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▪ The Government of the British Virgin Islands’ rating reaffirmed at CariAA-

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

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

▪ Trinidad and Tobago Unit Trust Corporation’s 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+

OUR UPCOMING WORKSHOPS!

Enterprise Risk Management 26th & 27th June 2019 Jamaica

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

Career Opportunity As we expand our operations through the Caribbean, CariCRIS is

seeking to recruit a high-calibre credit risk professional to join our team

in the following position:

Research & Fixed Income Analyst

Position Summary

Conducts research on the key sectors and industries driving the economies of the Caribbean and

compiles sector studies and industry reports. Also carries out valuation of fixed income securities

using CariCRIS’ proprietary valuation models.

Qualifications & Experience

• First degree in Finance/Economics/Business Management from an accredited University

• Postgraduate qualification/specialization in Finance such as an MBA, or M.Sc. and/or

studying toward the CFA charter would be an asset

• 2-3 years’ professional research experience, preferably in the financial sector

• Good working knowledge of the financial and capital markets of the Caribbean

• Prior experience in the valuation of regional fixed income securities would be an asset

Required Skills

• Strong analytic and critical thinking skills

• Exceptional written, oral, and presentation communication abilities

• Expertise with Microsoft Excel including VBA, PowerPoint and other Office-Related

software

If you are interested in joining the CariCRIS team, please submit a detailed resume and cover

letter by May 31st, 2019 to https://caricris.com/index.php/about/careers.

Tel: 1 868 627-8879 Fax: 1 868 625-8871

Only short-listed applicants will be acknowledged.

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

REGIONAL

Trinidad and Tobago

'UTC faced challenges in 2018'

The Unit Trust Corporation (UTC) yesterday disclosed that the mutual fund

investment company reported a net loss of $35.4 million in the year ending

December 2018, compared with net income of $62.3 million in 2017. The

UTC's net loss from continuing operations after taxation was $784,000 in

2018, compared with net income of $55.5 million in 2017.

TTNGL adds $0.34

Overall market activity resulted from trading in 22 securities of which six

advanced, eight declined and eight traded firm.

Barbados

Social welfare database launched

An online platform called the Social Development Agency Directory

(S.D.A.D) is now available to allow agencies to share information about

vulnerable clients seeking help from Non-Governmental Organisations

(NGOs) and social service agencies.

Jamaica

Protest stalls production at JISCO Alpart

Several hours of production time were lost as residents from surrounding

communities blocked the entrance to the bauxite/alumina JISCO Alpart

plant here early yesterday to protest against environmental pollution and

related issues.

NCB to reimburse late fees to customers affected by salary delays

National Commercial Bank Jamaica Limited (NCB) says it will be

reimbursing late fees to customers impacted by the recent delayed salary

payments.

Guyana

Oil blocks probe… ExxonMobil willing to cooperate with SARA

ExxonMobil’s Head of Government and Public Affairs, Deedra Moe, says

that the company would be willing to cooperate with the State Asset

Recovery Agency (SARA) which is probing the award of oil blocks it holds

offshore Guyana.

The Bahamas

Dpm: Deficit Target in Reach With $400m Cut

The deputy prime minister has signalled that the government remains on

track to hit its main 2018-2019 fiscal target by touting a $400m reduction in

the annual deficit since it took office.

Nassau’s cruise port redevelopment significant to economic impact

Nassau’s cruise port redevelopment could lead to a significant increase in

the gross domestic product (GDP) for The Bahamas by 2023, president of

Colina Financial Advisors Ltd (CFAL) Anthony Ferguson said Wednesday,

adding that the heads of agreement with the government on the project

could be concluded within six weeks.

Anguilla

UK Government Donates Vehicles to Inland Revenue & Lands and Surveys

Departments

In a handing over ceremony held at the new location of the Inland

Revenue Offices, at the former NBA building in The Valley, Governor Tim

Foy, on Monday, May 20th, delivered two new vehicles to the Inland

Revenue Department (IRD) and two to the Lands and Surveys

Department (LSD).

Phase 2 Of Anguilla’s Residency Programme For Launch In Geneva

The first phase of the Anguilla Residency by Investment Programme has

been going reasonably well – and preparations are now in progress to

launch phase 2 at an Investment Migration event in Geneva, Switzerland ,

next month, June.

Antigua and Barbuda

China deepens cooperation with Antigua-Barbuda, offers over 100

educational programmes

Prime Minister of Antigua and Barbuda, Gaston Browne welcomed Sun

Ang, the newly appointed ambassador of the People’s Republic of China

to Antigua and Barbuda, and praised the excellent relationship that has

developed between the two countries over the past 36 years.

Dominica

IMF issues concluding statement on visit to Dominica

The International Monetary (IMF) has issued a concluding statement

describing the preliminary findings of staff at the end of an official visit to

Dominica.

The Dominican Republic

Gov. to relocate 371 families to pave way for dam in the South

The Government will relocate 371 families from the areas of influence of

the dam being built at Monte Grande, Barahona (south), where it will

provide housing and lots.

Utility bows to protests, will pay power plant workers

State Electric Utility (CDEEE), Rubén Jiménez Bichara, on Thurs. said that

during construction of the Punta Catalina power plant at times the payroll

exceeded 10,000, but as the work ended, the majority of workers has

been laid off.

Direct foreign investment jumps 28.2% to US$803.7M in 1Q

Central banker Hector Valdez Albizu, revealed Wednesday that direct

foreign investment reached US$803.7 million from January to March, or

28.2% higher than the same period in 2018.

Venezuela

Operator of Venezuelan PDVSA's fleet seeks to detain tankers: document,

sources

German shipping firm Bernhard Schulte Shipmanagement (BSM) has

moved to legally detain three of Venezuelan PDVSA’s oil tankers to

collect on late payments owed to it by the state-run oil company,

according to a document seen by Reuters and sources close to the

decision.

Shippers raise rates for cargo from U.S. to Venezuela: documents, sources

Two major shipping lines this month have raised their rates for transporting

goods from the United States to Venezuela, according to three industry

sources and two documents, as U.S. sanctions limit transit between the

two nations.

INTERNATIONAL

United States

Wall St. set for muted open as trade worries persist

Wall Street was set for a subdued open on Tuesday after an extended

weekend, as investors remained on edge after President Donald Trump

signaled that the United States and China were far from a trade deal.

Tesla's China-made Model 3 may be priced in $43,400-$50,700 range:

Bloomberg

Tesla Inc is considering pricing its China-manufactured Model 3 vehicles

between 300,000 yuan and 350,000 yuan ($43,431-$50,670) before

subsidies, Bloomberg reported on Tuesday, citing people familiar with the

matter.

Europe

Euro zone sentiment better than expected in May

Euro zone economic sentiment was better than expected in May,

rebounding after 10 consecutive monthly falls thanks to more optimism in

the biggest sector, services, but also in industry and among consumers,

European Commission data showed on Tuesday.

Europe Continued

Euro dips on Italian debt worries and trade tensions

The euro dipped on Tuesday as investors nervous about trade tensions

bought into the safe-haven dollar and fretted that political risks in Europe

remain high, even though pro-Europe parties won a majority of European

parliamentary seats.

China

Chinese developers' debt strains ease, but profit slowdown risks grow

China’s developers, the country’s most leveraged sector, have finally got

their rising debt piles under control and some even boast record amounts

of cash, powered by strong earnings growth and restrained expansion, a

Reuters analysis showed.

China confident of keeping yuan stable

China is confident of keeping the yuan basically stable at reasonable and

balanced levels, Yi Gang, the governor of the People’s Bank of China

(PBOC) told a meeting recently, state media reported on Tuesday.

Japan

Japan firms set up consortium to enhance climate-related financial

disclosure

Japanese companies set up a consortium on Monday to help improve

reporting of the financial impacts of climate-related risks and

opportunities, aiming to enhance green investments and promote

innovation that helps tackle climate change issues.

Global

Oil defies trade fears as prices rise on tight supply

Oil prices rose on Tuesday, supported by tighter global supplies that have

helped to offset persistent worries that demand will be hurt by the

continuing U.S.-Chinese trade conflict.

Euro zone sentiment better than expected in May Tuesday 28th May, 2019 – Reuters

Euro zone economic sentiment was better than expected in May,

rebounding after 10 consecutive monthly falls thanks to more optimism in

the biggest sector, services, but also in industry and among consumers,

European Commission data showed on Tuesday.

The Commission’s economic sentiment indicator for the 19 countries

sharing the euro rose to 105.1 in May from 103.9 in April, beating market

expectations of no change.

Services sentiment improved to 12.2 from 11.8, beating expectations of a

decline to 11.0 and the mood in industry defied expectations of no

change to rise to -2.9 from -4.3. The index for consumers rose to the

expected -6.5 from -7.3.

But separately, the Commission’s business climate indicator, which helps

point to the phase of the business cycle, continued to fall, declining to

0.30 in May from 0.42 in April, well below market expectations of a decline

to 0.40.

<< Back to news headlines >>

Wall St. set for muted open as trade worries persist Tuesday 28th May, 2019 – Reuters

Wall Street was set for a subdued open on Tuesday after an extended

weekend, as investors remained on edge after President Donald Trump

signaled that the United States and China were far from a trade deal.

Trump on Monday said he was “not yet ready” to make a deal with China

but he expected one in the future. The back-and-forth between the two

sides has sparked worries that the protracted trade war would lead to a

global economic slowdown.

“The market is basically in a limbo. There happens to be a wall of worries

that continues to grow,” said Peter Cardillo, chief market economist at

Spartan Capital Securities in New York.

“It’s essentially the same worries that have been in the markets for a while

now. People realize that this is not an easy trade war to win and there

could be some real negative consequences from this.”

The uncertainty in markets has sent investors seeking for safe-haven assets,

with yields on the U.S. 10-year notes hitting its lowest level since October

2017.

Investors are also concerned that China might opt to weaponize its

holdings of more than $1.1 trillion worth of U.S. Treasuries to retaliate

against the tariffs imposed on Chinese imports.

The benchmark S&P 500 index as of Friday’s close was about 4% off its

record high hit on May 1, while the blue-chip Dow Jones Industrial index

posted its fifth straight week of decline.

At 8:18 a.m. ET, Dow e-minis were up 33 points, or 0.13%. S&P 500 e-minis

were up 1.25 points, or 0.04% and Nasdaq 100 e-minis were up 14.75

points, or 0.2%.

Among other stocks, Activision Blizzard Inc rose 3.3% in premarket trading

after Goldman Sachs upgraded its stock to “buy” and said the

videogame publisher would benefit from its recent game releases.

FedEx Corp fell 0.4% after Chinese telecoms equipment maker Huawei

Technologies Co Ltd said it was reviewing its relationship with the U.S.

package delivery company, after it diverted two parcels destined for

Huawei addresses in Asia to the United States.

Global Payments Inc dropped 2.2% after the payment technology

company said it would buy peer Total System Services Inc for about $21.5

billion in stock. Total System’s shares rose 2.3%.

A report from the U.S. Conference Board due at 10 a.m. ET is expected to

show the consumer confidence index rising to a reading of 130 in May

from 129.2 in April.

<< Back to news headlines >>

Tesla's China-made Model 3 may be priced in $43,400-$50,700 range:

Bloomberg Tuesday 28th May, 2019 – Reuters

Tesla Inc is considering pricing its China-manufactured Model 3 vehicles

between 300,000 yuan and 350,000 yuan ($43,431-$50,670) before

subsidies, Bloomberg reported on Tuesday, citing people familiar with the

matter.

The final price is still being worked out, Bloomberg said citing a source.

The electric carmaker currently ships Model 3 vehicles from the United

States to sell in China.

Tesla is counting on its Shanghai factory, which is scheduled to begin

production this year, to manufacture Model 3 cars as it seeks to expand its

lineup and boost sales in the world’s biggest EV market.

Tesla was not immediately available for a comment on the pricing, but an

announcement is expected on May 31, according to a social media post

by the company.

<< Back to news headlines >>

Oil defies trade fears as prices rise on tight supply Tuesday 28th May, 2019 – Reuters

Oil prices rose on Tuesday, supported by tighter global supplies that have

helped to offset persistent worries that demand will be hurt by the

continuing U.S.-Chinese trade conflict.

Brent crude rose by 23 cents, or 0.3%, to $70.34 a barrel by 1055 GMT. U.S.

West Texas Intermediate (WTI) was up 52 cents, or 0.9%, at $59.15.

U.S. crude futures were trading for the first time since Friday after a long

holiday weekend.

Investors, however, remain concerned that the trade war between the

United States and China could hit the global economy and dent fuel

consumption.

Brent futures last week registered a decline of 4.5% and WTI was slid by

6.4% for its biggest weekly loss since December.

“Oil prices lack direction because the oil market currently finds itself

caught between supply risks and concerns about demand,”

Commerzbank said in a note.

“A whole host of poor economic data from the major economic areas of

the U.S., China and Europe, plus the entrenched situation in the trade

talks, are not good news for the demand outlook.”

On the flip-side, crude has gained support from supply cuts by the

Organization of the Petroleum Exporting Countries (OPEC) and its allies

since the start of the year, with political tensions in the Middle East another

bullish influence.

No political solution appears forthcoming to end U.S. sanctions that have

largely taken Iranian and Venezuelan crude out of global markets.

“Brent is likely to resume its upward trend in line with its fundamentals,

which are tight,” said Harry Tchilinguirian, global oil strategist at BNP

Paribas in London.

“This tightness is reflected in the generic front-month Brent futures time-

spread. Backwardation is very steep at $1.33 a barrel – the last time we

sustained such deep backwardation was in 2013, when spot Brent was

trading above $100 a barrel.”

Backwardation, a market structure where the spot price is higher than the

price of crude in later months, tends to indicate tight supplies and a

drawdown in inventories.

OPEC and allies including Russia are due to meet over June 25-26 to

discuss output policy.

Khaled al-Fadhel, oil minister of OPEC member Kuwait, said he expects

the market to approach balance in 2019 as global inventories fall and

demand remains strong.

“I believe the market is expected to be balanced during the second half

of 2019, more towards the end of the year,” he told Reuters, adding that

the impact of U.S. sanctions on Iran “has yet to be felt”.

<< Back to news headlines >>

Euro dips on Italian debt worries and trade tensions Tuesday 28th May, 2019 – Reuters

The euro dipped on Tuesday as investors nervous about trade tensions

bought into the safe-haven dollar and fretted that political risks in Europe

remain high, even though pro-Europe parties won a majority of European

parliamentary seats.

Italian Deputy Prime Minister Matteo Salvini, whose far-right League

triumphed in European elections on Sunday, said the European

Commission could fine Italy 3 billion euros for breaking EU debt and deficit

rules, a comment which weighed on the single currency.

Pro-Europe parties kept a majority of seats in European parliamentary

elections, with support growing for euroskeptic and right-wing parties but

not as much as investors had feared.

European leaders now meet in Brussels to begin the process of filling a

number of top EU posts, from the head of the European Commission to

the European Central Bank.

Another potential battle between Brussels and Rome over Italy’s spending

plans is likely to keep the euro under pressure, analysts said, citing the link

between rising Italian government bond yields and the single currency’s

weakness.

“The League did fairly well. Someone like Salvini will see that as a

mandate to continue doing what he is doing,” said Neil Mellor, currencies

analyst at BNY Mellon. “We need to hear soothing words from the ECB

(European Central Bank) for all to be well.”

The euro slipped 0.1% to $1.1179, but remains above two-year lows of

$1.1105 hit last week.

Broader moves in foreign exchange markets remain small amid

uncertainty over how trade tensions between the United States and China

are affecting the world’s major economies.

The dollar rose 0.2% against a basket of peers, its index touching 97.787. It

remains off a two-year high of 98.371 hit on Thursday.

The yen rose 0.2% to 109.32 yen as U.S. President Donald Trump visited

Japan.

On trade, Trump said on Monday he expected the two countries to be

“announcing some things, probably in August, that will be very good for

both countries”, although he has also put pressure on Tokyo to cut

Japan’s large trade surplus with the United States.

Dollar traders are now preparing for U.S. consumer confidence numbers

for May, due at 1400 GMT.

“Negotiating from a position of strength remains President Trump’s modus

operandi and that should be supported today with another strong U.S.

consumer confidence release for May. We expect the U.S. to maintain

trade pressure on China and are not looking for any immediate

resolution,” analysts at ING said.

The Swedish crown rallied 0.4% to 10.673 crowns per euro despite

deteriorating consumer and manufacturing sentiment, as inflation was

also predicted to increase against earlier expectations.

Sterling, hurt on Monday by the poll-topping performance of the Brexit

Party at the expense of Britain’s governing Conservatives in European

parliamentary elections, slipped another 0.2% to $1.2656.

Bitcoin, the world’s biggest cryptocurrency, stabilized after soaring to new

one-year highs.

The price of Bitcoin stood at $8,704 after hitting $8,939 on Monday. The

virtual currency has rocketed more than 130% in 2019.

<< Back to news headlines >>`

Chinese developers' debt strains ease, but profit slowdown risks grow Tuesday 28th May, 2019 – Reuters

China’s developers, the country’s most leveraged sector, have finally got

their rising debt piles under control and some even boast record amounts

of cash, powered by strong earnings growth and restrained expansion, a

Reuters analysis showed.

That should be a relief to investors worried about potential corporate

defaults as China Inc faces a record $1.5 trillion of corporate bonds

maturing in the next two years.

But it is also a warning sign that the country’s buoyant property market is

slowing down, with policy uncertainty keeping developers jittery and

delaying investment.

Following a furious boom, China has tightened regulatory controls over its

massive property market since mid-2016. But home prices have continued

to go up, even as economic growth slows, and managing risks in the

sector remains a priority.

“The amount of cash is high, because they have held back acquisitions

and construction expenditures. They have to replenish their pipelines of

projects going forward,” said Phillip Zhong, senior equity analyst at

Morningstar. The government’s efforts to rein in excessive borrowing

resulted in a record number of bond defaults in China last year, and

market experts expect the trend to continue this year. However, they say

major property developers, especially the Hong Kong-listed ones, are

better equipped to handle the storm as their profitability and balance

sheets have strengthened.

“The protection (against default risks) is higher due to lower inventory in

the system and developers can easily deleverage if they slow down the

land acquisition,” said John Lam, head of Hong Kong and China real

estate research at UBS.

A Reuters analysis of 45 Hong Kong-listed mainland developers’ balance

sheets showed their combined cash and short-term investments rose to a

record 1.1 trillion yuan ($14.5 billion) at the end of 2018, while net debt-to-

core earnings ratio fell to 5.14 percent, the lowest in four years.

Another analysis of 50 developers listed in mainland China showed their

average debt-to-equity ratio fell to 1.73 at the end of March quarter, the

lowest since 2013.

MARKET SLOWING DOWN?

China’s land sales by value rebounded 6% in the first four months of this

year, according to real estate researcher CREIS, with the premiums

developers paid for land rising sharply, as credit conditions and purchase

requirements eased.

The rebound took some firms by surprise and prompted caution, because

in the second half of last year many land auctions failed to secure bids as

developers faced tight credit conditions and thinning profit margins

following the prolonged government campaign to rein in property prices.

With the market likely to see tapering growth — UBS’s Lam forecasts

Chinese developers’ earnings will rise 25% this year and 20% on average in

the next three years. Experts says developers are likely to their keep debt

ratios stable.

“Unless developers suddenly get very aggressive on landbanking, but

that’d be unlikely because of the price caps,” J.P. Morgan’s head of

China property research Ryan Li said, referring to the government

restrictions on how much developers can set the selling prices in different

cities.

Chinese developers sold a record amount of offshore bonds in the first

quarter and most of the proceeds went to refinancing rather than

building up landbanks due to regulatory controls.

<< Back to news headlines >>

China confident of keeping yuan stable Tuesday 28th May, 2019 – Reuters

China is confident of keeping the yuan basically stable at reasonable and

balanced levels, Yi Gang, the governor of the People’s Bank of China

(PBOC) told a meeting recently, state media reported on Tuesday.

Yi has become the latest senior official to join a verbal campaign

reminding markets about China’s exchange rate policy after the yuan

experienced sharp declines recently by losing more than 2.5 percent to

the dollar since a major escalation in the Sino-U.S. trade tensions earlier

this month.

It is now less than a tenth of a yuan away from the 7-per-dollar level

authorities have in the past indicated as a floor.

The likelihood of further interest rate rises by the U.S. Federal Reserve has

reduced, which should help keep the yuan stable, Yi was quoted as

saying by the Financial News, a publication owned by the central bank.

The central bank chief also said China’s benchmark rates are now at

appropriate levels.

“Yi’s comments were very prudent. And on the rate front, it could mean

the PBOC has no intention to lower benchmark interest rates any time

soon,” said Ji Tianhe, China rates and FX strategist at BNP Paribas in

Beijing.

Market watchers said the central bank is expected to step up support and

take further easing measures to bolster economic growth amid

intensifying trade tensions between the world’s two largest economies.

However, some are worried that additional easy policy measures could

hurt the weakening yuan.

The yield gap between Chinese and U.S. 10-year government bonds is in

a relatively comfortable range, Yi said, according to the newspaper.

On Tuesday afternoon, the yield gap stood at 108 basis points, double the

54 basis points seen at the start of the year. A wider yield gap could mean

lower capital outflow risks from China.

The Financial News said the governor’s remarks were made at a meeting

on May 18 in Beijing.

Unlike previous episodes of yuan weakness, the PBOC has recently only

set firmer-than-expected official midpoints and made rounds of verbal

comments to guard its currency this time.

On the weekend, China’s banking and insurance regulator warned

speculative short sellers they would suffer “heavy losses” if they bet against

the currency.

<< Back to news headlines >>

Japan firms set up consortium to enhance climate-related financial

disclosure Tuesday 28th May, 2019 – Reuters

Japanese companies set up a consortium on Monday to help improve

reporting of the financial impacts of climate-related risks and

opportunities, aiming to enhance green investments and promote

innovation that helps tackle climate change issues.

Climate-related disclosure is increasing as firms align their financial

reporting with recommendations made by a global task force, which was

established partly in response to concerns that assets are being mispriced

because the full extent of climate risk is not being factored in.

A total of 162 Japanese companies are now supporting the Task Force on

Climate-Related Financial Disclosures (TCFD), created at the end of 2015

by the G20’s Financial Stability Board, including 62 which declared their

support on Monday.

That makes Japan the world’s largest supporter, topping the 107

companies in the UK and 104 in the U.S., according to the Japanese

industry ministry which helped create the consortium.

Japanese companies want their disclosures to be better understood and

used by banks and investors when they make financing and investment

decisions, an official at the industry ministry said.

The new consortium, which also includes banks, insurance firms and asset

managers, plans to revise Japan’s TCFD guidance, which was mapped

out by the ministry late last year, and issue green investment guidance for

financial institutions.

“We strongly hope that Japanese companies will take global leadership in

creating a mechanism that enhances climate-related disclosure and

green financing to promote environmental innovation,” Japan’s trade

and industry minister Hiroshige Seko said at the formation of the

consortium.

Japan aims to hold the world’s first TCFD summit in the autumn, where it

will announce its own guidelines and discuss the issue with foreign

counterparts, Seko said.

To support environmental innovation, the ministry also plans to make

changes to its state insurance scheme, by as early as July, to help

Japanese companies fund new overseas projects in areas such as

renewable energy, hydrogen and Carbon Capture, Utilization, and

Storage (CCUS), Seko added.

<< Back to news headlines >>

‘UTC faced challenges in 2018’ Tuesday 28th May, 2019 – Trinidad Express Newspaper

The Unit Trust Corporation (UTC) yesterday disclosed that the mutual fund

investment company reported a net loss of $35.4 million in the year ending

December 2018, compared with net income of $62.3 million in 2017. The

UTC's net loss from continuing operations after taxation was $784,000 in

2018, compared with net income of $55.5 million in 2017.

The UTC's executive director Nigel Edwards told unitholders at the

institution's annual meeting yesterday that new International Financial

Reporting Standards (IFRS) took a toll on financial performance for 2018.

'The new IFRS standards, which are global accounting rules required for

financial reporting, were adopted on January 1, 2018, and required

substantial revision to our accounting policies and classification of our

financial assets,' he told unitholders attending the Corporation's 37th

annual general meeting, held at the National Academy for the

Performing Arts, Port of Spain.

He said the UTC's 2018 results were also impacted by the company's

decision to close its North American Fund (formerly known as the

Chaconia Growth and Income Fund), in December last year.

Edwards explained that the decision was taken as the NAF had not grown

sufficiently since inception in 1993, and as such, became more expensive

and negatively impacted returns to unitholders.

'Unitholders were also impacted by the non-acceptance of US-dollar third

party cheques, and for us and you, it was a hard pill to swallow. Due to

foreign regulatory requirements across the financial sector, the

Corporation was advised that our bankers will no longer be accepting

these cheques, effective August 30, 2018,' he stated.

He said customers who wish to deposit US dollar cheques into their

accounts are now required to have the cheque made payable to the

'Trinidad and Tobago Unit Trust Corporation'.

Alternatively, he said, unitholders can use services such as U Online or

electronic wire transfer services, which allows banks to transfer funds to

their UTC accounts.

Touching on the limited availability of foreign exchange, Edwards said

unlike commercial banks, the UTC was not a primary dealer of foreign

exchange.

He said, as such, the Corporation does not receive an allocation from the

Central Bank.

He said the UTC's supply of US dollars was dependent on what it purchases

from customers and what is brought from other financial institutions.

'As you know, the foreign exchange market is extremely restricted, so we

will ensure that as many of our unitholders have access to the limited

funds available,' he assured.

Despite a challenging 2018, Edwards said the UTC remained focussed on

its business goals.

'We continued to navigate the global economic headwinds that

threatened the stability of our sector and the national economy. The

volatility of the global economy has shaken investor confidence but it has

not shaken our resolve,' he declared.

Performance highlights

Edwards reported that for the first time in the history of the UTC Growth

and Income Fund (GIF), funds under management crossed the $5 billion

mark this year.

As at April 30, 2019, the Funds Under Management for the GIF stood a

TT$5.2 billion. Notwithstanding challenging conditions, Edwards disclosed

that the UTC paid a total of $249.3 million to unitholders in 2018,

representing a 26.3 per cent increase in distribution payments over 2017.

Growth and Income Fund payments increased by 117.2 per cent

increase, from $36 million in 2017 to $78.7 million last year.

Total assets moved from $21.9 billion in 2017 to $22 billion in 2018.

Edwards said the UTC's customer base grew from 609,574 to 617,464

unitholders as a result of the Corporation specifically targetting new

unitholders between 18 and 35 years old.

The UTC's two fixed income funds-the TT Dollar Income Fund and the US

Dollar Income Fund-outperformed their respective benchmarks in 2018, he

reported.

He said as at April 30, 2019, the TT Dollar Income Fund climbed to $11.3

billion, crossing the $11 billion mark for the first time in its history.

<< Back to news headlines >>

TTNGL adds $0.34 Tuesday 28th May, 2019 – Trinidad Express Newspaper

Overall market activity resulted from trading in 22 securities of which six

advanced, eight declined and eight traded firm.

The Composite Index advanced by 2.34 points (0.17 per cent) to close at

1,358.88. The All T&T Index advanced by 2.31 points (0.13 per cent) to

close at 1,802.02.

The Cross Listed Index advanced by 0.32 points (0.26 per cent) to close at

123.58. The SME Index remained at 99.50.

Trading activity on the first-tier market registered a volume of 431,350

shares crossing the floor of the Exchange valued at $2,014,926.70.

JMMB Group Ltd was the volume leader with 337,586 shares changing

hands for a value of $714,366.28, followed by Sagicor Financial

Corporation with a volume of 55,730 shares being traded for $513,638.42.

Guardian Holdings Ltd contributed 13,607 shares with a value of

$251,629.70, while Trinidad Cement Ltd added 10,000 shares valued at

$25,500. TTNGL registered the day's largest gain, increasing $0.34 to end

the day at $26.34. Conversely, Unilever Caribbean Ltd registered the day's

largest decline, falling $0.27 to close at $26.03. On the mutual fund market

27,759 shares changed

hands for a value of $620,472.50. CLICO Investment Fund was the most

active security, with a volume of 24,239 shares valued at $566,616.50.

CLICO Investment Fund declined by $0.07 to end at $23.38. Calypso

Macro Index Fund remained at $15.30.

The second-tier market did not witness any activity.

The SME market did not witness any activity. CinemaOne remained at

$9.95.

The USD equity market did not witness any activity. MPC Caribbean Clean

Energy remained at US$1.

<< Back to news headlines >>

UK Government Donates Vehicles to Inland Revenue & Lands and Surveys

Departments Monday 27th May, 2019 – The Anguillian

In a handing over ceremony held at the new location of the Inland

Revenue Offices, at the former NBA building in The Valley, Governor Tim

Foy, on Monday, May 20th, delivered two new vehicles to the Inland

Revenue Department (IRD) and two to the Lands and Surveys

Department (LSD).

The ceremony opened with a special prayer of thanksgiving and

dedication offered by the Rev. Dr. Wycherley Gumbs, after which the

Comptroller of the Inland Revenue, Mr. Kiel Connor, spoke in appreciation

of the gifts:

“This is indeed a momentous occasion for the Government of Anguilla

and, by extension, for the IRD. These gifts of vehicles, from the UK

Government, clearly demonstrate the government’s commitment to

strengthening revenue operations, as well as to demonstrate to the

general public that we are taking compliance and tax-payer outreach

seriously.

“The primary use of these vehicles will be for tax-payer services — in order

to reach out to tax-payers for collections and compliance, as well as for

auditing and property tax services in general. We have been desiring such

vehicles for quite some time. It is good to know that we have had the

support of the Foreign and Commonwealth Office in making the

presentation of these vehicles to the IRD a reality. We do thank the UK

Government through the FCO for presenting our Department with these

much-needed vehicles.”

DLS Director, Leslie Hodge

Speaking next, on behalf of the Lands & Surveys Department was its

Director, Mr. Leslie Hodge: “We are indeed grateful to the UK Government

for these vehicles. This presentation speaks volumes to the kind of the

commitment that the FCO has made to us in terms of carrying out work in

field procedures. These vehicles will be used primarily for purposes of

inspections, surveying and property visits. They will be used by the LSD to

work jointly together with IRD. We would like to say thanks to the FCO and

the UK Government for these blessings.”

The Governor, Tim Foy, spoke regarding the importance of tax collection

and the handling of land affairs. He noted the ease with which both

government activities can now be undertaken through the use of the

donated vehicles. He then went on: “I would like to pay tribute to Dr.

Aidan Harrigan, and PS Foster Rogers. They both have pushed us hard to

work in some of the areas which maybe not as glamorous, but which are

critical for Anguilla becoming self-supporting and self-sustaining — where

children can have the education that they need, and people who go to

the hospital can get the services they require because we raise the

revenues that are necessary.

“Tax compliance is absolutely essential. People should pay their dues. It is

wrong that some people don’t pay, causing others to carry the burden of

paying. In such cases, the public might be disadvantaged because we

would miss out on the kind of services that we could have provided if

those who are not paying would indeed pay their fair portion of taxes.

“The area of lands is critical as well,” His Excellency said. He explained:

“Every transaction in Anguilla depends, at some point, on land. Land is not

just emotionally important to Anguillians to own a piece of “the rock”, but

it is also crucial to Anguillians as a people. So it is great to be here today

to make these presentations, and to say that this is just a part of a much

greater process that is led by Anguillians to provide the quality of service

that would make Anguilla a better country in the 21st century. Thanks to

the two Permanent Secretaries, Aidan Harrigan and Foster Rogers, as well

as to the Directors in tax compliance and lands.”

Inland Revenue team with new vehicles

Permanent Secretary in the Ministry of Finance, Dr. Aidan Harrigan, made

mention of the fact that the vehicles will greatly assist the departments in

carrying out their respective functions: “The Inland Revenue Department is

the lead department for ensuring that government revenues are

collected in order to deliver government services. This is critical. The

service of the Lands and Surveys Department is also critical.

“Organizations like the World Bank emphasize the issue of ‘ease of doing

business’. And certainly, for these two departments, the use of these

vehicles will enable them to more efficiently and effectively deliver on

their responsibilities with more ease.”

Dr. Harrigan alluded to the adage: “to whom much is given much is

expected.” He stressed that this was not applicable only in terms of the

delivery of services, but also with regard to the expected care of the

vehicles. He said that when drivers from the departments use the vehicles,

he would encourage them to drive safely and take proper care of them

on the roads.

Mr. Foster Rogers, PS in the Ministry of Social Development Lands and

Planning, began his comments by saying: “Contrary to popular belief, the

oldest profession is the surveying of land. After the first week of creation,

God looked around and surveyed all that He had made — and said that

it was good. In fact, He made Adam from the dust of the land. That in

itself goes to show how closely connected we are to land. We build our

houses on land; we secure our loans with land; we build our schools and

hospitals on land, and so without land we can’t be anywhere.”

Mr. Rogers continued: “In 1974, the Land and Surveys Department

established a new way of dealing with land in Anguilla. Land

management changed from the conveyance system to the current

system. Now everyone who owns land in Anguilla knows for sure where his

or her land is — and is able to prove it. Anguilla is far ahead of many

countries with regard to land management. Recently, one consultant said

that it is a privilege to work in Anguilla with such ease because our land

records are well intact and so well kept.

“Having land records well kept is one thing, but providing land services to

our people in a timely manner, and easing the burden of businesses, is a

different matter. Today, we have made a large step in allowing the Lands

and Surveys Department to be able to function in serving our people in a

way that is modern and professional.

“The one old vehicle that was used by the department, even in recent

times, had many deficiencies. But, these gifts today have upped the

game. They will allow us to meet the needs of Anguillians more speedily

than before. We had often been criticized for being slow and not caring,

but these vehicles will now assist us in showing our people that the LSD, as

well as the IRD, are major players in the economic and social

development of Anguilla.”

The ceremony was chaired by Asst. Comptroller of IRD, Ms. Keischa

Brooks, who expressed appreciation to all those who attended and

participated.

<< Back to news headlines >>

Phase 2 Of Anguilla’s Residency Programme For Launch In Geneva Monday 27th May, 2019 – The Anguillian

The first phase of the Anguilla Residency by Investment Programme has

been going reasonably well – and preparations are now in progress to

launch phase 2 at an Investment Migration event in Geneva, Switzerland,

next month, June.

This was told to The Anguillian newspaper in an interview with Mrs.

Shantelle Richardson, Director of Economic Planning with responsibility for

the programme. According to her, the first phase was originally from

November 2018 to April 30, but it was extended to June 30, 2019. The

launch of phase 2 is being arranged by Consortium Ltd. the agency which

was formed on behalf of the Government of Anguilla by Latitude, a

Residency & Citizenship company, and Arton Capital. The Residency

Programme in Anguilla has three main propositions. They are Citizenship-

by-Investment; Residency-by-Investment and Tax Residency.

The interview with Mrs. Richardson, the able Director of Economic

Planning, was as follows:

What has been achieved in phase one of the Investment programme so

far?

We have had quite a few applications from mainly North Americans and

Canadians. The majority of them are husband and wife couples, some

with children, and we have had a few single person applicants. To date, I

think we have had about thirteen applications –not thirteen persons as it

will be more – but thirteen applications. Most of them would be at least

two or more persons.

What really have they applied for?

The applications are for permanent residency by investment. Once they

have been approved, and have paid the permit fee, they will be issued a

permit residency booklet in that instance. It basically says that they can

come to Anguilla free of immigration restrictions. So they won’t be given

time in their passports because the booklet states that they have the right

to live in Anguilla free of immigration restrictions.

For a single applicant, the permit fee is five thousand US dollars; up to two

or more persons the fee is ten thousand; and for each person, above the

four, is a thousand US dollars per person. Compared with the normal fee,

that is one thousand Eastern Caribbean dollars a year.

What does the math tell us in terms of financial gain so far?

Because processing the applications has taken a bit longer, as we have

to confirm that the applicants have no criminal record and the value of

their property and we have to work with other departments. To date, I

think we have conditionally approved six applications. I think only two

have completed the process. I would not be able to sit here and

calculate the figure because we have the processing fee, the diligence

fee and then the permit fee. So I would have to go back and get all of

that information out of the system.

Exactly who are these persons, in terms of qualification, etc., from whom

the applications for permanent residence were received?

They are persons who have a property in Anguilla valued at a minimum of

750,000 US dollars. I think they would fall in the category of middle to high

income. For phase one, the applicants were required to have owned

property in Anguilla, by September 30, 2018, to be eligible under this

programme. All of these applicants owned property in Anguilla prior to

that date.

One of the amendments we made recently, in terms of the evaluation,

was based on our discussions with the agents. They identified that there

may be persons who own properties that may be twenty years old. So the

chances of meeting that 750,000 minimum value might be hard. In view of

that, we categorised the values of the properties. If a property was

purchased two years ago or less, the minimum value is 750,000 dollars; if it

was purchased in the last three to five years, the minimum value is 600,000

dollars; and if the property was purchased more than five years ago, then

the minimum value is 500,000 US dollars. But this is only applicable in phase

one. That will not apply in phase two. The minimum value will be 750,000

US dollars. For phase two, there is a build option.

So is there a purchase option in phase one?

No. Because phase one is retroactive, persons could have bought the

property and then built – or they could have purchased outright, but it

doesn’t really matter in this instance, once they have owned the property

on or before September 30, 2018, and it meets the minimum value.

The fact that they were given permission to own property in Anguilla,

didn’t that qualify them to live in Anguilla without a permit fee?

It is not a fee to live in Anguilla. It is a fee to live free of immigration

restrictions. When they purchase a property, they can come and go as

free as they want; but they are subject to immigration controls where they

are given time. If they want to stay beyond that time then they have to

pay for an extension of stay. What the permanent residency programme

is saying is that those persons can come and stay for as long as they want.

They don’t even have to leave the island. They can actually move to

Anguilla, stay full-time and don’t have to pay for an extension of stay.

In phase two of the residency programme is another component of Tax

Residency. Under this part of the programme, persons are required to own

property in Anguilla also, but the investment amount is less. It is 400,000 US

dollars. If they buy (or build) a property valued at 400,000 dollars, they are

required to spend a certain number of days in Anguilla. In addition to that,

they will pay the Government an annual tax lump sum of 75,000 US dollars

and will be issued a Tax Certificate. That says such a person is a tax

resident of Anguilla and paying taxes on the island.

“For some countries that exempt persons from paying taxes in another

country. That is mainly targeting persons who do not spend a lot of time in

any one place. They move around the world – three months here and

three there. They are the kind of persons who are targeted. A programme

like this would not benefit Americans because they are required to pay

taxes wherever they are in the world. For some countries, that is not the

case. Once a person can prove that he or she is a tax resident

somewhere else, then they are exempted from paying taxes in their home

country. That programme is not in place yet. It is for phase two.

With the bulk of persons coming into Anguilla from the United States, from

where are we hoping to attract these tax residents?

There are some European and other countries from where persons would

be able to live in Anguilla as tax residents without having to pay taxes in

their homeland.

How would you sum up the Government’s thinking about Anguilla’s

Residency Programme?

In addition to raising revenue, it affords persons who want to obtain a

second home to move to a place like Anguilla to live free of immigration

restrictions. Phase one is really to regularise those persons whom we have

a history with. They have been coming to Anguilla for years but, because

of how they spend their time, they would never be able to meet the

regular requirements – so this affords them the opportunity to become

permanent residents.

It is not a programme for everyone. We don’t see it being as big as St.

Kitts’ Citizenship Programme because it is not the same type of

programme. So persons are not getting a passport. It is a smaller niche

that is being targeted – not persons desiring passports for ease of travel.

Applications for our programme are still coming in and I believe they will

continue to be received up until the very last day [June 30, 2019].

Any plans to extend phase one of the programme after that date?

As it is now, there are no such plans for phase one, but I am sure that if

there is a good argument to be made [some consideration could be

given to it]. But the programme will be ongoing because there is phase

two. In phase one the fees are reduced. In phase two, when there is the

full roll-out, all the fees will be doubled. The benefit for persons applying in

the retroactive phase was to take advantage of the lower fees.

<< Back to news headlines >>

China deepens cooperation with Antigua-Barbuda, offers over 100

educational programmes Monday 27th May, 2019 – Caribbean News Now

Prime Minister of Antigua and Barbuda, Gaston Browne welcomed Sun

Ang, the newly appointed ambassador of the People’s Republic of China

to Antigua and Barbuda, and praised the excellent relationship that has

developed between the two countries over the past 36 years.

“China has been very benevolent to the government and people of

Antigua and Barbuda and has contributed significantly to the social and

economic development of our country. The relationship is very important

to us, in fact, it is easily one of the most important developmental

partnership, Browne stated.

“I am very happy that two countries located in two different hemispheres,

two countries that have a significant number of asymmetries in terms of

size of population and financial resources, could have such a close and

fruitful relationship. I believe this is based on the relationship we have

cultivated over the years and the mutual trust and respect that we have

shown for each,” he said.

Browne also noted that he is certain that Ang will follow in the footsteps of

his predecessors in continuing to strengthen the bonds of friendship

between Antigua and Barbuda and the People’s Republic of China.

Ang, in responding to Browne outlined that China places great

importance to the relationship between the two countries. “We think that

no matter the size of each country, we respect each country as a

member of the international community,” he said.

“In recent years, under your leadership, our countries have maintained

the momentum of developing the relations further. China appreciates the

positions that you and your government have taken in support of the

policies of China, including China’s calls for peaceful resolution to

conflicts. The construction of our Embassy here in Antigua and Barbuda is

a reflection of our good relations. It is also a foundation for our future

cooperation,” Ang said.

Ang also announced that as a sign of the development of the

relationship, the Chinese government will sign an agreement with the

government of Antigua and Barbuda for the waiver of the visa

requirement for holders of diplomatic and official passports.

In a quest to promote capacity building and cultural exchanges, the

government of the People’s Republic of China has joined with the

Antigua and Barbuda government in offering over 100 programmes for

Antiguans and Barbudans to pursue Masters’ and Doctoral studies in

English in universities in the People’s Republic of China.

The programme is handled by the prime minister’s scholarship programme

in collaboration with the ministry of foreign affairs and is opened to all

qualified Antiguans and Barbudans and covers tuition fees, living

expenses and international travel expenses along with a stipend.

The prime minister’s scholarship committee announced that the

scholarships are being offered in two categories: special planned

programme which is offered by the Chinese Scholarship Council and

offers programmes from 26 universities to include Peking University, Renmin

University of China, Beijing Jiao Tong University, Fudan University and Tongji

University. Deadline for this programme is May 31.

Some of the programmes offered include Finance, Architecture, Urban

and Rural Planning Studies, Civil Engineering, Hydraulic Engineering, Pure

Mathematics, Chemical Engineering and Technology and e-Government.

The second initiative is offered under a direct enrolment system, whereby

38 programmes are being offered from 33 universities. This programme

which has an application deadline of July 12, offers Masters’ and Doctoral

degrees in a number of disciplines to include Education, Public

Diplomacy, Tourism and Hotel Management, Public Health, Mechanical

Engineering and Meteorology.

The Chinese ambassador, in pledging to continue to develop the relations

between the two countries, also commended Browne for being a good

friend of China and for his continued defense of complementarity and

respect for each country’s right to chart its own development.

“Your stance is appreciated by the Chinese government and people,

prime minister,” he said.

<< Back to news headlines >>

IMF issues concluding statement on visit to Dominica Friday 17th May, 2019 – Caribbean News Now

The International Monetary (IMF) has issued a concluding statement

describing the preliminary findings of staff at the end of an official visit to

Dominica.

1. The economy is recovering strongly following the destruction wrought

by hurricane Maria. Output growth in 2019 is estimated at 10 percent,

largely offsetting the cumulative decline of 10 percent since the

hurricane. Construction has been the main sector leading the

recovery, with large investments in infrastructure and public services,

aimed at building resilience to natural disasters. Tourism and

agriculture, key for exports and employment, are growing with support

from government programs and financing, but remain significantly

below potential in light of the significant loss of trees and equipment.

Output is projected to reach pre-hurricane levels by 2020, and growth

to rise above potential in the medium-term, owing largely to significant

foreign investment in new hotels expected to start operations by end-

2019. In the context of an uptick in tourism prospects, the increase in

room supply above pre-hurricane levels should give a fillip to

economic activity.

2. Large-scale public investment aimed at rehabilitation, reconstruction

and resilience while contributing to growth, has worsened the fiscal

outlook. The fiscal deficit is projected to remain large in FY2019/20 at 7

percent of GDP, but this is a significant improvement (4 percent of

GDP) relative to the estimated outturn for FY2018/19. The narrowing of

the deficit is explained by the recovery of tax revenues and more

measured execution of public investment, owing to the decline of

readily available Citizenship-by-Investment (CBI) deposits. Beyond the

near-term, fiscal deficits are expected to narrow gradually with

financing constraints becoming binding, constraining the space to

sustain elevated levels of public investment. Based on conservative

projections of CBI revenues and loan disbursements from multilateral

and bilateral creditors, and given downwardly rigid recurrent spending,

staff projects the fiscal space for public investment to decline to 4

percent of GDP by 2023. This low level of investment is insufficient to

sustain resilient infrastructure needs and is a large decline from the 15

percent of GDP annual investment average in the previous five years.

Public debt remains high at around 80 percent of GDP in the medium

term.

3. External current account deficits are projected to decline over the

medium term, from over 40 percent of GDP in 2018 to 10 percent of

GDP by 2024. This goes in tandem with a recovery of exports and a

depletion of CBI and insurance deposits, which would reduce

domestic demand to more sustainable levels. The outlook is, however,

subject to significant uncertainty. In particular, higher-than-projected

CBI revenues would increase external and fiscal deficits and increase

growth further.

4. Reaching the ECCU public debt target of 60 percent of GDP by 2030,

while sustaining resilient investment requires a well-designed fiscal

consolidation plan. The government should prepare fiscal

consolidation measures expeditiously, targeting savings of at least 6

percent of GDP to be adopted gradually over the medium term.

Measures should be staggered over 5-6 years to smooth the likely

negative impact on growth. The plan will support growth by increasing

fiscal space for public investment while reducing government

consumption, along with tax measures aimed at improving the

efficiency of resource allocation:

On the revenue side, key measures could include a rationalization of tax

incentives, with a cap on discretionary concessions and clear prioritization

consistent with national development plans; a strengthening of tax

auditing, which will require additional human resources; a restructuring of

water and sewage service tariffs to achieve financial sustainability of the

public provider; and a broadening of the base for personal income taxes,

including by introducing a presumptive tax.

On the expenditure side, the government could consider a review of

public wage allowances and a containment of wage increases below

inflation; an acceleration of ongoing social security reform by bringing

forward the planned increase in the retirement age and contribution rates

and review of conditions for retirement eligibility–including longer

contribution period and revised rules for pension determination in line with

contribution effort. The efficiency of social transfers can be improved with

proxy means-testing and better monitoring system of beneficiaries to

minimize duplication and abuse.

5. Fiscal institutions can be strengthened to support the achievement of

the regional debt target. Key enhancements could include (i) the

adoption of a fiscal rule anchored on public debt, with escape clauses

for natural disasters and other specified challenges; (ii) establishing a

system to monitor the operations of state-owned enterprises, including

for fiscal planning and identifying contingent liabilities; and (iii) setting

aside CBI revenue in a well-governed government saving fund for

natural disaster insurance, resilient investment and debt reduction.

These enhancements will help safeguard the fiscal space for building

resilience to natural disasters, especially costly physical infrastructure

and financial insurance, the core objective in the government’s

national development plan. These measures will also support fiscal

sustainability, by helping internalize the future costs associated with

natural disasters and contain public debt accumulation.

6. The financial sector remains stable and is recovering gradually from the

impact of the hurricane. However, more decisive action is needed to

safeguard financial stability and support growth. Bank lending is

expected to remain soft, owing to insufficient bankable projects, lack

of financial statements required for loan qualification for most micro

and small entrepreneurs, and lingering difficulties in enforcing lending

contracts in courts, including lengthy procedures for foreclosures and

the seizing of collateral. The government should explore new options to

strengthen capitalization and reduce NPLs of the indigenous banking

sector. To this end, the plan submitted to the ECCB to assess the

balance sheet impact of alternative capitalization options is an

important first step.

However, decisive action is needed to assess banks’ capitalization

requirement fully. In this regard, two important steps are needed. First, the

impact of IFRS9 standards on banks’ investment portfolio should be

completed. Second, absent banks’ acceptance of NPL acquisition offers

by the Eastern Caribbean Asset Management Corporation and the

International Finance Corporation Asset Management Company; write-

offs should begin expeditiously—NPLs remained stable, albeit elevated, at

17 percent in the past year. Progress on reducing NPLs would increase

space for private sector financing to support growth.

7. Addressing balance sheet weakness of credit unions is important to

safeguard membership savings, maintain financial inclusion and

minimize contingent fiscal cost. Capital and provisioning should be

increased to meet the regulation requirement while doubling the effort

to reduce NPLs. Options could include the use of retained earnings,

notably by prohibiting dividend distribution if undercapitalized, capital

calls to the membership, or through mergers to increase efficiency and

reduce operating cost. To this end, the government should approve

the already-prepared legislation to strengthen the enforcement power

of the Financial Services Unit (FSU). This legislation should be passed

without further delay and could be amended at a later stage when

there is agreement on harmonized regulation across the region. Also,

the legislation should be reviewed to ensure the regulator has enough

power to monitor and regulate high-interest pay-day lending, which is

accelerating—it explains the bulk of the loan portfolio growth in 2018.

Financial and human resources in the FSU need strengthening and

would benefit from technical support from international experts. To

strengthen regulation enforcement, the FSU should be established as

an independent entity outside the ministry of finance. It should also be

granted financial independence with the legal power to collect fees

and issue penalties for non-compliance.

8. Operations of the domestic insurance company should be

discontinued, considering its insolvency and inability to honour

outstanding claims following the hurricane. To this end, the

government should approve the FSU plan recommending intervention

and liquidation. Given the risk of natural disasters, strong regulatory

enforcement would enhance competition in the insurance market with

more participation of internationally-diversified institutions and risk

transfer.

9. Progress on improving AML/CFT legislation towards international

standards will help reduce the risk of losing correspondent banking

relationships. Ongoing actions to strengthen the AML/CFT framework,

in line with 2018 CFATF mutual evaluation recommendations, will

facilitate information access and coordination among all competent

authorities while improving the FSU’s analysis and enforcement. The

phase-out of the offshore banking sector should continue, and

approval of revisions to the Offshore Banking Act, including higher

capital requirements, license application process reform, and

enactment of regulations, should be expedited.

10. The private sector needs to play a more prominent role to sustain

growth in the long term:

To increase employment, legal constraints on working hours should be

removed and severance payments for redundancy should be reviewed.

Addressing educational gaps, in consultation with private employers, will

help improve labour force adaptability and facilitate mobility –important

considering seasonal demand in key sectors. The government could

reform existing employment programs to facilitate labour market entry

with on-the-job training in expanding sectors, especially tourism and

agriculture.

Ongoing efforts to review construction and zoning regulations should be

enforced strictly in light of vulnerability to natural disasters. This could

reduce insurance costs and help coverage.

With low-cost geothermal generation expected by mid-2021, reduction of

electricity tariffs will be feasible, improving competitiveness and reducing

dependence on imported fossil fuels.

11. Data provision has shortcomings due to resource constraints in the

statistical agency, resulting in insufficient coverage, accuracy,

frequency and timeliness of data. More timely and improved data

pertaining to the national and fiscal accounts, labour market, the

balance of payments, and non-bank financial institutions are needed

for improved economic monitoring, budget planning and policy

formulation. Stronger incentives could be adopted for the timely

provision of data to the Central Statistics Office by reporting public and

private entities.

<< Back to news headlines >>

Operator of Venezuelan PDVSA's fleet seeks to detain tankers: document,

sources Thursday 23rd May, 2019 – Reuters

German shipping firm Bernhard Schulte Shipmanagement (BSM) has

moved to legally detain three of Venezuelan PDVSA’s oil tankers to

collect on late payments owed to it by the state-run oil company,

according to a document seen by Reuters and sources close to the

decision.

PDVSA has struggled for years to pay its bills due to falling crude output

and limited cash flow, leaving it owing numerous firms worldwide. That

was even before the United States in late January imposed tough

sanctions on Venezuela’s oil exports, which have since dropped by more

than 40 percent.

BSM operated 13 of the 32 tankers owned by PDVSA and two Very Large

Crude Carriers (VLCCs) jointly owned by PDVSA and PetroChina,

according to the companies. In March, BSM started withdrawing staff

from PDVSA’s tankers to reduce its exposure to Venezuela and later

returned some of them to the firm.

Hamburg-based BSM is now looking to arrest - the legal term for

preventing a ship from moving, but short of an outright seizure - the three

tankers in question over debt accumulated by PDVSA.

“Due to the substantial fees due to BSM from owners we have placed

arrest on three of the tankers, the Arita in Singapore and the Parnaso and

Rio Arauca which are both in Lisbon, Portugal,” said a letter distributed

internally by BSM this month.

PDVSA crude and fuel exports have dropped to around 800,000 barrels

per day (bpd) so far in May, down from 1.4 million bpd just before

sanctions, according to PDVSA’s trade documents and Refinitiv Eikon

data.

BSM is not the only maritime firm taking action against PDVSA. U.S.-based

shipbroker McQuilling Partners in March ended a contract for providing

four tankers to PDVSA, citing sanctions.

The two maritime services firms handled a large portion of vessels leased

and owned by PDVSA. Without them, Venezuela is limited in its ability to

store oil, move cargoes between ports internally, and even export to

certain destinations.

On April 6, the Arita, owned by PDVSA’s subsidiary Albanave and

operated by a unit of BSM, was detained in Singapore by law firm Gurbani

& Co on behalf of BSM, according to the country’s Supreme Court

website and a source familiar with the matter.

BSM’s attempt to arrest the Parnaso and the Rio Arauca in Portugal has

been more complicated. Those two vessels have been moored in that

country’s waters since 2017 due to disputes with shipping firms and fuel

providers in Portugal, along with Lisbon’s Port Authority.

BSM, Lisbon Port Authority and PDVSA’s maritime unit PDV Marina

declined to comment. PDVSA did not respond to a request for comment.

In March, it said its relationship with BSM had not ended.

The amount owed by PDV Marina to BSM globally at the end of 2018 was

at least $15 million, according to a source at the company and another

document seen by Reuters early this year.

The Arita, an Aframax vessel that can hold up to 700,000 barrels of oil, has

not navigated much since it first set sail at the end of 2017, as it was

hampered by a dispute between PDVSA and Iranian shipyard Sadra that

kept it from being used. Following a few trips to China and Indonesia in

2018, it has remained in Singapore since April with its engine

“immobilized,” according to Refinitiv Eikon tanker tracking data.

FEW OPTIONS FOR PDVSA

BSM has returned four vessels to PDVSA and plans to return another nine

by the end of June, but the process “has proven to be challenging and

time consuming,” the company said in the internal letter. The two VLCCs

jointly owned by PDVSA and PetroChina have not been included in the

plans.

PDVSA has struggled to hire maritime services due to sanctions and

mounting bills. It has started talks with a Venezuela-based firm, Blue

Oceanic Services CA, for placing crew and supplying food and provisions

to some tankers, the same source added.

Blue Oceanic Services did not respond to requests for comment.

In recent weeks PDVSA has asked some tankers to switch off transponders

while in Venezuelan or Cuban waters, which could be to avoid detection

due to U.S. sanctions on Venezuelan shipments, according to captains,

inspectors and shipping sources. It has also sought to beef up security by

putting military officers on certain vessels, the company said.

<< Back to news headlines >>

Shippers raise rates for cargo from U.S. to Venezuela: documents, sources Monday 27th May, 2019 – Reuters

Two major shipping lines this month have raised their rates for transporting

goods from the United States to Venezuela, according to three industry

sources and two documents, as U.S. sanctions limit transit between the

two nations.

Washington on May 15 banned direct flights between the United States

and Venezuela, citing safety concerns, as part of a broad package of

sanctions meant to pressure Nicolas Maduro into resigning as president of

the crisis-stricken country.

Citizens and social service organizations often depend on air and sea

shipments for basic food and medicine in the hyperinflationary nation

where a monthly minimum-wage salary barely pays for a single meal.

Shipping lines Hamburg Sud and King Ocean Services have added a

surcharge of $1,200 per container of cargo that leaves the United States

for Venezuela after May 15, according to documents seen by Reuters.

That service has in recent months been costing between $3,000 and

$5,000, depending on the cargo, according to two sources at local ports.

“Shipping companies have increased the cost of their services because of

the risk involved in coming to Venezuela with sanctions,” said a local

shipping industry source who asked not to be identified.

Hamburg Sud and King Ocean Services did not respond to requests for

comment.

In 2016, shipping lines were charging up to three times more to travel to

Venezuela than to other South American countries, according to fee

schedules seen by Reuters at the time.

U.S. sanctions do not prevent shipping lines from delivering goods to

Venezuela.

Washington in April sanctioned four shipping companies and nine oil

tankers it said were involved in oil shipments to Cuba.

<< Back to news headlines >>

Protest stalls production at JISCO Alpart Tuesday 28th May, 2019 – Jamaica Observer

Several hours of production time were lost as residents from surrounding

communities blocked the entrance to the bauxite/alumina JISCO Alpart

plant here early yesterday to protest against environmental pollution and

related issues.

The protest, which started at daybreak, continued until minutes after 10:00

am when the JISCO Alpart management agreed to meet with residents,

community leaders and political representatives.

It was only then that employees who had been arriving since early

morning for the start of their day-time shifts entered the plant.

The meeting involving more than 50 residents — mostly women — political

representatives, and community leaders ended after two hours with

agreement for the setting up of a monitoring committee which will meet

fortnightly and report to residents on the progress of efforts by the

company to reduce emissions.

The committee will also seek to maintain communication links between

the JISCO Alpart management and residents in order to prevent incidents

such as occurred yesterday.

Member of Parliament for St Elizabeth South Eastern Frank Witter (JLP),

Councillor Layton Smith (PNP, Myersville Division), head of the Alpart

Community Council Len Blake, and members of the Alpart management

including Managing Director Zhang Jun were among those at the

meeting.

The protest action was apparently triggered by what residents of New

Building, in particular, claimed was a long delay in getting a report from

JISCO Alpart about dust/air pollution as well as what they considered

inadequate compensation to householders and farmers.

Residents said heavy rain over recent days had also made a pungent

smell emanating from the plant near unbearable.

Nain resident Joseph Genus repeated numerous claims made by residents

down the years that emissions were making people sick. “Sinus problems,

people feel bad, people drop down... when the scent tek mi, mi can't eat

and mi sick same way...,” said Genus.

He argued that if the emission problems could not be resolved, JISCO

Alpart should relocate people who live close to the refinery.

At the meeting, the JISCO Alpart management repeated previous

pledges that it is now in the process of rehabilitating the 50-year-old plant

and that the problem of industrial emissions will be significantly reduced

by the end of December.

The management team also reiterated that the method of allocating

some forms of compensation for damage from emissions is being

reviewed with a view to improved arrangements.

“Alpart is an old plant, and we are doing a lot of modifications to correct

the issues. I can tell you that it won't be corrected overnight... but over

time a lot of odour and emission issues will be taken care of,” JISCO

Alpart's Communications Manager Julian Keane told journalists following

the meeting.

Political representatives Witter, Smith, and the Opposition People's

National Party (PNP) caretaker for St Elizabeth South Eastern Dr Dwaine

Spencer all seemed to agree that poor communication between Alpart

and some communities around the plant was a fundamental part of the

problem.

However, Keane told the Jamaica Observer that JISCO Alpart has been

at pains to explain to residents, in recent meetings, its plans to modernise

the plant, reduce emissions, and improve compensation arrangements.

<< Back to news headlines >>

NCB to reimburse late fees to customers affected by salary delays Monday 27th May, 2019 – Jamaica Gleaner

National Commercial Bank Jamaica Limited (NCB) says it will be

reimbursing late fees to customers impacted by the recent delayed salary

payments.

To request reimbursement, customers are to visit a branch and speak with

their Relationship Officer or Branch Manager or send an email to

salary@jncb.com along with any supporting documentation.

NCB says reimbursements are available for customers who incurred late

payment fees for utility companies as well as loans and credit cards held

at other financial institutions due to the delayed payments.

The bank says it will ensure that customers do not incur late fees on NCB

loan and credit card facilities.

“For customers concerned about the impact of late payments on their

credit report, we will be working closely with the credit bureaus and other

stakeholders to mitigate this,” said Patrick Hylton, President and CEO of

the NCB Financial Group.

“We recognise the toll that these challenging outcomes of our system

upgrade have had on our customers, and we’re doing everything we can

to rectify the situation,” Hylton added.

Meanwhile, NCB says it will be extending the opening hours of its branches

today Monday, May 27 and tomorrow Tuesday, May 28 to 3:30 p.m. to

facilitate customers who want to do their banking in-branch.

Customers are also reminded that they can use an iABM in any of NCB’s

24-hour Bank on the Go locations island-wide to view balances, make

credit card and utility bill payments, transfer, withdraw and deposit funds

to their accounts.

“We know that a lot of customers rely on the convenience of our online

banking and mobile app platforms, so our teams are working around the

clock to fully restore these services,” Hylton noted.

<< Back to news headlines >>

Social welfare database launched Tuesday 28th May, 2019 – Barbados Today

An online platform called the Social Development Agency Directory

(S.D.A.D) is now available to allow agencies to share information about

vulnerable clients seeking help from Non-Governmental Organisations

(NGOs) and social service agencies.

President of the Barbados Vagrants and Homeless Society (BVHS) Kemar

Saffrey said the new platform would be made accessible to NGOs, civil

society groups, Government agencies, community groups, and funding

agencies in Barbados who work directly with persons seeking social

services, as well as those in dire need of assistance in obtaining basic

goods and supplies.

Today, representatives of Government agencies and NGOs, gathered at

the Courtyard by Marriott in Hastings, Christ Church for the S.D.A.D’s

official launch.

Saffrey, who played an instrumental role in creating the platform, which

he said already has information about BVHS’ clients, said S.D.A.D would

allow agencies to track and carefully access the information and needs

regarding clients.

“Too many times we have clients going from one agency to another, and

we don’t have any way of tracking where that client went and what

services that client received.

“So this system now would allow you to insert what agency the client went

to, what services were rendered to them and an indication of what

services they still needed.

“So for example, when they come to the BVHS I can easily go onto the

platform and see that this person came from welfare having received a

food voucher and this person also went to psychiatric hospital and

received mental health services,” he said.

Saffrey also noted that another objective of the creators of the directory

was also to assist with clamping down on persons who misuse and abuse

social services.

The president said too often he has dealt with clients who left BVHS and

immediately went on to the Welfare Department and other agencies,

accessing assistance they would have already received.

“You find that people are abusing it. Then we have persons when they go

for these services they can’t get.

“Why? Because you are rendering all your services to one person, several

agencies giving to one person and it really puts a burden on the

organisation. The good thing about this system now is that it can track the

individual’s whereabouts,” Saffrey explained.

Saffrey said the platform would allow students conducting research on

the state of homelessness and other issues affecting the island’s social

landscape, to collect up-to-date information logged in the directory.

He said once students provided necessary information about themselves

and the institution they represent, they would receive information through

a controlled process.

“On this platform we can send information to university students, and

Government, without having to put together information all over again.

There are graphs we can send you, there are real statistics we can send

you, like how much persons went through the welfare system, because

each section on the platform generates a graph and statistics that could

be shared,” he added.

Saffrey said that he was awaiting responses from agencies regarding

whether they would join the S.D.A.D.

<< Back to news headlines >>

Gov. to relocate 371 families to pave way for dam in the South Friday 24th May, 2019 – Dominican Today

The Government will relocate 371 families from the areas of influence of

the dam being built at Monte Grande, Barahona (south), where it will

provide housing and lots.

The heads of the dams and canals agency (Indrhi), Olgo Fernández, and

the Dominican Agrarian Institute (IAD), Emilio Toribio Olivo, made the

announcement after signing an agreement.

They told families living in several villages and Monte Grande they’ll be

given concrete homes on round 70 hectares.

“The lots that the 371 families cultivate are not their own and those that

will be delivered will be definitive owners and will have irrigation by

gravity,” the officials said in a statement.

<< Back to news headlines >>

Utility bows to protests, will pay power plant workers Thursday 23rd May, 2019 – Dominican Today

State Electric Utility (CDEEE), Rubén Jiménez Bichara, on Thurs. said that

during construction of the Punta Catalina power plant at times the payroll

exceeded 10,000, but as the work ended, the majority of workers has

been laid off.

The announcement comes hundreds of current and former workers

staged various protest to demand the payment of owed bonuses.

Jimenez said that as a “form of gratification and social contribution”

president Danilo Medina authorized the CDEEE, so that Dominicans who

worked in the CDEEE for up to one year, get a payment of 50% of a

monthly salary.

He said that employees who worked for up to two years will get 65% of a

month’s salary; those who worked up to three years will get 80% of a

month’s salary and those who have worked for over three years will get a

bonus of one month’s salary.

<< Back to news headlines >>

Direct foreign investment jumps 28.2% to US$803.7M in 1Q Thursday 23rd May, 2019 – Dominican Today

Central banker Hector Valdez Albizu, revealed Wednesday that direct

foreign investment reached US$803.7 million from January to March, or

28.2% higher than the same period in 2018.

He said the investments are mainly channelled to the communications,

tourism and real estate sectors, “reaffirming that we are an attractive

destination and leader in this area in Central America and the Caribbean

in recent years.”

Valdez, accompanied by a Central Bank technical team, provided the

figures during a meeting with international investors.

He also stressed the Dominican economy’s good performance, as well as

what he affirms are favourable prospects for investment in the country.

He added that the investment, mainly of private origin, has climbed more

than 10% during six consecutive quarters.

<< Back to news headlines >>

Oil blocks probe… ExxonMobil willing to cooperate with SARA Tuesday 28th May, 2019 – Kaieteur News

ExxonMobil’s Head of Government and Public Affairs, Deedra Moe, says

that the company would be willing to cooperate with the State Asset

Recovery Agency (SARA) which is probing the award of oil blocks it holds

offshore Guyana.

The news of the investigation by SARA was first reported by

Bloomberg.com, which quoted the agency’s head, Dr. Clive Thomas, as

saying that the Stabroek, Kaieteur and Canje Blocks, all operated by

ExxonMobil, will be part of the inquiry, as well as the Orinduik Block

operated by Tullow. The Kaieteur and Canje Blocks were given out by the

Ramotar administration just days before the 2015 General and Regional

Elections.

Moe told Kaieteur News that the company has seen the media report on

the issue, but it has not been contacted by the government in relation to

it. The official stated nonetheless that, “ExxonMobil followed all applicable

laws and regulations in acquiring its government approved licences.”

In the meantime, Head of Transparency International Guyana Inc. (TIGI),

Dr. Troy Thomas, said that he is pleased with the recent disclosure that the

award of offshore oil blocks to the likes of ExxonMobil is being probed by

the State Asset Recovery Agency.

TIGI’s head said that the investigation is necessary since the

circumstances under which the blocks were given out do raise concerns.

The TIGI Head had said, “…I know former President Donald Ramotar had

rebutted arguments about the giveaway of our assets just before

elections. But I think a full investigation would serve us well…The award of

contracts should be an open process, especially as it relates to oil. I don’t

think we can afford for contracts to be done in the dark.”

The official added, “At the end of the day, people have a right to know

how their resources are being given out. So SARA is doing the right thing in

this regard…”

The TIGI Head said that SARA’s investigation should also ascertain what

scope there might be for reclaiming any of the offshore assets that were

not awarded in a fair manner. He had said too, that the anti-corruption

body should hire all the technical help it needs to ensure this investigation

it is pursuing is a success as it is a matter of national interest.

<< Back to news headlines >>

Dpm: Deficit Target In Reach With $400m Cut Monday 27th May, 2019 – Tribune 242

The deputy prime minister has signalled that the government remains on

track to hit its main 2018-2019 fiscal target by touting a $400m reduction in

the annual deficit since it took office.

Addressing the UHY accounting firm’s Americas confidence on Friday, K

Peter Turnquest, pictured, disclosed figures ahead of this week’s 2019-2020

budget that hint the Minnis administration will bring the fiscal deficit in

within range of its $237m target for the current fiscal year.

“In just two years the government reduced the deficit by over $400m,

which is significant for a small country,” Mr Turnquest said. “It was not easy

to do, and it required making some difficult decisions, but our

commitment to restore the country’s fiscal health and maintain the

standard of living was resolute. With the growth numbers out, we are now

seeing the fruits of that.”

Given that the fiscal deficit for the final year of the Christie administration,

2016-2017, was said to have been $661m, the reduction cited by Mr

Turnquest indicates the “red ink” - or amount by which the Government’s

spending exceeds its income - will come in around the 1.8 percent of GDP

target set out in the Fiscal Responsibility Act.

Giving an upbeat assessment of The Bahamas’ economic prospects, Mr

Turnquest focused on the 1.6 percent real GDP growth achieved in 2018

as a sign that the Government’s economic and fiscal policies are starting

to bear fruit.

“Over the past two years the Government has worked incredibly hard to

set The Bahamas on a sustainable path. Just five years ago, the country

experienced negative growth at -3 percent. For several years, it struggled

to arrest the decline,” he added.

The deputy prime minister described last year’s 1.6 percent real GDP

expansion as “a significant turnaround” compared to the “mild” 0.4

percent growth average achieved over the prior three years, although

the performance under-shot both the International Monetary Fund’s (IMF)

2.3 percent forecast and the Government’s own 2.2 percent.

Still, Mr Turnquest said: “It is worth noting that private sector performance

was the main driver behind the upward momentum.... Household

consumption also increased during this period by $140m, and exports of

goods and services increased by $244m.

“In the tourism industry, a combination of healthy gains in visitor arrivals,

increased room availability and expanded airlift have caused a major

rebound as well. In 2018, tourism numbers were up by 16.9 percent, and

that trend is projected to continue throughout 2019.”

Mr Turnquest added that The Bahamas will have “fully transitioned” to the

new chart of accounts for government financial reporting when the new

fiscal year starts on July 1, 2019, bringing it into line with international

standards and best practices. The new Public Financial Management Bill is

due to be ready for year-end.

Pointing to the end to so-called “ring fencing” in the financial services

sector, the deputy prime minister said: “For the past 50 years we have

approached regulation from the standpoint of whether an individual or

entity was resident or non-resident.

“This legal framework of privileges and benefits to non-residents was

inherited many decades ago. It served its purpose at the time as a way to

encourage the inflow of foreign exchange. However, today, it doesn’t

work. We are adopting a new approach that brings fairness to the system.

We are adopting a new way that positively shifts the overall value

proposition of The Bahamas’ financial sector.”

Mr Turnquest continued: “As we move into an increasingly digital

economy, where the rules of tax jurisdiction becomes more and more

complex, and states become more and more aggressive in cross-border

taxation, countries like The Bahamas have to adapt.

“The skill level of our labour force has to be a part of our value proposition.

Ease of doing business has to be a part of our competitive edge. The

structural reforms needed to make these plans a reality are underway. In

any country, structural reforms take time. With some of our initiatives, we

still have a long way to go, but we are making measurable and

meaningful progress.”

<< Back to news headlines >>

Nassau’s cruise port redevelopment significant to economic impact Monday 27th May, 2019 – Caribbean News Now

Nassau’s cruise port redevelopment could lead to a significant increase in

the gross domestic product (GDP) for The Bahamas by 2023, president of

Colina Financial Advisors Ltd (CFAL) Anthony Ferguson said Wednesday,

adding that the heads of agreement with the government on the project

could be concluded within six weeks.

Ferguson said, “The economic impact is going to be up to $18 billion or

$20 billion so as a result of that [GDP] will increase, when you think about it

if you divide that, probably between 0.5 percent and one percent.”

When Ferguson was asked if the GDP increase would occur before 2021,

he answered, “No, no, no, no. Once it’s fully operational so that wouldn’t

happen before, probably in the beginning of 2022 or 2023, you will begin

to see a noticeable increase, a sustainable increase in the GDP

contribution.”

It was announced in February that the bid to redevelop and manage the

Port of Nassau, heralded as the world’s busiest cruise port, was won by

Global Ports Holding (GPH). Ferguson said, in reference to the heads of

agreement for the project, “It’s in negotiations, so hopefully within the

next month, six weeks, it will be concluded.”

Ferguson highlighted that the agreement would be “the best heads of

agreement for Bahamians” and would guarantee “Bahamian-only retail

space.”

He also said the environmental impact assessment (EIA) would begin prior

to the end of the year. “They have engaged an environmental consulting

company and they will, I guess, commence work shortly,” Ferguson said.

According to Ferguson, about 85 percent or 90 percent” of the

employees operating the port when it is completed will be Bahamian.

CFAL is the lead investment management firm that will develop and

create the Bahamas Investment Fund and also a collaborator for the port

development project.

It is expected that roughly 30,000 Bahamians will partake in the public

offering for the cruise port. To acquire the most significant share of

Bahamians invested in the port, GPH is providing a $10 million loan for

Bahamians to borrow up to $1,000 so that they can invest in the project.

Those investment opportunities are expected to begin by the end of the

year.

The project has been billed as a game-changer coming to The Bahamas.

Port Nassau is a $250 million project that will dramatically redevelop a port

that draws around 4 million travellers every year.

The proposal involves plans to convert the port into a “state of the art port

and waterfront destination” managed by Nassau Cruise Port Ltd, a

speciality purpose vehicle created for the project.

The proposal calls a completely transformed port and welcome centre,

additional “mega berths” to accommodate some of the world’s largest

cruise ships, and a “state-of-the-art entertainment pavilion” for local and

international acts and even a Bahamian Junkanoo Museum, among

other amenities.

It is expected to be the third significant port for GPH, which also operates

ports in Antigua and Havana, Cuba.

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