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

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

▪ Trinidad and Tobago’s Unit Trust Corporation initial rating assigned at CariAA

▪ Massy Holdings Ltd. rating reaffirmed at CariAA+

▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA

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

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

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

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

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

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

▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+

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

OUR UPCOMING WORKSHOPS!

Benefits of CariCRIS’ Bond Valuation Services:

Latest Rating Actions by CariCRIS

• Independent fair value prices for non-traded securities

• Pricing done by qualified experts

• Quick turnaround and affordable fees

DATE

WORKSHOP

COUNTRY

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

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

REGIONAL

Trinidad and Tobago

Banks' liquidity plunge $1.2b

The commercial banks closed last week with an excess reserve of $1.4

billion compared to $2.6 billion the previous week, down by $1.2 billion.

CIF adds 4.6 per cent

LAST week saw 2,864,424 shares traded on the first-tier market, an increase

of 138.66 per cent on the previous week's total of 1,200,224 shares crossing

the floor.

$300m difference, says Imbert

FINANCE Minister Colm Imbert yesterday admitted that there was a 'glitch'

in the sale of the traditional portfolio of CLICO, the insurance company

that collapsed in January 2009, to Sagicor Financial Corporation.

Central Bank keeps rates on hold

THE Central Bank has decided to keep the repo rate unchanged, at five

per cent.

TT signs UK trade agreement

One week after nine Cariforum countries signed an agreement with the

United Kingdom (UK) to maintain preferential trade agreements if and

when the UK leaves the European Union, TT’s Cabinet has authorised this

country’s High Commissioner in London, Orville London, to also sign on to

the agreement on Monday.

NCB, GHL must ‘sort out’ share deal

Finance Minister Colm Imbert has no problem granting the requisite

approvals for the Jamaica-based conglomerate, National Commercial

Bank’s (NCB) proposed takeover of Guardian Holdings Ltd, so long as the

parties sort out a share payment and transfer issue that the ministry’s

outside counsel has determined to be in contravention of the Foreign

Investment Act.

Barbados

Call for higher sweet drink tax

Barbados’ sweet drink tax should be upgraded. Chief Medical Officer, Dr

Kenneth George, said the current ten per cent sugar sweetened

beverage (SSB) tax has had a positive impact over the last four years, but

it should be bumped up again so Barbadians can better fight non-

communicable diseases (NCDs) and childhood obesity.

New hotel on the way

THE HOTEL INDIGO brand is coming to Barbados, replacing the eyesore

that was once the Caribbee Hotel on Hastings Main Road, Christ Church.

Jamaica

DBJ Braces For Loan Rush

The Development Bank of Jamaica (DBJ) is bracing for a rush on the

lender from entrepreneurs wanting to break into the market in the wake of

a boost in loan funding and tax cuts that take effect on Monday.

Guyana

Several bills slated for Parliament

As the Coalition Government prepares to return to the National Assembly,

several key pieces of legislation are slated to be tabled; says Finance

Minister Winston Jordan.

Guyana Goldfields received US$50M in tax exemptions in last three years

…Duty free concessions for Peruvian company being questioned

In the early 90s, there were little investments coming. Guyana was seen as

not so attractive. Guyana managed then to bring two major investments,

including Malaysians for Barama Company Limited and a US company for

the Guyana Telephone and Telegraph Company Limited.

National oil spill plan still incomplete but offshore drilling accelerates

Since 2016, calls have been unending for Guyana to have in place, a

National Oil Spill Contingency Plan. To date, this document is still to be

completed. In the meantime, offshore drilling activities are poised to

accelerate this year.

The Bahamas

Colina Suffers 26% Profit Drop In 2018

Colina Holdings (Bahamas) suffered a 26 percent year-over-year net

income decline in 2018 as a result of increased policyholder claims, it

revealed last night.

Antigua and Barbuda

Labour Code Amendment Bill passes in the Lower House

Amendments were yesterday approved in the House of Representatives

to the law governing employees’ rights on the issues of fixed-term

contracts and severance in cases where a company is being sold or

otherwise disposed of to a new owner.

Barbuda Airport on hold because ‘gov’t has no money’

Bahamas Hot Mix (BHM), the company contracted to build the new

Barbuda airport and a major road rehabilitation project in Antigua, has

confirmed the removal of all its equipment from the sister isle, halting all

construction work on the airport.

British Virgin Islands

Cabinet approves 2019 budget | Now to be brought before HOA

Just a little more than a month before the implementation deadline,

Cabinet has approved the 2019 budget.

Belize

ATLANTIC INTERNATIONAL BANK LIMITED (AIBL) GOES BELLY UP

Belize got the disquieting news of the closure of another bank, Atlantic

International Bank Limited (AIBL).

Costa Rica

Costa Rica and Mexico Abolish Double Taxation

On March 21, Ley 9644, the income tax treaty with Mexico, which avoids

the double taxation of income and wealth taxes, was published.

Dominica

Nurses satisfied with protest action, to meet with union Tuesday

The Dominica Nurses Association (DNA) is satisfied that its five-day

“positive practice environment campaign” which ended on Friday,

March 29, has been successful in getting its message out.

Venezuela

Venezuelans set up burning barricades over lack of power, water

Angry Venezuelans set up burning barricades near the presidential

palace in Caracas and in other parts of the country on Sunday in protests

over constant power outages and shortages of drinking water in the wake

of two major blackouts this month.

Other Regional

CARICOM issues statement on revised EU blacklist of members of the

community

On March 12, 2019, the European Union (EU) issued a revised list of

countries purportedly not adhering to tax good governance, which

included five members of the Caribbean Community (CARICOM),

Barbados, Belize, Dominica, Trinidad and Tobago and Bermuda.

INTERNATIONAL

United Kingdom

Brexit in disarray: May under pressure to go for soft Brexit

Parliament will again try to take control of Britain’s departure from the

European Union on Monday, with some lawmakers hoping to force Prime

Minister Theresa May to drop her Brexit strategy and pursue close

economic ties with the bloc.

EasyJet summer clouded by Brexit, economic weakness

Budget airline EasyJet warned on Monday that European travelers were

holding off booking their summer holidays for fear of how the Brexit

process will end, weakening demand for tickets and prices.

United Kingdom Continued

Brexit uncertainty has cost Britain 600 million pounds a week

Britain’s chaotic exit from the European Union has cost the economy

about 600 million pounds ($785 million) per week since the 2016

referendum, Goldman Sachs said on Monday in a report that underscores

how Brexit uncertainty has dented investment.

Europe

Euro zone inflation dips in March, raising stakes for ECB

Euro zone inflation unexpectedly slowed in March, adding to the pressure

on the European Central Bank (ECB) as it battles an economic slowdown

which threatens to undo years of stimulus.

German economy will grow 0.7 percent this year if Brexit is disorderly

Germany’s economy would grow by 0.7 percent this year if Britain leaves

the European Union in a disorderly manner, the Federation of German

Industry (BDI) said on Monday, a gloomier view for Europe’s biggest

economy than in the case of a ‘soft’ Brexit.

China

Futures surge on China factory data bounce, trade hopes

U.S. stock index futures mirrored a rally in global stocks on Monday after a

surprise recovery in China factory activity and further hints of progress in

U.S.-China trade talks.

Global

Aramco eclipses top earner Apple ahead of debut $10 billion-plus bond

sale

Saudi Aramco, the world’s biggest oil producer, made core earnings of

$224 billion last year, almost three times as much as Apple, figures from

the state-owned company showed on Monday ahead of its debut

international bond issue.

Global Continued

OPEC March oil output sinks on Saudi cuts, Venezuela blackouts

OPEC oil supply sank to a four-year low in March, a Reuters survey found,

as top exporter Saudi Arabia over-delivered on the group’s supply cut

pact while Venezuelan output posted a further drop due to sanctions and

power outages.

Global factory activity weak in March as clouds gather

Factory activity remained weak around the world last month, reinforcing

worries of a global slowdown as forward-looking indicators pointed to

gloomy times ahead, surveys showed on Monday.

Oil extends first-quarter gains on tight supply, economic optimism

Oil rose on Monday, building on its largest first-quarter gains in nearly a

decade, as tight supply and positive signs for the global economy

supported prices.

Iran says oil market supply/demand balance is fragile

The balance between supply and demand in the oil market is fragile,

Iranian Oil Minister Bijan Zanganeh said on Monday, as he called on crude

producers to be wary of troubles caused by U.S. sanctions.

Euro zone inflation dips in March, raising stakes for ECB Monday 1st April, 2019 – Reuters

Euro zone inflation unexpectedly slowed in March, adding to the pressure

on the European Central Bank (ECB) as it battles an economic slowdown

which threatens to undo years of stimulus.

Headline inflation in the 19 countries sharing the euro slowed to 1.4

percent in March from 1.5 percent a month earlier, short of market

expectations for a steady rate and also well below the ECB’s target of

almost 2 percent.

In a more worrying sign, a closely watched underlying inflation figure that

excludes volatile food and energy prices, slowed to 1.0 percent, its

weakest reading since April 2018.

Although wages are rising and employment is at a record high, consumer

prices have repeatedly disappointed and underlying inflation remains

weak, baffling policymakers and putting in doubt the central bank’s

ability to control prices.

ECB President Mario Draghi has long predicted a rise in underlying

inflation, only for the data to disappoint and forcing the ECB to ask for

even more time to lift prices.

“Today’s price data should further depress inflation expectations in the

market, all the more so as the headline inflation rate fell to 1.4 percent in

March,” Commerzbank economist Christoph Weil said on Monday.

“It is likely to remain well below the ECB’s inflation target of close to 2

percent over the rest of the year.”

Still, some of the core inflation drop may be reversed next month, some

economists said, attributing the fall to seasonal factors as Easter is in April

this year, suggesting that some price rise around the holiday are likely to

come later.

ENERGY PRICE RISE

Although the ECB ended its 2.6 trillion euro bond purchase scheme at the

end of last year, it has put plans to “normalise” policy on hold, delaying a

rate hike into next year.

It is also working on plans to give banks even more cheap loans, hoping

to maintain the flow of credit to the economy.

Energy prices were the only major component of the index that

accelerated in March, to a rise of 5.3 percent year-on-year from 3.6

percent in February.

But an even more narrow core inflation reading, which also excludes

alcohol and tobacco and is watched closely by market economists,

decelerated to 0.8 percent from 1.0 percent in February, against the

average expectation of 0.9 percent.

Eurostat data showed separately that the unemployment rate was

unchanged at 7.8 percent of the workforce in February against January,

but the number of people out of a job fell to 12.730 million from 12.807

million in January.

<< Back to news headlines >>

German economy will grow 0.7 percent this year if Brexit is disorderly Monday 1st April, 2019 – Reuters

Germany’s economy would grow by 0.7 percent this year if Britain leaves

the European Union in a disorderly manner, the Federation of German

Industry (BDI) said on Monday, a gloomier view for Europe’s biggest

economy than in the case of a ‘soft’ Brexit.

“The British economy faces a severe recession,” BDI president Dieter

Kempf said in a statement. “A disorderly Brexit will shave at least half a

percentage point off German growth this year.”

The BDI has until now forecast that the German economy would grow by

1.2 percent this year.

<< Back to news headlines >>

Brexit in disarray: May under pressure to go for soft Brexit Monday 1st April, 2019 – Reuters

Parliament will again try to take control of Britain’s departure from the

European Union on Monday, with some lawmakers hoping to force Prime

Minister Theresa May to drop her Brexit strategy and pursue close

economic ties with the bloc.

May’s deal, which has been defeated by lawmakers three times even

after she promised to step down if it passed, was further dented when her

own parliamentary enforcer said a softer Brexit was inevitable.

Three days after the date on which Britain was originally due to leave the

EU, it was still uncertain how, when or even if the United Kingdom would

ever say goodbye to the bloc it first joined 46 years ago.

The third defeat of May’s divorce deal left one of the weakest leaders in a

generation grappling with a perilous crisis over Brexit, the United

Kingdom’s most significant move since World War Two.

Underlining how uncertainty is hurting business, the UK head of German

industrial giant Siemens, Juergen Maier, said Britain was wrecking its

reputation for stability and he urged lawmakers to back a customs union

with the EU.

Parliament will vote on different Brexit options on Monday, possibly

showing a majority backing for a customs union, and then May could try

one last roll of the dice by bringing her deal back to a vote in parliament

as soon as Wednesday.

May’s government and her party, which has grappled with schism over

Europe for 30 years, was in open conflict between those pushing for a

customs union with the EU and eurosceptics who are demanding a

cleaner break with the bloc.

May’s enforcer in parliament - known as the chief whip - said the

government should have been clearer that May’s loss of her majority in

parliament in a snap 2017 election would “inevitably” lead it to accept a

softer Brexit.

“The government as a whole probably should have just been clearer on

the consequences of that,” Julian Smith told the BBC in an interview

published on Monday.

“The parliamentary arithmetic would mean that this would be inevitably a

kind of softer type of Brexit,” said Smith, who also said ministers had tried to

undermine the prime minister.

Their behaviour, he said, was the “worst example of ill-discipline in cabinet

in British political history”.

Asked about his comments, May’s spokesman said: “The PM made it clear

that there was a need to bring the country back together after the Brexit

vote and that is what they (the government) are working to achieve.”

On the lack of discipline in government, he said Brexit brought “out strong

emotions” on all sides of the debate.

Asked about the possibility of a snap election to break the deadlock in

parliament, May’s spokesman said the prime minister has said an election

would not be in the national interest.

BREXIT IN MELTDOWN

In a 2016 referendum, 17.4 million voters, or 51.9 percent, backed leaving

the EU while 16.1 million, or 48.1 percent, backed staying. But ever since,

opponents of Brexit have sought to soften, or even stop, the divorce.

The Times newspaper said May had been warned by some senior ministers

that she faced resignations if she agreed to pursue a softer Brexit.

Britain had been due to leave the EU on March 29 but the political

deadlock in London forced May to ask the bloc for a delay. Currently,

Brexit is due to take place at 2200 GMT on April 12 unless May comes up

with another option.

The Brexit crisis has left the United Kingdom divided: supporters of both

Brexit and EU membership marched through London last week. Many on

both sides feel betrayed by a political elite that has failed to show

leadership.

Business is also increasingly frustrated. “Enough is enough. We are all

running out of patience. Make a decision and unite around a customs

union compromise that delivers economic security and stability,” Siemens’

Maier said.

“Where the UK used to be beacon for stability, we are now becoming a

laughing stock,” he said in open letter to lawmakers published by website

Politico.

Parliament is due to vote at around 1900 GMT on Monday on a range of

alternative Brexit options selected by Speaker John Bercow from nine

proposals put forward by lawmakers, including a no-deal exit, preventing

a no-deal exit, a customs union, or a second referendum.

“There are no ideal choices available and there are very good arguments

against any possible outcome at the moment but we are going to have

to do something,” said Justice Secretary David Gauke, who voted in the

2016 referendum to stay in the EU.

“The prime minister is reflecting on what the options are, and is

considering what may happen but I don’t think any decisions have been

made,” he told BBC TV. “We are clearly going to have to consider very

carefully the will of parliament.”

<< Back to news headlines >>

EasyJet summer clouded by Brexit, economic weakness Monday 1st April, 2019 – Reuters

Budget airline EasyJet warned on Monday that European travelers were

holding off booking their summer holidays for fear of how the Brexit

process will end, weakening demand for tickets and prices.

In a trading update brought forward after an internal review of Brexit

preparations, easyJet confirmed its previous expectations for a 275 million

pound ($360 million) loss in the six months to the end of March along with

a fall in average prices per seat.

It also said it hoped prices would rise in the second half of its financial

year, but based that on the assumption that Britain will have resolved its

Brexit debate.

It said while domestic travelers were still booking, there was a visible drop

in demand for flights to and from the United Kingdom.

The airline had previously been among the more bullish voices in the

sector on the fallout of Britain’s progress on leaving the trading bloc,

playing down the risks when it raised dividend payouts last November.

Its shares sank 8 percent in response to Monday’s statements, dragging

down Europe’s biggest airlines with it.

“We had hoped for clarity around Brexit at this point of time and that

hasn’t happened and that clearly has had an impact on customer

demand,” Chief Executive Officer Johan Lundgren told reporters on a

call.

“Whenever people turn on the television or they are looking up news and

they go on to websites, they see uncertainty and lot of bad news. There is

a waiting pattern for customers.”

AIRLINES UNDER PRESSURE

European airlines are already battling over-capacity and high fuel costs.

Iceland’s WOW air was the latest casualty last Thursday, halting operations

and cancelling all future flights after failing to raise more funds.

Shares in Ryanair, British Airways-owner IAG, Air France KLM and Lufthansa

were among the worst performers on the pan-European STOXX 600 index

as investors worried about the peak summer season.

“There is a slowdown and the uncertainty around Brexit is affecting the

consumer confidence in the third quarter and also going into the fourth

quarter,” Lundgren said.

“We also expect the overall environment in Europe to get worse, because

that’s what (air traffic network) Eurocontrol has signaled.”

EasyJet, which operate 979 routes and employs more than 14,000 people,

forecast revenue per seat at constant currency to inch higher in the

second half.

“The group reckons demand will pick up later in the year, but a more

pragmatic observer would say it’s difficult to put a timeframe on when

Westminster and the EU 27 will solve the Brexit puzzle,” said Hargreaves

Lansdown analyst George Salmon.

ON THE BEACH

Britain and the EU have said that flights will continue, even in the event

that there is a no-deal Brexit and EasyJet is sure that it would be flying as

usual.

EasyJet, founded in 1995 by Stelios Haji-Ioannou to offer low-fares flights in

Europe, said it has raised the number of aircraft on standby and added

crew to fight off disruption from Brexit over the summer.

Unlike a number of its competitors, the airline operates with Airbus planes

and has been untouched by the grounding of Boeing’s 737 MAX planes

since a second deadly crash in Ethiopia last month.

EasyJet executives do not think that Brexit will have a long-tern impact on

the aviation sector.

“The quicker we get certainty around the outcome of Brexit, the quicker

the consumers will ... go back to wanting to fly and spend their time on a

beach during the summer period,” Chief Financial Officer Andrew Findlay

said.

<< Back to news headlines >>

Brexit uncertainty has cost Britain 600 million pounds a week Monday 1st April, 2019 – Reuters

Britain’s chaotic exit from the European Union has cost the economy

about 600 million pounds ($785 million) per week since the 2016

referendum, Goldman Sachs said on Monday in a report that underscores

how Brexit uncertainty has dented investment.

The report found that Brexit had cost the world’s fifth largest economy

nearly 2.5 percent of GDP at the end of last year, compared to its growth

path prior to the mid-2016 vote on exiting the bloc.

It has also lagged other advanced economies.

“Politicians in the UK are still struggling to deliver on that vote,” Goldman

Sachs economists wrote in a note to clients.

“The resulting uncertainty over the future political and economic

relationship with the EU has had real costs for the UK economy, which

have spilled over to other economies.”

The U.S. bank said Brexit uncertainty has been a major driver of economic

output losses as they are concentrated in investment.

“Uncertainty shocks weighed on investment growth in the immediate

aftermath of the Brexit vote, as well as more recently amid the renewed

intensification of Brexit uncertainty,” the economists said.

The bank’s estimates came as data showed factories in Britain stockpiled

for Brexit at an explosive rate last month, unlike anything seen before in a

major rich economy and a prelude to a likely sharp investment shortfall

ahead.

Britain’s parliament will vote on different Brexit options on Monday, after

the third defeat of Prime Minister Theresa May’s Brexit divorce deal left it

still uncertain how, when or even whether the UK will leave the EU.

In a no-deal Brexit, a scenario Goldman sees a 15 percent chance of, UK

GDP would fall by 5.5 percent and a “substantial” global confidence

shock would see sterling depreciate by 17 percent.

European countries would be most exposed to this scenario, the

economists estimated, and could see output losses of around 1 percent of

real GDP.

A Brexit transition deal would reverse part of Britain’s economic output

lag, with limited foreign spill-overs, they said, estimating UK GDP would

grow by a cumulative 1.75 percent and sterling would appreciate by 6

percent.

A scenario in which Britain remains in the EU after all would see it fully

recoup Brexit-related output costs and drive a rebound in business

confidence while sterling would appreciate by 10 percent.

Overall, the drag from weaker UK growth has been felt most strongly in

countries with larger export exposure to the UK, such as Germany and

France, the economists said.

“While a ‘deal’ would certainly be positive for the UK economy, only ‘no

deal’ would trigger substantial spill-over effects, with European countries

being most exposed,” they added.

<< Back to news headlines >>

Futures surge on China factory data bounce, trade hopes Monday 1st April, 2019 – Reuters

U.S. stock index futures mirrored a rally in global stocks on Monday after a

surprise recovery in China factory activity and further hints of progress in

U.S.-China trade talks.

Wall Street ended the first quarter on a high note on Friday, with the S&P

500 logging its best quarter since 2009 as investors bet the United States

and China will strike a deal to end their protracted trade war.

The S&P 500 is 3.4 percent away from a record closing high hit in

September last year.

Technology stocks, which were the best performer among the 11 major

S&P sectors with a 19.4 percent gain last quarter, were again set to boost

Wall Street at the open. Apple Inc was up 1 percent premarket, while

chipmakers, which have a big revenue exposure to China, also gained.

Micron Technology Inc was up 2.3 percent and Advanced Micro Devices

Inc rose 2.5 percent.

Of the 30 Dow Jones Industrial Average components, 29 that were trading

premarket were in positive territory.

At 7:13 a.m. ET, Dow e-minis were up 189 points, or 0.73 percent. S&P 500

e-minis were up 19.5 points, or 0.69 percent and Nasdaq 100 e-minis were

up 71 points, or 0.96 percent.

Investors took heart from a survey showing factory activity in China

unexpectedly grew for the first time in four months in March, while looking

past bleak euro zone data.

China numbers came as a relief to markets concerned about a global

growth slowdown after the Federal Reserve abruptly ended its monetary

tightening policy cycle, driving the 10-year U.S. bond yields below 3-

month T-bill rates for the first time in more than a decade.

Investors will be watching this week’s economic data after a dismal

February jobs report and recessionary signals from U.S. Treasury yields.

A Commerce Department report at 8:30 a.m. ET, will likely show retail sales

rose 0.3 percent in February from 0.2 percent in January.

Separately, Institute of Supply Management’s national factory activity

index and a final reading of Markit PMI of U.S. factory activity for March

are due later in the day.

China’s State Council said on Sunday it would continue to suspend

additional tariffs on U.S. vehicles and auto parts after April 1, in a goodwill

gesture following a U.S. decision to delay tariff hikes on Chinese imports.

General Motors Co rose 1.1 percent and Ford Motor Co was up 0.5

percent.

<< Back to news headlines >>

Aramco eclipses top earner Apple ahead of debut $10 billion-plus bond

sale Monday 1st April, 2019 – Reuters

Saudi Aramco, the world’s biggest oil producer, made core earnings of

$224 billion last year, almost three times as much as Apple, figures from

the state-owned company showed on Monday ahead of its debut

international bond issue.

Previously reluctant to disclose its financials, Aramco had to reveal them in

order to obtain a public rating and start issuing public international bonds.

Despite the huge profit, the state-owned oil giant was rated by credit

agencies at par with Saudi Arabia, meaning the kingdom’s sluggish

economy will weigh on Aramco’s cost of borrowing as it prepares its bond

market debut.

Saudi energy minister Khalid al-Falih said earlier this year the planned

bond sale would raise around $10 billion, but banking sources said the

transaction could be larger.

Rating agencies Fitch and Moody’s rated Aramco A+ and A1

respectively, but both said that without sovereign rating constraints

Aramco would be in the same league as better-rated international oil

companies like Exxon Mobil, Chevron and Shell.

“Saudi Aramco’s rating is constrained by that of Saudi Arabia

(A+/Stable),” Fitch said. “This reflects the influence the state exerts on the

company through taxation and dividends, as well as regulating the level

of production in line with its OPEC commitments.”

Fitch put Aramco’s standalone credit profile at “AA+”.

Credit ratings allow investors to compare and assess the credit quality of

bond issuers and their debt securities, and are important in determining

how much borrowers have to pay.

The planned bond deal is Aramco’s inaugural transaction in international

markets. It still plans to launch an initial public stock offering or IPO in 2021,

expected to generate $100 billion, having postponed its flotation from

2018.

MINIMAL DEBT

“Saudi Aramco has many characteristics of a Aaa-rated corporate, with

minimal debt relative to cash flows, large scale of production, market

leadership and access in Saudi Arabia to one of the world’s largest

hydrocarbon reserves,” said Rehan Akbar, senior credit officer at Moody’s.

The group has 257 billion barrels of oil equivalent, representing over 50

years of reserves based on current production levels, according to a

company presentation given to investors and seen by Reuters.

Aramco will start meeting international bond investors this week for the

much anticipated debt transaction, expected to attract hefty demand

from global investors.

The planned bond sale follows the announced acquisition of a 70 percent

stake in Saudi Basic Industries Corp (SABIC), the world’s fourth-largest

petrochemicals maker, from Saudi Arabia’s Public Investment Fund (PIF),

in a deal worth $69.1 billion.

The bond sale, which may be split into tranches with maturities ranging

from three to 30 years, is not linked to the SABIC acquisition, Aramco said.

Aramco intends to pay for the acquisition in tranches, with 50 percent at

the closing of the transaction and the remainder over a two-year period,

from internal cash generation and, potentially, other resources, the

company said in its presentation.

EXTREMELY LIQUID

Aramco had earnings before interest, tax and depreciation (EBITDA) of

$224 billion in 2018. By contrast Apple, which according to Forbes was the

world’s top company in terms of profits last year, had normalized core

earnings, or EBITDA, of $81.8 billion.

“Saudi Aramco has an extremely strong liquidity position,” Moody’s said,

with $48.8 billion in cash against $27 billion in reported debt.

“The company’s balance sheet leverage has been conservatively

managed,” said the agency, adding it has $46.8 billion of bank facilities,

of which about $25.5 billion was still available.

Aramco representatives will meet with investors in Asia, Europe and the

United States through Friday, April 5, according to a document issued by

one of the banks leading the deal.

The roadshow has no planned stop in the Middle East, showing the

transaction is mostly aimed at international buyers.

“The blue-chip company is extremely profitable, free cash flow positive,

has low leverage and strong reserves for the future, making it a

compelling investment case for global investors,” said Parth Kikani, fixed

income director at Emirates NBD Asset Management.

Aramco is presenting itself to global investors as an “anchor of global

energy” and a global energy provider of systemic importance, producing

one of every eight barrels of global crude, according to the investor

presentation.

It had $86 billion in free cash flow at the end of 2018.

The SABIC acquisition, at the heart of Aramco’s push to expand in the

downstream business, will not impact Aramco’s rating, the company said

in the presentation.

Aramco has hired Lazard as financial adviser for the planned bond deal,

and JP Morgan and Morgan Stanley as global coordinators. They are

joined by Citigroup, Goldman Sachs, HSBC and NCB Capital as

bookrunners.

<< Back to news headlines >>

OPEC March oil output sinks on Saudi cuts, Venezuela blackouts Monday 1st April, 2019 – Reuters

OPEC oil supply sank to a four-year low in March, a Reuters survey found,

as top exporter Saudi Arabia over-delivered on the group’s supply cut

pact while Venezuelan output posted a further drop due to sanctions and

power outages.

The 14-member Organization of the Petroleum Exporting Countries

pumped 30.40 million barrels per day (bpd) last month, the survey showed

on Monday, down 280,000 bpd from February and the lowest OPEC total

since 2015, according to a Reuters survey.

The survey suggests that Saudi Arabia and its Gulf allies are pressing

ahead with even larger supply cuts than called for by OPEC’s latest deal,

shrugging off pressure from U.S. President Donald Trump to increase

supply. On Thursday, Trump again called for OPEC to pump more oil to

lower prices.

Crude oil is trading above $68 a barrel, close to a 2019 high, boosted by

the Saudi move and involuntary supply curbs in Venezuela and Iran which

are both under U.S. sanctions that are limiting their exports.

OPEC, Russia and other non-members — an alliance known as OPEC+ —

agreed in December to reduce supply by 1.2 million bpd from Jan. 1.

OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members —

all except Iran, Libya and Venezuela.

In March, the 11 OPEC members bound by the new agreement achieved

135 percent of pledged cuts, the survey found, up from 101 percent in

February.

Among exempt producers, Venezuelan supply fell by 150,000 bpd as

power cuts hit exports, adding to the impact of U.S. sanctions on state oil

company PDVSA and a long-term decline in production.

The latest OPEC+ deal came just months after the group agreed to pump

more oil, which in turn partially unwound their original supply-limiting

accord that took effect in 2017.

March’s output is the lowest by OPEC as a group since February 2015,

excluding membership changes that have taken place since then,

according to Reuters surveys.

The Reuters survey aims to track supply to the market and is based on

shipping data provided by external sources, Refinitiv Eikon flows data and

information provided by sources at oil companies, OPEC and consulting

firms.

<< Back to news headlines >>

Global factory activity weak in March as clouds gather Monday 1st April, 2019 – Reuters

Factory activity remained weak around the world last month, reinforcing

worries of a global slowdown as forward-looking indicators pointed to

gloomy times ahead, surveys showed on Monday.

Euro zone manufacturers had their weakest month for almost six years in

March. While China showed a slight, surprising recovery last month,

growth in new domestic and export orders was marginal, in a sign that

stimulus already injected into Asia’s growth engine may not be enough.

Factory activity in Germany, France, Japan, South Korea, Malaysia, and

Taiwan shrank further, adding to expectations of a dovish turn from

central bankers.

Britain was an anomaly, with manufacturing growth at an unexpected 13-

month high, but that was driven by factories stockpiling for Brexit at an

explosive rate, unlike anything seen before in a major rich economy.

“The jump in the UK manufacturing PMI in March largely reflects producers

rushing to complete work before the Brexit deadline, rather than a

strengthening of underlying demand,” said Samuel Tombs at Pantheon

Macroeconomics.

Figures from Germany and France, the euro zone’s two biggest

economies, showed manufacturing activity contracted, as it did in Italy.

Growth returned in Spain after a brief dip in February but activity was still

stagnating.

So IHS Markit’s March final manufacturing Purchasing Managers’ Index

(PMI) for the euro zone declined for an eighth month, coming in at 47.5

from February’s 49.3, its lowest reading since April 2013.

“The fall in the manufacturing PMI ... shows that the industrial recession is

still deepening,” said Holger Schmieding at Berenberg.

Casting a shadow over the bloc’s outlook, new orders fell at their fastest

rate in over six years, backlogs of work were run down at their fastest

pace since late 2012 and factories curtailed purchases of raw materials as

they stockpiled unsold products.

The weak global environment is feeding back into the U.S. economy,

prompting the Federal Reserve to abruptly end its policy tightening last

month and causing the Treasury yield curve to briefly invert last week - a

potential signal of a looming recession.

A pause from the Fed has changed the game for many central banks

and investors are betting on a growing list of potential rate cutters.

Last month, the European Central Bank changed its outlook. It pushed

back the timing of an interest rate rise until 2020 at the earliest and said it

would offer banks a new round of cheap loans to help revive the

economy.

“The big picture is that with the economy performing poorly, pressure is

soon likely to build on the ECB to increase its policy support,” said Jack

Allen at Capital Economics.

China’s Caixin/Markit Manufacturing PMI expanded at the strongest pace

in eight months in March, rising to 50.8 from 49.9, the highest level since

July 2018.

An official survey released on Sunday also showed modest expansion.

Economists cautioned there were seasonal factors in play, with activity in

March traditionally picking up markedly whenever the Chinese Lunar New

Year holidays fell in February, as they did this year.

But if the trend is sustained, it could mark the turnaround China’s

policymakers had hoped for after some heavy fiscal and monetary

stimulus, including five cuts in bank reserve requirements in the past year,

although analysts say more measures may be in the pipeline.

Chinese Premier Li Keqiang said last month the government has additional

monetary policy measures that it can take, and will even cut “its own

flesh” to help finance large-scale tax cuts.

On the trade front, U.S. President Donald Trump said on Friday talks with

China were going very well, but cautioned he would not accept anything

less than a “great deal” after top U.S. and Chinese trade officials

wrapped up two days of negotiations in Beijing.

“A set of better economic numbers on the Chinese side could raise the

bargaining chips in negotiations with the U.S., as they could show that the

Chinese economy can still bounce back from the tariffs imposed by the

U.S. so far,” said Kevin Lai, chief Asia ex-Japan economist at Daiwa

Capital Markets.

The U.S.-China tariff war and slowing Chinese demand after a campaign

to reduce financial risk-taking have caused broad damage, hurting

everyone from small firms in the supply chains of Chinese manufacturers

to global tech behemoths such as Apple.

Activity in Vietnam, Indonesia and the Philippines grew at a modest pace,

but in economies with a larger impact on Asian growth the outlook

remained bleak.

South Korea’s factory activity in March contracted for a fifth straight

month.

Japanese manufacturing activity contracted at a slower pace in March,

but output fell at the sharpest rate in nearly three years. Japanese

business confidence worsened to a two-year low in the first quarter of this

year, a central bank survey showed.

<< Back to news headlines >>

Oil extends first-quarter gains on tight supply, economic optimism Monday 1st April, 2019 – Reuters

Oil rose on Monday, building on its largest first-quarter gains in nearly a

decade, as tight supply and positive signs for the global economy

supported prices.

Brent crude for June delivery was up 96 cents, or 1.42 percent, at $68.54 a

barrel by 0900 GMT, having risen 27 percent in the January-March period.

U.S. West Texas Intermediate futures rose 56 cents, or 0.93 percent, to

$60.70 a barrel, after gaining 32 percent in the first quarter.

Positive Chinese factory gauges and signs of progress in Sino-U.S. trade

talks have boosted sentiment, helping to buoy regional stock markets.

“Oil continues to move higher, with risk appetite on the rise in global

markets,” BNP Paribas strategist Harry Tchilinguirian told the Reuters Global

Oil Forum.

The United States and China said they made progress in trade talks that

concluded on Friday in Beijing, with Washington saying the negotiations

were “candid and constructive” as the world’s two largest economies try

to resolve their trade war.

Analysts have turned cautiously optimistic on the oil market, a monthly

Reuters poll showed on Friday, lifting their forecast for the average Brent

price in 2019 for the first time in five months to $67.12.

Hedge funds and other money managers raised their net long U.S. crude

futures and options positions to 243,209 in the week to March 26, the U.S.

Commodity Futures Trading Commission said.

On the supply front, booming American production has steadied, with the

U.S. government reporting on Friday that domestic output in the world’s

top crude producer edged lower in January to 11.9 million barrels per

day.

U.S. energy companies last week reduced the number of oil rigs operating

to the lowest level in nearly a year, cutting the most rigs during one

quarter in three years, energy services firm Baker Hughes said. [RIG/U]

Meanwhile, oil prices are being propped up by U.S. sanctions on Iran and

Venezuela along with voluntary supply cuts by the Organization of the

Petroleum Exporting Countries and other major producers.

Washington has instructed oil trading houses and refiners to further cut

dealings with Venezuela or face sanctions themselves, sources told

Reuters, and has urged Malaysia and Singapore to be vigilant for illicit

Iranian crude in its waterways.

<< Back to news headlines >>

Iran says oil market supply/demand balance is fragile Monday 1st April, 2019 – Reuters

The balance between supply and demand in the oil market is fragile,

Iranian Oil Minister Bijan Zanganeh said on Monday, as he called on crude

producers to be wary of troubles caused by U.S. sanctions.

Oil prices are being supported by U.S. sanctions on Iran and Venezuela

along with voluntary supply cuts by the Organization of the Petroleum

Exporting Countries and other major producers.

“Oil market is in a fragile situation considering the supply and demand

balance, so the oil producers should be wary of any trouble in the oil

market, especially due to U.S. measures against big oil producers,”

Zanganeh was quoted as saying by state news agency IRNA upon his

arrival in Moscow.

Zanganeh was traveling to Moscow to discuss the oil market with his

Russian counterpart Russian Energy Minister Alexander Novak.

“Russia is one of the biggest oil producers in the world, and we are in a

situation that we thought it is necessary to discuss the oil market with our

Russian friends,” Zanganeh said.

The U.S. reimposed sanctions on Tehran in November after pulling out of a

2015 nuclear accord between Iran and six world powers. Those sanctions

have already halved Iranian oil exports.

The United States is likely to renew waivers to sanctions for most countries

buying Iranian crude, including the biggest buyers China and India, in

exchange for pledges to cut combined imports to below 1 million barrels

per day.

U.S. President Donald Trump eventually aims to halt Iranian oil exports and

thereby choke off Tehran’s main source of revenue. Washington is

pressuring Iran to curtail its nuclear program and stop backing militant

proxies across the Middle East.

<< Back to news headlines >>

CARICOM issues statement on revised EU blacklist of members of the

community Friday 29th April, 2019 – Caribbean News Now

On March 12, 2019, the European Union (EU) issued a revised list of

countries purportedly not adhering to tax good governance, which

included five members of the Caribbean Community (CARICOM),

Barbados, Belize, Dominica, Trinidad and Tobago and Bermuda.

Seven other members of the community have been placed on a

monitoring list having made commitments to undertake reforms by

December 2019 and are making efforts in that regard. These are Antigua

and Barbuda, The Bahamas, St Kitts and Nevis, Saint Lucia, Anguilla, British

Virgin Islands and the Cayman Islands.

The narrative provided by the EU council to support the inclusion of the

blacklisted states is grossly misleading and misrepresents the response, in

good faith, of our members since the initial listing in December 2017.

This renewed attack on our member states’ economic prospects

constitutes an infringement of our sovereign right of self-determination in

the best interests of the CARICOM people. Moreover, we are concerned

that the EU’s ‘tax good governance strategy’ is beginning to border on

anti-competitive behaviour targeted at the decimation of the

international business/financial services sector in the Caribbean.

The EU council has stated that Barbados “has replaced a harmful

preferential tax regime by a measure of similar effect and did not commit

to amend or abolish it by the end of 2019.’” However, Barbados

undertook a review of its corporate tax regime in 2018 and decided to

pursue tax convergence which removed the alleged ‘preference’

accorded the international business sector. Barbados now applies a tax

rate of 1 percent to 5.5 percent on the taxable income of all corporations

registered in that jurisdiction.

This policy has been sanctioned by the OECD, as the recognised global

authority on tax governance, which has reiterated that a low tax rate

does not constitute a brutal tax regime. Moreover, Barbados requested

clarification on the areas of divergence in the requirements for a ‘low tax

jurisdiction’ as established by the OECD Forum on Harmful Tax Practices

(FHTP) and the EU’s ‘fair taxation criterion.’ However, the EU only

responded to Barbados’ request on the day after the issuance of the

revised blacklist.

The case of Belize and Bermuda represents a clear departure from the

practice of placing jurisdictions on the grey list (Annex II) for purposes of

monitoring once they have given high-level commitments to address

alleged ‘deficiencies.’

The EU council has asserted that Belize “has not yet amended or

abolished one harmful preferential tax regime” notwithstanding the

legislative, administrative and tax reforms undertaken by December 31,

2018 which were sanctioned by the OECD. The EU has also asserted that

Belize has introduced a ‘new and preferential tax measure’ in its 2018 tax

reforms.

However, Belize contends that the referenced tax rates of 1.75 percent to

3.35 percent on taxable income of international business companies and

entities operating in Belize’s designated processing areas are consistent

with Belize’s actual income and business tax regime. Nonetheless, Belize

acquiesced and provided, as demanded by the EU, an undertaking to

amend this so-called ‘new preferential tax measure’ by December 31,

2019.

Despite Belize’s commitment to amend or abolish the “newly identified

harmful preferential tax regime by the end of 2019,” which the EU stated it

would monitor, as well as an additional high-level political and time-

bound commitment to address any other concerns of the EU, Belize was

included on the March 12 blacklist.

Bermuda’s inclusion on this list is as a result of an omission which was

remedied after the revised commitment date.

The case of Dominica highlights the insensitivity of the EU council to a

country that was devastated by two natural disasters in 2015 and 2017

and lost its largest investor. Despite this, the country completed all the

required legislative and administrative reforms to which the government

had committed in mid-2018 to undertake. Notwithstanding, Dominica has

been included in the revised blacklist because the jurisdiction “does not

apply any automatic exchange of financial information, has not signed

and ratified the OECD multilateral convention on mutual administrative

assistance as amended, and has not yet resolved these issues.”

However, the signature of the multilateral convention is dependent on the

sanctioning of the request for admittance and a determination of

readiness by the OECD and totally outside the control of Dominica.

Trinidad and Tobago is in the unique circumstance where the government

lacks the parliamentary majority under the country’s constitution to

undertake the legislative reforms required to comply with the tax good

governance standards. Despite this circumstance, the EU has retained

Trinidad and Tobago on the blacklist for having a “’noncompliant’ rating

by the Global Forum on Transparency and Exchange of Information for

Tax Purposes for Exchange of Information on Request.”

The Caribbean community reiterates that the labelling as ‘non-

cooperative tax jurisdictions’ has wreaked irreparable reputational

damage on our small, highly vulnerable member states. CARICOM

member states have acted in good faith to mitigate this egregious action

by the European Union while upholding the shared values and principles

underlying the United Nations Addis Ababa Action Agenda. These

principles emphasise, among other things, shared responsibility, mutual

accountability, fairness, solidarity, and different and evolving capacities

concerning the mobilisation of resources to achieve the 2030 Agenda for

Sustainable Development.

However, the process of engagement which has unfolded between the

CARICOM member states and the European Union, specifically from the

latter part of 2017 until the present, has regrettably, been devoid of the

shared values that have informed our relationship over the years prior.

There is a clear regression to the days of metropolitan imposed policies on

the governed.

The ECOFIN council’s allegation of ‘harmful tax regimes’ not only lacked

any supporting empirical evidence, but the process has been non-

consultative, inflexible and insensitive to our circumstances as small, highly

vulnerable States seeking to build both economic and climate resilience.

Moreover, the EU has selectively relied on the OECD tax governance

process to pursue the blacklisting of jurisdictions like Dominica and

Trinidad and Tobago while ignoring the conclusions of the OECD FHTP in

respect to the tax regimes in Barbados and Belize.

It is becoming apparent that the actions of the ECOFIN council are

designed to destroy the financial sector in our member states even as we

seek to build resilience in all our economic areas to mitigate our inherent

vulnerabilities. The Caribbean community deplores this injurious

development and will continue to resist this retrograde approach by the

EU.

<< Back to news headlines >>

Banks' liquidity plunge $1.2b Sunday 31st March, 2019 – Trinidad Express Newspapers

Fixed Income summary

Liquidity

• The commercial banks closed last week with an excess reserve of $1.4

billion compared to $2.6 billion the previous week, down by $1.2 billion.

OMO's and Treasury Bills

• There were no OMO maturities last week, compared to $805 million the

previous week.

• OMO maturities for this week total $275 million.

Government Bonds

• There was no trading on the Trinidad and Tobago Stock Exchange,

government bond trading market last week.

US Treasury Bills

• The yield on 2-year notes opened at 2.24 per cent and closed last week

at 2.27 per cent, up 3 basis points (bp).

• The yield on ten-year notes opened and closed at 2.40 per cent last

week.

<< Back to news headlines >>

CIF adds 4.6 per cent Sunday 31st March, 2019 – Trinidad Express Newspapers

LAST week saw 2,864,424 shares traded on the first-tier market, an increase

of 138.66 per cent on the previous week's total of 1,200,224 shares crossing

the floor.

The value of shares traded was down by one per cent to $24,467,172.45

from the previous week's value of $24,713,298.17. For the second

consecutive week, GraceKennedy Ltd (GKC) was the volume leader,

capturing 82.44 per cent of the market activity or 2,361,331 shares traded,

followed by TTNGL (NGL) with 7.77 per cent or 222,455 shares traded. In

third place was Re - public Financial Holdings Ltd (RFHL) with 1.63 per cent

or 46,658 shares traded.

The indices ended the week in mixed territory. The Composite Index

decreased by 0.17 per cent or 2.24 points to close at 1,327.76. The All

Trinidad and Tobago Index was up by 0.11 per cent or 1.92 points to end

at 1,763.59. The Cross Listed Index closed at 120.35 down by 0.73 per cent

or 0.89 points and the Small and Medium Enterprise Index ended at 99.50.

For the week there were 11 stocks advancing and eight stocks declining,

while five stocks were at their 52-week high and three stocks at their 52-

week low. National Flour Mills (NFM) was the major advance, up 3.12 per

cent or $0.05 to close the week at $1.65. In second place was Trinidad

Cement Ltd (TCL) with an increase of 2.00 per cent or $0.05 to close at

$2.55, followed by Prestige Holdings Ltd (PHL) up 0.93 per cent or $0.07 to

close at $7.62.

The major decline was Nation - al Enterprises Ltd (NEL), down 1.94 per cent

or $0.15 to end at $7.60, followed by Guardian Media Ltd (GML) down by

1.60 per cent or $0.24 to close at $14.76. In third place was Guardian

Holdings Ltd (GHL) with a de - crease of 1.37 per cent or $0.25 to end at

$18. There was no activity on the second-tier market last week.

On the TTD mutual fund market 249,798 CLICO Investment Fund (CIF) units

traded with a value of $5,391,610.86. CIF's unit price closed at $22.14, an in

- crease of 4.58 per cent or $0.97 from the previous week. Also, 2,862 units

in Calypso Macro Index Fund shares (CALYP) traded with a value of

$41,125.90. CAL - YP's unit price ended at $14.46, up 0.07 per cent or $0.01

from the previous week.

CinemaOne Limited (CINE 1) on the small and medium enter - prise

market closed at $9.95 with no shares traded this week.

On the USD equity market, MPC Caribbean Clean Energy Limited

(MPCCEL) closed at US$1 with no shares traded.

<< Back to news headlines >>

$300m difference, says Imbert Saturday 30th March, 2019 – Trinidad Express Newspapers

FINANCE Minister Colm Imbert yesterday admitted that there was a 'glitch'

in the sale of the traditional portfolio of CLICO, the insurance company

that collapsed in January 2009, to Sagicor Financial Corporation.

Speaking at a news conference at his Financial Complex offices in Port of

Spain yesterday, Imbert said the 'glitch' is that Sagicor, the company

identified as the preferred bidder by the Central Bank, bid some $300

million less than the Maritime Financial Group for CLICO's traditional

insurance portfolio.

At its peak, CLICO is estimated to have had 225,000 traditional insurance

policies, which comprise pensions, traditional life insurance and health

insurance.

Asked what is the status of the sale of CLICO's traditional portfolio, Imbert

said: 'That is under review. The traditional portfolio was offered to the local

insurance industry and we have had a little glitch, whereby the company

being recommended is the one that offered the lowest amount for the

shares.

'And the thing is, I don't think people understand the role of a minister. As

a minister, I have to protect the public interest.'

Without disclosing the name of the preferred bid, Imbert said: 'The

argument being made is that the company that made the lower bid is a

strong, substantial company and the risk of that company failing in the

future is low. And therefore, the view is that we should go with the lower

bid because it is being assigned to a very stable local company.

'The other company, the view is that they are not as stable as the first one

and that they would not be able to manage this portfolio and there

would be a higher risk to policy holders.

'What the Central Bank is concerned about is selling the portfolio to a

company that may not be able to manage it.'

The Central Bank has direct day-to-day control over CLICO under section

44D of the Central Bank Act which allows the institution to take control of

banks and insurance companies when 'the interests of depositors,

creditors, policyholders or members of an institution are threatened...'

'I am very careful'

Late last year, Imbert triggered section 44F (5) which requires the Central

Bank 'to comply with any general or special directions of the minister and

shall act only after due consultation with the Minister,' in the sale of

CLICO's traditional portfolio.

He said, as the minister, he has to be very, very careful because he has to

protect the public interest and ensure maximum return for taxpayers of

this country to ensure that they get back the $23 plus billion that was used

to bailout the CL Financial group in 2009.

Although he said he did not want to say anymore on the issue, when

Imbert was asked if it would not be possible for the Government or the

Central Bank to negotiate a higher price with preferred bidder Sagicor, he

said: 'I must tell you that the difference between the low bid and the high

bid is substantial. It's very large, $300 million.

'So I have to be very careful. And I mean, I don't know what my

predecessors did, but I don't play with those things. I am very careful

about that sort of thing.'

He said initially four companies bid for CLICO's traditional portfolio with a

shortlist of two companies that submitted bids: Sagicor Financial and the

Maritime Financial Group.

'No decision has been made by the Ministry of Finance but a

recommendation has been made by the Central Bank,' said Imbert.

Asked if the Ministry of Finance was required to sign off on the transfer of

the CLICO traditional portfolio to a third party, Imbert said: 'There is also

this mythology outside there and I will go to that with the NCB matter-that

the Minister of Finance and the Ministry of Finance has no role in all of this.

We should just sit back and let everybody do what they want to do.

'That is not the case, especially when shares in financial institutions are

being sold to foreign investors. The Minister of Finance has to issue a

foreign investor's licence, has to approve it.

'There is also the question of competition and monopoly and we have to

look at what will happen in the market, whether there is an over-

concentration of insurance business or banking business in one company

or conglomerate.'

NIF 2?

Meanwhile, Imbert said to facilitate the sale of Methanol Holdings

(International) Ltd, the Oman-based methanol company, CLICO and its

51 per cent shareholder, CL Financial, have agreed to allow seven per

cent of MHIL to be passed to CLICO, with the proceeds from a sale to be

placed into escrow.

He said the combined 56.53 per cent stake held by CLICO/CL Financial

was valued at $2.7 billion.

He said the methanol operator Proman, which is the minority shareholder

in MHIL, would be offered the 56.53 per cent stake, as outlined in the

shareholders' agreement.

If they decline, the Government has the option of offering it in a National

Investment Fund (NIF) 2.

For Imbert, either option would work as it was about getting the cash.

'NIF is just a vehicle to raise funds and put good investments to the

population,' he said.

<< Back to news headlines >>

Central Bank keeps rates on hold Saturday 30th March, 2019 – Trinidad Express Newspapers

THE Central Bank has decided to keep the repo rate unchanged, at five

per cent.

The Bank said its monetary policy committee, in its deliberations, took note

of the domestic economic situation and the low inflation conditions.

It also observed the more complicated external environment and the

consensus that the path of interest rates in the US and other advanced

economies would be much shallower than anticipated in mid-2018.

The Central Bank noted that the growth momentum internationally

appeared to be slowing.

In the United States, the Federal Reserve's continued pause in rate hikes

and its evaluation of some sluggishness in the US economy already had a

profound effect on financial markets, the Central Bank said.

'Many analysts consider the recent inversion of the US yield curve, due to

a lowering of longer-term yields in the face of higher investor demand to

lock in returns on these instruments, as a sign of a darkening outlook for

the US, if not a future recession,' the Bank emphasised.

It said further complicating the external scenario facing Trinidad and

Tobago were developments in Venezuela, Brexit uncertainty and

US/China trade difficulties.

Locally, the recovery in the energy sector continued into the final quarter

of 2018, albeit at a slower pace than in the first half of the year, the

Central Bank said.

It, however, noted that the boost to natural gas output is expected to

persist into 2019 as a result of the Angelin and other investments, with

positive spin-offs on downstream activities, which had been adversely

affected by natural gas shortages.

'At the same time, petroleum production is anticipated to remain on its

downward trajectory due to the maturation of oil fields, compounded in

the short run by the reorganization of the Petrotrin refinery operations,' it

said.

Outside of energy, the Central Statistical Office's Index of Domestic

Production showed a 26.7 per cent increase (year-on-year) in non-energy

production in the final quarter of 2018, concentrated in the food

manufacturing, beverages and tobacco industries.

The Central Bank said other available indicators, such as retail sales, new

car registrations and production of mined aggregates, point to a general

steadiness of non-energy activity at the end of 2018 and into early 2019.

The impact of the acceleration of several public sector works on

investment is likely to be felt in coming quarters, it stated.

The Central Bank said headline inflation, at just 1.2 per cent year-on-year

in February 2019, remained very low due to a combination of monetary

policy, demand conditions and low imported inflation.

<< Back to news headlines >>

TT signs UK trade agreement Sunday 31st March, 2019 – Trinidad and Tobago Newsday

One week after nine Cariforum countries signed an agreement with the

United Kingdom (UK) to maintain preferential trade agreements if and

when the UK leaves the European Union, TT’s Cabinet has authorised this

country’s High Commissioner in London, Orville London, to also sign on to

the agreement on Monday.

Trade Minister Paula Gopee-Scoon told Sunday Newsday in a phone call

yesterday that the country is well before the April 12 deadline and there

will be no disadvantage or negative repercussions for signing on later than

the others.

“We haven’t lost out on anything. We took our time to make sure it was on

our best interest, reviewing all the date and analysis to ensure we do the

right thing,” she said.

Each country would have deliberated over what was best for them, she

said, and TT just took a bit longer. The next step is to create separate

legislation in accordance with the agreement. As it is, legislation already

exists for the Cariforum-EU agreement, but a new and separate one

needs to be in place for the Cariforum-UK. She said this will be drafted in

the next three months before it goes to Parliament.

On March 22 in Barbados, UK trade policy minister George Hollingbery

signed the Cariforum-UK Economic Partnership Agreement (EPA) with

representatives from Barbados, Belize, Dominica, Grenada, Guyana,

Jamaica, St Kitts and Nevis, Saint Lucia and St Vincent and the

Grenadines.

In a release yesterday, the Trade Ministry said: As it relates to imports, the

EPA maintains the existing protection applied to sensitive sectors in TT and

the Cariforum region. In this regard, customs duties in sectors such as

agriculture and agri-processed goods, indigenous light manufacturing

and services sectors for a number of Cariforum imports will be maintained.

Duty free access to exports from Cariforum entering the UK will also be

upheld.

From January to October 2018, TT exported $560 million worth of goods to

the UK, including methanol, liquefied natural gas, aromatic bitters, iron

and steel, rum, beer, cereals, curry and shandy.

<< Back to news headlines >>

NCB, GHL must ‘sort out’ share deal Sunday 31st March, 2019 – Trinidad and Tobago Newsday

Finance Minister Colm Imbert has no problem granting the requisite

approvals for the Jamaica-based conglomerate, National Commercial

Bank’s (NCB) proposed takeover of Guardian Holdings Ltd, so long as the

parties sort out a share payment and transfer issue that the ministry’s

outside counsel has determined to be in contravention of the Foreign

Investment Act.

“The real problem is an arrangement for the purchase of a significant

amount of shares — US$45 million worth. Based on information we have,

NCB does not appear to have sufficient cash at hand to purchase all of

these shares (according to its) bid and buy circular. So, an arrangement

has been made between two shareholders, Universal Investments and

Associated Brands Investments,” Imbert said on Friday.

These entities will transfer their shares to NCB as a type of loan, where

instead of being paid immediately, they will be paid in three years with 6.5

per cent interest. This type of arrangement was not stated in the offer

circular and the ministry’s lawyers have advised that such a transaction is

in breach of section ten of the Foreign Investment Act.

“I only got this information (Thursday) morning. We have been advised

that we should insist that the shares are paid for at the same time that

ownership is transferred from the local shareholders to NCB,” he said.

Once the company can work out a system where Universal and

Associated’s shareholders can be paid at the same time as everyone

else, the ministry will have no problem with granting approval.

The Foreign Investment Act requires that the money be paid either by a

bank or other licensed foreign exchange dealer or from the retained

earnings of a TT company. The issue isn’t the loan, Imbert said, but that

payment take place at the same time ownership is transferred.

Among the directors for both Universal and Associated Brands are

members of the Lok Jack and Ahamad family, who had previously sold

their 29.99 per cent of shareholding in GHL at a preferred price to NCB’s

chairman, Michael Lee Chin. This caused a furore among minority

shareholders, leading the TT Securities and Exchange Commission to

investigate the transaction. Eventually the matter was settled, GHL paid a

$300,000 administrative fine and NCB raised its offer bid to minority

shareholders to one more in line with what was offered to GHL’s majority

shareholders.

The company hopes to acquire up to 74,230,750 ordinary shares in GHL for

US$2.79 per share, or about US$207 million. If successful, NCB will acquire

up to 32.01 per cent shareholding in GHL. When combined with NCB's

existing 29.99 per cent shareholding in GHL, the company will have an

overall 62 per cent controlling interest in GHL.

The other problem holding up the ministry’s approval is determining the

ownership of NCB. If it is a wholly-owned Jamaican or otherwise

Caribbean company then it should be exempt from the foreign investor

licence under the rules of the Caribbean Single Market Economy.

However, Imbert noted, when the ownership is traced back, it turns out

that actual the ownership of NCB is controlled by Portland Holdings Ltd,

registered in Canada. Lee Chin is the chairman and CEO of Portland.

Because of that, NCB, and all its subsidiaries as necessary, will be required

to apply for a foreign investor licence.

“There’s no problem with that and no problem within the Ministry of

Finance granting a foreign investor licence to NCB just because it’s

owned by a foreign entity. That’s not a problem. We just needed to settle

that fact that it is under the control of foreign entities and therefore

requires a licence,” Imbert said.

<< Back to news headlines >>

Labour Code Amendment Bill passes in the Lower House Friday 29th March, 2019 – The Antigua Observer

Amendments were yesterday approved in the House of Representatives

to the law governing employees’ rights on the issues of fixed-term

contracts and severance in cases where a company is being sold or

otherwise disposed of to a new owner.

Except for a few minor suggestions on changing what was initially

proposed, the Antigua and Barbuda Labour Code Amendment Bill of

2019 received general support from members of both sides of the political

divide.

The Explanatory Memorandum of the Bill said it takes into account the

changes that have taken place in the employment landscape over the

years.

The first critical amendment incorporates provisions on fixed term

contracts from the Termination of Employment Convention, 1982 (No. 158)

and the Termination of Employment Recommendations (No. 166) and

Antigua and Barbuda is a signatory to both Conventions.

The attorney general said the changes seek to end abuses of employers

who “have been found over the years to have this propensity to grant

contracts for two months, three months and terminate them, another

three months, terminate them, another three months, terminate them. I

am not going to say that the intention is to deprive the employee of

becoming a full-time employee and therefore get the benefits to which

they are entitled, but the practice must stop.”

A proposed change to the law, identified as Section C7A, titled Contract

Workers, defines who is a contract worker and the entitlements of such a

worker.

Firstly, it states that “A fixed term contract shall outline in writing—(a) the

specific tasks and responsibilities of the employee; (b) the period of

employment; (c) the terms and conditions of the employment

arrangement; and (d) any other information which is relevant to the

employment arrangement.”

This type of contract may be renewed by mutual agreement between

the employer and the contract worker.

The most significant part of the change to come, is that, “A contract

worker shall be deemed to be a full time employee if that worker’s fixed

term contract—(a) has been renewed by the employer on two or more

occasions after the initial issuance; and (b) the total contractual period

for which the worker has been employed amounts in aggregate to one

year or more.”

This particular planned change does not sit well with the MP responsible

for Barbuda, Trevor Walker, who said it would make investors lose interest

and the legislators should consider how competitive the tourism industry is

across the region.

His recommendation, which was in the end ignored, was that the worker

should have been employed on contract for up to two years before

being considered full time.

As it relates to the amendment coming to Section C44 of the Labour

Code, the House supported it in full.

The amendment now stipulates that an employee is entitled to severance

pay “not only as a result of redundancy” but also as a result of the

“business being sold or otherwise disposed of to a successor-employer.”

Additionally, under the proposed amendment of section C44, an

employee is given the option to accept severance to which he or she is

legally entitled, from a predecessor-employer if a successor-employer

takes over as the new employer.

“If, however, the employee does not want to accept severance payment

from his or her previous employer, then he or she has that option,

provided that he or she is being retained by the new employer,” the Bill

states.

It should be noted that in the Labour Code Amendment Bill, it is stated

that “Clause 5 consequentially amends section of 176 of the Banking Act

as it relates to transfers of banking business and the rights of employees

employed in such institutions after the transfer of a banking business to a

transferee financial institution.”

It therefore means that if the sale of Scotiabank (Antigua) is approved

after this Bill becomes law, those workers will have the option for

severance or to continue with Republic Financial Holdings which

announced late last year it would be buying the Bank of Nova Scotia in

Antigua.

The sale is being held up by Prime Minister Gaston Browne who has

refused to issue a vesting order to confirm the process.

Meanwhile, Benjamin, the attorney general, said the main organisations

that deal with Industrial relations in Antigua and Barbuda – Employers

Federation, the trade unions and the government – are in support of the

Bill and played a part in putting it together.

The Bill now has to go to the Senate for debate.

<< Back to news headlines >>

Barbuda Airport on hold because ‘gov’t has no money’ Monday 1st April, 2019 – The Antigua Observer

Bahamas Hot Mix (BHM), the company contracted to build the new

Barbuda airport and a major road rehabilitation project in Antigua, has

confirmed the removal of all its equipment from the sister isle, halting all

construction work on the airport.

Spokesman for BHM Jimmy Fuller told OBSERVER “the airport is now 80

percent complete and the government [doesn’t] have the money at the

moment to finish it off, so it’s been put on hold. There’s no falling out or no

vexation or nothing.”

Fuller made sure to point out that the reason for the temporary stoppage

has nothing to do with any contractual dispute between BHM and the

Government of Antigua and Barbuda.

He also denounced claims by Trevor Walker, Leader of the Barbuda

People’s Movement, that suggested the issue was linked to environmental

obstacles like underground wells and caverns gushing water, thereby

overwhelming of the construction firm’s engineering capacity –

allegations that have been bandied about by various sources in recent

weeks.

Instead, the BHM agent said the government does not presently have

enough money to pay the company, even after heavily discounting its

initial asking price for the project from almost $30 million to $15 million.

Fuller said the airport construction began before Hurricane Irma smashed

Barbuda in September 2017, and this caused the project to be delayed

by four months.

He added that the injunction for judicial review obtained last year by

environmentalist John Mussington and Barbuda Councilor Jacklyn Frank

caused a further delay of another three months.

According to Fuller, the situation finally became untenable for both the

government and BHM because, even when idle, it costs the company US

$10,000 every day to maintain its personnel and equipment on the sister

isle.

He claimed that it became difficult for the government to meet its

financial obligations to BHM because of the tremendous amount of

money that the national Treasury had to dole out every day for the

accommodation and upkeep of displaced Barbudans and on the

reconstruction efforts.

According to Fuller, with the Barbuda airport project temporarily halted,

BHM has moved its equipment from the sister isle to Antigua for the time

being, so that it can be used to further expedite the ongoing

rehabilitation of Friar’s Hill Road and the Sir George Walter Highway.

<< Back to news headlines >>

Cabinet approves 2019 budget | Now to be brought before HOA Friday 29th March, 2019 – BVI News Online

Just a little more than a month before the implementation deadline,

Cabinet has approved the 2019 budget.

This year’s budget which is legally titled the Appropriation Act 2019 must

be passed in the House of Assembly by April 30.

According to a report on the Cabinet’s March 21 meeting, a draft of this

year’s estimates for government’s recurrent budget and capital budget

was also approved.

Effectively, the recurrent budget is government’s monthly revenues and

expenses while the capital budget has to do with funds for the acquisition

or maintenance of government assets.

It is anticipated that this year’s budget — the 2019 Appropriation Act —

will be tabled for the next sitting of the House of Assembly on Tuesday,

April 2.

It is yet to be seen whether that will happen considering that the United

Kingdom must approve this year’s budget before it is passed.

In the meantime, funds for the continuation of government operations

until the budget is passed is being accessed through what is known as a

temporary budget. That temporary budget can only run for four months

and expires on April 30.

<< Back to news headlines >>

Costa Rica and Mexico Abolish Double Taxation Saturday 30th March, 2019 – Qcostarica

On March 21, Ley 9644, the income tax treaty with Mexico, which avoids

the double taxation of income and wealth taxes, was published.

According to KPMG, the new treaty defines certain terms and conditions

for the country where income is to be taxed. For Costa Rica, the treaty

applies to income taxes. For Mexico, the treaty applies for federal income

tax. The treaty also addresses the tax treatment of business benefits,

dividends, interests, royalties, capital gains, and salaries.

The treaty would begin to apply from January 1, 2020 (in case the

countries notify each other of the approval of the convention during this

year).

This agreement turns out to be of importance for those taxpayers who

have cross-border transactions between both countries, since the

agreement defines differentiated tax treatment for the income obtained

by the resident of one State in the other.

According to the BLP legal firm, within the conditions established in the

agreement, is a 5% withholding is included for the distribution of dividends

(when the participation exceeds 20% of the capital stock), 10% for

royalties, 10% for payment of interest, among others.

A BLP statement reviews that “… The rate of withholdings for remittances

abroad, will have a whole series of rules differences when the operation is

with Mexican taxpayers. Similarly, added the BLP expert, Costa Rican

companies entering Mexico will be able to take advantage of the

benefits of the agreement.

Most of these withholdings are considerably lower than those established

in our Income Tax Law. For example, dividends go from 15% to 5%,

royalties from 25% to 10% among others. However, it should be noted that

these agreements are only a legal instrument for there to be fiscal

harmony between the commercial relations of both countries and there

would always be tax obligations in Mexico.

This treaty was signed by both countries since April 12, 2014 and approved

by Costa Rica’s Legislative Assembly in second debate on December 10,

2018.

This is the third agreement of this nature that has been approved by our

Legislative Assembly, the other two with Spain and Germany.”

<< Back to news headlines >>

Nurses satisfied with protest action, to meet with union Tuesday Monday 1st April, 2019 – Dominica News Online

The Dominica Nurses Association (DNA) is satisfied that its five-day

“positive practice environment campaign” which ended on Friday,

March 29, has been successful in getting its message out.

From Monday March 25, the nurses gathered each day, at a different

venue in Roseau to draw attention to what they describe as poor working

conditions of nurses on island.

DNA president, Nurse Rosie Felix said their message has been heard in

Dominica and outside of the country.

“The message has reached home; it has reached outside of home. It’s

been a while since DNA has done any such protest but we are just

pressing on the point,” she said. “As to if they are going to respond, we

don’t know because we have been ignored in the past, but we were

putting [it] on the record for the Dominican people to see. We doing it

public so people will also see how desperate we are for interventions in

our working environment.”

Felix wants the Dominica Public Service Union (PSU), the union that

represents nurses, to take their case further.

“We expect the union to take our cause further. The union had a face-to

face meeting with the minister. He (PSU General Secretary, Thomas

Letang) also wrote,” she revealed. “About two months ago, he wrote the

permanent secretary of health asking for an update and the response he

got was ‘your letter is acknowledged’.”

The DNA president said members of the association will meet with the PSU

on Tuesday, April 2nd.

An open letter sent by the DNA to the minister for health, Dr. Kenneth

Darroux, recently, contains a list of 28 questions seeking his response on

issues such as unsatisfactory pay for nurses, violence against nurses in the

workplace compounded by security concerns at the PMH and Reginald

Fitzroy Armour Hospital and workplace bullying, among several other

concerns.

In an interview with DNO on Friday, Felix highlighted the poor working

environment at some health centres around the island.

“The Psychiatric Unit is being refurbished and nurses and patients are

exposed to dust and noise. The Newtown Health Centre is in a container

in the Roseau Health Centre [with] little space... crowded for over a year.

The Marigot Health Centre is closed down; Wesley Health Centre is in a

crowded space themselves,” the DNA president complained.

She said the Mahaut, Vieille Case and Castle Bruce health centres are

also in poor working condition.

Questioned about what some have described as a poor turn out by

nurses at the protests, Felix said she is “very satisfied” by the level of

participation from the nurses but stressed the victimization that they face.

“Many people want to see the hospital shutdown and all the nurses here.

No! We are about giving care; that’s our mission. So, we are not shutting

down hospital on nobody account. Everyday the nurses who are off are

coming and every day for the week, new nurses are showing up. I’m very

encouraged,” she stated.

“It tells me that the nurses are defying this victimization thing,” she added.

“In any case, those who are showing up – they are victimizing them; those

who are not showing up are still being victimized. Members on the

executive of the nurses association are being victimized and I want the

minister to look into that and stop it. I’m fed up of it.”

On Friday, DNO attempted to contact Health Minister Darroux for

comment on the matter but we were told that both he and the

permanent secretary were out of state.

According to media reports, he has said that he plans to hold a press

conference soon to address the matter.

<< Back to news headlines >>

Several bills slated for Parliament Monday 1st April, 2019 – Kaieteur News

As the Coalition Government prepares to return to the National Assembly,

several key pieces of legislation are slated to be tabled; says Finance

Minister Winston Jordan.

Speaking to the Department of Public Information the minister explained

that the legislative menu includes the Telecommunications Bill, an

amended Procurement Act with debarment procedures, the Customs

and Single Window Bill, a Customs Amendment HS 2017 to legalise tariff

changes, along with others piloted by ministers.

Priority, he added, will be given to the Supplementary Bill which caters to

funding the Guyana Elections Commission’s elections’ preparations, “we

need to speak to GECOM on the procedure to get the supplementary.”

Minister Jordan stated that “the no-Confidence Motion didn’t bring an

end to Parliament so at any time we could have gone back to

parliament. We still have 33 seats.” Asked about the Opposition’s threat to

boycott Parliament until the conclusion of the appeal against the findings

of the Appeal Court currently before the Caribbean Court of Justice, the

minister recalled that when the life of the current Parliament began, the

Opposition stayed away. He answered, “they subsequently stopped their

marching up and down and went to Parliament. So, they not going to

Parliament is nothing new.”

The Opposition’s actions, Minister Jordan opined indicate a “clear lack of

respect” for the National Assembly. He further recalled that the opposing

side of the House would always walk out whenever he presented the

National Budgets, “They would get up and go so they don’t treat

parliament with the respect that it deserves”

April 11, 2019 is the tentative date proposed for the 113th sitting of the

National Assembly of the 11th Parliament according to Minister Jordan.

<< Back to news headlines >>

Guyana Goldfields received US$50M in tax exemptions in last three years

…Duty free concessions for Peruvian company being questioned Sunday 31st March, 2019 – Kaieteur News

In the early 90s, there were little investments coming. Guyana was seen as

not so attractive.

Guyana managed then to bring two major investments, including

Malaysians for Barama Company Limited and a US company for the

Guyana Telephone and Telegraph Company Limited.

Over the years, to attract investments, Guyana offered tax incentives,

including duty free concessions and holidays as a means to woo overseas

businesses, which had the resources and skills capacity.

After evidence emerged pointing to widespread abuse in those tax

incentives, there were attempts made locally to streamline it.

A few of the abuses include the import and sale to the local market of

materials, including steel and paint, and equipment including trucks, SUVs

and even heavy machinery.

While in the beginning there was a focus more on creating local jobs, in

recent years, the attention has been on getting a good deal on

investments for Guyana.

According to Government, and tax officials, there should be a formula

that allows Guyana to get a fair share.

However, in last few years, several of the agreements that consecutive

governments signed with investors that have been coming to light, have

pointed to an alarming situation.

In many cases, Guyana has foregone billions of dollars in taxes to receive

a pittance in royalties and income tax from employees of those investors.

In other words, valuable resources like gold and bauxite were being

mined with Guyana not getting its fair share.

One company that came under the spotlight was Canadian-owned

Guyana Goldfields Inc.

That company had been exploring for years in its Cuyuni concessions and

finally raised money to invest in the largest gold mine in Guyana.

There was lots of excitement.

The previous government granted significant concessions, including duty

free concessions on heavy-duty equipment, vehicles and other supplies.

Between 2016, when commercial operations started, to now, Guyana

granted over $10B (US$50M) in tax exemptions to the company.

According to government officials, the company between 2016 to

present, brought in equipment and other items with

Cost/Insurance/Freight charges amounting to $37B (U$185M).

After paying just $600M (US$3M), the company was allowed to collect

those equipment.

The Guyana Revenue Authority, according to government sources, would

have lost over $10B (US$50M).

Between 2016 and to recently, the company said it produced almost

500,000 ounces of gold.

Guyana was supposed to collect eight percent in royalty. That amounts to

about 40,000 ounces, just around US$48M ($9.6B) for the government

coffers.

A significant portion of those concessions reportedly went for tax

exemptions for Stracon, a Peruvian company that was hired to assist

Guyana Goldfields to move into underground mining.

However, according to officials, there may be a breach of the

arrangements that Guyana has with Guyana Goldfields.

“We have signed agreements with Guyana Goldfields, not Stracon,

therefore it cannot follow that you would extend concessions also to a

contractor that is coming to Guyana. Something is wrong here! Could

Guyanese companies have received those same concessions?”

Stracon has come when Guyana Goldfields says it is preparing to begin

underground mining at its Aurora mines, Cuyuni, Region Seven.

It was given over $1.1B in concessions over the past year.

The mining company is facing a major challenge involving a number of

shareholders who are unhappy with the way things are being managed.

The company’s share value has dropped significantly, they say.

A special shareholders’ meeting is scheduled in a few weeks.

On the other hand, the Government of Guyana has been worried as the

company’s contribution has been significant.

On Thursday, a ministerial delegation is expected to visit the Region Seven

mine to talk with workers and tour the facilities.

<< Back to news headlines >>

National oil spill plan still incomplete but offshore drilling accelerates Sunday 31st March, 2019 – Kaieteur News

Since 2016, calls have been unending for Guyana to have in place, a

National Oil Spill Contingency Plan. To date, this document is still to be

completed. In the meantime, offshore drilling activities are poised to

accelerate this year.

According to a report that was produced by Financial Analyst, Jenny

Xenos, of Canaccord Genuity Corporation which is based in Canada,

offshore Guyana is expected to see about 14 wells being drilled.

In an Industry Update report, the author stated that up to nine wells will be

drilled on the prolific Stabroek block, two of which are currently being

drilled. The Stabroek Block is operated by ExxonMobil’s subsidiary, Esso

Exploration and Production Guyana Limited (EEPGL), Hess and CNOOC.

Furthermore, two wells are slated for drilling on the Orinduik Block which is

under the licensed control of Tullow Oil, Total and Eco Atlantic. One well is

planned for the Kanuku Block by Repsol and Tullow Oil.

The Corentyne Block also has one well planned for drilling by its operators,

CGX and Frontera Energy. The Canje Block will also see one well being

drilled by ExxonMobil, Total JHI and Mid-Atlantic.

IDB URGES

The Inter-American Development Bank (IDB) is of the firm view that

Guyana should have a national oil spill contingency plan in place before

oil production commences in 2020.

In its special report, the IDB noted that Guyana’s CARICOM sister, Trinidad

and Tobago, which has been in the petroleum industry for more than a

century, has taken the wise move to safeguard its sector with a national

oil spill plan.

That plan was updated and passed by TT’s Cabinet in January 2013. The

IDB said that with TT’s new plan, “Deep-water drilling operators will now be

required to demonstrate accessibility to a containment lap system to

arrest a subsea blow out event.”

The IDB believes that Guyana can take a page from Trinidad’s book and

get its own plan in place soon.

It has been over 10 months since the first round of consultations was held

on the draft national oil spill plan. The document was submitted to

Cabinet but it is still to be made public and finalized.

Leading the work on the oil spill plan is the Civil Defence Commission

(CDC).

<< Back to news headlines >>

Colina Suffers 26% Profit Drop In 2018 Friday 29th March, 2019 – Tribune 242

Colina Holdings (Bahamas) suffered a 26 percent year-over-year net

income decline in 2018 as a result of increased policyholder claims, it

revealed last night.

The BISX-listed life and health insurance holding company reported that

net income attributable to equity shareholders fell by one-quarter,

dropping from $16.6m in 2017 to $12.3m last year.

It said in a statement that the increased policyholder claims offset growth

in revenues, which rose more narrowly from $165.1m in 2017 to $168.5m

last year, while total assets expanded from $743.5m to $759.9m at year-

end 2018.

“Despite net income being lower in 2018 compared to prior year, Colina

Holdings (Bahamas) remains focused on its long-term profitability

objectives. These objectives are bolstered by the company’s financial

strength, sound investment principles and diverse portfolio,” said Terence

Hilts, its chairman.

“As is expected in our industry, the nature of our business does introduce

some fluctuations in profitability from year-to-year. We have enjoyed

successive years of below average claims experience. However, in 2018

the reverse was the case.

“Our primary objective and commitment to our policyholders is that we

fulfill our obligations to have the financial capacity and strength to pay

claims as they become due. We are pleased to note that despite the

increased volume of claims we were able to meet these obligations in the

regular course of business.”

Colina Holdings (Bahamas) said its strong capital base and focus on high-

quality assets enabled it to pay more than $2.4m in preference share

distributions, and $5.4m in dividends to its ordinary shareholders, during

2018.

It added that it had realised efficiencies through the decrease in general

and administrative expenses to $33.4m, a sum equivalent to 19.8 percent

of total revenues. This compared to $34.3m or 20.8 percent of total

revenues in 2017.

Colina Holdings (Bahamas) investment portfolio saw an increase in net

investment income to $26.6m compared to $21.6m in the prior year.

Invested assets increased by $24m to $620.6m, compared to $596.6m in

the prior year, and remain a significant proportion of total assets. From a

capital standpoint, Colina strengthened its total equity position to $199m,

a rise of $4.7m over the prior year. Ordinary shareholder equity increased

to $132.8m compared to $129.7m in 2017.

“Looking ahead, we are very optimistic about the future,” said Mr Hilts.

“We have grown revenues and investment yields and stayed true to our

disciplined focus on risk management. We will continue to focus on

executing our growth strategies, enabling us to meet the financial needs

of our customers.”

<< Back to news headlines >>

ATLANTIC INTERNATIONAL BANK LIMITED (AIBL) GOES BELLY UP Saturday 30th March, 2019 – Amandala Newspaper

Belize got the disquieting news of the closure of another bank, Atlantic

International Bank Limited (AIBL).

Last year, the doors of Choice Bank, another offshore bank, were closed,

and now, just several months later, the troubled AIBL has gone belly up.

AIBL, fortunately, is not related to one of Belize’s biggest banks, Atlantic

Bank Limited.

The troubles for AIBL, which is largely Belizean-owned, began as far back

as 2016 when the bank got caught in the “de-risking net” and lost its

correspondent banking relationship with the Bank of America. The bank

was able to find another relationship with another correspondent bank to

move money for their clients.

The bank was barely out of the woods when it was faced with another

problem of huge proportions: it was accused of helping to facilitate the

Sanctuary Belize real estate scam that was shut down by the US Federal

Trade Commission.

AIBL had to defend itself against allegations about its association with a

multi-million dollar real estate scam that was run by Sanctuary Belize. The

principals of Sanctuary Belize reportedly received tens of millions of dollars

from investors in the USA for luxury homes the company promised to build

in southern Belize.

When the investors came to Belize, however, they found out that they

had been hoodwinked.

In a story we ran in November 2018, titled “PM Mum on Sanctuary” (by

Rowland Parks), the PM told us that he and the Central Bank had thought

long and hard on whether “we should make any public statement,

because it was, and still is, an extremely delicate situation.”

He expressed the hope that Atlantic International Bank Limited would be

able to work through its difficulties with the US federal agency.

“Atlantic Bank International has a stellar reputation and all Belizeans

should wish the bank well”, Barrow told us.

The bank faced a civil suit in the US, and reports are that it was able to

fend off allegations of having some knowledge of what was going on at

Sanctuary, but the smear on its reputation that came from being near to

the Sanctuary Project and the pressure from the US federal agency

proved too heavy a load to carry in the end.

In an interview with the press today, PM Barrow said that it was a pity that

the US federal agency went after the bank, and although they didn’t find

any persuasive evidence against AIBL, the bank was not able to sustain its

legal campaign any longer. PM Barrow said the bank had asked the

Central Bank of Belize to intervene and help them to wind up their

operations.

PM Barrow said that the Central Bank would work to ensure that

depositors were “treated as fairly as possible”, and that hopefully, most of

the bank’s customers would get back their full deposits.

Barrow told the press that he did not see AIBL’s failure causing any

systemic risk for the country’s banking system, because “when the

banking community looks at the facts, they will see [that the bank’s

failure] was not because of infrastructural laxity on the part of the

regulator.”

<< Back to news headlines >>

Call for higher sweet drink tax Saturday 30th March, 2019 – Nation New

Barbados’ sweet drink tax should be upgraded. Chief Medical Officer, Dr

Kenneth George, said the current ten per cent sugar sweetened

beverage (SSB) tax has had a positive impact over the last four years, but

it should be bumped up again so Barbadians can better fight non-

communicable diseases (NCDs) and childhood obesity.

In an exclusive interview with THE NATION, George suggested the tax be

increased to around 30 per cent – a 200 per cent increase. He, however,

noted that an increase to 20 per cent seemed more realistic and viable at

this stage. With this proposed 20 per cent tax, a soft drink costing $2.75

would retail at $3.30.

The ten per cent tax was introduced by Government in 2015, with the

hope that consumers would buy fewer carbonated sweetened

beverages and switch to purchasing healthier natural fruit juices, bottled

water, or at least sweetened drinks with less sugar per serving. The tax led

to a 5.9 per cent price increase in SSB products.

“Public health officials from our end would want to see that tax increased

to about 20 per cent,” George said, noting the issue was not touched in

the recent Financial Statement and Budgetary Proposals.

<< Back to news headlines >>

New hotel on the way Sunday 31st March, 2019 – Nation News

THE HOTEL INDIGO brand is coming to Barbados, replacing the eyesore

that was once the Caribbee Hotel on Hastings Main Road, Christ Church.

Hotel Indigo is a chain of boutique hotels, part of InterContinental Hotels

Group. As of September 2018, there were 94 Hotel Indigo hotels featuring

over 11 581 rooms worldwide.

The InterContinental Hotels Group (IHC) is a British multinational hospitality

company headquartered in Denham, Buckinghamshire, England, with

about 800 000 guest rooms and 5 000 hotels across nearly 100 countries,

including brands such as Candlewood Suites, Crowne Plaza, Even Hotels,

Holiday Inn, Hotel Indigo, InterContinental, Kimpton Hotels and Resorts

and Staybridge Suites.

A source told the NATION the unsightly red Caribbee building, which has

fallen into a state of disrepair after several years of being unoccupied,

would be demolished as soon as the legal transactions were completed.

Work would begin on the new “modular” 170-room Hotel Indigo after that.

<< Back to news headlines >>

DBJ Braces For Loan Rush Sunday 31st March, 2019 – Jamaica Gleaner

The Development Bank of Jamaica (DBJ) is bracing for a rush on the

lender from entrepreneurs wanting to break into the market in the wake of

a boost in loan funding and tax cuts that take effect on Monday.

Finance Minister Dr Nigel Clarke announced in his Budget presentation on

March 7 that $1.8 million in loans would be offered to the micro, small and

medium enterprise (MSME) sector in the 2019-20 fiscal year.

Approximately $263 million of credit will be accessible under the

Foundation for Competitiveness and Growth Project, a joint venture

between the finance ministry and the DBJ.

“We certainly expect an increase, as there’s a certain confidence and

positive outlook for the future, particularly in the MSME space,” said

Milverton Reynolds, managing director of DBJ, a prime on-lender, in an

interview with The Sunday Gleaner.

“We are very, very confident that there will be an increase, and truthfully,

when you look at what we are doing, and it’s not only us – there are other

institutions as well, such as the Jamaica Business Development

Corporation – it’s really to ensure that we move the sector, so that they

can, in fact, create the jobs and we can see the economic growth in the

country.”

ISLANDWIDE NETWORKS

The DBJ has 23 approved financial institutions that have networks all

across the island. Over the last 10 years, it has lent about $21 billion to

more than 2,000 borrowers. There are also 13 accredited microfinance

institutions through which funds are provided for lending. For the current

financial year, which ends today, the DBJ projected to on-lend

approximately $1.8 billion to the microfinance sector. Over the last

decade, the development bank has on-lent roughly $8.4 billion to the

micro sector.

“If the MSME sector is the engine of growth in this country, and that’s

where the jobs are going to be created – I think that we all agree to that –

then it means that as a development bank, we have to make sure that

we are facilitating the development of this sector, so we see ourselves as

filling all of the gaps,” said Reynolds.

Microbusinesses are categorised as enterprises that have an annual

turnover of $15 million per year; small enterprises, $75 million per year; and

medium-size entities, $425 million a year.

ADDRESSING GAPS

The DBJ said that in the new fiscal year, it would embark on major

programmes to address every single gap in the MSME ecosystem.

“There are a number of things this coming financial year to increase

outreach to the MSME community, for instance, the guarantee

programme. We’re working with the IDB (Inter-American Development

Bank) and the World Bank who have put in US$25 million to expand this

programme, so we’ll be able to provide guarantees up to $4 billion a year

targeting up to a thousand MSMEs at a time,” said Edison Galbraith,

general manager of loan origination and portfolio management at the

DBJ.

General manager for the strategic services division, Christopher Brown,

said usually funding that they have earmarked are taken up.

“There’s a new product that we’re going to be introducing that we’re

going to introduce to the market called reverse factoring, which is going

to allow a supplier who normally waits 90 days to get paid to receive

payment within five or three days, in some instances, so that will allow for

them to get their money much quicker.

“We have another programme that is supporting supply chains. This is a

grant to buyers and suppliers to allow them to invest in increasing their

productivity, so we want to increase your output from the same level of

input, and that is something that is supposed to ensure more sales, more

products within that particular supply chain,” said Brown.

The DBJ said that the message it wants MSMEs to take away is that they

really shouldn’t have any issue accessing financing.

“Once they have a viable business, we will be able to provide the help

they need to be able to access the financing … . We also provide the

collateral support, so really there should be no difficulty with an MSME

going forward to be able to access financing.

“We’re going to continue to work on this, and this is going to be a major

thrust of the DBJ, as it is a major part of the Government’s growth strategy

and job-creation strategy,” said Reynolds.

<< Back to news headlines >>

Venezuelans set up burning barricades over lack of power, water Sunday 31st March, 2019 – Reuters

Angry Venezuelans set up burning barricades near the presidential

palace in Caracas and in other parts of the country on Sunday in protests

over constant power outages and shortages of drinking water in the wake

of two major blackouts this month.

The situation has fueled frustration with the government of President

Nicolas Maduro and frayed nerves as schools and much of the nation’s

commerce have been interrupted by problems with public services for

nearly three weeks.

Protesters, some carrying rocks and their faces covered, burned tires and

tree trunks along a stretch of downtown Caracas as they demanded

Maduro improve the situation.

“We’re here fighting for water and power, we’ve gone twenty-some days

without water,” said Yofre Gamez, 32, an informal vendor. “They put the

power on for two hours, then turn it off at night, it comes on the next day

for half an hour and then it goes off again - we’re tired of this.”

A Reuters witness heard shots ring out as Gamez spoke.

Demonstrators reported that one woman had been injured by gunfire,

which they attributed to pro-government gangs. Reuters was unable to

confirm who fired the shots.

Similar protests took place in other parts of the country, including the

central state of Carabobo, where demonstrators burned tires and

blocked roads, according to witnesses.

Rights group Penal Forum said that 12 people were arrested nationwide in

protests against public services.

Venezuela suffered a week-long nationwide blackout starting on March 7

that left hospitals unable to attend to the sick and businesses giving away

perishable food before it rotted.

The power went out again on March 25 and has been intermittent since.

Maduro in a televised broadcast on Sunday night announced a 30-day

plan of “load management regime to balance the process of generation

and transmission with consumption,” a phrase widely interpreted on social

media as power rationing.

He did not offer further details on how this would work. Maduro first

mentioned load management last week. [L1N21F1BM]

Information Minister Jorge Rodriguez said in a statement on Sunday that

school activities, which were called off for most of last week, would

remain suspended. Business hours will run only until 2 p.m., he said.

The government has offered a variety of explanations for the blackouts,

ranging from Washington-backed cyberattacks to opposition-linked

snipers causing fires at the country’s main hydroelectric dam.

Critics insist it is the result of more than a decade of corruption and

incompetent management of the power system, which the late socialist

leader Hugo Chavez nationalized in 2007.

Opposition leader Juan Guaido, who is recognized by most Western

nations as Venezuela’s legitimate head of state, has called on residents to

organize at the neighborhood level to demand better services.

Guaido in January invoked the constitution to assume the interim

presidency, arguing that Maduro’s 2018 re-election was fraudulent and

that he usurped power when he was sworn in for a second term.

Maduro calls Guaido a puppet of the United States, which he says is

seeking to force him from office through a coup.

Washington has levied crippling sanctions against Maduro’s government

in an effort to push him from power. He has hung on in large part thanks to

the continued loyalty of top military commanders.

<< Back to news headlines >>