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▪ Government of Barbados rating downgraded to CariBBB-

▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB

▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+

▪ Gulf City Limited’s rating reaffirmed at CariA+

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

▪ Telecommunications Services of Trinidad and Tobago Limited’s rating reaffirmed to CariA

▪ Colonial Fire and General Insurance Company Limited’s initial rating assigned at CariA

▪ Home Mortgage Bank’s rating reaffirmed at CariA

▪ NCB Financial Group Limited’s initial corporate credit rating assigned at CariA

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

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

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

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

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REGIONAL

Trinidad and Tobago

Massy moves $0.18 higher

Overall Market activity resulted from trading in 14 securities of which 2

advanced, 4 declined and 8 traded firm.

Prestige Holdings profits down 30 per cent for 2017

Prestige Holdings Limited (PHL) has recorded a 30 per cent decline in

profit after tax for its financial year ended November 30, 2017

Petrotrin reclaims A&V’s acreage

State-owned Petrotrin moved in yesterday to seize the assets of one of its

private lease operators, A&V Oil and Gas Ltd, two days after the private

lease operator lost its legal battle to prevent the company from

terminating its contract.

Eight civil society organisations to benefit from TT$7m in EU grant funding

Eight civil society organisations (CSOs) will benefit from TT$7 million (EUR

870,134.00) in grant funding from the European Union Delegation to TT (EU

Delegation).

Barbados

Tax appeal

An independent Senator is again appealing to Government to increase

the excise tax on sweetened beverages – this time by a further 20 per

cent.

Sugar boost

The Senate today debated a resolution to borrow a further US$13.9 million

(BDS$27.8 million) to assist in the refinancing of a $73 million sugar debt.

UPP welcomes reinstatement of reverse tax credit

The minority Opposition United Progressive Party (UPP) has thrown its

support behind an amendment to the Income Tax Act to reinstate the

reverse tax credit.

Barbados continued

Pay day

Thousands of policyholders who invested in the ill-fated CLICO group here

in Barbados have lots of reasons to be smiling today.

BHTA calls for stronger management of the south coast sewage mess

The Barbados Hotel and Tourism Association (BHTA) has issued a strong

warning that if the ongoing sewage crisis affecting the south coast is not

quickly remedied it could prove disastrous for the island’s bread and

butter tourism industry.

Jamaica

IDB approves US$248m loan for Jamaica

The Inter-American Development Bank (IDB) is providing US$248 million in

loan support for three government initiatives in Jamaica.

Gov't considers selling stake in JPS to clear debt

The Government is contemplating plans to offset a $9-billion debt owed to

the Jamaica Public Service (JPS) for streetlights by selling its 20 per cent

stake in the light and power company.

Kaya ganja shop to open for business in March

Balram Vaswani plans to open the first of a series of Kaya Inc ganja stores

in St Ann by March 10.

Public debt servicing below 40% of national budget

Finance and the Public Service Minister Audley Shaw, says public debt

servicing is below 40 per cent of the National Budget.

Jamaica's greatest crisis is human underdevelopment ­— Shaw

Finance Minister Audley Shaw hit just the right note in his keynote speech

yesterday for the IDB Board of Governors' two-day conference held in

Kingston, Jamaica (as Minister of Finance for Jamaica, Shaw is a Governor

and was also the host), arguing that Jamaica's greatest crisis was neither

crime nor the economy, but a crisis of human underdevelopment.

Jamaica continued

Jamaica Customs hosts forum on Customs Act

One of the key strategic priorities of the Jamaica Customs Agency (JCA)

is to undertake the process of developing a new legislative framework

which will serve to further promote future business opportunities for

Jamaica, especially in the areas of shipping, logistics and international

trade.

Grenada

$100 million bond issue increases Grenada debt to GDP ratio by ten

percent

The government of Grenada issued a $100-million-dollar international

bond on February 8, 2018, with a maturity date of February 9, 2020, at 5.5

percent, with an accumulated interest already at 3 percent as of

February 28.

Guyana

500,000 barrels oil per day

PRESIDENT of ExxonMobil Exploration Company, Steve Greenlee, said the

new discovery of oil at the Pacora well will be developed in conjunction

with the Payara field and other phases to help bring Guyana’s production

to more than 500,000 barrels per day.

Ratio Guyana Limited contract features 50/50 production split

THE Production Sharing Agreement (PSA) between the Government of the

Cooperative Republic of Guyana and Ratio Guyana Limited has cost-oil

percentage of 75 percent and the 25 percent balance profit-oil split 50/50

for government and contractor. Further, a royalty of 1 percent payable by

the government’s take of the profits is specified in the Ratio Guyana

Limited contract.

Antigua and Barbuda

Antigua-Barbuda supports initial coin offering for development

Antigua and Barbuda’s projects and charities are being funded by the

initial coin offering for development (ICOD) – a ground-breaking ICO for

Development with full support from the minister of agriculture, lands,

fisheries, and Barbuda affairs, Arthur Nibbs.

British Virgin Islands

$$ saved from festival scale-down will pay outstanding bills

The monies that will be saved from scaling down the Virgin Gorda Easter

Festival this year will be used to pay outstanding bills owed to vendors

from last year’s staging, Culture Minister Myron Walwyn has said.

The Bahamas

Local labour pool to be employed in construction of second cruise pier in

Basseterre

Doors will be opened and opportunities created for locals with the

construction of a second cruise pier that is expected to commence in

April of this year at Port Zante in Basseterre, St. Kitts.

St. Kitts and Nevis

Local labour pool to be employed in construction of second cruise pier in

Basseterre

Doors will be opened and opportunities created for locals with the

construction of a second cruise pier that is expected to commence in

April of this year at Port Zante in Basseterre, St. Kitts.

Haiti

$16M Project with Caribbean Development Bank

On the side-lines of the 29th CARICOM Conference, as part of the

cooperation in the education sector, a working meeting was held

between a delegation of the Caribbean Development Bank (BDC) on a

mission to Haiti for a week and Pierre Josué Agénor Cadet the Minister of

National Education

Haiti wants to produce fruits and vegetables for the Bahamas

Sunday at the National Palace a high-level meeting was held between

President Jovenel Moïse, accompanied by Prime Minister Lafontant and

Hubert Minnis, Prime Minister of the Commonwealth of the Bahamas. In

addition to the implementation of the three agreements signed in Nassau

on July 29, 2014, between the Bahamas and Haiti it must be remembered

in the context of cooperation, the willingness expressed by the Head of

State that Haiti produces and exports fruits and vegetables to the

Bahamas.

Haiti continued

Free movement of Haitians in the Caricom countries...

As of March 30, 2018, Haitians holding an official and diplomatic passport

or holding a US, Canadian or Schengen (European Union) visa will be able

to move freely in all Caricom member countries.

Suriname

Suriname president to visit India, Russia and UAE, and Indian PM will tour

the Caribbean

Suriname’s President Desi Bouterse plans to do a lot of foreign travel

beginning in March, he revealed in a speech on Saturday to mark the

38th anniversary of the 1980 Revolution. Bouterse will visit Brazil in March

and, before the summer monsoon starts up, he will tour India, Morocco,

and the United Arab Emirates (UAE). He will also visit Russia and Serbia this

year. Bouterse also disclosed that the prime minister of India, Narendra

Modi, will make an official visit to Suriname this year.

Other Regional

CDB helps regional musicians cash in on global multi-billion-dollar industry

Streaming services, some with up to 140 million users worldwide, have

revolutionised the business of music. Yet despite the earning potential

these services present for industry practitioners – writers, publishers,

performers and producers – the Caribbean region has been slow to cash

in.

Caribbean countries sign agreements deepening regional integration

movement

St Vincent and the Grenadines has signed on to the new Caribbean

Community (Caricom) Multilateral Air Services Agreement (MASA) as the

29th Inter-Sessional Summit moved into its final day yesterday.

INTERNATIONAL

United States

IMF chief sees growth, overheating, debt risks from U.S. tax cuts

International Monetary Fund Managing Director Christine Lagarde said on

Thursday she sees positive and negative effects from a “complicated” U.S.

tax overhaul, including a near-term growth bump that risks overheating

the U.S. economy and a problematic rise in debt.

Dollar hits six-week high as Powell bolsters rate hike bets

The dollar hit a six-week high on Thursday, supported by what was

perceived as an upbeat tone from new Federal Reserve chief Jerome

Powell on the U.S. economy, bolstering bets that interest rates will be hiked

four times this year in the United States.

Oil falls for third day as higher inventories, dollar weigh

Oil prices fell for a third day on Thursday, dropping toward $64 a barrel as

rising U.S. inventories, record output and a stronger dollar outweighed

high OPEC compliance with its supply-cutting deal.

United Kingdom

UK watchdog says markets fared well in recent volatility

Markets handled a recent bout of extreme share-price volatility without

widespread fallout, but they need to remain vigilant as new bets are laid

on price swings, Britain’s top markets regulator said on Thursday.

Sterling falls as traders eye Brexit talks

Sterling fell against the dollar on Thursday as nervous investors sold the

pound ahead of more talks between Britain and the European Union over

the terms of Brexit, and Prime Minister Theresa May’s highly awaited

speech on Friday.

Europe

European shares bump to two-week low as Carrefour, WPP results get

frosty reception

European shares slid on Thursday as a flurry of uninspiring earnings updates

from retailer Carrefour and advertiser WPP kept the mood downbeat,

while broader jitters over tightening monetary policy spilled over into a

new month.

Japan

Nikkei ends at near 2-week low; weak euro hits precision equipment cos

Japan’s Nikkei share average closed at a near two-week low on Thursday

as sentiment was hit by a rout in Wall Street overnight, while the euro’s

weakness against the yen hit companies such as precision machinery

makers.

Global

Nervous stock markets brace for Powell part II, dollar at six-week high

World stock markets entered March on shaky ground on Thursday, falling

for the third straight day before the second leg of Federal Reserve chief

Jerome Powell’s testimony to lawmakers.

Manufacturing vigour remains, strong currencies hinder exports

Manufacturing data painted a mixed picture of economic activity across

the globe, with stronger currencies hurting exporters, but the growth

momentum demonstrated at the start of the year appears to have only

dwindled slightly.

Exxon quits some Russian joint ventures citing sanctions

Exxon Mobil Corp (XOM.N) will exit some joint ventures with Russia’s

Rosneft (ROSN.MM), citing Western sanctions first imposed in 2014, while

the Russian company said the pull-out will result in serious losses for its U.S.

partner.

Tax appeal Wednesday 28th February, 2018 – Barbados Today

An independent Senator is again appealing to Government to increase

the excise tax on sweetened beverages – this time by a further 20 per

cent.

Stressing that obesity and non-communicable diseases were “an

extremely serious problem”, Professor Emeritus of the University of the West

Indies Faculty of Medicine Sir Henry Fraser said he believed an increase in

the tax to 30 per cent would better encourage Barbadians to consume

less sugary drinks.

“I therefore use this forum to make a plea, while approving this bill, that

we should forthwith, immediately look towards legislation that will increase

it by a further 20 per cent, which we can expect both to help the coffers

and to make a difference to the calorie consumption,” he said in the

Senate today during the reading of the validation of the Excise Tax Bill.

It was back in June 2015 that Minister of Finance Chris Sinckler had

imposed a ten per cent tax on sweetened beverages in an effort to

persuade Barbadians to consume less sugar.

The excise tax, which took effect on August 1, 2015, was applied to the

cost of locally produced and imported sweetened beverages such as

carbonated soft drinks, juice drinks, sports drinks and fruit juices. The tax is

levied on the value of the product before the Value Added Tax is applied.

At the time Sinckler had announced that the tax should generate in

excess of $10 million in revenue for the remainder of the financial year

2015/2016. He had also promised that after two years it would be

reviewed to determine how it affected the behaviours of producers,

importers and consumers and whether it should be extended or

intensified.

Three months after the tax took effect Minister of Health John Boyce

reported that it was not having the desired impact, as Barbadians were

still drinking large quantities of their preferred sugary beverages.

Barbados TODAY investigations had revealed also that at the end of the

first six months of the tax taking effect only $2 million was actually

collected by the Treasury.

However, the island’s leading beverage manufacturer Banks Holdings

Limited had said that its business had suffered “a definite hit”.

Addressing his colleagues in the Upper House on Wednesday, Sir Henry,

who has been calling for the tax to be increased to 30 per cent since its

implementation, said it was “very sad” that the recommendations from

himself, as well as several other individuals and organizations for the tax to

be increased were ignored even though the tax had raked in only some

$8 million, according to reports.

“For a $4 drink ten per cent is 40 cents. And most Barbadians now don’t

concern themselves with any coinage less than a silver dollar. People

literally ignore the nickels, dimes and 25-cent pieces. Therefore that 40-

cent increase, based on the feedback that I have had from two

supermarkets and others I deal with, it does not appear that there have

been much of an impact on consumption,” the medical practitioner said.

“I would like to think that we can now make a 20 per cent addition. We

can improve the Government coffers and we might have a significant

impact on the consumption of soft drinks by young people, especially

children,” he contended.

<< Back to news headlines >>

Sugar boost Wednesday 28th February, 2018 – Barbados Today

The Senate today debated a resolution to borrow a further US$13.9 million

(BDS$27.8 million) to assist in the refinancing of a $73 million sugar debt.

Leading off debate on the measure in the Upper Chamber today, Minister

in the Office of the Prime Minister Senator Darcy Boyce explained that the

loan, which was made to Government a few years ago for the purpose of

providing resources to the Barbados Cane Industry Corporation matured

earlier this year and had been repaid.

However, he said additional funds were now needed to take forward the

restructuring of the sector.

Boyce explained that of $73 million that was originally borrowed, close to

US$13.9 million was arranged by a bond by Ansa Merchant Bank and

Consolidated Finance.

“It is that US dollar portion of the bonds that we are here to discuss a

resolution on,” he said.

The monies were previously treated as domestic borrowing under the

Special Loans Act. However, the Government Senator explained that

based on the advice coming from the Office of the Chief Parliamentary

Counsel and the Solicitor General’s Office it should really be

characterised as foreign borrowing under the External Loans Act.

The latest loan is due to mature in six years with interest payable half

yearly at a rate of 7.95 per cent annum. Boyce also explained that the

principle is to be repaid in 12 equal semi-annual instalments, starting six

months after the disbursements.

“The bond is being issued at a price . . . a little bit below par . . . which

makes the effective interest rate slightly above 7.95 per cent. The rate that

we are getting on this borrowing is a little less than what we were earlier

on and therefore we are happy to be able to accept this and take care

of the loan,” he added.

Boyce contended that the fact that the two financial institutions agreed

to arrange these loans, showed the confidence they continue to place in

Barbados and that all was not dark and lost.

While acknowledging that the original loan was to support the sugar cane

industry here with the focus mainly on the export of raw bulk sugar to the

United Kingdom, the Government Senator pointed out that the thinking

had since shifted to the production of special premium-priced sugars and

quality molasses.

He explained that molasses was a critical ingredient in the manufacture of

rum.

However, he said with the declining production of sugar over the years,

the country had been forced to import the liquid commodity and ran the

risk of breaching the European Union’s Rules of Origin by importing a

crucial component for its locally branded rum.

Hence, he said the construction of the multi-purpose factory to produce a

greater quantity of molasses, along with electricity from biomass and

special sugars, was vital.

“And so, the view in Barbados is that we need to make sure we can revive

the sugar cane industry in order that we can get the molasses that we

need for that rum industry which earns foreign exchange,” he said.

<< Back to news headlines >>

UPP welcomes reinstatement of reverse tax credit Tuesday 27th February, 2018 – Barbados Today

The minority Opposition United Progressive Party (UPP) has thrown its

support behind an amendment to the Income Tax Act to reinstate the

reverse tax credit.

The UPP’s only parliamentary representative, Dr Maria Agard, today told

the House of Assembly the measure, which applies to people earning

$25,000 or less during an income year, was welcome relief for “some of

the most vulnerable, marginal members of our society”.

“They are usually single and young, carry the responsibility of a family on

their back without extended support from grandparents, aunts and uncles

because the demographic of the island is changing, and in many cases

only earn about $200 a week,” the Member of Parliament for Christ

Church West said in her contribution to the debate.

She said during times of austerity shared responsibility among the

electorate was difficult because “there are always people who will be

able to withstand hard times better than others”.

“I support this measure, but you need to look at the possibility of taking it

further and making up for the lost years. If you cannot do it for this year,

do it over a period of years,” she stressed.

Meantime, Member of Parliament for St Michael West Central James Paul

noted that those in lower income brackets appeared to bear the brunt of

measures introduced to deal with economic difficulties.

However, he said it was important “to look at priorities”.

“Yes, we had to make some sacrifices, but we made sure we kept

essential social services like free bus travel for schoolchildren and senior

citizens, school meals and health care, even though some people were

saying we should get rid of them,” Paul said.

Minister of Finance Chris Sinckler, who introduced the measure, said:

“Taxation is not something permanent, it can be altered once conditions

become better. Governments try to shield the most vulnerable people in

society though this does not always work, but in the end that additional

tax revenue goes towards keeping our essential services intact.”

Barbadians filing their income tax returns this year, and who fall under the

$25,000 threshold, can apply for the reverse tax credit.

<< Back to news headlines >>

BHTA calls for stronger management of the south coast sewage mess Wednesday 28th February, 2018 – Barbados Today

The Barbados Hotel and Tourism Association (BHTA) has issued a strong

warning that if the ongoing sewage crisis affecting the south coast is not

quickly remedied it could prove disastrous for the island’s bread and

butter tourism industry.

As such, BHTA Chief Executive Officer Rudy Grant is calling for “a senior

Government official to take the lead in terms of the day-to-day

management of this crisis”.

For more than a year the sewerage system along the south coast, the

island’s major tourist belt, has been spilling effluent.

Despite several assurances from the Barbados Water Authority (BWA) that

the problem was either being addressed or was close to being resolved,

the situation has been gradually deteriorating to the point where it is now

eating away at the road infrastructure, especially in the Hastings, Christ

Church area.

While several businesses, including a number of food establishments have

chosen to remain open in the sewage-plagued area, the Chicken Barn in

Worthing, Christ Church has closed after losing the battle against the

effluent water that has inundated its compound.

“The BHTA is extremely concerned about the ongoing challenges with the

South Coast Sewerage Plant and particularly the negative impact on

many of our hotel and restaurant members. This specifically relates to

those located between the stretch from Lanterns Mall, Hastings to

Worthing, all of whom are at their wits end about the increased overflows

from manholes in those areas,” said Grant in a statement this afternoon.

He did not say how many affected BHTA members there were or if any of

them were considering closing operations until the problem was rectified.

However, he said the BHTA believed the situation had deteriorated to the

point where it was “imperative for Government to view this as a national

crisis as it is affecting residents, schools, businesses and visitors to the

island”.

“In this context, we also believe the time has come for a senior

Government official to take the lead in terms of the day-to-day

management of this crisis. It is also important for the BHTA to be in a

position to be able to respond to the concerns being expressed almost on

a daily basis by our trade partners,” Grant said, without specifying which

official should be put in charge.

“The BHTA fears that if these challenges are not remedied soon, the end

result could prove disastrous for the future of the industry, as well as

Barbados as an attractive and desired destination,” he warned.

And even though the BHTA remains in “frequent” dialogue with the BWA

on what it is doing to rectify the situation, Grant said “it would appear that

there are a number of additional factors and challenges that are

inhibiting them from successfully implementing identified solutions”.

He therefore pledged to continue to work with the relevant authorities in

order to find appropriate solutions.

Authorities are yet to entertain the idea of having businesses in the

affected areas closed until there was a solution, with Minister of Health

John Boyce insisting last year that there had been no health issues as a

result of the recurring sewage spills.

However, the Ministry of Education has closed the St Lawrence Primary

School “as a precautionary measure”, in light of the problem, which is also

occurring on the school’s premises.

This is not the first time the BHTA has called on authorities to urgently

address the problem.

On the eve of the busy winter tourism season last December, Grant had

described the situation as “unacceptable” and “untenable”, while

warning that the current image of the south coast was not the one that

Barbados would wish to present at this time.

The situation has also resulted in the island’s main source markets – the UK,

US and Canada – issuing travel advisories to their residents, urging them to

be cautious when visiting the area, with the US going as far as to warn its

staff here that the tap water in the area is not safe, despite repeated

assurances from health officials to the contrary.

<< Back to news headlines >>

Pay day Thursday 1st March, 2018 – Nation News

Thousands of policyholders who invested in the ill-fated CLICO group here

in Barbados have lots of reasons to be smiling today.

They will finally start to see some of their money.

Resolution Life, the company which emerged from the CLICO ashes,

stated monthly annuity payments for January and February this year will

be paid up. On March 31 those owed outstanding payments on pensions,

death benefits and maturities should be paid while those with Executive

Flexible Premium Annuities (EFPAs) can look for money at the end of July.

About 15 000 policyholders are eligible and no one is happier than June

Fowler who led the fight at the helm of the Barbados Investors and

Policyholders Alliance (BIPA) for the past eight years.

“I always knew in my heart that I was not giving up and something was

going to happen, not knowing when or how long, but you’ve come to

recognise over time once you stay the course you have to finish the race.

It feels good to see this,” Fowler said.

<< Back to news headlines >>

Gov't considers selling stake in JPS to clear debt Thursday 1st March, 2018 – Jamaica Gleaner

The Government is contemplating plans to offset a $9-billion debt owed to

the Jamaica Public Service (JPS) for streetlights by selling its 20 per cent

stake in the light and power company.

Finance and the Public Service Minister Audley Shaw told members of

parliament that the final decision to sell Government shares in the JPS rests

with the Cabinet but noted that the approach would be to offer these

shares to the public.

At present, the Government owes the JPS more than $7 billion for

streetlights while the National Water Commission and other government

agencies owe the company another $2 billion.

At yesterday's meeting of the Standing Finance Committee of Parliament,

St Andrew South MP Mark Golding highlighted a severe shortage of

streetlights in his constituency, noting that residents were exposed to

criminal elements while going about their lawful business. He urged the

minister to lobby the JPS so that streetlights can be installed in the area.

Shaw said the Government was currently negotiating with the JPS to pay

its debt, adding that the JPS should install streetlights in areas where they

are needed.

The finance minister also reported that the programme to install light-

emitting diode (LED) streetlamps across the country is going well with the

JPS surpassing its target of 35,000, last year. He said the company installed

36,455 LED lights.

Of the 105,000 streetlights across the country, Shaw said one-third has

been retrofitted with LED lamps. Another 17,000 LED bulbs will be installed

this year.

Shaw also suggested that customers be charged a small amount on their

bills to defray the cost of installing more streetlights across the country. He

noted that this move would serve to enhance national security.

<< Back to news headlines >>

Kaya ganja shop to open for business in March Wednesday 28th February, 2018 – Jamaica Gleaner

Balram Vaswani plans to open the first of a series of Kaya Inc ganja stores

in St Ann by March 10.

The businessman and chairman of Kaya reaped the first legal harvest for

sale last week in the presence of the Cannabis Licensing Authority. This

harvest will feed the stock of the store or herbhouse.

"We would be ready to open our doors in early March," said Vaswani in a

response to Gleaner queries. "We have completed our initial build-out of

phase one, which would include the cafÈ and herbhouse."

The costs associated with the development of the cafe, dispensary and

farm to date have surpassed $76 million.

Last week, Kaya Farms, in Drax Hall, St Ann, a sister company to Kaya

Herbhouse, announced its first harvesting under the close watch of the

interim CEO for the CLA, Augustus Staples.

"Furthermore, it is an indication that being patient concerning the

challenges of start-up is well worth the while. For such patience, we are

indeed grateful," Staples said in the release.

The cannabis authority has received hundreds of applications since May

2016 but has formally issued three licences. The CLA refrains from

disclosing the names of applicants, and to date has made no formal

announcement of Kaya's licence.

"We were issued our Tier 2 Cultivation licence last year under Kaya Farms

and our Kaya Herbhouse licence was received this year," said Vaswani,

adding that he was finalising build-out of Kaya Extracts for processing and

his second retail herbhouse, which is expected to open in April.

Kaya will provide medicinal and recreational ganja to locals and tourists.

Since last year, Kaya Inc has been recruiting staff for its ganja wellness

centre and cafe.

"Combined, we currently employ a total of 17 personnel and an

additional 12 will be added by end of February," the Kaya chairman said.

His medium- to long-term plans include setting up as many as eight

herbhouses across Jamaica.

"Each retail location would be a little different from our flagship in

Greenwich Estate, St Ann, that would have a herbhouse, cafe, spa,

kitchen, clinic, tours and outdoor area for live events that will be pretty

unique right off the highway," Vaswani told the Financial Gleaner.

"Our other seven retail locations might not have the option to have a cafe

or spa included based on its location, so we have created a business

model that could adapt itself to the area, but still create an uplifting

environment for the consumer," he said.

Vaswani also disclosed that his company has been offered several

opportunities to partner with a variety of licensed holders in Canada,

Australia, Israel, Hawaii and India, jurisdictions in which marijuana has

been either legalised or decriminalised.

In 2015, Vaswani set up Ganja Labs LLC, which grew legal marijuana at

the University of Technology Jamaica in Kingston, under the UTech

Medical Marijuana research licence granted by Minister of Science,

Energy and Technology Dr Andrew Wheatley in May 2016.

Ganja Labs spent US$500,000 ($64 million) to build out that operation,

under which it launched cultivation of marijuana using three methods:

indoors in temperature-controlled rooms; outdoors in smart pots exposed;

and in a greenhouse, grown in an enclosed shed with natural light.

<< Back to news headlines >>

Public debt servicing below 40% of national budget Wednesday 28th February, 2018 – Jamaica Observer

Finance and the Public Service Minister Audley Shaw, says public debt

servicing is below 40 per cent of the National Budget.

“It is at 37.4 per cent. This is significant because we all remember the days

in both governments when we had debt servicing in excess of 60 per cent

(and) at one stage as high as 65 per cent,” he said.

The minister made the disclosure during a meeting of the Standing

Finance Committee in the House of Representatives today.

Shaw explained that the total provision for debt servicing is $289 billion or

37.4 per cent of the “overall expenditure budget, including amortisation”.

“This comprises $137 billion in interest payments and $152 billion in

principal payments. This represents a significantly lower level of payment,

23.7 per cent lower than the $378.6 billion in debt service payments

estimated for the fiscal year 2017/2018,” he noted.

Shaw attributed the reduced debt service payments to the lower levels of

debt maturing in 2018/2019, such as “the early redemption of bonds

undertaken through the liability management operations of 2016/2017

and 2017/2018”

<< Back to news headlines >>

Jamaica's greatest crisis is human underdevelopment ­ Shaw Wednesday 28th February, 2018 – Jamaica Observer

Finance Minister Audley Shaw hit just the right note in his keynote speech

yesterday for the IDB Board of Governors' two-day conference held in

Kingston, Jamaica (as Minister of Finance for Jamaica, Shaw is a Governor

and was also the host), arguing that Jamaica's greatest crisis was neither

crime nor the economy, but a crisis of human underdevelopment.

The Government of Jamaica was hosting the 7th Annual Caribbean

Governors' Meeting of the Inter-American Development Bank (IDB), which

was held on Monday and yesterday at the Jamaica Pegasus Hotel in

Kingston. The IDB's Caribbean Governors are the finance and planning

ministers of the institution's Caribbean member states.

As Shaw noted, too many children enter grade one in Jamaica

“functionally illiterate”, so it should be no surprise that they drop out of

high school (he sarcastically added we then suddenly discover

“unattached youth”.) He added that our greatest resource was not land

or our beaches, but our people. He gave the now familiar example of

Singapore's legendary Prime Minister Lee Kuan Yew visiting Jamaica in

1964 for answers, and subsequently establishing, amongst other things, the

Singapore Development Bank based on the then Jamaican model.

The minister observed that in the current budget he would be spending

$70 billion less on debt financing, allowing him to “make space for more

public investment”, including $25 billion more in capital expenditure, a

move in the right direction, and for the debt to GDP ratio.

While the macroeconomic indicators were all moving in the right

direction, growth was still slow. Shaw observed that capital and labour

productivity was still very low, arguing that we need to focus on

“technology, technology, technology”, as Jamaica has been in a pattern

of “1% or less growth for far too long”.

Jamaica's high debt means the government cannot lead the needed

increase in investment: the local private sector was too small, and for

many foreign investors, our opportunity in Jamaica was too small for them

to bother. He therefore thanked our bilateral partners, particularly the IDB

and China, for financing infrastructure development and roads, noting

that in addition to the recent billion-dollar investment in the alumina

sector, there were potentially billions more of investment on the drawing

board from these sources.

Shaw added that the IMF was commencing its third review just as “lower

interest rates are the order of the day”, a reference to the Bank of

Jamaica's interest rate cut last week to 2.75 per cent for their main policy

rate, and reiterated his determination to drive down lending rates to

single-digit levels, noting in passing the government's recent success in

borrowing a billion US dollars at five per cent.

He added that only five per cent of Jamaica's agricultural production

went to the tourism sector (despite its recent boom), adding his support

for the recently formed Tourism Linkages committee which he hoped

would ultimately benefit Jamaica's 200,000 small farmers.

He also noted — which unsurprisingly appeared to get a nod from Sir

Richard Branson — the Caribbean region's vulnerability to extreme

weather events (last year was the first time we saw category 5 hurricanes

hit the Caribbean), with the obvious potential to drive the entire region

“deeper into a debt trap.”

The overall theme for the meeting was #JumpCaribbean, meaning

helping the Caribbean to embrace, strategically, the reality of the digital

revolution. Importantly, the IDB wants the region to tap technology and to

apply innovative methods as a means to solve problems, improve

productivity, generate employment and advance development.

IDB Governors present (or their representatives) included those from The

Bahamas, Barbados, Jamaica, Suriname, Guyana, Trinidad & Tobago, as

well as IDB President Luis Alberto Moreno, and Dr William Warren Smith, the

President of the Caribbean Development Bank.

Shaw's call that we have “got to focus on the development of our

people” was therefore extremely well timed. In addition to the influential

grouping of top IDB management and regional ministers and technocrats,

his audience included noted billionaire entrepreneur Richard Branson as

well as Toomas Hendrik Ilves, former President of the Republic of Estonia.

They were both at the meeting to provide insight into how the Caribbean

can take advantage of the opportunities for accelerating growth,

building resilience to natural disasters, developing policies to improve

productivity, and creating vibrant sustainable economies through the

digital and technological revolutions. Estonia, of course, is the world

leader in national identification technology and digitisation.

Finally, IDB President Luis Alberto Moreno, a native of Colombia, who

started his first term as IDB President with electoral support from the

Caribbean and now has two years left to run in his final term, observed in

his opening remarks that many in the multilateral community “never

believed that Jamaica's turnaround was possible”, and that we were an

example to the rest of the region of what happens “when a country

decides to bite the bullet”.

He congratulated the region on the passion, speed and commitment of

our Caribbean athletes, while recommending that the region “translate

into action” those same qualities in the area of economic reform.

<< Back to news headlines >>

Jamaica Customs hosts forum on Customs Act Wednesday 28th February, 2018 – Jamaica Observer

One of the key strategic priorities of the Jamaica Customs Agency (JCA)

is to undertake the process of developing a new legislative framework

which will serve to further promote future business opportunities for

Jamaica, especially in the areas of shipping, logistics and international

trade.

Currently the agency, in collaboration with its public and private sector

stakeholders, is undertaking the process which will result in repealing and

replacing the Customs Act, with a view to modernising it, in line with

current trends and international best practices.

In revising the legislation, the agency has met with various stakeholders, to

include recently hosting a stakeholders' forum at its Newport East Office in

Kingston, which looked at the Customs Legislative Reform Programme

now underway.

This forum reviewed the main pillars of the Customs Legislative Reform

Programme, and is one of the channels in which the JCA will use to

engage its stakeholders.

Among other things, the new legislation will allow for the following:

* Introduction of modern terms in accordance with international best

practices

* Modernisation of the Act using easily understood legislative language

and structure

* Introduction of risk-based compliance and selectivity in Customs

processing or treatment.

* The legislative proposals were informed by the recommendations put

forward by stakeholders over the last four years, and are intended to,

among other objectives:

* Promote socio-economic development and assist with the creation of

the conditions for economic growth

* Facilitate the efficient processing of Customs-related transactions

* Aid in protecting local businesses and the international supply chain

from unfair international trading practices, smuggling of goods, under-

invoicing, fraud and intellectual property rights infringement

* Encourage voluntary compliance with Customs laws and procedures

* Further support the implementation of ASYCUDA World

* Strengthen the enforcement powers of the Commissioner of Customs

* Strengthen the ability of the JCA to effectively protect Jamaica's

borders

* Aid the JCA in facilitating the processing of increased volumes of trade

in an increasingly complex international trading environment

<< Back to news headlines >>

Massy moves $0.18 higher Thursday 1st March, 2018 – Trinidad and Tobago Guardian

Overall Market activity resulted from trading in 14 securities of which 2

advanced, 4 declined and 8 traded firm.

Trading activity on the First Tier Market registered a volume of 365,371

shares crossing the floor of the Exchange valued at $2,997,297.33.

NCB Financial Group was the volume leader with 152,927 shares changing

hands for a value of $998,613.31, followed by FirstCaribbean International

Bank with a volume of 114,176 shares being traded for $1,061,836.80.

GraceKennedy contributed 67,009 shares with a value of $224,480.15,

while TTNGL added 8,038 shares valued at $217,910.18.

Massy Holdings registered the day's largest gain, increasing $0.18 to end

the day at $47.50.

Conversely, Clico Investment Fund registered the day's largest decline,

falling $0.13 to close at $19.77.

Clico Investment Fund was the only active security on the Mutual Fund

Market, posting a volume of 8,950 shares valued at $176,904.30.

Clico Investment Fund declined by $0.13 to end at $19.77.

<< Back to news headlines >>

Prestige Holdings profits down 30 per cent for 2017 Thursday 1st March, 2018 – Trinidad and Tobago Guardian

Prestige Holdings Limited (PHL) has recorded a 30 per cent decline in

profit after tax for its financial year ended November 30, 2017

According to the company's published consolidated results, the

restaurant management business generated $32.9 million in after tax profit

for 2017, significantly lower than its 2016 results when the company

registered $47.2 million in after tax profit.

Commenting on the company's performance, PHL chairman Christian

Mouttet said they were "disappointing, even given the difficult economic

environment in Trinidad and Tobago"

Mouttet attributed three main reasons for the company's declining

performance.

"Profitability declined by 30 per cent...mainly due to (1) the

underperformance of our Subway brand (2) a significant $5.6 million

foreign exchange cost impact on profitability as a result of the shortage of

United States dollars which forced us to purchase Euros and Canadian

dollars at higher effective rates; and (3) the increased tax rate"

The PHL chairman also pointed out the contrasting performance between

the KFC and Pizza Hut franchises with that of the Subway and TGI Fridays

brands.

"Our KFC and Pizza Hut brands held up relatively well given the significant

headwinds in the economy and continued food cost increases at KFC,

new value offerings catering to individuals and families were well received

and improvement in our drive-through and delivery operations helped

support increased sales and an improved customer experience" Mouttet

said.

With respect to Subway and TGI Fridays, Mouttet noted that both had a

"difficult year" adding that they performed "below our expectations and

their potential".

He said that initiatives were under way to treat with the issues of high food

costs and operational challenges that affected Subway, as well as to

ensure that "TGI Fridays remains the brand of choice in the casual dining

sector"

Stating his views on the Starbucks brand, which is the newest franchise

operated by the company and first opened its doors in August 2016,

Mouttet said that he expected it to become a "meaningful contributor to

the Prestige Holdings Group"

"The Starbucks brand has received good market acceptance since its

launch in the previous financial year. We operated five restaurants at the

end of the financial year and opened a sixth in Ellerslie Plaza, Maraval in

December 2017. Our seventh store in Trincity Mall opened in February

2018." Mouttet said.

<< Back to news headlines >>

Petrotrin reclaims A&V’s acreage Thursday 1st March, 2018 – Trinidad and Tobago Guardian

State-owned Petrotrin moved in yesterday to seize the assets of one of its

private lease operators, A&V Oil and Gas Ltd, two days after the private

lease operator lost its legal battle to prevent the company from

terminating its contract.

But even as Petrotrin employees were measuring the quantity of oil

remaining in the tanks of A&V Oil & Gas Ltd’s facilities in the Catshill Field

off Moruga, the Environmental Management Authority (EMA) was called

in to investigate the source of an oil spill at one of the wells.

Once a cash cow for A&V and its owner, Hanif Nazim Baksh, the facility

was like a ghost town yesterday, with most of the pumping jacks dormant

and the lease operator’s trucks lined up in the yard.

Following the lease operator’s unsuccessful bid before the Privy Council to

block Petrotrin from terminating its contract and withhold an $83.9 million

payment based on allegations of inflated bills, Petrotrin seized control of

the facilities yesterday.

An EMA team spent hours searching for Well CO50 where there was a

report of an oil spill. The EMA said it received a report of the oil spill on

Tuesday evening and following protocol, it dispatched officers from its

Emergency Response and Investigations team yesterday.

However, the EMA said it was too early to make any conclusions as to

what would have caused the oil spill as well as to provide details of the

investigations. Officers are expected to return to the site today to

continue their probe.

There was no indication as to whether the oil spill had anything to do with

the low volumes of crude oil found in most of the tanks. Using dipsticks,

most of the tanks were almost dry, a sheer contrast to the booming

production the lease operator reported in 2017. The exercise in the field

located ten miles into the forest off St Mary’s Village was carried out with

security officers armed with rifles. There was no official spokesperson for

Petrotrin or the lease operator present.

On Monday, the Privy Council rejected A&V Oil & Gas Ltd’s appeal of the

decisions of two local courts to dismiss its application for an injunction

against Petrotrin. The court ruled that the company had failed to raise an

arguable case with a realistic prospect of success. As a result of the

decision, a temporary injunction granted by the Privy Council almost two

weeks ago was automatically discharged, making way for Petrotrin to

take over the field that was leased out back in 2009.

The union representing the oil workers yesterday demanded that Petrotrin

cease all contracts with private lease operators.

Speaking outside the Beaumont Hill Centre, Pointe-a-Pierre yesterday,

OWTU president general Ancel Roget said that farming out Petrotrin’s

acreages to private companies was a way for those in authority to gain

revenue through questionable means.

“Get rid of every last one of them and let Petrotrin produce its own oil,”

Roget said.

He spoke just before the union met with Petrotrin’s management over their

proposals for the planned restructuring of the failing oil company.

“We condemn that outright, totally. All Petrotrin’s assets with respect to

exploration, production, wells and acreages must be handed back to

Petrotrin so that Petrotrin can exploit that in the interest of the country.

It is a sham; it is a way to give away the country’s assets,” he claimed.

While it would mean hundreds of workers would be out of a job, he said,

Petrotrin had 860 vacancies that need to be filled.

But while the union’s demand was to scrap the programme, Roget said

they were seeing an expansion, which he said raised questions about

Petrotrin’s Board of Director’s mandate for the company.

He said even before the Board responded to their proposals, there was

talk that a new president was being sourced from the Massy Group.

He said the mandate may well be to sink the company into further debt

so that there would be enough reason to privatise the company.

NEW STRUCTURE AT COMPANY

Board of Directors announced yesterday a new structure to assume

immediate responsibility for the company’s operations while the Board

focuses on the reorganisation.

As a result, the employment of three vice presidents and a senior

manager was terminated. No further information was provided on the

identity of those affected.

In the new structure, board chairman Wilfred Espinet, deputy chairman

Reynold Adjodhansingh, will assume oversight for the finance and

administration while former vice president and current director Anthony

Chan Tack will have responsibility for refining and marketing and

consultant Robert Riley, a former bpTT CEO, will overlook the exploration

and production departments as well as the emergency response units.

The new teams are expected to be in place between June and

September while the Board completes its task, the statement said.

“The transition has to be completed as quickly as practical: we have a

number of pressing deadlines and commitments to meet- a US$850 million

bond payment that is due in August 2019 and a refinery whose survival is

contingent on a further US$300 million investment for the completion of

the Ultra-Low Sulphur Diesel Plant by 2029. We can’t address these

challenges unless we become competitive,” the statement added.

<< Back to news headlines >>

Eight civil society organisations to benefit from TT$7m in EU grant funding Thursday 1st March, 2018 – Trinidad and Tobago Newsday

Eight civil society organisations (CSOs) will benefit from TT$7 million (EUR

870,134.00) in grant funding from the European Union Delegation to TT (EU

Delegation).

The groups are expected to contribute at least ten per cent of the cost of

their projects.

Ambassador Arend Biesebroek, Head of the EU Delegation, said the

grants were awarded "under our most recent Call for Proposals for

projects in the area of Environment/Climate Change and Business and the

Economy."

"For these projects it was important to identify areas which are in line with

both the EU's and the government's development agenda. Hence the

focus on business and the economy and environment and climate

change. We also requested that interested organisations form consortiums

to implement the projects activities."

"These consortiums are important given the challenges civil society

organisations face, which often cross sectoral divides. We believe that

these consortiums provide an opportunity to involve CSOs through the

identification of common and shared interests and create opportunities

for deeper collaboration and sharing of resources."

Biesebroek was speaking last Wednesday during the grant contract

launch ceremony at the EU Delegation's offices, Sagicor Financial Centre,

#16 Queen's Park West, Port of Spain.

Project one is, Enhancing Civil Society Capacity for Governance of

Environmental Transparency and Accountability in TT's Extractive

Industries.

This is a three-year project which will be implemented by a consortium

comprised of The Cropper Foundation, Environment Tobago, Fishermen

and Friends of the Sea, Network of Rural Women Producers and the

Oilfield Workers' Trade Union.

The EU said this project "seeks to enhance civil society's capacity to act as

a watchdog of the extractive industries, to ensure they adhere to high

levels of accountability, transparency and compliance to local and

international environmental best practices, standards and regulations,

and to independently verify the industry's reported environmental data."

Project two is, Capacity Building and Development of Civil Society

Organisations for Business in TT. It will be implemented by the Arthur Lok

Jack Graduate School of Business in conjunction with the TT Energy

Chamber and the TT Manufacturers Association.

"This project seeks to strengthen the capacity of national and local CSOs

and improve their effectiveness in participating in decision making, as well

as in implementing national and local policies related to business and the

economy."

Both projects are being funded under the 11th European Development

Fund (EDF) National Indicative Programme, Support to Civil Society

Organisations and "is in line with the EU's strategy to support CSO's in

recognition of the critical role they play in supporting development."

The EU Delegation also expressed hope that its support will result in

enhanced capacity building and organisational development of CSOs.

"This means that CSOs will be better able to redefine their roles, functions

and structures; strengthen their existing partnerships and dialogue spaces

and reinforce their linkages and interactions with other non-state actors at

the local, national and international levels."

Permanent Secretary and National Authorising Officer in the Planning and

Development Ministry, Joanne Deoraj, also spoke at the ceremony.

Although TT has more than 3,000 CSOs in operation, Deoraj lamented that

many of them "lack governance standards, greater technical capability

and efficiency."

"Strengthening our CSOs is essential in order to have greater

developmental impacts as it will enable them to attract increased

funding as well as short-term volunteers and long-term career workers.

Government is therefore committed to strengthening CSOs and this

assistance from the EU serves to bolster that effort, as it demonstrates the

importance that the international community places on Civil Society in an

evolving democratic society."

Deoraj noted that building capacity translates to CSO's having greater

influence in policy dialogue and monitoring of public policy as well as

effectively improving the quality of their participation in the national

development process.

<< Back to news headlines >>

Antigua-Barbuda supports initial coin offering for development Wednesday 28th February, 2018 – Caribbean News Now

Antigua and Barbuda’s projects and charities are being funded by the

initial coin offering for development (ICOD) – a ground-breaking ICO for

Development with full support from the minister of agriculture, lands,

fisheries, and Barbuda affairs, Arthur Nibbs.

The ICOD is based on the Ethereum blockchain, allowing the Antigua

Development Coin (ADC) to be used by Antiguans and other interested

people in their daily lives via the Antigua eWallet.

With the first development coin release, CNET will be receiving funds to

develop a multifaceted HACCAP compliant agricultural complex, a state-

of-the-art hydroponics plant, a large solar power plant with battery

storage backup, an orphanage and halfway house for battered women,

and a micro-finance institution.

CNET will later fund development projects on Barbuda such as a solar

farm and an open market; all of this will help create employment for

Antiguans and Barbudans.

“We envisage our developments to be environmentally and economically

sustainable as we strive to empower the local communities, while helping

to make Antigua and Barbuda the ‘Economic Powerhouse’ it is

envisioned to be,” says Errol Bailey, president of CNET’s group of

companies.

CNET International is a privately-run consortium of strategic partners in

community development and renewable energy sector. CNET’s mission is

to increase economic growth for Antigua and Barbuda through public-

private partnership agreements.

<< Back to news headlines >>

$$ saved from festival scale-down will pay outstanding bills Wednesday 28th February, 2018 – BVI News Online

The monies that will be saved from scaling down the Virgin Gorda Easter

Festival this year will be used to pay outstanding bills owed to vendors

from last year’s staging, Culture Minister Myron Walwyn has said.

The ministry initially budgeted $100,000 to host this year’s festival.

“Based on what we decided to do, which is the gospel fest, the food fair

with some entertainment, and the picnic with some entertainment, I don’t

even think we would utilize a half of that amount of money,” Walwyn told

BVI News.

“Virgin Gorda would have outstanding bills from last year so the

difference out of that money ($100,000) would go towards paying

outstanding bills,” he added.

The ministry announced Monday afternoon (February 26) that the main

event at Easter Fest, which is the festival village, has been scrapped.

This is in recognition of the post-hurricane circumstances still affecting the

BVI, the ministry explained.

The culture minister claims he made the decision to scale down festival

more than a week ago after consulting with members of the Virgin Gorda

community.

“We know that there are different views – some people want it others

don’t. So, we struck a balance between the two,” he told BVI News.

The findings of a BVI News survey published last week revealed that

majority of residents were against the event being held this year.

Sixty-three percent of the 162 residents invited to participate in the survey

were against the festival.

The other 37 percent of respondents wanted the event to be held.

<< Back to news headlines >>

CDB helps regional musicians cash in on global multi-billion-dollar industry Wednesday 28th February, 2018 – Caribbean News Now

Streaming services, some with up to 140 million users worldwide, have

revolutionised the business of music. Yet despite the earning potential

these services present for industry practitioners – writers, publishers,

performers and producers – the Caribbean region has been slow to cash

in.

Aiming to better help music industry professionals take advantage of this

boom, the Caribbean Development Bank (CDB), in July 2016,

commissioned a feasibility study and action plan for the digitalisation of

Caribbean music, to enhance understanding of its effect on the music

industry.

A team of regional and international consultants met on February 21 and

22 in Barbados with industry insiders to present the study’s key findings,

and discuss how best to develop and expand the Caribbean’s music

industry.

The two-day session, which also included a training component, focused

primarily on digital and live music, and included discussions on

mainstreaming participation in the industry by women. Overall, the

number of women participating is low, and their roles are often limited to

lower earning opportunities, such as performing.

“We need more women in publishing and producing,” said industry expert

Erica Smith, one of the regional consultants who presented at the two-day

workshop.

Smith also told participants that analysis suggests that the Region’s top

digital music operators would benefit from a demand-driven business

model that targets specific communities and markets in the burgeoning

online environment.

“Regional artists currently have little or no presence on the top revenue

generating platforms,” she said. “And given that this is a multi-billion dollar

and growing industry, it’s undeniable that there is potential to substantially

increase the Region’s music industry presence and revenue generation.”

But getting Caribbean artists added to these playlists has been

challenging. As Erik Brataas, co-founder and former CEO of distribution

company Phonofile, which Sony acquired in 2017, explained, a more

collaborative and sustained approach among music stakeholders in the

Caribbean is needed.

“Consistency is key. Getting onto playlists is not about luck, nor can you

buy your way onto them,” he said. “You need to build awareness around

the music and the artist, and this is the advantage major labels have. They

have the money and resources to really dig into this, to take the time to

understand the marketplace, and how the music travels through the

algorithms that ultimately determine listing and ranking.”

While major record labels often guarantee artists visibility and protection

from issues such as piracy, Alison Wenham, CEO, Worldwide Independent

Network (WIN), reminded workshop attendees that there is power in

numbers.

There are no major record companies in the Caribbean, a region

characterised by independent labels, but 40 percent of global music sales

originate from independent record companies, making the independent

sector the largest market share owner in the world.

In order to harness that power, it is necessary to have collective bodies to

marshal those resources Wenham told attendees.

“As a result, we now have a global trade body, WIN, to represent and

promote the interests of the thousands of companies in the world working

in local markets, but with international reach. We look forward to helping

in the creation of a regional trade association to help the thriving local

industry reach its full potential,” she said.

With membership across all continents, WIN provides a collective voice

and platform for independent music companies and their national trade

associations.

Recognising the cultural and creative industries as an important

mechanism to drive economic diversification in its borrowing member

countries (BMCs), CDB, in 2017, approved a Cultural and Creative

Industries Innovation Fund (CIIF).

Lisa Harding, coordinator, Micro, Small and Medium-Sized Enterprise,

Technical Cooperation Division, CDB, told workshop participants that the

regional music industry stands to benefit significantly when the Fund is

operationalised later this year.

“There are three components of the CIIF. One will support the enabling

environment for developing the cultural industries sector, with a focus on

legislative reforms and incentive policies. Secondly, it will address funding

for data capture, and improve the quality, depth and dissemination of

research on the sector. And thirdly, what I think most of you would be

interested in, is that the Fund will also support actual entrepreneurs

involved in the creative industry to build their capacity in various forms,”

she said during the workshop opening.

CDB is making an initial investment of US$2.6 million to the multi-donor

fund, which is expected to improve the competitiveness of the cultural

and creative industries sector in its BMCs.

The bank’s work in the creative industries also includes training in the

business of music, where 483 industry practitioners were trained (267 men

and 216 women) in Barbados and Jamaica in 2016 and 2017 respectively,

to understand how to effectively manage their music businesses.

<< Back to news headlines >>

Caribbean countries sign agreements deepening regional integration

movement Wednesday 28th February, 2018 – Jamaica Observer

St Vincent and the Grenadines has signed on to the new Caribbean

Community (Caricom) Multilateral Air Services Agreement (MASA) as the

29th Inter-Sessional Summit moved into its final day yesterday.

The agreement expands the scope for airlines owned by Caricom

nationals to provide air services throughout the 15-member grouping.

The Caricom Secretariat said that 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.

“This should provide a major boost to the regional transportation sector

which is a critical aspect of the Caricom Single Market and Economy

(CSME),” that allows for the free movement of goods, skills, labour, and

services across the region.

The signing of the MASA was one of five agreements signed by Caricom

leaders yesterday.

Barbados Prime Minister Fruendel Stuart signed the Caricom Arrest

Warrant Treaty and the revised agreement establishing the Caribbean

Examinations Council (CXC).

The Caricom Arrest Warrant Treaty, which has already been signed by

some member states, simplifies the procedure of returning fugitives to the

country where charges have been laid.

The revised agreement establishing the Barbados-based CXC seeks to

update the CXC's legal structure in light of subsequent organisational

practices, recent market developments and current needs, with particular

emphasis on accommodating requests from additional territories and

institutions to join or otherwise participate in the CXC.

Montserrat's Education, Health and Youth Minister Delmaude Ryan signed

on to the accord establishing the Caribbean Accreditation Authority for

Education in Medicine and other Health Professions, and the agreement

establishing the Caribbean Centre for Renewable Energy and Energy

Efficiency.

<< Back to news headlines >>

Nervous stock markets brace for Powell part II, dollar at six-week high Thursday 1st March, 2018 – Reuters

World stock markets entered March on shaky ground on Thursday, falling

for the third straight day before the second leg of Federal Reserve chief

Jerome Powell’s testimony to lawmakers.

The testimony, due at 1500 GMT, will come two days after his hawkish

comments ignited fears the Fed could deliver four U.S. rate rises this year

instead of the three already priced in, triggering an equity sell-off and

pushing up bond yields.

The U.S. dollar rose to six-week highs against a basket of currencies while

the gap between short-dated U.S. and German bond yields was at its

widest since 1997.

MSCI’s all-country equity benchmark fell 0.4 percent after snapping a

record 15-month long winning streak in February, while European stocks

lost almost 1 percent.

Emerging Asian and Japanese shares also fell earlier, with the latter down

1.6 percent.

Wall Street looked set for another weak open, futures signalled, after it

ended February with its worst monthly performance in two years.

Chinese shares bucked the trend, however, edging up after a private

survey showed manufacturing sector growth picking up to a six-month

high. Shanghai shares closed 0.4 percent higher.

Fed chief Powell will deliver the second leg of his semi-annual testimony

on Thursday, an opportunity to clarify comments made on Tuesday that

rekindled speculation over U.S. monetary tightening this year happening

faster than expected.

Powell on Tuesday vowed to prevent the economy from overheating

while sticking with a plan to gradually raise interest rates.

For equity markets, the fear is that a pick-up in the pace of rate rises could

crimp corporate activity and cool economic growth.

Philip Shaw, chief economist at Investec in London said Powell’s testimony

was unlikely to change from the one he delivered on Tuesday, putting the

focus on the question and answer session.

“He (Powell) appears to have got an easy ride from lawmakers in the

sense that the technical questioning on Tuesday wasn’t too heavy,” Shaw

said. “He may not have such an easy time today with the Senate Banking

Committee.”

DOLLAR COMEBACK

The dollar meanwhile has taken heart from the Fed chair’s comments. The

dollar index rose to 90.776, a six-week high.

It has clawed back from the three-year trough of 88.253 set in mid-

February, as fears of a ballooning U.S. budget deficit and worries of a

possible weak-dollar policy from Washington took a toll.

The gap between short-dated borrowing costs in the United States and

Germany was at its widest in over 20 years as the monetary policy

outlooks for the two regions diverge.

The U.S./Germany two-year bond yield spread widened to 281 basis

points.

In contrast to rising rate-hike speculation in the United States, data on

Wednesday showing euro zone inflation slowed to a 14-month low in

February highlighted that a rate rise from the European Central Bank

remains some way off.

“In the U.S. we have at least three rate hikes this year, but in the euro

zone, there was some exaggeration about where the inflation was

heading so that is now being priced out and yields are moving to the

downside,” said DZ Bank strategist Daniel Lenz.

That divergence in rate outlooks also weighed on the euro, which

hovered at a six-week low at around $1.2182.

The dollar was little changed at 106.73 yen, having slipped from the

week’s peak of 107.680 as broader risk aversion favoured its Japanese

peer.

The Australian dollar was down 0.6 percent at $0.7717 after brushing

$0.7710, its lowest since late December.

U.S. crude oil futures were a touch firmer at $61.73 per barrel after sliding

more than 2 percent overnight. Brent crude added 0.25 percent to $64.89

per barrel.

<< Back to news headlines >>

Manufacturing vigour remains, strong currencies hinder exports Thursday 1st March, 2018 – Reuters

Manufacturing data painted a mixed picture of economic activity across

the globe, with stronger currencies hurting exporters, but the growth

momentum demonstrated at the start of the year appears to have only

dwindled slightly.

The euro zone’s boom has slowed a little further and Britain’s factory

activity slipped to its lowest in eight months, yet China surprisingly showed

resilience amid fears tighter regulations may slow growth.

“Things came in a bit better than we expected. We are seeing pretty

strong global growth and demand,” said Jacqui Douglas, chief European

macro strategist at TD Securities.

Factories across the euro zone are still enjoying their best growth spell in

almost two decades which, alongside price pressures at a near seven-

year high, will be welcomed by policymakers at the European Central

Bank as they move closer to unwinding their ultra-easy monetary policy.

IHS Markit’s final manufacturing Purchasing Managers’ Index (PMI)for the

euro zone fell to 58.6 in February from 59.6, just pipping an earlier flash

estimate of 58.5 and comfortably above the 50 mark that separates

growth from contraction.

That robust growth came even though a sub-index measuring output

prices rose to 58.4 from 58.0, its highest reading since April 2011.

Despite a marked upturn in orders, Britain’s factory PMI inched down to

55.2 in February, its second-lowest reading since June 2016’s Brexit vote

though a shade above the average forecast of 55.0 in a Reuters poll.

[GB/PMIM]

Taken at face value, the figures suggest British factory output growth so far

this year has slowed to a three-monthly rate of 0.4 percent compared with

a robust 1.3 percent in the last three months of 2017, IHS Markit said.

“Growth in the manufacturing sector is moderating, now that the

recovery in the euro zone has started to lose a little pace and more than

18 months have elapsed since sterling’s huge depreciation,” said Samuel

Tombs, chief UK economist at Pantheon Macroeconomics.

Surveys from the United States later on Thursday are expected to confirm

the strong momentum in global trade.

Federal Reserve chief Jerome Powell, in his first public appearance since

taking the helm at the U.S. central bank, said this week he aimed to

prevent the economy from overheating, cementing market expectations

for three or four interest rate increases this year.

Other central banks such as the Bank of England and Bank of Canada

have already raised interest rates and the ECB is widely expected to shut

down its money printing presses by the end of 2018.

However, chances for rate hikes in Asia are far lower.

Bank of Japan board member Goushi Kataoka warned on Thursday

against a premature exit from the BOJ’s ultra-loose monetary policy and

called for a ramping up of the bank’s massive stimulus program.

Also, the full impact of China’s crackdown on risky financing probably has

yet to be seen.

A private survey showed factory growth at a six-month high, but the

findings were largely at odds with downbeat official activity readings on

Wednesday, which raised concerns that tighter regulations may lead to a

sharper slowdown in the world’s second biggest economy.

State-owned firms service China’s domestic demand more and their

weaker showing may point to weakness stemming from property-cooling

measures, higher interest rates and tougher rules against risky financing,

factors expected to weigh throughout the year.

Government measures to reduce pollution over the winter have also led

to cuts in production, economists said, while the Lunar New Year holidays

disrupted activity, suggesting the slowdown in some of the economies

could be temporary.

“These numbers imply that the low reading is likely driven by holiday

effects, rather than by any underlying slowdown in coming manufacturing

activity,” said Iris Pang, Greater China economist at ING.

EXPORT HITS

Manufacturing was a relative bright spot for Britain’s economy late last

year but growth in overseas orders slowed to its weakest in four months in

February.

Japanese manufacturing expanded at a slightly slower pace in February

as a stronger yen weighed on new export orders and Taiwan’s factory

growth was the slowest in four months, although both economies still

posted relatively solid numbers.

South Korea’s export growth slowed in February to its weakest in more

than a year.

The Japanese yen JPY= is currently trading around its strongest in more

than a year, the Korean won KRW= in more than three years and the

Taiwanese dollar TWD= in more than five.

“For Asia, the strength of the currencies will have some impact but

generally how growth in the G3 economies fares is more important,” said

Khoon Goh, head of Asia research at ANZ.

“We should continue to see a strong momentum in exports going into the

second half, when base effects come into play,” Goh said, cautioning

against reading too much into the holiday-distorted numbers.

<< Back to news headlines >>

IMF chief sees growth, overheating, debt risks from U.S. tax cuts Thursday 1st March, 2018 – Reuters

International Monetary Fund Managing Director Christine Lagarde said on

Thursday she sees positive and negative effects from a “complicated” U.S.

tax overhaul, including a near-term growth bump that risks overheating

the U.S. economy and a problematic rise in debt.

Lagarde told Reuters in an interview on Thursday that tax cuts can lift the

U.S. growth rate by about 1.2 percentage points over the three years

through 2020, and that should help boost global growth and trade for at

least a few years.

<< Back to news headlines >>

European shares bump to two-week low as Carrefour, WPP results get

frosty reception Thursday 1st March, 2018 – Reuters

European shares slid on Thursday as a flurry of uninspiring earnings updates

from retailer Carrefour and advertiser WPP kept the mood downbeat,

while broader jitters over tightening monetary policy spilled over into a

new month.

The pan-European STOXX 600 index was down 0.9 percent at a two-week

low by 1005 GMT, while Germany's DAX .GDAXI fell 1.4 percent and

Britain's FTSE .FTSE felt the weight of Brexit uncertainty with a 0.5 percent

loss.

Results were squarely in focus, with shares in French supermarket Carrefour

(CARR.PA) dropping 7.2 percent after the group cut its dividend and

gave a cautious 2018 profit outlook.

Many retailers have struggled in the face of Amazon’s rise and the need

to adapt to a tech-led world.

“If you’re looking at companies like Amazon which are hoovering up

market share ... you have seen some weaker performers,” Jasper Reimers,

senior analyst at Vertex Capital Group, said.

“On the whole, I would say it certainly hasn’t been a bad (European)

earnings season at all.”

Plans by fast-fashion company Zalando (ZALG.DE) to expand into two

new markets were not met well by the market, with its shares also falling

around 4.8 percent as investors assessed the impact of such heavy

investment.

Elsewhere, the UK’s Carpetright (CPRC.L) slumped nearly 30 percent after

saying that it was in talks with lenders about shoring up its balance sheet,

following a profit warning at the end of January.

Advertiser WPP’s (WPP.L) shares dropped more than 12 percent after it

said that it would simplify its structure after posting its worst performance

since the financial crisis as consumer goods firms cut their spending on

advertising.

On the positive side, shares in beer giant Anheuser-Busch InBev (ABI.BR)

jumped 5.3 percent after its fourth quarter profit beat expectations thanks

to a rebound in Brazil and savings from its 2016 purchase of SABMiller.

More broadly, equity markets continue to be dogged by concerns over

higher bond yields, rising inflation and the potential for higher interest rates

in the United States.

These worries were reignited on Tuesday when new Federal Reserve chief

Jerome Powell struck a bullish tone on the strength of the economy.

Powell was due to speak again later on Thursday.

“Any further hawkish rhetoric could dull risk appetite further,” Miles Eakers,

chief market analyst at Centtrip, said in a note.

<< Back to news headlines >>

Nikkei ends at near 2-week low; weak euro hits precision equipment cos Thursday 1st March, 2018 – Reuters

Japan’s Nikkei share average closed at a near two-week low on Thursday

as sentiment was hit by a rout in Wall Street overnight, while the euro’s

weakness against the yen hit companies such as precision machinery

makers.

The Nikkei ended 1.6 percent lower at 21,724.47, its lowest closing level

since Feb. 16.

The broader Topix declined 1.6 percent to 1,740.20.

Investor sentiment was soured after the Dow and S&P 500 capped their

worst months since January 2016, while investors were worried about the

yen’s strength against the euro, adding to overall risk aversion.

The euro dropped to 129.86 yen, its weakest level since early September

after benign inflation data in the euro zone dented expectations that the

European Central Bank will dial back its stimulus.

Precision equipment makers Omron Corp and Terumo Corp, which have

a relatively big exposure in Europe, fell 2.2 percent and 2.8 percent

respectively.

Other exporters were also sold down, with Toyota Motor shedding 2.1

percent and Keyence falling 2.1 percent.

<< Back to news headlines >>

UK watchdog says markets fared well in recent volatility Thursday 1st March, 2018 – Reuters

Markets handled a recent bout of extreme share-price volatility without

widespread fallout, but they need to remain vigilant as new bets are laid

on price swings, Britain’s top markets regulator said on Thursday.

Financial instruments that bet on calm stock markets suffered a rout in

early February as volatility roared back on Wall Street, sending blue chips

sharply lower

Andrew Bailey, chief executive of the Financial Conduct Authority, said

the volatility may have been exacerbated by the “herding effect” of

several big players closing out leveraged volatility-based investment

strategies.

But falling share prices were not accompanied by major fallout elsewhere

in markets, he said. The system stabilised and the episode was short-lived.

“So, let’s not get carried away,” Bailey said in a speech. “There are,

however, already some indications that short volatility positions are

beginning to be re-established.”

The volatility came just after the European Union introduced a sweeping

reform of securities trading, known as MiFID II, in January. The new systems

stood up to the test, Bailey said.

One central element of MiFID II, a volume cap on trading shares “in the

dark” or off an exchange, was delayed until this month because of its

complexity.

Bailey said he was “relaxed” that the cap will be introduced without

disrupting markets.

Markets now face another big change in moving from using the London

Interbank Offered Rate, or Libor, for pricing financial contracts to

alternatives from central banks in Britain, Switzerland, Japan and the

United States.

Banks were fined billions of dollars for trying to rig Libor, and the FCA has

set an effective cut-off date of the end of 2021 for moving from Libor to

the “preferred” alternative, an overnight rate administered by the Bank of

England for sterling contracts.

Bailey has said too few transactions underpin Libor for it to be sustainable,

but market participants have said it may not be possible to switch all

outstanding contracts to the new benchmark.

ICE, which administers Libor, has opened up the possibility of a voluntary

arrangement among banks to keep Libor going, Bailey said.

“I don’t rule this out, but I would stress that I don’t see a prospect of a

reversal in the decline of the market activity that Libor seeks to measure,”

Bailey said.

A “synthetic Libor” could help markets deal with legacy contracts, but it

would not be accepted by regulators as an alternative to the BoE rate,

Bailey said.

<< Back to news headlines >>

Dollar hits six-week high as Powell bolsters rate hike bets Thursday 1st March, 2018 – Reuters

The dollar hit a six-week high on Thursday, supported by what was

perceived as an upbeat tone from new Federal Reserve chief Jerome

Powell on the U.S. economy, bolstering bets that interest rates will be hiked

four times this year in the United States.

In contrast, soft inflation data in the euro zone dented expectations that

the European Central Bank will dial back its stimulus this year, slamming

the euro to six-week lows against the dollar EUR= and a six-month trough

against the yen EURJPY=.

Data on Thursday showing the currency bloc’s manufacturing boom

slowed a little further last month added to a downbeat mood, nudging

the euro down close to its low of $1.21835.

The dollar index climbed to 90.744, with Powell’s optimism on the

economy in his first public testimony as Fed chair suggesting the U.S.

central bank is going to raise interest rates one more time than the three

hikes markets had expected.

“Hawkish comments from Powell have fuelled market speculation of the

Federal Reserve raising US interest rates four times this year -- ultimately

supporting the dollar,” said Lukman Otunuga, Research Analyst at FXTM.

“Market expectations of higher U.S. rates could intensify further if the new

Fed head doubles down on hawkish comments.”

Powell will continue his testimony to U.S. Congress later in the day.

In contrast, ECB president Mario Draghi said on Monday that slack in the

euro zone economy may be bigger than previously estimated.

“Draghi wasn’t that aggressive when he spoke earlier this week, so there is

a clear contrast,” said Bart Wakabayashi, Tokyo Branch Manager at State

Street.

Against the yen, the single currency fell to 129.86 yen EURJPY=, its weakest

since early September and down 5.6 percent from its 2-1/2-year high hit

just a month ago.

The euro was also hurt by political uncertainties as Italians are preparing to

vote in a national election on Sunday, while the leading political parties in

Germany decide on a coalition deal that would secure Angela Merkel a

fourth term as chancellor.

The dollar index is still down 1.5 percent this year, dogged by suspicions

that the Trump administration prefers a weaker dollar to mend its bulging

trade deficit, and worries its big tax cuts and spending plans may boost

fiscal deficits to an extent that they undermine confidence in U.S. debt.

The Australian dollar hit a two-month trough versus the dollar and a nine-

month low versus the yen after data on Australian business investment

showed a 0.2 percent dip for the December quarter, missing forecasts for

a 0.9 percent increase.

The Australian dollar traded 0.5 percent down at $0.7725, having briefly

fallen to as low as $0.7717 AUD=D4.

<< Back to news headlines >>

Sterling falls as traders eye Brexit talks Thursday 1st March, 2018 – Reuters

Sterling fell against the dollar on Thursday as nervous investors sold the

pound ahead of more talks between Britain and the European Union over

the terms of Brexit, and Prime Minister Theresa May’s highly awaited

speech on Friday.

The chairman of European Union leaders, Donald Tusk, will meet May in

London on Thursday, a day after the bloc’s Brexit negotiator weakened

sterling by issuing another warning to Britain, which is due to leave the

bloc in March 2019.

Sterling has struggled to build on a rally earlier this year amid a resurgence

in political risk centred on Brexit. Warnings by chief negotiator Michel

Barnier that a transitional deal -- designed to give Britain and the EU more

time to agree the terms of exit -- was not guaranteed have rattled

investors.

May is also due to give a key speech on Friday, adding to investor

caution.

The pound fell 0.2 percent to $1.3733, having fallen to as low as $1.3728, its

lowest since Jan. 15 after a large drop on Wednesday.

Against the euro, sterling traded down 0.1 percent at 88.73 pence per

euro.

A closely watched gauge of British factory activity slipped to its lowest in

eight months in February as output expanded more slowly, a survey also

showed on Thursday.

But it is politics that is the dominant factor in sterling’s recent falls.

“The pound is weakening basically at the moment on politics,” said

Michael Hewson, chief market strategist at CMC Markets.

Hewson said he believed sterling remained in an uptrend that it began

early last year, but that it could fall to as low as below $1.34 as investors

booked profits and political risk overshadowed any positive economic

developments.

The market is pricing in a May interest rate hike by the Bank of England,

although the central bank has said its monetary outlook is dependent on

smooth negotiations with the EU over Brexit and a healthy economy.

“We believe the pound’s decline this week is more Brexit sentiment driven

-- rather than a reassessment of UK economic fundamentals -- and point

to the 2-3-year part of the UK rate curve staying fairly resilient,” ING

analysts said.

<< Back to news headlines >>

Oil falls for third day as higher inventories, dollar weigh Thursday 1st March, 2018 – Reuters

Oil prices fell for a third day on Thursday, dropping toward $64 a barrel as

rising U.S. inventories, record output and a stronger dollar outweighed

high OPEC compliance with its supply-cutting deal.

A U.S. government report on Wednesday showed a larger-than-expected

increase in U.S. crude inventories and a rise in gasoline stocks. [EIA/S] U.S.

crude output reached a record in November, although it slipped in the

last month of 2017.

Brent crude LCOc1, the global benchmark, was down 64 cents at $64.09

a barrel at 1215 GMT. U.S. crude CLc1 fell 45 cents to $61.19.

U.S. crude output hit an all-time high of 10.057 million barrels per day

(bpd) in November before falling slightly in December, the government

said, but weekly data showed another record and further gains are

expected.

“Weekly figures suggest the upward trend will resume in January and

February and the old records are likely to be smashed,” said Tamas Varga

of oil broker PVM.

The rise in U.S. output in recent weeks has been overshadowing supply

curbs by other producers, led by the Organization of the Petroleum

Exporting Countries and Russia.

OPEC officials will meet U.S. shale executives at a U.S. energy conference

on Monday, a gathering that underlines the influence of American output

in keeping a lid on global prices.

“The standoff ‘shale versus sheikh’ continues to frame the oil market, with

the former again gaining the upper hand,” said Norbert Ruecker, head of

macro and commodity research at Julius Baer. “We see more downside

for oil.”

Oil also fell due to a stronger dollar, which makes commodities

denominated in the U.S. currency more expensive for holders of other

currencies. The dollar index .DXY hit a six-week high on Thursday.

OPEC’s cut, which began a year ago, has nonetheless helped to boost

prices from levels below $30 seen in January 2016. Producers are sticking

to the deal and an involuntary drop in Venezuelan output has further

boosted compliance.

A Reuters survey on Wednesday found OPEC production fell in February to

a 10-month low.

For now, though, the gains in U.S. supply are prevailing in shaping

sentiment in the oil market, other analysts said.

“Despite the expanding output curbs by OPEC and non-OPEC members

such as Russia, the market has been focusing more on rising U.S. output

since around late January,” said Tomomichi Akuta, senior economist at

Mitsubishi UFJ Research and Consulting in Tokyo.

<< Back to news headlines >>

Exxon quits some Russian joint ventures citing sanctions Thursday 1st March, 2018 – Reuters

Exxon Mobil Corp (XOM.N) will exit some joint ventures with Russia’s

Rosneft (ROSN.MM), citing Western sanctions first imposed in 2014, while

the Russian company said the pull-out will result in serious losses for its U.S.

partner.

The move is an about-face for Exxon, which had opposed the sanctions

over Russia’s invasion of Crimea and argued they unfairly penalized U.S.

companies while allowing foreign energy rivals to operate in the country,

the world’s largest oil producer.

Yet the sanctions were effective in slowing work on a project by Exxon

and Rosneft on what was hailed as a major discovery in the Kara Sea

above the Arctic Circle.

Rosneft, Russia’s largest oil company, said last year that it planned to

return to operations at the project in 2019.

Exxon’s exit from projects will not affect the Sakhalin project off the

eastern coast of Russia, Exxon and Rosneft spokesmen said.

Sakhalin-1 operates under a Production Sharing Agreement struck in the

mid-1990s and currently produces around 200,000 barrels of oil per day.

Representatives for the U.S. Department of State and Treasury Department

did not have immediate comment. The joint ventures were reached when

U.S. Secretary of State Rex Tillerson was Exxon’s chief executive.

A Rosneft’s spokesman said ExxonMobil would incur serious losses because

of the decision.

Rosneft spokesman Mikhail Leontyev said Exxon had been forced to take

what he called a predictable decision, but confirmed the move would

not affect the Sakhalin-1 joint venture.

“It (Exxon) will suffer serious losses as a result of this (decision),” said

Leontyev.

Exxon said it will formally start the process of withdrawing from the joint

ventures this year.

In 2012, Exxon and Rosneft detailed an exploration partnership with plans

to invest as much as $500 billion in developing Russia’s Arctic and Black

Sea oil reserves. Further deals were signed in 2014.

Exxon said in a financial filing on Wednesday that it recorded a fourth

quarter after-tax loss of $200 million due to the withdrawal plan.

The United States and the European Union imposed economic sanctions

on Russia over its annexation of Crimea in 2014 and its role in eastern

Ukraine conflicts.

The U.S. government also imposed sanctions on Rosneft Chief Executive

Igor Sechin that year.

The sanctions prohibit U.S. citizens or people in the United States from

dealing with those on the blacklist, such as Sechin. Rosneft itself is subject

to narrower U.S. sanctions that still allow Americans to deal with the

company on some transactions.

The U.S. government fined Exxon $2 million for signing the joint ventures just

after sanctions were imposed in 2014, saying the company showed a

“reckless disregard” for the sanctions. Exxon called the fine “capricious”

and appealed it.

Still, Exxon wound down drilling in Russia’s Arctic in 2014 after the sanctions

were imposed. Exxon was allowed to finish some drilling projects as the

sanctions took effect.

<< Back to news headlines >>

500,000 barrels oil per day Thursday 1st March, 2018 – Guyana Chronicle

PRESIDENT of ExxonMobil Exploration Company, Steve Greenlee, said the

new discovery of oil at the Pacora well will be developed in conjunction

with the Payara field and other phases to help bring Guyana’s production

to more than 500,000 barrels per day.

According to a report from the BUSINESS WIRE, Exxon Mobil Corporation

(NYSE:XOM), the company and its exploration partners HESS and CNOOC

Nexen have discovered 65 feet (20 metres) of high-quality, oil-bearing

sandstone reservoir at the Pacora-1 exploration well.

ExxonMobil reported that the well was safely drilled to 18,363 feet (5,597

metres) depth in 6,781 feet (2,067 metres) of water. Drilling commenced

on January 29, 2018.

Initially, the company had projected daily output at 120,000 barrels per

day from 2020.

“This latest discovery further increases our confidence in developing this

key area of the Stabroek Block,” said Greenlee in the report.

The Pacora-1 well is located approximately four miles west of the Payara-1

well and follows previous discoveries on the Stabroek Block at Liza,

Payara, Liza Deep, Snoek, Turbot and Ranger.

Following completion of the Pacora-1 well, the report indicated that the

Stena Carron drillship will move to the Liza field to drill the Liza-5 well and

complete a well test, which will be used to assess concepts for the Payara

development.

ExxonMobil announced project-sanctioning for the Liza phase one

development in June, 2017. Following Liza-5, the Stena Carron will

conduct additional exploration and appraisal drilling on the block.

The Stabroek Block is 6.6 million acres (26,800 square kilometres). Esso

Exploration and Production Guyana Limited is operator and holds 45 per

cent interest in the Stabroek Block. Hess Guyana Exploration Limited holds

30 per cent interest and CNOOC Nexen Petroleum Guyana Limited holds

25 per cent interest.

Early January, the U.S. oil company announced its sixth oil discovery

offshore Guyana, adding to its previous discoveries since 2015.

The company said its Ranger -1 well encountered approximately 230 feet

of high-quality, oil-bearing reservoir, located some 60 miles northwest of its

Liza phase one project within the Stabroek Block.

“To date we have overseen the drilling of seven wells by Exxon, six of

which have borne fruit, one has not. So far, we have an excellent record,”

said the Minister of Natural Resources, Raphael Trotman, who

congratulated the crew on the Stena Carron drillship.

In a recent report, he said the Stena Carron has done about 90 per cent

of the discoveries without a day lost or any injuries or lost man hours.

ExxonMobil, the largest publicly traded international energy company,

uses technology and innovation to help meet the world’s growing energy

needs.

ExxonMobil holds an industry-leading inventory of resources, is one of the

largest refiners and marketers of petroleum products, and its chemical

company is one of the largest in the world

<< Back to news headlines >>

Ratio Guyana Limited contract features 50/50 production split Thursday 1st March, 2018 – Guyana Chronicle

THE Production Sharing Agreement (PSA) between the Government of the

Cooperative Republic of Guyana and Ratio Guyana Limited has cost-oil

percentage of 75 percent and the 25 percent balance profit-oil split 50/50

for government and contractor. Further, a royalty of 1 percent payable by

the government’s take of the profits is specified in the Ratio Guyana

Limited contract.

The Ratio Guyana Limited PSA is the third to be released since December

2017, the others being ExxonMobil and CGX Resources Inc. It is envisaged

that the Ministry of Natural Resources will release at least two petroleum

agreements monthly, fulfilling a commitment made by the administration

to release all petroleum agreements and eventually all agreements in the

natural resources sectors.

The Ratio Guyana Limited agreement was signed on April 28, 2015 by then

President Donald Ramotar and the President of Ratio Energy Limited, the

parent company of Ratio Guyana Limited. Ratio Guyana Limited, whose

parent company is Israel-based, is a joint-venture partner of ExxonMobil

subsidiary Esso Exploration and Production Guyana Limited (EEPGL) in

Guyana’s offshore Kaieteur Block. EEPGL has the majority stake at 50

percent, while Ratio Guyana Limited and its parent company Ratio

Energy Limited each have a 25 percent stake.

The Ministry of Natural Resources said in a release on Wednesday that

Ratio Energy Limited. (nowCataleya Energy Limited by way of a duly

registered change of name) and Ratio Guyana Limited commenced

negotiations with the previous Government of Guyana for a Petroleum

Licence within the ultra-deep-water Guyana Basin area in mid-2012.

“At the time, that area was known as Annex B. Negotiations were nearly

completed when the October 2013 Anadarko/Venezuelan incident

occurred. It took until the first quarter of 2015 before negotiations

resumed. On April 28, 2015, the production- sharing agreement was

signed by both the then Government of Guyana and Ratio’s principals.

The concession was then renamed the ‘Kaieteur’ Block, and totals

approximately 13,535 sq. kms,” said the ministry in the press release.

<< Back to news headlines >>

Local labour pool to be employed in construction of second cruise pier in

Basseterre Wednesday 28th February, 2018 – Tribune 242

Doors will be opened and opportunities created for locals with the

construction of a second cruise pier that is expected to commence in

April of this year at Port Zante in Basseterre, St. Kitts.

Speaking at the Official Loan-Signing Ceremony for the construction of

the second pier at the Port Zante Terminal on February 26, Minister of

Public Infrastructure and Transport, Honourable Ian Patches Liburd, said

that the Team Unity Administration has “arranged with and have received

a commitment from the CCC that as far as possible the persons on this

new pier construction project would be employed from our local labour

pool.” He mentioned that recruitment of labour for the pier construction

project will begin in March.

The commercial construction contract for building the second pier was

signed between the St. Christopher Air and Sea Ports Authority (SCASPA)

of the Government of St. Kitts and Nevis and the Canadian Commercial

Corporation (CCC), a crown agent of the Government of Canada, which

is the prime contractor with JV Driver, being the prime subcontractor.

SCASPA’s engineer is AdeB Consultants to work alongside the Director of

Public Works, Mr. Cromwell Williams. The Lender’s Engineer is EF Douglas

and Associates, with Principal Consultant Errol Douglas.

According to Minister Liburd “All contract and construction performance

risks are borne by CCC. Therefore, any potential cost or time overruns are

managed between CCC and JV Driver, at no risks to SCASPA.”

The minister disclosed that “the passengers’ fees and the interest

payments will remain here within our Federation. It goes back to SCASPA

and to the local players in the finance syndicate. This can only stimulate

our local economy.”

The construction of the second pier is being financed under a syndicate

arrangement between four local entities to the tune of US$48 million. The

St. Kitts-Nevis-Anguilla National Bank (SKNANB) has committed US$34

million; the St. Kitts and Nevis Social Security Board has pledged US$7

million; the St. Kitts and Nevis Sugar Industry Diversification Foundation

(SIDF) injecting US$5 million and the St. Kitts and Nevis Trading and

Development Company (TDC) adding another US$2 million.

Minister Liburd underscored the importance of cruise tourism to the

development of St. Kitts and Nevis.

“Cruise tourism and tourism generally are of economic importance to the

development of the Federation. It provides employment and education

opportunities, increases quality of life, (helps with) improvements in

infrastructure and promotes development and economic growth,” he

said.

“Construction of the second cruise pier will positively impact the ‘Grass

Root Economy’ in particular as passenger expenditure will have a

cascading effect on the economy which begins with tourists spending

money with taxi drivers, hair-braiders, craft vendors and restaurants, which

then permeates throughout the rest of the economy,” Minister Liburd

added.

The construction of the pier is expected to take 18 months to complete

and when complete Port Zante will be able to accommodate three Oasis

class vessels.

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Local labour pool to be employed in construction of second cruise pier in

Basseterre Wednesday 28th February, 2018 – SKN Vibes

Doors will be opened and opportunities created for locals with the

construction of a second cruise pier that is expected to commence in

April of this year at Port Zante in Basseterre, St. Kitts.

Speaking at the Official Loan-Signing Ceremony for the construction of

the second pier at the Port Zante Terminal on February 26, Minister of

Public Infrastructure and Transport, Honourable Ian Patches Liburd, said

that the Team Unity Administration has “arranged with and have received

a commitment from the CCC that as far as possible the persons on this

new pier construction project would be employed from our local labour

pool.” He mentioned that recruitment of labour for the pier construction

project will begin in March.

The commercial construction contract for building the second pier was

signed between the St. Christopher Air and Sea Ports Authority (SCASPA)

of the Government of St. Kitts and Nevis and the Canadian Commercial

Corporation (CCC), a crown agent of the Government of Canada, which

is the prime contractor with JV Driver, being the prime subcontractor.

SCASPA’s engineer is AdeB Consultants to work alongside the Director of

Public Works, Mr. Cromwell Williams. The Lender’s Engineer is EF Douglas

and Associates, with Principal Consultant Errol Douglas.

According to Minister Liburd “All contract and construction performance

risks are borne by CCC. Therefore, any potential cost or time overruns are

managed between CCC and JV Driver, at no risks to SCASPA.”

The minister disclosed that “the passengers’ fees and the interest

payments will remain here within our Federation. It goes back to SCASPA

and to the local players in the finance syndicate. This can only stimulate

our local economy.”

The construction of the second pier is being financed under a syndicate

arrangement between four local entities to the tune of US$48 million. The

St. Kitts-Nevis-Anguilla National Bank (SKNANB) has committed US$34

million; the St. Kitts and Nevis Social Security Board has pledged US$7

million; the St. Kitts and Nevis Sugar Industry Diversification Foundation

(SIDF) injecting US$5 million and the St. Kitts and Nevis Trading and

Development Company (TDC) adding another US$2 million.

Minister Liburd underscored the importance of cruise tourism to the

development of St. Kitts and Nevis.

“Cruise tourism and tourism generally are of economic importance to the

development of the Federation. It provides employment and education

opportunities, increases quality of life, (helps with) improvements in

infrastructure and promotes development and economic growth,” he

said.

“Construction of the second cruise pier will positively impact the ‘Grass

Root Economy’ in particular as passenger expenditure will have a

cascading effect on the economy which begins with tourists spending

money with taxi drivers, hair-braiders, craft vendors and restaurants, which

then permeates throughout the rest of the economy,” Minister Liburd

added.

The construction of the pier is expected to take 18 months to complete

and when complete Port Zante will be able to accommodate three Oasis

class vessels.

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$16M Project with Caribbean Development Bank Wednesday 28th February, 2018 – ICI Haiti

On the side-lines of the 29th CARICOM Conference, as part of the

cooperation in the education sector, a working meeting was held

between a delegation of the Caribbean Development Bank (BDC) on a

mission to Haiti for a week and Pierre Josué Agénor Cadet the Minister of

National Education

A $16 million project was discussed mainly in support of vocational training

and new secondary education. An agreement should be signed shortly

on this project between the BDC officials, the Ministry of Education and

the Ministry of Finance.

Minister Cadet also reassured BDC officials of his ministry's commitment

and willingness to respect procedures and to speed up the machine to

avoid delays.

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Haiti wants to produce fruits and vegetables for the Bahamas Wednesday 28th February, 2018 – ICI Haiti

Sunday at the National Palace a high-level meeting was held between

President Jovenel Moïse, accompanied by Prime Minister Lafontant and

Hubert Minnis, Prime Minister of the Commonwealth of the Bahamas. In

addition to the implementation of the three agreements signed in Nassau

on July 29, 2014, between the Bahamas and Haiti it must be remembered

in the context of cooperation, the willingness expressed by the Head of

State that Haiti produces and exports fruits and vegetables to the

Bahamas.

Instructions would have been passed to Minister of Agriculture Carmel

André Belliard to make this a reality by the end of 2018. Moïse announced

forthcoming meetings between the Agriculture Ministers of the two

countries, to define the products and settle aspects of phytosanitary

standards and control.

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Free movement of Haitians in the Caricom countries... Wednesday 28th February, 2018 – Haiti Libre

As of March 30, 2018, Haitians holding an official and diplomatic passport

or holding a US, Canadian or Schengen (European Union) visa will be able

to move freely in all Caricom member countries.

List of Member States:

Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica,

Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint

Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad and

Tobago.

This decision is made pending "that all steps be taken in the future to allow

the free movement of people and goods throughout the Caribbean...",

said President Moïse at the closing of the 29th conference CARICOM

Wednesday.

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$100 million bond issue increases Grenada debt to GDP ratio by ten

percent Wednesday 28th February, 2018 – Caribbean News Now

The government of Grenada issued a $100 million dollar international

bond on February 8, 2018, with a maturity date of February 9, 2020, at 5.5

percent, with an accumulated interest already at 3 percent as of

February 28.

This follows a regional bond placement of US$7.4 million (EC$20 million) on

November 29, 2017, which the government stated was significantly

oversubscribed and had a payment window of 365 days.

Back in 2015, the government issued a US$170 million bond with a maturity

date of 2030, with accrued interest up to February 28 at 1.2 percent

owed.

The Grenadian government has undergone two debt restructuring

programmes, the first in 2004-2006 and the second in 2013-2016, the

International Monetary Fund (IMF) has reported, which signals that the

country’s indebtedness at those periods were unsustainable, in need of

being curtailed while simultaneously providing cash-flow relief.

Between 2014 and 2017, the IMF reported that the national debt as a

share of gross domestic product (GDP) decreased from 108 percent to 72

percent. However, with the recent bond issue, representing an additional

$100 million liability, the debt to GDP increases by an additional 10

percent approximately, out of a $1.06 billion estimated economy.

No earmarks or spending targets on this latest bond issue were made.

Considering the successes over the last few years in decreasing the debt

with the recent restructuring exercise, no assumptions are to be made

except that additional debt burdens have been kicked down the road.

With a maturity date of roughly two years at 5.5 percent, the window for

payments is short and to be done twice a year, which indicates that the

bonds yield may increase substantially over the next few months on the

international market to buffer investors against any unforeseen default

possibilities.

Up to press time, Grenada’s 2030 and 2025 bond yields are over 30

percent and 39 percent respectively on the international market,

indicating that the spreads are increasing and signalling to investors a

greater likelihood of default in the medium to long-term and much higher

than other Caribbean countries on average by double the percentage

point, and climbing.

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IDB approves US$248m loan for Jamaica Wednesday 28th February, 2018 – Jamaica Gleaner

The Inter-American Development Bank (IDB) is providing US$248 million in

loan support for three government initiatives in Jamaica.

The Washington-based multilateral institution is providing U$160 million for

the Public Sector Transformation Project; US$68 million for the controversial

National Identification System (NIDS); and US$20 million to further boost

national security technology inputs.

Finance and the Public Service Minister, Audley Shaw and IDB President,

Luis Alberto Moreno, signed the agreements for the loans yesterday at a

ceremony that coincided with the seventh annual IDB Caribbean

Governors’ Conference.

Shaw, who emphasised the importance of the public-sector

transformation programme, reiterated that 84 State entities are being

targeted for closure, divestment, merging or subsuming into Central

Government over the next three years.

The Finance Minister said the implementation of NIDS was important for

Jamaica, explaining that the concept is similar to the social security

number system in the United States.

IDB President Luis Moreno said the bank's latest support forms part of its

commitment to assist Jamaica to embark on engagements that will yield

higher levels of growth and development.

According to Moreno, Jamaica is experiencing the best moment possible,

having become a poster of what a country can do when it decides to

take on its problems.

The IDB has indicated that it wants to improve the capacity of the region

to tap into technology and apply innovative methods as a means to solve

problems, improve productivity, generate employment and advance

development.

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Suriname president to visit India, Russia and UAE, and Indian PM will tour

the Caribbean Wednesday 28th February, 2018 – Caribbean News Now

Suriname’s President Desi Bouterse plans to do a lot of foreign travel

beginning in March, he revealed in a speech on Saturday to mark the

38th anniversary of the 1980 Revolution. Bouterse will visit Brazil in March

and, before the summer monsoon starts up, he will tour India, Morocco,

and the United Arab Emirates (UAE). He will also visit Russia and Serbia this

year. Bouterse also disclosed that the prime minister of India, Narendra

Modi, will make an official visit to Suriname this year.

Bouterse said the there is much interest from the rest of the world about

Suriname and that he was invited by King Mohammed VI to visit Morocco.

He also received invitations to visit India and the UAE. It is possible that he

will undertake Morocco, UAE and India on one tour, and Serbia and

Russia on another trip.

The president said that, during the coming months, he expects to host the

foreign ministers of Morocco, the Overseas Territories of France and Russia,

Sergey Lavrov. Russia most likely will announce the opening of an

embassy in Paramaribo during Lavrov’s visit.

Lavrov will not skip Guyana if the visit to Suriname is realized, as the current

administration of President David Granger of Guyana has had strong ties

with Russia. It was under his administration that the Guyana-Russia ties

improved significantly, which antagonized the United States.

The former president of Guyana, Bharrat Jagdeo, received his Master’s

Degree in Economics at the Patrice Lumumba University in Moscow.

In Morocco, Suriname is looking to generate tangible investments by

Rabat. Morocco wants to augment its diplomacy with the Caribbean

Community (CARICOM) bloc and hopes to use Suriname to advance ties

with the group that has some strong and loyal Sahrawi Arab Democratic

Republic (SADR) supporters, notwithstanding Suriname’s withdrawal of

recognition of SADR.

The Moroccan king plans to consolidate ties with Latin America, and plans

to visit the region soon.

As well, Serbia wants to express its gratitude to Suriname for its decision to

rescind its recognition of Kosovo. The foreign minister of Suriname visited

Morocco and Russia in 2017, and the Serbian foreign minister has just

visited Paramaribo.

The visit of Indian Prime Minister Modi to Suriname and Guyana has been

in the pipeline since 2015. During Modi’s visit, India will lay the foundations

for various projects in Guyana and Suriname, where there is a large Indian

Diaspora.

Modi’s tour of Guyana and Suriname may take place in September when

he visits New York City to address the UN General Assembly, or in

November when he attends the G20 meeting in Argentina.

During his speech, Bouterse told the Surinamese people that “foreign

forces are at work to destabilize Suriname.”

There is growing interest in Guyana and Suriname as frequent news of

major offshore oil discoveries in Guyana is announced. Mega oil

discoveries are also expected for Suriname.

And the region will draw more global interest as the Venezuela crisis

worsens. Venezuela is becoming more and more isolated in the region

because nations are worried about the exodus of Venezuelan refugees

pushing through their borders. They are more inclined to work with

Washington to bring down the Maduro regime.

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