines, did not participate in the press conference, he appeared

briefly, and Prime Minister Harris recognised his presence.

Other Heads of Government attending the 30th Inter-Sessional Meeting of

the Conference of Heads of Government of the Caribbean Community

were Prime Minister of Antigua and Barbuda, Hon Gaston Browne; Prime

Minister of The Bahamas, Dr the Hon Hubert Minnis; Prime Minister of

Barbados, Hon Mia Motley; Prime Minister of Dominica, Hon Roosevelt

Skerrit; Prime Minister of Grenada, Dr the Hon Keith Mitchell; Prime Minister

of Saint Lucia, Hon Allen Chastanet; and Prime Minister of Trinidad and

Tobago, Dr the Hon Keith Rowley.

Belize was represented by the Attorney General Hon Michael Peyrefitte;

Guyana was represented by His Excellency Second Vice President and

Minister of Foreign Affairs, the Hon Carl Greenidge; Haiti was represented

by Foreign Minister, Hon Bocchit Edmond; and Suriname was represented

by Minister of Foreign Affairs, Hon Yidiz Pollack-Beighle.

Associate Members in attendance were Bermuda represented by Deputy

Premier and Minister of Home Affairs, Hon Walter Roban; and the Turks

and Caicos Islands, represented by Deputy Premier, Hon Sean Astwood.


Cane cut Monday 1st March, 2019 – Barbados Today

Cane farmers will be in for a $9.7 million payday at the end of next week.

But while making the disclosure this afternoon, the chairman of the

privately-run Barbados Sugar Industry Limited (BSIL), Mark Sealy, insisted

that million-dollar backpay may not be enough to induce his members to

start the crop by the end of this week or early next week.

BSIL represents more than 60 per cent of local cane producers with

Government employing the rest.

Sealy told Barbados TODAY that the backpay, which was owed to cane

farmers for last year’s harvest that ended in July, must go hand-in-hand

with a new price offer from Government for canes to be delivered this

year.

Sealy said: “We have not received a cane price yet for this crop; and that

is something we would need to have in order to move forward. We have

a meeting with all of the farmers today and we will get some feedback

from them as to what their feelings are with regard to moving forward.”

The private cane producers’ spokesman said the BSIL leadership was

working closely with the Ministry of Agriculture to ensure the debt to

farmers was settled by the end of next week as promised.

He suggested the farmer’s long wait for their money had devastated their

businesses, forcing some of them to the brink of collapse.

“We are looking forward to receiving that payment at the end of next

week, simply because the cash flow of farmers has been totally depleted.

Money is needed to pay farmers, to buy diesel, to buy fertiliser, etcetera,”

he told Barbados TODAY.

Sealy said that some farmers have even had to cut the hours of work of

their staff due to their ongoing financial challenges.

He said: “So bearing in mind these payments should have been made

quite some time ago . . . we moved forward in good faith last year,

without a cane price. And we received word of an offer of a cane price

down in December . . . bearing in mind the crop would have finished in

July.

“We are still now awaiting the payment. We accepted that offer in

December, which is $150 per ton. And we are nearly down in March now

and we have not received payment for it.”

I think another major point would be that we must have a cane price for

this year’s crop,” said Sealy, whose organisation represents some 15 cane

producers.

The 2019 sugar harvest is expected to record a massive drop in

production.

General manager of the state-owned farming enterprise, Barbados

Agricultural Management Company (BAMC), Leslie Parris, said that the

industry would be reaping more than 9,000 tons of cane less than what

had been projected up to last month.

He said the earlier forecast of 146,000 tons of cane for this year’s harvest

has been substantially scaled down to 137,000 tons.

And even that, Parris warned, may also drop further by the end of

harvesting.

“We were looking at 137,000 of cane. However, based on the lack of

rainfall, it might be lower than that. The lack of rainfall would have been

one of the main reasons. The drop from 146,000 to 137,000 tons would be

significant, as you would appreciate. I don’t have the percentage in my

head, but you are talking approximately 9,000 tons of cane,” the sugar

industry executive told Barbados TODAY


JSIF Signs $43.9m MOU Monday 1st March, 2019 – Jamaica Gleaner

The Ministry of National Security (MNS) has signed a memorandum of

understanding (MOU) with the Jamaica Social Investment Fund (JSIF) for a

further $43.9 million in financial support for the Jamaica Crime

Observatory Enhancement Project.

The Crime Observatory is an instrument through which the MNS keeps up-

to-date, reliable data so as to promote transparency, security, and safety

in the national interest. It also establishes valid and consistent crime and

violence-related statistics.

The project, which commenced in May 2014, will continue until May 2020.

According to Shauna Trowers, acting chief technical director of research

in the Ministry of National Security, the project has been successful thus

far.

“Our achievement to date has been mainly equipping the ... Jamaica

Constabulary Force with the information technology equipment in the

form of desktop computers, laptops, and other related equipment that’s

needed to ensure that the crime observatory functions as it should.

“In terms of capacity building, we are looking at spatial analysis … so we

need to understand the terrain so we know what kind of policing is

necessary. We also are looking at the GIS (geographic information

system), using the technology to leverage our policing, and that is what

the observatory and the information have done to date,” Trowers said.

When the programme started in 2011, it covered five parishes and five

types of incidents. It has since expanded to cover all 14 parishes and

collects data on murders, shootings, sexual offences, robberies, fatal

shootings, traffic fatalities, and suicides.


Sygnus Weighs Fundraising Options In Hunt For US$15m Monday 1st March, 2019 – Jamaica Gleaner

SYGNUS CREDIT Investments Limited, SCI, issued credit to an additional six

companies in the December quarter, bringing its deals since inception to

16, and is signalling that it has more prospects lined up.

But the two-year-old company, while breaking out the geographic

markets and sectors in which its capital is deployed, is holding its list of

borrowers close to the vest.

Nearly three-quarters of the funds lent to SMEs (small and medium-size

enterprises), 72 per cent, have been distributed in Jamaica, while the rest

has been deployed to entities in Barbados, St Lucia and the ABC islands,

which comprises Aruba, Bonaire and Curaçao. The financing distributed

to date tops US$27 million, mostly to business operators in the

manufacturing, telecommunications and energy sectors.

At the end of last year, the company had US$9.4 million of capital to lend,

but needs more arsenal, and has turned to the market to raise additional

funds for future financing deals.

“By the end of March, we would have used up a significant amount of our

dry powder,” said Berisford Grey, cofounder and CEO of Sygnus Capital,

the firm that manages Sygnus Credit and pursues business leads on its

behalf.

“We will likely raise between US$10 million and US$15 million more funds to

satisfy the demand,” Grey said.

Sygnus Credit, which was incorporated offshore in St Lucia in January 2017

and listed on the Jamaica Stock Exchange in June 2018, is yet to decide

whether its fundraising will be done via an issue of preference shares or a

rights issue of ordinary shares to existing shareholders.

The company, whose assets were last estimated at US$38 million,

describes its model as an “alternative channel” for private credit to

businesses that need capital for growth.

DOES NOT OFFER LOANS

Expanding on the company’s operation on Wednesday, Grey said Sygnus

does not offer loans but rather, private credit investments through

customised financing solutions, such as the issue of notes with a profit-

share component, preference shares, and flexible amortisation and zero

amortisation clauses.

He was responding to queries on whether Sygnus Credit’s issuing of credit

in foreign exchange meant that its operation had to be approved by the

Bank of Jamaica.

“SCI is not regulated, as it is just a private company using its equity capital

to invest in other companies, like a private equity firm,” he said.

In the quarter ending December 2018, Sygnus Credit reported interest

income of US$856,000, or almost triple the US$320,000 earned in the year-

prior period. Profit nearly doubled, from US$698,000 to US$1.3 million.

“We are continuously interacting with clients and these clients want more

funds to invest. So our pipelines of investments is always growing,” said

Grey. “Everything is validating our business model that the medium-sized

market was underserved by non-traditional financing methods.”

Three of the six new investments in the December quarter were made in

the ABC islands and Barbados, he said.


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