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REGIONAL
Trinidad and Tobago
EDAB chairman: Prioritise PSIP projects Chairman of Economic Development Advisory Board (EDAB) Terrence Farrell is calling for projects under the Public Sector Infrastructure Program (PSIP) to be prioritised in order to achieve T&T’s diversification goals at a faster rate.
Unilever dips $1.26 Overall Market activity resulted from trading in 15 securities of which 4 advanced, 2 declined and 9 traded firm.
Unicomer invests US$50m-plus in Freeport The limited supply of foreign exchange (forex) has led some contractors to seek payment in US dollars from Unicomer Group — parent company of Courts — during construction of the Unicomer Freeport Campus.
Angostura profits tumble 21 per cent* Angostura Holdings Ltd yesterday reported a 21 per cent decline in its after-tax profit for the nine-month period ending September 30, 2017.
Jamaica
Gov't looking at stamp duty/transfer tax effect on NHT transactions Leader of Government Business in the Senate, Kamina Johnson Smith, assured members recently that the Ministry of Finance and the Public Service is actively reviewing the effect of stamp duty and transfer tax charges on National Housing trust (NHT) transactions.
Southwest Airlines increases flights to MoBay Southwest Airlines, ranked as the world's largest low-cost carrier, has increased its service between its home base, Dallas, and Montego Bay to two flights daily.
Gallimore going after all outstanding PC bank debt Errol Gallimore, Registrar of the Department of Cooperative and Friendly Societies, DCFS, says nearly half of the loan portfolio of the National People's Co-operative Bank is in arrears, but he plans to collect all the outstanding debt.
Jamaica cont’d.
IMF Praises Jamaica’s Performance The International Monetary Fund (IMF) has given high marks for Jamaica’s performance under the Stand-By Arrangement (SBA) with the Fund, saying “commitment to the economic reform programme remains strong”, with “economic indicators at historical highs, supported by a favourable macroeconomic environment”.
Barbados
On schedule – Sam Lords castle development remains on track - Layne Barbadians should be able to see physical structures going up on the site of the former Sam Lord’s Castle in St Philip by January next year.
Insurance sector worried about number of road fatalities Insurance companies here are expressing concern over the increasing number of road fatalities, which they blame on “lawlessness”, “indiscipline” and intoxication.
Tax amnesty to end on November 30 The Barbados Revenue Authority has reminded individuals and businesses that this year’s Tax Amnesty Programme ends on Thursday, November 30.
Barbados Regulator Increases Pressure on Utility Providers to Improve Service The Fair Trading Commission (FTC) is bringing the hammer down on this country’s utility providers, Barbados Light & Power (BL&P), the Barbados Water Authority (BWA) and Cable & Wireless (C&W), which operates in the island as FLOW.
The Bahamas
Bahamas Eyes $8.1m Boost From New Airlift The Bahamas is expected to gain 19,000 room nights and $8.1 million in annual extra visitor spend through the start of weekly non-stop airlift from Germany.
$4.5 BN Oil Refinery for Grand Bahama The Government is said to be "embracing" a potential $4.5 billion oil storage terminal and refinery planned for east Grand Bahama, Tribune Business can reveal.
The Bahamas cont’d.
Gov't Causes GB Power 'Concern' Over Buy-Out GB Power and its majority investor have admitted to "concerns" over the Deputy Prime Minister's suggestion that the Government will further review the already-approved $35 million buy-out.
Shipping line increases weekly services between Fort Lauderdale and Grand Bahama The shipping line Baleària Caribbean, which operates the fast ferry Jaume I, is adding a new weekly service starting on Monday, November 13, between the island of Grand Bahama and Fort Lauderdale. From then on, the company will offer the route daily except Wednesdays in order to provide its customers with more options.
Guyana
Jagdeo to seek verification of ExxonMobil ‘$20M signing bonus’ for Gov’t. While the coalition Government remains tight-lipped on its dealings with ExxonMobil, Opposition Leader Bharrat Jagdeo says he plans to verify with United States oil giant about the alleged US$20 million signing bonus.
St. Lucia
Saint Lucia Investment Migration Program first in the world for investment requirements Saint Lucia’s citizenship-by-investment program has secured the top spot in terms of Investment Requirements, Residence Requirements and Physical Visit Requirements in the Global Residence and Citizenship Programs 2017–2018 report.
Belize
WestJet begins direct flight to Belize from Calgary, Canada A brief inaugural ceremony was held at the Philip Goldson International Airport on Friday, November 3, to commemorate WestJet’s new non-stop weekly service between Calgary, Canada, and Belize. According to WestJet, the service is part of the airline’s seasonal schedule for the winter of 2017-18.
British Virgin Islands
Branson meets with IMF for BVI Billionaire Sir Richard Branson who owns two of the outer islands in the territory said he has held talks with the International Monetary Fund (IMF) on behalf of the British Virgin Islands.
Venezuela
Venezuela's PDVSA misses debt payments to India's top oil producer Venezuelan state oil-firm PDVSA has not made debt payments to India’s top oil producer ONGC (ONGC.NS) for six months, and has previously used a Russian state-owned bank and another Indian energy company as intermediaries to make payments, two sources familiar with the transactions said on Wednesday.
Other Regional
44th COTED meeting opens here today Caribbean Community (CARICOM) Trade Ministers will today begin a two- day meeting at the Marriott Hotel to review the free movement of regional goods and services under the CARICOM Single Market and Economy (CSME) initiative.
INTERNATIONAL
United States
Dollar slips vs yen on U.S. tax reform doubts The dollar slipped against the yen on Thursday, pressured by talk of possible delays to U.S. President Donald Trump’s tax reform plans and lower Treasury yields.
Stock futures lower after Wall Street's record run U.S. stock index futures were slightly lower on Thursday, a day after Wall Street closed at a record high, as investors fretted about possible obstacles to a Republican tax bill that the lawmakers are debating.
United Kingdom
Sterling skirts Westminster turmoil, holds steady vs dollar Britain’s sterling inched up on Thursday as expectations for a gradual tightening of policy from the Bank of England protected the pound from the political turmoil engulfing Prime Minister Theresa May’s government.
Europe
European shares dip slightly as more third-quarter earnings announced European shares opened in negative territory on Thursday, as a flurry of corporate earnings for the third quarter triggered sharp price moves, many negative, across some sectors and bourses.
China
China plans pilot scheme easing foreign auto firms' ownership limits China will start a pilot scheme in the first half of next year, aiming to relax restrictions on foreign firms’ ownership of new energy and special use vehicles businesses set up in free trade zones, the foreign ministry said on Thursday.
China blue-chips end at 2-yr high as inflation signals economy remains robust China stocks rose on Thursday, led by the blue-chip index scaling a fresh two-year high, as investors were encouraged by strong inflation data that showed economic momentum remains robust.
Chinese firms set for best quarter in 4 years Corporate China is set to clock its best quarter in four years, according to results from two-thirds of the country’s listed firms with a market capitalisation of at least $500 million.
Japan
JGBs largely down, underpinned by volatile stocks Most Japanese government bonds edged down on Thursday, while super- long maturities came off their highs after a 30-year bond sale.
Japan cont’d.
Moody's: Japan megabanks can accumulate capital to support their credit profiles, despite weak core profitability Moody's Japan K. K. says that the three mega bank groups in Japan (A1 stable) can continue accumulating capital to support their credit profiles, because of the growth in their non-core income, despite their weak and deteriorating core profitability.
Global
Oil prices stabilize just below two-year highs Oil prices steadied just below two-year highs on Thursday, supported by supply cuts by major exporters, but analysts said the market could be vulnerable to a sell-off after several months of gains.
Dollar slips vs yen on U.S. tax reform doubts Thursday 9th November, 2017 – Reuters
The dollar slipped against the yen on Thursday, pressured by talk of possible delays to U.S. President Donald Trump’s tax reform plans and lower Treasury yields.
The “Trumpflation trade” -- bets that Trump’s policies would boost growth and inflation, meaning a faster pace of U.S. interest rate hikes -- had driven the dollar to 14-year highs in the aftermath of his election, and 10- year U.S. Treasury yields to their highest since 2014 at more than 2.6 percent.
But they and the dollar have since fallen back.
It was down a third of a percent on Thursday at 113.46 yen, just above an eight-day low hit on Wednesday and remaining well below an eight- month high of 114.735 yen set on Monday.
The U.S. 10-year Treasury yield - which is closely correlated with the dollar/yen rate - stood at 2.329 percent, having retreated from a seven- month high of 2.477 percent set in late October.
“Treasury yields have backed off and I don’t think anyone is terribly optimistic about what we’re going to get from the Republican tax plan,” said Societe Generale macro strategist Kit Juckes.
The euro held steady at $1.1592, staying above a trough of $1.1553 set on Tuesday, its lowest since July 20.
“There’s a bit of a sense that the euro/dollar correction aside, there’s not much to push the dollar higher,” Juckes added.
A U.S. Senate tax-cut bill, differing from one in the House of Representatives, was expected to be unveiled on Thursday, complicating a Republican tax overhaul push and increasing scepticism on Wall Street about the effort.
Any potential delay in the implementation of tax cuts, or the possibility of proposed reforms being watered down, would tend to work against the dollar, analysts said.
“(It) could go through a weakening phase on the back of uncertainty around that tax reform,” said Steven Dooley, currency strategist for Western Union Business Solutions in Melbourne.
The dollar was flat at 94.903 versus a basket of six major currencies, below a three-month high of 95.150 set in late October.
The New Zealand dollar touched a two-week high after comments from the country’s central bank on the inflation outlook were taken as hawkish, as it kept interest rates unchanged as expected.
The currency rose as high as $0.6977, its strongest level since Oct. 24, before dipping to trade at $0.6969, flat on the day.
(Reporting by Jemima Kelly; Additional reporting by Masayuki Kitano in Singapore; editing by John Stonestreet)
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Sterling skirts Westminster turmoil, holds steady vs dollar Thursday 9th November, 2017 – Reuters
Britain’s sterling inched up on Thursday as expectations for a gradual tightening of policy from the Bank of England protected the pound from the political turmoil engulfing Prime Minister Theresa May’s government.
A string of scandals leading to two resignations from the cabinet in the space of just one week has raised doubts over the Conservative government’s ability to secure a strong deal in negotiations over Britain’s leaving the European Union, due to restart later in the day.
However, sterling remained broadly stable on Thursday, as high levels of uncertainty in British politics have largely been priced in by the markets, analysts said.
“In the short-term, political uncertainty will remain high. But it is unlikely to rise even further,” Credit Agricole Currency Strategist Manuel Oliveri said.
“A lot would be needed to derail political sentiment even further,” he said.
Foreign aid Minister Priti Patel was forced from office on Wednesday over undisclosed meetings with Israeli officials, just days after May’s ally Michael Fallon, the Defence Secretary, resigned in a sexual harassment scandal.
The pound was flat against the dollar on Thursday, trading at $1.3116 at 0911 GMT. It was also flat against the euro, at 88.41 pence.
It marks a brief respite for the currency following a heavy sell-off last week after the Bank of England raised interest rates for the first time in over a decade but told investors to expect just two more hikes in the next three years. “(Now) stable rate expectations are counterbalancing political risk,” Oliveri said.
Sterling took a hit on Wednesday from falling bond yields as the gilt yield curve flattened to its lowest level in more than a year. The yield spread between two- and 10-year gilts narrowed to 75.9 basis points, its lowest level since early October 2016.
(Reporting by Polina Ivanova; Editing by Angus MacSwan)
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China plans pilot scheme easing foreign auto firms' ownership limits Thursday 9th November, 2017 – Reuters
China will start a pilot scheme in the first half of next year, aiming to relax restrictions on foreign firms’ ownership of new energy and special use vehicles businesses set up in free trade zones, the foreign ministry said on Thursday.
In a statement issued after a meeting of U.S. President Donald Trump and China President Xi Jinping, the ministry also said it would gradually cut tariffs for vehicles.
The pledge comes as Tesla (TSLA.O) plans a factory in Shanghai. The electric car maker wants to expand its presence in China’s growing electric vehicle market without compromising its independence or intellectual property norms.
China, which levies a duty of 25 percent on imported vehicles, has not allowed foreign automakers to establish wholly owned factories in the world’s largest auto market. Media say it is considering allowing foreign investors to increase stakes in new electric vehicle firms.
The foreign ministry also urged the United States to ease controls on exports of high-tech products to China and support China International Capital Corp Ltd.’s (3908.HK) application for a financial business license in the country.
(Reporting by Beijing Monitoring Desk and Brenda Goh in Shanghai; Writing by Se Young Lee; Editing by Clarence Fernandez)
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Oil prices stabilize just below two-year highs Thursday 9th November, 2017 – Reuters
Oil prices steadied just below two-year highs on Thursday, supported by supply cuts by major exporters, but analysts said the market could be vulnerable to a sell-off after several months of gains.
Brent crude oil LCOc1 was up 20 cents at $63.69 a barrel by 1120 GMT. On Tuesday, Brent reached an intra-day high of $64.65, its highest since June 2015.
U.S. light crude CLc1 was 15 cents higher at $56.96, just shy of this week’s more than two-year high of $57.69 a barrel.
Traders said a rally that has pushed up Brent by more than 40 percent since July may have run its course.
“Prices may have reached a short-term peak,” said Fawad Razaqzada, analyst at futures brokerage Forex.com.
Prices have been supported by moves led by the Organization of the Petroleum Exporting Countries and Russia to limit supplies in order to tighten the market.
OPEC will discuss output at a meeting on Nov. 30, and is expected to extend the limits beyond their expiry in March 2018.
“With the OPEC/non-OPEC deal extension beyond March 2018 a certainty, prices may become stronger and temporarily reach the $65-$70 per barrel range in 2018,” said energy consultancy FGE.
Despite this, some analysts say the price rally of the past months may have run its course, at least for now.
“As we get into 2018 and 2019, more oil is coming onto the market, a lot of it from U.S. tight oil,” said Simon Flowers, chief analyst at Wood Mackenzie energy consultancy.
“So this (rally) will prove quite short-lived and we’ll see the price back into $50-$55 a barrel over the next year or two.”U.S. crude stockpiles C-STK-T- EIA rose 2.2 million barrels in the week to Nov. 3, to 457.14 million barrels, the Energy Information Administration said on Wednesday.
U.S. crude production rose 67,000 barrels per day to 9.62 million bpd, the highest for decades.
Output looks set to rise further. Texas issued 997 oil and gas drilling permits last month, up nearly 17 percent versus the same month a year ago.
Global fuel consumption remains strong, although the latest figures from top importer China were below expectations.
Key for the last weeks of 2017 is whether traders remain confident about their huge bets on further price rises, or if they sell out, satisfied with recent strong gains.
“It doesn’t matter how bullish the fundamentals are ... when an asset goes vertical there is always room for a pullback and consolidation of recent price moves,” said Greg McKenna, Chief Market Strategist at brokerage AxiTrader.
(Additional reporting by Henning Gloystein in Singapore; Editing by Susan Fenton, Larry King)
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China blue-chips end at 2-yr high as inflation signals economy remains robust Thursday 9th November, 2017 – Reuters
China stocks rose on Thursday, led by the blue-chip index scaling a fresh two-year high, as investors were encouraged by strong inflation data that showed economic momentum remains robust.
The blue-chip CSI300 index rose 0.7 percent, to 4,075.90 points, while the Shanghai Composite Index closed up 0.4 percent to 3,427.79 points.
China’s producer prices were surprisingly strong in October, while consumer inflation picked up pace, suggesting the economy remains robust, easing market concerns of a slowdown.
“The upshot is that price pressures in China appear strong on the back of still rapid economic growth, a tight labour market, capacity cuts and temporary disruptions to industrial production,” Julian Evans-Pritchard, China Economist at Capital Economics, wrote in a note to clients.
Sentiment was also aided by Chinese media reporting that stock fund sales have begun to pick up in recent months in China, potentially channelling fresh money into the market.
Underscoring rising risk appetite in China, outstanding margin loans - money investors borrow to buy stocks - has stayed for four consecutive days above 1 trillion yuan, a level not seen since January, 2016.
Most sectors gained ground on Thursday.
The country’s largest coal miner China Shenhua Energy leapt 7.4 percent, leading the advance in the energy sector, boosted in part by a recent bull run in oil markets. Banking and transport firms lagged, down 0.4 percent and 0.2 percent, respectively.
In a sign of continued interest in sector leaders with solid fundamentals, home appliance maker Qingdao Haier extended gains to a new high, after data showed international investors boosted bets via Shanghai-Hong Kong stock connect.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Shri Navaratnam)
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Chinese firms set for best quarter in 4 years Thursday 9th November, 2017 – Reuters
Corporate China is set to clock its best quarter in four years, according to results from two-thirds of the country’s listed firms with a market capitalisation of at least $500 million.
A Thomson Reuters analysis of results from 2,048 companies shows profits over July to September jumped 23 percent on an average from a year ago, the highest growth rate since end-2013.
The results for corporate China were better than market estimates, beating by about 14 percent the mean of forecasts from brokers polled by Thomson Reuters.
Profit aggregate for the firms used in the analysis rose to 780 billion yuan ($118 billion) in the quarter, the highest in at least 5 years.
Profits in energy, metals and telecommunication services sectors more than doubled in the quarter from a year ago. Profits for financials, which contribute the most to the total, grew at a high-single-digit pace. The only sector to post a decline was utilities.
Thirteen percent of the companies - including blue chips Air China Ltd, Baoshan Iron & Steel Co Ltd, Gree Electric Appliances Inc. of Zhuhai and Kweichow Moutai Co Ltd - posted their highest quarterly profits in at least five years.
($1 = 6.6287 Chinese yuan renminbi)
(Reporting by Gaurav S Dogra; Editing by Himani Sarkar)
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European shares dip slightly as more third-quarter earnings announced Thursday 9th November, 2017 – Reuters
European shares opened in negative territory on Thursday, as a flurry of corporate earnings for the third quarter triggered sharp price moves, many negative, across some sectors and bourses.
The pan-European STOXX 600 was down 0.1 percent, failing to recover from the previous session’s dip and ignoring new highs in Asia and on Wall Street.
“My feeling is that there is some kind of skepticism that is a little more present in Europe, as the main drivers of the markets, notably the ‘Trumpflation’ trade, are fading away,” Pierre Martin, a senior sales trader at Saxo Bank, said.
“Trumpflation” refers to bets on rising rates, inflation and stock prices made after Donald Trump won the U.S. presidential election a year ago this week.
Martin added that investors were still digesting this season’s corporate results and were finding it hard to position themselves without any new clear catalysts to drive the market up again.
He also noted that investors were expecting positive earnings and could be unforgiving for those which fail to deliver on expectations, as it was the case with companies such as Vestas (VWS.CO).
The world’s largest maker of wind turbines was the worst performer of the STOXX 600, falling over 17 percent as it lowered its 2017 profit margin outlook.
British luxury brand Burberry (BRBY.L) was another big loser, down about 10.8 percent after first-half results, while Hikma Pharmaceuticals (HIK.L) lost 5.9 percent after lowering 2017 revenue guidance for its generics business for a third time.
It was not all bad though in the sector as AstraZeneca (AZN.L) rose 1.6 percent as the pace of decline in drug sales slowed in the third quarter.
German commercial broadcaster ProSieben (PSMGn.DE) was also among companies being punished and was down close to 7 percent.
Still in Germany, Siemens (SIEGn.DE) was down 1.7 percent after posting a worse-than-expected 10 percent drop in industrial profit for its fiscal fourth quarter.
ArcelorMittal (MT.AS) was trading in the red, down 1.3 percent, after EU antitrust regulators said they would investigate whether its proposed purchase of Italian steel plant Ilva would lead to price hikes.
Shares in the financial sector were leading gainers with Italian banks bouncing back after losing ground on Wednesday due to worries over non-performing loans and Creval’s (PCVI.MI) move to raise cash to shed bad debts.
BPER Banca (EMII.MI) rose over 10 percent after Italy’s sixth-largest bank said its core capital had strengthened in the third quarter and ruled out tapping investors for cash.
Italy’s biggest bank, UniCredit (CRDI.MI) rose 3.4 percent and other smaller players were also rising with Ubi Banca (UBI.MI) up 4.6 percent and Banco BPM AMI.MI 3.7 percent.
Italy’s biggest insurer, Generali (GASI.MI) was flat after keeping its guidance unchanged.
Commerzbank (CBKG.DE) also rose, gaining 3.3 percent after it swung to net profit in the third quarter. The German bank reiterated it was still expecting to eke out a “slightly positive” net profit for the full year.
Still in the financial sector, shares in Dutch insurer Aegon (AEGN.AS) were up 5.2 percent as it reported earnings above consensus.
(Reporting by Julien Ponthus, editing by Sujata Rao and Ralph Boulton)
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JGBs largely down, underpinned by volatile stocks Thursday 9th November, 2017 – Reuters
Most Japanese government bonds edged down on Thursday, while super- long maturities came off their highs after a 30-year bond sale.
An afternoon selloff in Japanese stocks underpinned bond market sentiment and kept losses in check.
The benchmark 10-year cash JGB yield was up half a basis point at 0.025 percent, while the 10-year JGB futures contract ended down 0.04 point at 150.95.
The 30-year JGB yield was flat at 0.800 percent, after sinking to as low as 0.785 percent earlier in the session. The 40-year JGB yield was down 1.5 basis points at 0.970 percent, above its session low of 0.950 percent.
The Ministry of Finance offered 800 billion yen of 30-year JGBs with a 0.80 percent coupon, with 3.4180 percent of the bids accepted at the lowest price of 100.0685.
The sale drew bids of 3.43 times the amount offered, indicating decent demand but was still down from the previous sale’s bid-to-cover ratio of 3.98.
Data released early in the session showed Japan’s core machinery orders tumbled at their fastest pace in more than two years in September, a decline that companies expect to persist into October-December.
The Bank of Japan’s nine-member board debated calls from one of its policymakers to target the longer end of the yield curve at a rate review in October, a summary of their opinions showed on Thursday, with several stressing that the current stimulus was sufficient.
At the October rate review, the BOJ held monetary policy steady by an 8- 1 vote, with board newcomer Goushi Kataoka dissenting. Kataoka also called for the BOJ to guide 15-year bond yields below 0.2 percent through its bond purchases.
(Reporting by Tokyo markets team; Editing by Vyas Mohan)
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Moody's: Japan megabanks can accumulate capital to support their credit profiles, despite weak core profitability Thursday 9th November, 2017 – Reuters
Moody's Japan K. K. says that the three mega bank groups in Japan (A1 stable) can continue accumulating capital to support their credit profiles, because of the growth in their non-core income, despite their weak and deteriorating core profitability.
Moody's also says that the three groups — Mitsubishi UFJ Financial Group, Inc. (MUFG, A1 stable), Sumitomo Mitsui Financial Group, Inc. (SMFG, A1 stable) and Mizuho Financial Group, Inc. (Mizuho, A1 stable) — should be able to maintain common equity Tier 1 (CET1) ratios of around 10%, excluding unrealized gains.
"SMFG has already achieved a 10% CET1 ratio, and MUFG is very close to meeting the same target," says Shunsaku Sato, a Moody's Vice President and Senior Credit Officer. "Mizuho will likely achieve the 10% by the end of the next fiscal year ending March 31, 2019."
"The megabanks have been able to build capital despite weak profitability, because their very low credit costs have resulted in most of their pre-provision income flowing to net income," adds Sato. "In addition, the banks' conservative dividend policies allow them to retain large proportions of their earnings."
Moody's conclusions are contained in its just-released report on MUFG, SMFG and Mizuho, titled "Continued capital accumulation despite weak core profitability supports credit profiles," and is authored by Sato. Moody's report points out, however, that the banks are unlikely to improve significantly their core pre-provision income (PPI), because deposits will continue to increase faster than loans, which will cause their returns on assets to decline.
Moody's therefore concludes that the banks' non-core sources of income — their stock gains and equity income from unconsolidated affiliates — are crucial to achieving their CET1 targets. Moody's report also explains that ultra-low interest rates and excess liquidity in the system has had a severe impact on the banks' core profitability. Core PPI as a percentage of average assets fell by one-third to a half in the four years to the fiscal year ended March 31, 2017.
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44th COTED meeting opens here today Thursday 9th November, 2017 – Kaieteur News
Caribbean Community (CARICOM) Trade Ministers will today begin a two- day meeting at the Marriott Hotel to review the free movement of regional goods and services under the CARICOM Single Market and Economy (CSME) initiative.
The 44th Ministerial Meeting of the Council for Trade and Economic Development (COTED) will also consider the progress of member states on the free movement of skills, and agriculture matters, with particular reference to trade in sugar.
The meeting is taking place at time when the region’s sugar, which has been a main economic driver for decades, is being threatened, due to the elimination of production quotas as part of the European Union’s sugar regime reform which became effective October 1.
CARICOM recognizes that the end of EU’s quota management for sugar is expected to lead to a fall in prices in relation to the international sugar price and a decrease in sugar imports from the African Caribbean and Pacific (ACP) states, with particular impact on Caribbean producers.
Trade Ministers are also expected to sign the Second Protocol to the Trade and Economic Cooperation Agreement between CARICOM and Cuba, allowing for increased reciprocal preferential market access.
According to the CARICOM Secretariat, in addition to the review of the CSME, the meeting will discuss a draft Public Procurement Protocol, police certificates of character, and the harmonisation of laws.
The Secretariat said that its successful legal and institutional measures and mechanisms include transforming regional arrangements into domestic law.
According to the Secretariat, there have also been agreements and arrangements to establish and operationalise various Community institutions, needed for the effective operation of the CSME. These include the Barbados-based CARICOM Regional Organisation for Standards and Quality (CROSQ), the CARICOM Competition Commission (CCC) headquartered in Suriname, the Barbados-based CARICOM Development Fund (CDF) in Barbados, and the Trinidad and Tobago- based Implementing Agency for Crime and Security (IMPACS).
The CARICOM Human Resource Development 2030 Strategy, and recommendations from the CARICOM Inter-Agency Committee on Multi- Sectoral Action in member countries to prevent childhood obesity, will also engage the Ministers.
Also on the agenda is intra-regional trade in goods, particularly with respect to the Common External Tariff (CET) and the Rules of Origin. As it relates to external relations, trade ministers will discuss future trade with the United Kingdom post-BREXIT; developments within the World Trade Organisation; and the state of the rum industry in CARIFORUM.
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Jagdeo to seek verification of ExxonMobil ‘$20M signing bonus’ for Gov’t. Thursday 9th November, 2017 – Kaieteur News
While the coalition Government remains tight-lipped on its dealings with ExxonMobil, Opposition Leader Bharrat Jagdeo says he plans to verify with United States oil giant about the alleged US$20 million signing bonus.
Minister of Finance, Winston Jordan recently told reporters that he was unaware that Government received a signing bonus, but did not deny the claim. He promised to check on it.
Jagdeo, who had previously met officially with ExxonMobil, maintained yesterday that the Government should be transparent regarding the oil and gas sector by releasing contracts signed with the company.
Chartered Accountant Christopher Ram said he was told of a $20 million signing bonus, a claim that the Government has not dispelled.
Ram had said that a source has indicated to him that the Government used the excuse of a new licence to extract a signature bonus, a payment made by a contractor on the signing of an Agreement to take up any given number of blocks.
“When I meet them [ExxonMobil] I will ask,” Jagdeo told reporters.
Government has been pressed by civil society for more disclosures regarding the sector, but Natural Resources Minister, Raphael Trotman has said that he will be seeking guidance from Cabinet about all details pertaining to the contract Government has with ExxonMobil.
He had told Kaieteur News that he has “every confidence that in time, the citizens of Guyana will have full access to everything.”
Trotman said that he will refrain from further commenting, particularly on statements from some sections of society that are based on “hearsay”.
The importance of the sector was underscored by the Trotman this week at the opening for a workshop being hosted by the American Association of Petroleum Geologists (AAPG). The Minister stated that Guyana stands at the cusp of great transformation as it ushers a chapter that has already begun to transform the shape and texture of its society.
He admitted that Guyana has a monumental task ahead to prepare institutional and legislative frameworks to efficiently manage the oil sector.
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On schedule – Sam Lords castle development remains on track - Layne Wednesday 8th November, 2017 – Barbados TODAY
Barbadians should be able to see physical structures going up on the site of the former Sam Lord’s Castle in St Philip by January next year.
Chief Executive Officer of the Barbados Tourism Investment Incorporation (BTII) Stuart Layne has also assured that the US$200 million transformation of the historic hotel into the Wyndham Grand Resort is on target for completion by the end of 2019.
“We are pouring the foundation right now and we still have a projection that this project will be completed by the end of 2019,” Layne told Barbados TODAY on Tuesday, while promising to issue a comprehensive update on the project by the end of the week.
Work on the multi-million dollar luxury resort began in June 2016 with the demolition of the old Sam Lord’s Castle buildings, which had been gutted by fire back in October 2010.
The redevelopment is being funded by a US$240 million loan from the People’s Republic of China and will see to the addition of 450 rooms to the island’s overall room stock, as well as the creation of over 1,000 jobs.
However, it has not come without its fair share of controversy.
The latest concern voiced by Barbadians has been over the erection of sign posts at the St Philip site that were written in Chinese.
However, while stating that the signs were mounted in error, Layne assured that they were no longer an issue as they had been removed from the site on Monday.
He also assured that it was not an indication that the hotel jobs were going to Chinese workers.
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Insurance sector worried about number of road fatalities Wednesday 8th November, 2017 – Barbados TODAY
Insurance companies here are expressing concern over the increasing number of road fatalities, which they blame on “lawlessness”, “indiscipline” and intoxication.
Barbados has recorded 24 road deaths so far this year, more than double the ten recorded for all of last year.
The most recent fatality occurred on Saturday, November 4, when 78- year-old Bentley Belgrave, a Barbadian who lived in the United States, but was here on holiday, died in a two-vehicle accident at the junction of Pleasant Hall and the Charles Duncan O’Neal Highway in St Peter.
General Manager of Co-operators General Insurance Limited Anton Lovell told Barbados TODAY that his agency had witnessed a 15 per cent spike in the number of major and minor vehicular accidents claims this year when compared to the same period last year.
“We’re very concerned about the number of road deaths. We are doing everything possible within the industry, with the police and the road safety association to try and curb the lawlessness on the road,” Lovell said.
Similar concerns were raised by Claims Manager at Consumers’ Guarantee Insurance (CGI) Paul Reid, who stressed that the company was really worried about the level of recklessness on the island’s roads.
Reid said CGI had its “fair share of road fatalities, and our clients being involved in those fatalities for the year”, adding that the number claims for road deaths had been steadily increasing each year.
In response the company has been urging motorists to be careful on highways, Reid explained.
“We try to put in the forefront of people’s minds that ‘this could be you, this could be your family’. We try our part to make people understand that a vehicle could be a weapon; put it in the wrong hands it can easily injure somebody or take someone’s life,” he said.
While not making reference to any particular accident or pointing fingers at anyone in particular, President of the General Insurance Association of Barbados (GIAB) Michael Holder was not shy to suggest that alcohol and drugs played a major part in the increasing number of fatal accidents.
Holder told Barbados TODAY he was fully behind plans announced by Minister of Transport and Works Michael Lashley to include breathalyzer testing in the revised Barbados Road Traffic Act, which the minister promised would go before Parliament later this month.
“The amount of road accidents that we are having is a concern because it speaks to a level of indiscipline and inattentiveness on the road.
“We strongly believe that breathalyzer testing would go a long way to making persons responsible on the road and ultimately we would have less drivers on the road who are intoxicated or under the influence of alcohol or drugs,” the GAIB boss said.
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Venezuela's PDVSA misses debt payments to India's top oil producer Thursday 9th November, 2017 – Reuters
Venezuelan state oil-firm PDVSA has not made debt payments to India’s top oil producer ONGC (ONGC.NS) for six months, and has previously used a Russian state-owned bank and another Indian energy company as intermediaries to make payments, two sources familiar with the transactions said on Wednesday.
ONGC Videsh, the overseas investment arm of ONGC, confirmed that PDVSA had fallen behind on the payments, but declined to give details on the delays.
“They have got certain challenges at this stage,” ONGC Videsh said in an emailed response to Reuters’ questions. “They have assured that they are working on it (payment of dues). In due course it will be settled and follow up steps will be undertaken.”
“We have a good working relationship with PDVSA,” ONGC said.
PDVSA declined to comment.
But the two sources, who requested anonymity, said PDVSA has made no payment since April on what was a $540 million backlog of dividends owed to ONGC for an investment the Indian firm made in a an energy project in Venezuela.
Venezuela’s President Nicolas Maduro said last week that the country planned to restructure some $60 billion of bonds, much of it held by PDVSA, as the country struggles to meet debt repayments. [nL2N1N90IR]
The OPEC member’s economy has collapsed since global oil prices plummeted in 2014. Venezuela depends on oil for more than 90 percent of export revenue.
PDVSA has delayed a range of payments, such as for oil services and supplies, as Caracas uses the scant dollar supplies available to make sovereign debt repayments.
LATE PAYMENTS, SANCTIONS
International banks and suppliers have reduced or halted credit to PDVSA since cash flow problems led the firm to start delaying payments to creditors in 2014. U.S. sanctions against Venezuelan officials including PDVSA executives, have also deterred banks from offering credit.
Maduro’s government has increasingly turned to ally Russia for the cash and credit it needs to survive, according to a Reuters special report published in August. [nL1N1KW27W]
Russia’s state-run Gazprombank in January cleared a payment of $19.75 million of Venezuela’s pending dues to ONGC, the two sources said. Details of the payment and Gazprombank’s involvement have not previously been published.
India’s Reliance Industries Ltd (RELI.NS), owner of the world’s biggest refining complex and one of PDVSA’s biggest oil buyers, paid $68.66 million to ONGC on behalf of PDVSA in April, the sources said.
Gazprombank and Reliance did not respond to Reuters’ requests for comment.
PDVSA and ONGC Videsh Ltd last year signed a deal for PDVSA to pay the debt by assigning the Indian firm 17,000 barrels per day of oil. Under the agreement, PDVSA sells the oil on behalf of ONGC and sends the cash to the Indian company. ONGC cannot take delivery of the oil because its Mangalore refinery is unable to process Venezuela’s heavy crude.
Venezuela has often used oil to repay debt: it owes billions of dollars to both Russia and China and is paying both with oil. Many multinational firms have written off their Venezuelan operations and investments, but ONGC is aiming to expand in the South American country. The Indian firm is seeking to raise funding for Venezuela’s San Cristobal oil project, in which the Indian company has a 40 percent stake. PDVSA and ONGC aim to raise oil output from the project to about 27,000 bpd from 18,000 bpd.
(Additional reporting by Alexandra Ulmer in Caracas and Editing by Simon Webb and Diane Craft)
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Stock futures lower after Wall Street's record run Thursday 9th November, 2017 – Reuters
U.S. stock index futures were slightly lower on Thursday, a day after Wall Street closed at a record high, as investors fretted about possible obstacles to a Republican tax bill that the lawmakers are debating.
A U.S. Senate tax-cut bill, differing from one already in the House of Representatives, was expected to be unveiled on Thursday, complicating a tax overhaul push and increasing scepticism on Wall Street about the effort.
The S&P 500 has risen about 21 percent since the election of President Donald Trump a year ago, partly on the back of his promises to cut taxes and other business-friendly measures.
However, Republicans have yet to score a major legislative win since Trump took office in January, even though the party controls both chambers of Congress as well as the White House.
Investors were also concerned about the potential fallout from Democrat wins in regional U.S. elections this week - a signal for next year’s mid-term Congressional elections for Trump.
Investors will also focus on another batch of earnings, with Walt Disney (DIS.N), News Corp (NWSA.O), Nvidia (NVDA.O) and Nordstrom (JWN.N) set to report results after the closing bell.
With third-quarter earnings season winding down, earnings for the quarter are expected to have climbed 8 percent, compared with expectations of a 5.9 percent rise at the start of October, according to Thomson Reuters I/B/E/S.
Economic data at 8:30 a.m. ET (1230 GMT) includes weekly jobless claims, which are forecast having risen to 231,000 from 229,000 in the week ended Oct. 28.
Wall Street closed at a record high on Wednesday as videogame makers rallied and Apple’s market value climbed above $900 billion.
Shares of Roku (ROKU.O) soared 30 percent in premarket trading after the television streaming device maker’s quarterly results and guidance beat expectations.
Perrigo (PRGO.N) rose 12.1 percent as the generic drug-maker raised its adjusted profit forecast.
Dish Network (DISH.O) fell 1 percent as the satellite TV service provider’s third-quarter profit missed analysts’ estimates.
Payments company Square (SQ.N) was down 3.2 percent, despite the company posting better-than-expected third-quarter results and raising its forecast.
Futures snapshot at 7:04 a.m. ET:
Dow e-minis 1YMc1 were down 69 points, or 0.29 percent, with 41,821 contracts changing hands.
S&P 500 e-minis ESc1 were down 8 points, or 0.31 percent, with 233,238 contracts traded.
Nasdaq 100 e-minis NQc1 were down 22.25 points, or 0.35 percent, on volume of 35,676 contracts.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)
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Bahamas Eyes $8.1m Boost From New Airlift Wednesday 8th November, 2017 – Tribune242
The Bahamas is expected to gain 19,000 room nights and $8.1 million in annual extra visitor spend through the start of weekly non-stop airlift from Germany.
Condor's service from Frankfurt to Nassau made its return on Monday evening following a nearly decade-long absence. Tyrone Sawyer, senior director of airlift development with the Ministry of Tourism, said it joined British Airways as being the only carriers offering non-stop service from Europe.
"This presents an opportunity to build on demand from Europe," said Mr Sawyer, "through the Frankfurt gateway, and because of our partnership with not only Condor but with various tour operators, to bring people from places like Berlin, Munich, Milan, Copenhagen, Brussels, Denmark and the like. They can connect through the Frankfurt gateway on Condor."
Condor will operate a Boeing 767 series aircraft on the Nassau/ Frankfurt route every Monday from November 6- April 30. Captain Sebastian Schoggler, Pilot of the Condor flight, said: "This is very important for us. We are very happy to be back here. I think it's the first flight in 10 years for us. "It's important to have direct flights to the Bahamas again. It's good for us to have direct flight to the Caribbean. We have now 14 destinations in the Caribbean." While Monday's flight brought 44 passengers, according to Captain Schoggler, the next flight could bring 100-120 visitors.
Frankie Campbell, minister of transport, who is the acting minister for tourism, said: "This flight is the beginning for what is going to be a number of stopover passengers, more than 19,000 hotel room nights, and opening the doors for direct flights to Europe.
"Our goal is to bring more stopover visitors who spend an average of $1,500 per stay. We are hoping that while this is seasonal it will become year-round and help put heads in beds. We are excited about this and believe this is going to be a great relationship."
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$4.5 BN Oil Refinery for Grand Bahama Wednesday 9th November, 2017 – Tribune242
The Government is said to be "embracing" a potential $4.5 billion oil storage terminal and refinery planned for east Grand Bahama, Tribune Business can reveal.
Details of the Oban Energies project are buried in a recent presentation by the Central Bank of the Bahamas, which describes a $1.5 billion first phase investment in a 20 million barrel, "multi-purpose" bulk storage facility for petroleum products.
The development, which is expected to be completed in 2021, also involves a 250,000 barrel per day oil refinery. This represents the potential return of oil refining to Grand Bahama, and means Oban is envisioning a grander project than the existing Buckeye Partners-owned BORCO facility.
Tribune Business sources last night confirmed that Oban Energies has been working on obtaining the necessary permits and approvals for its development, which appears to be located outside the Port Area in east Grand Bahama.
It is unclear how far the group has progressed, but its inclusion in the Central Bank's September monthly economic developments report indicates it must be progressing.
Oban Energies' website shows it has hired Bahamas-based Islands by Design, headed by Keith Bishop, as environmental consultants, while another Bahamian entity listed is the Mosko Group, which will likely perform engineering and construction functions.
Oban Energies certainly seems confident of receiving the Minnis administration's approval, stating on its website: "With a current shortage of liquid bulk storage locations in the Caribbean, this project is being embraced by the Bahamas government as providing needed services, employment opportunities and economic growth.
"Following the lifting of the 40-year crude export ban in December 2015, the US could become a major exporter of light oil, providing long term value to Oban. Our relationship with the Commonwealth of the Bahamas started with a vision for meeting the energy needs of the Bahamas and the surrounding area."
Referring specifically to its Grand Bahama project, the Palm Beach Gardens-based Oban added: "With a location just 90 miles (145 kilometers) from the US eastern seaboard, this complex is ideally suited as a merchant facility for storing and blending liquid products, transhipping and terminal operations for the Arabian Gulf, West African and Northwest European trade to the US' east coast and the Gulf coast, as well as for North American trade to Europe, Latin America and the Pacific. Total capital required for the development is $4.5 billion over four years."
Oban Energies' website indicated it will adopt a phased approach, saying: "Phase One requires a $1.5 billion investment for development, construction and start-up operations. The project will provide storage tankage for crude oils, residual fuel oils, middle and light distillates, specialty vegetable oils and heavy oils, and will consider all other bulk liquid storage requests.
"The Project will launch with an initial capacity of four million barrels, with plans to expand capacity to 20 million barrels by year four of facility operation. In addition, Oban Energies will construct a 50,000 barrel per day petroleum refinery, with plans to expand to 250,000 barrels per day by year four of the facility operation."
Given the scale of Oban Energies' project and associated investment, it represents a huge boost for the Bahamas - especially Grand Bahama's struggling economy - should it come to fruition.
Construction and full-time jobs are likely to be in the hundreds, while valuable spin-off benefits are likely to be created for a wide range of Bahamian companies and entrepreneurs. The project could reverse Grand Bahama's economic decline, stemming from its depressed tourism product, and fits in well with the island's existing industrial base.
However, the area selected is likely to raise environmental concerns, especially given the nature of Oban Energies' investment. It also raised fresh questions about the Carnival cruise port project, approved by the former Christie administration for the same area, amid suggestions the Government wants to relocate it nearer to Freeport - and possibly the original Williams Town site.
Oban Energies described the project site as "east of Freeport along the Northwest Providence Channel". Its storage facility is designed to facilitate the transfer of crude oil and other products to smaller vessels, which will then transport them to shallower ports in the US.
Explaining the project's rationale, the group said: "The Caribbean is made up of relatively small islands with small ports. There are limited sizes of liquid bulk tanks, making logistics with small vessels and delivery complicated and expensive.
"As demand for fuels has increased, there has become a great need for large volume liquid bulk storage terminals as strategic hubs with high throughputs for the suppliers of various products."
Oban Energies pointed out that BORCO was already engaged in similar work, such as storage, bunkering and blending. It added that Grand Bahama was already "a holding area for forwarding crude oil deliveries to North America, and a 'break-bulk' point for transhipment operations".
Meanwhile, the oil refinery will be "designed to process less expensive heavy crude, with the flexibility to process opportunity crude, as dictated by market economics. The refinery will be designed to fully upgrade heavy sour crude oil and produce quality products in order to address premium markets for oil products".
"The Bahamas is an excellent location for higher netback product sales to the US, since the Bahamas is exempt from US product import duties as a member country under the Caribbean Basin Trade Partnership Act," Oban Energies said. "The location also provides the ability to compete in opportunity markets in Europe and the Caribbean Basin.
"The storage market is large - more than 500 million barrels in the US - and demand is growing as available storage capacity is declining. The market for storage of petroleum/liquid product and distribution products is large and growing, but is lacking sufficient capacity and state-of-the-art facilities with best-in-class location or management."
Oban Energies president is Satpul Dhunna, who is described as a financial investor and adviser, having held numerous posts in the corporate finance world. Russell Erickson is the group's senior vice-president, while its finance chief, Mark Michel, is said to be a former US Navy SEAL and "former advisor in the White House Situation Room, where he provided current intelligence to President Obama".
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Gov't Causes GB Power 'Concern' Over Buy-Out Wednesday 8th November, 2017 – Tribune242
GB Power and its majority investor have admitted to "concerns" over the Deputy Prime Minister's suggestion that the Government will further review the already-approved $35 million buy-out.
Archibald Collins, the Bahamian utility's Chief Executive, in a recent Tribune Business interview effectively conceded that itself and Emera had been taken aback by K P Turnquest's comments.
Mr Turnquest previously told this newspaper that further "policy decisions" would be taken prior to the proposed buy-out of ICD Utilities' minority Bahamian shareholders receiving final approval.
"It's fair to say the Government is taking a look at it," Mr Turnquest said of the proposal, "and we will make some policy decisions with respect to it before any final transaction can be agreed."
This seemed to 'reverse' the approvals said to have already been granted by the Bahamas Investment Authority (BIA) and financial services regulators, raising unwanted uncertainty over whether the buy-out would proceed.
However, Mr Collins said both GB Power and Emera were confident the transaction would withstand any scrutiny and, ultimately, gain the necessary approvals if minority shareholders accept the offer.
"It would be fair to say we were concerned but, at the same time, we're confident that after the Government has had time to assess it on its merits, satisfy for themselves that due process was followed, and weigh that ICD Utilities shareholders with an indirect interest in GB Power can continue to have an indirect interest in GB Power [it will be approved]," Mr Collins told Tribune Business.
"We've had meetings with the Government, and we're optimistic that once they've done their research [they'll find] that nothing untoward has happened here."
Tribune Business sources have suggested there is some disquiet among the Minnis Cabinet over the GB Power deal, given that it runs counter to the Free National Movement's (FNM) long-standing position of creating wealth and ownership opportunities for Bahamians.
The last Ingraham administration made Heineken's 2010 purchase of the Finlayson family's stake in Commonwealth Brewery and Burns House conditional on a total 25 per cent equity interest being offered to Bahamian investors via an initial public offering (IPO).
However, the GB Power deal - which involves a foreign company possibly buying out all Bahamian ownership - is the complete opposite of this FNM strategy.
Bahamian minority investors will decide tonight whether to accept Emera's buy-out, with a vote in favour potentially ending all local equity ownership in GB Power. The Bahamas International Securities Exchange (BISX) last night announced that trading in ICD Utilities shares will be suspended from today until further notice, pending the disclosure of the vote's results.
Such a move is standard practice for a capital markets transaction of this nature, as is the buy-out offer itself. However, the buy-out's opponents last night made a last-ditch bid to sway Bahamian shareholder sentiment, urging them to "stand your ground" and not allow a vital infrastructure asset to become 100 per cent foreign-owned.
Pastor Eddie Victor, head of the Coalition of Concerned Citizens (CCC), said: "We know that there are financial challenges in the Bahamas, especially Grand Bahama, but we appeal to the minority shareholder to stand on principle; the principle of not selling out our country's sovereignty in the energy sector by allowing vital infrastructure like the Grand Bahama Power Company to become 100 per cent owned by a foreign company."
He criticised GB Power's use of the Supreme Court to resist regulation by the Utilities Regulation and Competition Authority (URCA), but Mr Collins told Tribune Business that the "value proposition is not clear to us" if the latter became its primary supervisor.
"In my heart, I believe that customers and residents are well-served by the Port Authority being the regulator of the Power Company," GB Power's chief executive continued. "If the courts decide differently, that URCA is a more appropriate regulator, GB Power and Emera will respect that.
"It's not clear to us where the value proposition will be if we move that to URCA, but if the courts decide that we'll respect that."
GB Power initiated legal action last summer challenging URCA's authority to license and regulate it, arguing that this "conflicts" with Freeport's founding law.
Its amended statement of claim, filed on July 7, 2016, wants the Supreme Court to declare that GB Power can carry on its business without requiring a public electricity supplier licence from URCA.
GB Power's action is founded on the basis that, as a GBPA licensee, it is licensed and regulated by the latter via the Hawksbill Creek Agreement - and not by URCA and the Electricity Act 2015.
It is arguing that the Electricity Act's sections 44-46, which give URCA the legal right to license and oversee energy providers, "are inconsistent, and conflict with, the rights and privileges vested in [GB Power] and the Port Authority" by the Hawksbill Creek Agreement.
Mr Collins, meanwhile, told Tribune Business that it was "hard to imagine the business case would work" if GB Power's East and West End supply electricity supply agreements were not renewed and another company took over.
He argued that "economies of scale" made it extremely difficult for another energy provider to step in, given the relatively small customer base in both areas, which made it difficult to price competitively and achieve a sound investment return.
GB Power's 25-year agreements to supply electricity to Grand Bahama's East and West Ends expire on June 23 and August 31, 2018, respectively, and Mr Collins said: "We haven't had any discussions with the Government.
"It would be hard to imagine that [another company taking over], because of the economies of scale, that the business case would work. Our view is that residents in East End and West End are well-served by being part of a larger group called GB Power.
"We believe that, and we would have every intention to seek an extension of the East and West End agreements. We're confident that stakeholders will recognise that is in the best interest of those communities, but we've not had those discussions yet."
Pastor Victor and the Coalition of Concerned Citizens have urged the Government not to renew the East and West End agreements, arguing that there is a Bahamian group that can replace GB Power at 35 per cent lower costs.
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Saint Lucia Investment Migration Program first in the world for investment requirements Wednesday 9th November 2017 – St. Lucia News Online
Saint Lucia’s citizenship-by-investment program has secured the top spot in terms of Investment Requirements, Residence Requirements and Physical Visit Requirements in the Global Residence and Citizenship Programs 2017–2018 report.
The report is the industry standard for benchmarking and measuring the attractiveness of investment migration programs, and was released today by global residence and citizenship advisory firm Henley & Partners, ahead of its 11th Global Residence and Citizenship Conference.
The event is held this year in Hong Kong, from 14 to 16 November 2017.
Saint Lucia — The newest addition to the Caribbean’s program offerings
The Saint Lucia Citizenship-by-Investment Program is the newest of all the current programs around the world, having only been launched in January 2016. As a result, the program is still in its infancy and is continually being developed and improved. Saint Lucia attracts foreign business and investment, especially in the banking and tourism sector. The nation’s manufacturing sector is also the most diverse in the eastern Caribbean area. Successful applicants of its citizenship-by-investment program benefit from visa-free travel to 127 countries worldwide, including Europe’s Schengen area.
The 3rd edition of the Global Residence and Citizenship Programs report provides a systematic analysis and comprehensive benchmarking of the world’s leading investment migration programs. These programs were evaluated by a distinguished panel of independent experts — including immigration and citizenship lawyers, economists, country risk experts, academic researchers, and other specialists — who took into account a broad range of factors pertaining to each program. The result is a global bird’s-eye view of the investment migration industry and a ranking of all the major programs on offer.
Hugh Morshead, Group Director of Henley & Partners, says, “The Global Residence and Citizenship Programs publication is an indispensable tool, not only for all those interested in alternative residence or citizenship but also for professionals such as private client advisors, private bankers, lawyers, as well as governments operating investment migration programs.”
Saint Lucia was also recognized in the areas of:
Reputation
Quality of Life
Visa-free Access
Processing Time and Quality of Processing Compliance
Relocation Flexibility
Transparency
A growing interest in residence and citizenship planning
As Morshead explains, the need for a reference and benchmarking tool like the Global Residence and Citizenship Programs reflects the strong growth of the investment migration industry in recent years.
“Interest in the industry has steadily increased over the past decade, and we anticipate that it will continue to do so,” he says. “In fact, we again expect hundreds of attendees from over 40 countries at this month’s Global Residence and Citizenship Conference in Hong Kong.”
The annual event, now in its 11th year, has become the world’s most significant conference on investment migration. It brings together presidents, prime ministers, senior government officials, leading academics, and industry professionals, as well as top-tier financial and business media.
According to Morshead, this year’s conference offers delegates the opportunity to engage with the leading minds and ideas driving the growing trend towards global mobility and citizenship.
Key speakers at the conference include investment legend and global financial commentator, Jim Rogers, who will speak about the trends and issues affecting global citizens and their investments, and the Prime Minister of Malta, the Hon. Dr. Joseph Muscat, who will talk about the advantages of Maltese citizenship for Asian investors.
Professor Dr. Dimitry Kochenov will discuss the latest edition of the Henley & Partners – Kochenov Quality of Nationality Index, explaining how the quality of a nationality affects the movement of talent and business, while John Wong, PwC’s Private Client Services Leader in China and Hong Kong, will provide the latest insight into tax planning for Chinese private clients.
“Following the unprecedented success of this event year after year, we again expect the conference in Hong Kong to be more influential than the one before,” Morshead concludes.
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WestJet begins direct flight to Belize from Calgary, Canada Wednesday 8th November, 2017 – Caribbean News Now
A brief inaugural ceremony was held at the Philip Goldson International Airport on Friday, November 3, to commemorate WestJet’s new non-stop weekly service between Calgary, Canada, and Belize. According to WestJet, the service is part of the airline’s seasonal schedule for the winter of 2017-18.
The ceremony was attended by representatives of the Belize Hotel Association, senior staff of the Belize Airport Concession Company (BACC), the Canadian consulate to Belize and the Belize Tourism Board (BTB) among others. Short addresses were delivered by Lynn Young, honorary consul of Canada to Belize and Manuel Heredia, minister of tourism and civil aviation.
In his address, Heredia said, “The importance of the Canadian market for Belize can certainly not be overstated in terms of the overall economic impact it has on Belize’s tourism industry.”
“Canadian arrivals to Belize accounted for 6% of total overnight arrivals in Belize in 2016. That percentage share is expected to rise this year with the increased traffic from the direct flights from Canada to Belize introduced in the latter part of last year and, of course, with the start of this new flight,” he pointed out.
Most Canadians prefer to travel to Belize to enjoy the tropical weather that Belize has to offer. But they also enjoy the warm hospitality of all Belizeans and the country’s awesome culture and excellent cuisine and attractions.
According to BTB’s director of tourism, Karen Bevans, the new flight “will help with the different areas such as Vancouver and the others that were unable to get a direct connection into Toronto so this makes it much more convenient for a large market in Canada and to open up the opportunities for Belize even more.”
“We expect that the size of the Canadian market will only continue to increase and hopefully we can expect at least 10% of our arrivals with the addition of this flight,” Bevans said.
She added: “As we heard the Honorary Consul mention more and more students are now approaching him about the Canadian market or schools in Canada and that population has grown and we expect that to happen even more because this gives more accessibility, cheaper cost, so it does create more opportunity for our Belizean people.”
WestJet inaugurated its first flight from Toronto, Canada to Belize in 2016. The new WestJet service to Belize from Calgary, therefore, represents confirmation that Belize continues to be a growing, viable and a must-visit destination in Central America and the Caribbean.
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Shipping line increases weekly services between Fort Lauderdale and Grand Bahama Wednesday 8th November, 2017 – Caribbean News Now
The shipping line Baleària Caribbean, which operates the fast ferry Jaume I, is adding a new weekly service starting on Monday, November 13, between the island of Grand Bahama and Fort Lauderdale. From then on, the company will offer the route daily except Wednesdays in order to provide its customers with more options.
This increase in services coincides with the launch of a special 50% discount on trips taken Mondays, Thursdays and Saturdays during the months of November and December. The COO of Baleària Caribbean, Mario Otero, said the services are being improved and various sales policies are being implemented to “loyalize its customers” on this route.
In 2016, Baleària Caribbean transported 150,000 passengers, which is a five percent increase over 2015. Overall, the shipping line has carried more than half a million passengers between the United States and The Bahamas since Baleària Caribbean inaugurated the line in December 2011. These data confirm the company’s strength as it celebrates six years of operations.
The fast ferry Jaume I has a capacity for 623 people and 130 vehicles and can sail at a speed of 32 knots. This fast ferry offers a wide range of services such as a cafeteria, gift shop and pet area in addition to offering family-related services and being handicap accessible.
The Jaume I is one of the most highly rated ships of the Baleària Group fleet. According to the General Satisfaction Index (GSI), which evaluates different ship services and the crew, it received a score of 8.5. Above everything else, customers appreciate its timeliness, as reflected in the 8.8 rating, as well as its onboard personnel, who received the same rating.
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EDAB chairman: Prioritise PSIP projects Wednesday 9th November, 2017 – Trinidad and Tobago Guardian
Chairman of Economic Development Advisory Board (EDAB) Terrence Farrell is calling for projects under the Public Sector Infrastructure Program (PSIP) to be prioritised in order to achieve T&T’s diversification goals at a faster rate.
He said the purpose of prioritising should be to ensure that the projects to be completed support T&T’s diversification initiatives.
“The infrastructure that we are talking about is the infrastructure that supports diversification. When the Government has its PSIP with all the infrastructure projects it wants to do-in terms of prioritising the infrastructure projects, it must look and say, are these projects going to support diversification?”
Farrell was speaking at a seminar titled, “Promoting Innovation for Diversification: Moving Forward,” which was held yesterday at the Hilton Trinidad and Conference Centre, Port-of-Spain.
Referring specifically to the $400 million highway to be constructed to Manzanilla, Farrell questioned why that project was given priority over the refurbishment of the Tobago airport.
“Without being critical, why am I (the T&T Government) building a $400 million highway to Manzanilla and I don’t have the Tobago airport in my PSIP this year? “Why am I building a $400 million highway to Cumuto and the Tobago airport was in the PSIP a couple of years ago, it needs to be there. If Sandals is coming to Tobago for tourism, that airport has to be completely upgraded.”
The award of the contract to construct the Manzanilla highway was announced late September while in mid-October the Government signed the MoU to officially start the construction of the Sandals Resort in Tobago.
Farrell noted that the prioritisation of T&T’s infrastructure projects must be in line with the country’s diversification initiatives.
On the issue of other projects, which the EDAB is working on, he said a logistics study was completed concerning the Port of Port-of-Spain and it is to be presented to Prime Minister Dr Keith Rowley soon. He confirmed that a meeting is expected to be held with consultants who completed a study on the port.
“A new Port of Port-of-Spain, in fact tomorrow there is a meeting with the consultants with the port study. The Port of Port-of-Spain, a new logistics hub that supports what we might want to do in Guyana, that supports Eastern Venezuela and North Eastern Brazil and the Eastern Caribbean,” he said.
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Unilever dips $1.26 Wednesday 8th November, 2017 – Trinidad and Tobago Guardian
Overall Market activity resulted from trading in 15 securities of which 4 advanced, 2 declined and 9 traded firm.
Trading activity on the First Tier Market registered a volume of 326,684 shares crossing the floor of the Exchange valued at $3,874,953.85.
GraceKennedy was the volume leader with 122,197 shares changing hands for a value of $360,591.15, followed by JMMB Group with a volume of 96,985 shares being traded for $200,585.88.
FirstCaribbean International Bank contributed 34,720 shares with a value of $312,480.00, while Republic Bank Financial Holdings added 17,762 shares valued at $1,807,461.12.
First Citizens Bank registered the day's largest gain, increasing $0.16 to end the day at $31.97.
Conversely, Unilever Caribbean registered the day's largest decline, falling $1.26 to close at $38.74.
Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 23,928 shares valued at $502,488.00.
Clico Investment Fund remained at $21.00
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Unicomer invests US$50m-plus in Freeport Wednesday 8th November, 2017 – Trinidad and Tobago Newsday
The limited supply of foreign exchange (forex) has led some contractors to seek payment in US dollars from Unicomer Group — parent company of Courts — during construction of the Unicomer Freeport Campus.
This was revealed yesterday by vice-chairman and executive vice- president of Unicomer Group, Guillermo J Siman, during the formal opening of the 240,000-square-foot facility in Freeport.
“Many of the local contractors would ask us if we would pay them in US dollars so that they could import some of the products they needed. That’s a reality that we have and that is why I think it’s so important — some of the efforts the Government is making — but you do need to be a little bit less dependent on oil and gas, and try to generate new industries that can start to generate that foreign currency that the country needs.”
Asked if Unicomer made any payments in US dollars, as requested, Siman said this was sometimes facilitated. “Remember that to be able to build this facility, we got some loans from First Citizens.
Those loans, in many cases, are in the local currency, so we pay them in TT dollars.”
Siman was speaking with reporters yesterday after the formal opening of the campus, which cost more than US$50 million to build over a two-year period.
Standing on 25 acres of land along the southbound lane of the Uriah Butler Highway, the facility includes a Courts Superstore, ServiTech, a distribution centre and a five-storey office building which houses both Unicomer Trinidad and the Unicomer Caribbean Regional headquarters.
On the impact on Unicomer itself, Siman said the company had been able to manage so far, thanks, in part, to its “very good relationship” with local bankers. He was quick to shoot down speculation that the company chose to build the campus in Trinidad because it had problems repatriating US dollars to its head office.
Courts’ inventory of products includes local and imported furniture. Following up on the forex issue, Newsday asked if the company had begun ordering more locally-made furniture to offset the need for forex.
Siman said there had not been any significant increase and that Courts had always ordered from local manufacturers “because the customers want local.”
Trade and Investment Minister Paula Gopee-Scoon, who spoke at the opening, also said having Unicomer Group’s largest distribution centre in Trinidad “augurs well for our economy in terms of hundreds of permanent jobs it will create and increased economic activity.”
In addition, since Unicomer’s facility has been constructed, the Trade Ministry has seen a significant increase in requests for land in Freeport.
Gopee-Scoon said, “I see this as an emerging business and commercial activity area. There’s actually a request for a similar type of distribution centre. Meanwhile, there’s close to TT$3 billion worth of new business that we are going to see unveiled in the next two to three years in Trinidad and Tobago in construction, with the new private housing developments, as well as in import and distribution and the manufacturing sector.”
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Angostura profits tumble 21 per cent* Wednesday 8th November, 2017 – Trinidad Express
Angostura Holdings Ltd yesterday reported a 21 per cent decline in its after-tax profit for the nine-month period ending September 30, 2017. The rum and bitters producer, which is headquartered in Laventille, saw its profits for the nine months in 2017 decline to $74 million from $94 million for the same period in 2016. Angostura also experienced a double-digit decline in its revenue, which fell by 17 per cent to $379.4 million for the period January to September this year, from $458.2 million for the same period in 2016.
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Branson meets with IMF for BVI Thursday 9th November, 2017 – BVI News
Billionaire Sir Richard Branson who owns two of the outer islands in the territory said he has held talks with the International Monetary Fund (IMF) on behalf of the British Virgin Islands.
Branson made the disclosure in a letter to the BVI Chamber of Commerce and Hotel Association (BVICCHA), which he called on for ideas to help fast-track hurricane recovery efforts in the territory.
The billionaire said he has received the go-ahead from local government to then put these ideas into effect.
“I committed to Governor Jaspert and Premier Smith that I would consult business owners in all relevant sectors to gather your feedback, ideas, and requests and compile these in a report for their consideration.”
“I am also working to set up a small team in the BVI to support this project to help implement some of these ideas,” said Branson in a letter dated yesterday.
In the said letter for which was BVI News received a copy, Branson also stated that he has had talks with other stakeholders besides the IMF.
He said: “Over the last month I have met with Governor Jaspert, Premier Smith, Dr Pickering, Caribbean Heads of State, representatives from Inter- American Development Bank, the World Bank and International Monetary Fund. During these meetings I have heard some fantastic ideas,” Branson said.
Branson did not give further detail on the meeting with the formidable moneylenders, IMF.
Meanwhile, news of Branson’s talks with the IMF in relation to hurricane recovery comes weeks after Premier Dr D Orlando Smith said he has not ruled out the possibility of striking a deal with the IMF to help fund rebuilding.
The Premier’s statement sparked public discussion on whether the BVI should do business with the international money lender.
The IMF is known for its strict loan conditions and, among other things, dictating how borrowing countries govern their respective nations while the loan is being repaid.
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Gov't looking at stamp duty/transfer tax effect on NHT transactions Wednesday 8th November, 2017- Jamaica Observer
Leader of Government Business in the Senate, Kamina Johnson Smith, assured members recently that the Ministry of Finance and the Public Service is actively reviewing the effect of stamp duty and transfer tax charges on National Housing trust (NHT) transactions.
Senator Johnson Smith made the announcement while wrapping up the debate on amendments to the Income Tax Act, the Stamp Duty Act and the Transfer Tax Act to allow for a tax exemption for listed companies on the Jamaica Stock Exchange to repurchase their shares.
She said, however, that while she could assure the senate that the issue was being reviewed, she was not in a position to say how feasible it was for changes proposed by several stakeholders to be made.
Senator Johnson Smith was responding to concerns raised by Government Senator Kavan Gayle, who sits on the NHT board.
Senator Gayle, who is also president of the Bustamante Industrial Trade Union, had raised the issue that the NHT is a statutory body incorporated under the National Housing Trust Act which, as part of its functions, develops housing schemes for sale to its contributors.
He noted that part and parcel of this function is the acquisition, subdivision and sale of land. However, under the Transfer Tax Act and the Stamp Duty Act, transfer tax and stamp duty are generally payable on conveyances and transfers of land and pursuant to the Registration of Titles Act; proof of payment of these amounts is required as a prerequisite to their registration by the titles office.
He also pointed out that the minister of housing, under whom the Housing Agency of Jamaica falls, does not pay transfer tax or stamp duty when land is being sold. However, the NHT, although a government agency, does not benefit from that exemption.
Senator Gayle suggested that, as a government agency charged with increasing the housing stock in Jamaica and providing housing solutions for is contributors, in reviewing the Stamp Duty Act the following be considered:
1. NHT be exempted from stamp duty when it is selling land, similar to the exemption granted to the Minister of Housing; and,
2. Where Cabinet has directed that the NHT take over developments, for example memoranda of understanding with SCJ (Sugar Company of Jamaica) Holdings, the NHT should be exempt from transfer tax and stamp duty or, at the very least, the sums payable should be assessed on the value of the land at the date the purchasers acquired same, and not at current market value. He noted that, currently, the NHT is forced to absorb the costs to complete sales to persons who purchased the land from the original developer
3. NHT be exempted from stamp duty where properties assigned to beneficiaries have to be re-transferred to the NHT for a variety of reasons (for example where the property has been transferred, but the beneficiary has not taken possession of the unit and same has to be sold to a new purchaser to recoup the sums incurred by the NHT. Currently, the NHT has to pay duties twice on the same unit, which it will not be keeping for its own benefit.
4. NHT be exempted from stamp duty where the Trust is rectifying incorrect registration by way of a Transfer by Way of Exchange.
The Senate approved passing the companion measures allowing for companies listed on the Jamaica Stock Exchange to be exempt from paying income tax, stamp duty, and transfer tax on share buy-back transactions.
Senator Johnson Smith, who is also Minister Of Foreign Affairs and Foreign Trade noted that, at present, an ordinary shareholder engaging in a share buy-back transaction is at a disadvantage, compared with a shareholder selling shares to a third party.
She argued that a shareholder selling shares to a third party pays no stamp duty, transfer tax, or income tax, while the shareholder who engages in a share buy-back option would be taxed.
She said the legislation was approved by Cabinet on the basis that there is little to no fiscal implications whatsoever.
“The amendments will assist with the ease of doing business. It will assist in increasing liquidity in the markets, and, perhaps, increase the desire to move towards a regional stock exchange. We all know now that there are cross-listings which are permitted and facilitated by technology,” she noted.
Senator Johnson Smith argued that companies that are able to repurchase their stocks as one of the mechanisms available to them, employ more people, pay more taxes overall, and generally contribute to economic prosperity.
She added that similar legislation have been implemented within the Caribbean and other developed countries.
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Southwest Airlines increases flights to MoBay Wednesday 8th November, 2017 – Jamaica Observer
Southwest Airlines, ranked as the world's largest low-cost carrier, has increased its service between its home base, Dallas, and Montego Bay to two flights daily.
The Ministry of Tourism says that this will add another 52,000 new seats in and out of Jamaica while increasing connectivity to other US cities.
The additional Southwest flight, number 1112, departs Fort Lauderdale at 9:10 am daily, while the return flight, number 1113, departs Montego Bay every day at 11:50 am.
Tourism Minister Edmund Bartlett, who has welcomed the development, noted that Southwest is a major partner that has grown by leaps and bounds.
“In the quest to drive arrivals and to build up economic growth and prosperity in our country, airlift forms the central infrastructure. There is no way the connectivity can be realised without carefully planned and properly executed airlift arrangements,” Bartlett explained.
Southwest is a major US airline already operating regular, non-stop service into Montego Bay from Orlando, Florida; Houston, Texas; Chicago, Illinois; and Baltimore, Maryland.
Senior advisor and strategist at the Ministry of Tourism, Delano Seiveright, noted that there are now up to seven flights per day by Southwest into Montego Bay.
“More new flights, more new rooms, closer collaboration with cruise operators, enhancing relationships with non-traditional players like Airbnb and, of course, deepening linkages across entertainment, gastronomy, health and wellness, and other areas are among the lead initiatives being pursued to achieve tourism growth goals,” he stated.
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Gallimore going after all outstanding PC bank debt Wednesday 8th November, 2017 – The Gleaner
Errol Gallimore, Registrar of the Department of Cooperative and Friendly Societies, DCFS, says nearly half of the loan portfolio of the National People's Co-operative Bank is in arrears, but he plans to collect all the outstanding debt.
Gallimore's department took control of the loan portfolio of the PC banks the Agricultural Credit Board this year, but is awaiting the gazetting of the law to start taking action on collections.
"The priority actions that will be taken will be to recover the members' funds from those who are not paying or have refused to honour their obligations," the registrar told Gleaner Business.
"Therefore, as a general warning, the DCFS will be aggressive is this area to the point of seeking legal advice to amend the entity rules, that will allow the publishing of the names of the chronic delinquent borrowers. So changes are coming," he warned.
The DCFS itself already supervises 28 credit unions with assets of about $100 billion, a deposit base of $78 billion and loan portfolios totalling $71 billion.
The PC Bank, which will be supervised as a stand-alone entity, has a loan portfolio of $2.33 billion, of which 48 per cent or $1.12 billion was delinquent up to September of this year, Gallimore said.
A loan is classified as delinquent when it is 90 days or more in arrears. The PC Bank has a membership base of around 13,000, assets of $3.98 billion and savings of $4.18 billion.
The 110-year-old institution is considered Jamaica's go-to community bank for rural agricultural development. It provides members with savings instruments; loan facilities geared at MSMEs; legal services, inclusive of wills and land titling; and family indemnity plan insurance.
The institution is based in Mandeville but operates nationally, with branches in all parishes, except Kingston.
The revocation of the Agricultural Credit Bank's oversight of the PC Bank network took effect on February 8, following an amendment to the law governing the ACB.
The change came two years behind a public scandal regarding the high levels of non-performing loans at the PC Bank.
DCFS was chosen as the new overseer because of the "overlapping jurisdiction" in the supervision and monitoring of industrial and provident societies. The PC Bank, he said, was already registered under the Industrial and Provident Societies Act, and the DCFS registrar had been made the regulator of those societies back in 2010.
The majority of delinquent PC Bank loans have been outstanding for more than 180 days. That non-performing debt is estimated at $970 million or 42 per cent of the total portfolio, Gallimore said.
"The portfolio has about 50 per cent of the non-performing loans being held by 20 to 30 persons holding $3 million and more and the other 50 per cent by small businesses and other small agricultural loans holding under $3 million," the registrar told Gleaner Business.
The PC Bank is currently being managed by a steering committee appointed by the Agricultural Credit Board.
"A decision is imminent and will be taken regarding the continued tenure of this committee, as soon the new act is gazetted, as the committee has been in place for the past three years," Gallimore said.
The bank will continue to issue agricultural loans to its members, "but under a stricter and tighter credit administration portfolio," he added.
The traditional sources of funding for the PC Bank have been the Development Bank of Jamaica and members' deposits.
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Tax amnesty to end on November 30 Wednesday 8th November, 2017 – Nation News
The Barbados Revenue Authority has reminded individuals and businesses that this year’s Tax Amnesty Programme ends on Thursday, November 30.
This amnesty covers arrears incurred up to May 31, 2017. The taxes eligible for the waiver of penalty and interest under the tax amnesty programme are Value Added Tax (VAT), Land Tax, Income Tax, PAYE and Corporation Tax.
To participate in the Tax Amnesty Programme, persons are required to submit a completed application to the Authority; file all outstanding returns; and pay outstanding debt.
Application forms may be collected from the Authority’s offices at the Treasury Building, Bridgetown; Weymouth Corporate Centre, Roebuck Street, St Michael; Warrens Tower II, Warrens, St Michael; Southern Plaza, Oistins, Christ Church; and Holetown, St James.
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IMF Praises Jamaica’s Performance Thursday 9th November, 2017 – Caribbean 360
The International Monetary Fund (IMF) has given high marks for Jamaica’s performance under the Stand-By Arrangement (SBA) with the Fund, saying “commitment to the economic reform programme remains strong”, with “economic indicators at historical highs, supported by a favourable macroeconomic environment”.
In its recently released 70-page review of Jamaica’s economic performance, the IMF noted that “unemployment is falling, new jobs are being created, and there is robust activity in construction and hotels and restaurants. Inflation and the current account are low, helped by relatively stable oil prices and the Government’s policy efforts”.
The Fund said “the historically low yields” in the recent global bonds reopening reflect “Jamaica’s hard-won credibility”.
“After more than four years of difficult economic reforms, Jamaica’s programme implementation remains exemplary,” the Washington-based multilateral noted.
Giving the second review under Jamaica’s SBA, the IMF said that strong domestic ownership of the reform agenda across two different governments and the broader society has helped to entrench macroeconomic stability and fiscal discipline.
The Fund hailed the “landmark public pension reform bill” passed recently. It said that while there are programme risks, commitment by the Government to the reform programme “remains strong”.
Among the risks identified by the IMF was the challenge of public-sector reform and ongoing public-sector wage negotiations. The Fund said there is need to free up resources through redesigning public-sector wage scales to retain skilled employees and to appropriately reward performance.
“This would pave the way for rebalancing public spending from wages to growth-enhancing outlays on health (where Jamaica’s expenditures are relatively low), education (where an overly large share of expenditures is on wages), security and capital spending,” the IMF said.
It also mentioned weather-related shocks as potential risks to the programme, highlighting growing concern about the issue of climate change.
The international lending agency praised the Government for the fact that “inflation and the current account deficit remain subdued”, and commended the Andrew Holness administration for its divestment programme, observing that “the authorities are accelerating their efforts to divest underutilized public assets and using proceeds towards public debt reduction”.
The IMF cited the Government’s “sustained commitment (to macroeconomic stability and fiscal discipline)” and the ongoing programme monitoring by civil society that has paved the way for the reforms to be “domestically owned, designed and executed”.
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Barbados Regulator Increases Pressure on Utility Providers to Improve Service Thursday 9th November, 2017 – Caribbean360
The Fair Trading Commission (FTC) is bringing the hammer down on this country’s utility providers, Barbados Light & Power (BL&P), the Barbados Water Authority (BWA) and Cable & Wireless (C&W), which operates in the island as FLOW.
In tough new and amended standards of service, the FTC is now forcing the three providers to up their standards, and in some cases, to automatically compensate customers for failure to meet the FTC set standards, even without a formal written complaint from their customers.
In a long list of new rules that take effect from January 1, 2018, the state regulatory body has told the BL&P, C&W and the state-owned BWA that failure to follow the rules could result in fines of BDS$100,000 (US$50,000) on conviction and BDS$10,000 (US$5,000) for every day the breaches continue.
For the BL&P, which is owned by Canadian power giant Emera, it will have to automatically compensate customers, from BDS$45 (US$22.50) for domestic clients and up to BDS$215 (US$107.50) for large commercial clients, for loss of service.
What’s more, in the tough impositions from the FTC, the BL&P must compensate each affected customer with a credit on their electricity bill within two months of breaches on the guaranteed standards.
To effect the new rules of engagement with customers, BL&P has been ordered to issue tracking numbers to each customer reporting a fault or complaint. The customer can then use that tracking number to follow up the progress on the issue.
The BWA, BL&P and C&W, the sole supplier of landline services through FLOW, have just under two months to notify their thousands of customers of the standards and targets which the companies are obligated by order of the quasi-judicial body to meet.
Not only must the companies publicize on their websites the standards and the compensation rates they must pay, they also are mandated to inform customers on their utility bills, and every six months advertise their specific standards and targets in the media.
Among the service standards BL&P’s customers are guaranteed and for which the power company must automatically compensate if it fails to meet, is the restoration of service within eight hours after a power outage. “The BL&P shall restore the electricity supply within eight hours of a fault being reported on an individual customer’s service. The qualifying fault events include, but are not limited to, problems or defects at the metering point, broken or defective service wires.
“When the BL&P breaches the fault repair target, it shall credit the affected customer’s account $45 (D – domestic), $90 (GS – general service) or $215 (SVP/LP – secondary voltage power/large power). Thereafter, the same level of compensation is applicable for each eight hours the customer remains without service,” the FTC ruled.
The same rate of compensation must be given to customers when they report problems with power surges and dips to their homes or businesses.
BL&P must visit the customer within 24 hours, and it has five days to assess the situation and 30 working days to correct the problem. Failing to do so will mean automatic compensation for the customer within two months on his electricity bill.
When the power company disconnects a customer for non-payment, BL&P must restore the service within six hours after the customer makes the full payment or the power company must refund the reconnection fee.
FLOW’s landline customers have also been offered protection by the FTC. And among the long list of service standards it must maintain is the time to connect customers who request service or want their service transferred to a different residence.
The FTC has given FLOW seven days for such service requests for domestic customers and no more than five days for business clients.
If FLOW fails to meet the standard, it must automatically credit the customer the first month’s service charge. This compensation payment does not require the customer to request the credit.
The state-owned BWA has also been targeted by the FTC. It must acknowledge customer complaints about service standards within seven days of the complaint and 20 days to investigate, or compensate the customer BDS$15 (US$7.50).
If the BWA disconnects a customer in error, it must reconnect within ten hours of the complaint or compensate the domestic customer BDS$50 (US$25), or BDS$100 (US$50) for commercial customers who are disconnected in error.
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