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Credit Risk Analysis of Corporates & SMEs 27th & 28th February, 2018 Suriname

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Latest Rating Actions by CariCRIS

▪ Government of rating downgraded to CariBBB- ▪ Electricity Services Limited’s rating reaffirmed at CariBBB ▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+ ▪ Gulf City Limited’s rating reaffirmed at CariA+ ▪ National Flour Mills Limited’s rating reaffirmed to CariA- ▪ Telecommunications Services of Trinidad and Tobago Limited’s rating reaffirmed to CariA ▪ Colonial Fire and General Insurance Company Limited’s initial rating assigned at CariA ▪ Home Mortgage Bank’s rating reaffirmed at CariA ▪ NCB Financial Group Limited’s initial corporate credit rating assigned at CariA ▪ National Commercial Bank Limited’s rating upgraded to CariBBB+ ▪ NCB (Cayman) Limited’s initial corporate credit rating assigned at CariA ▪ The Government of the Commonwealth of placed on Rating Watch – Developing ▪ Dominica AID Bank’s rating downgraded by 1-notch and placed on Rating Watch – Negative

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

Benefits of a CariCRIS Rating to a Corporate Entity: • Improve relationships with creditors with an independent, objective assessment of business

• Strengthen your governance and hedge against business risk

• Attract investors to raise money in capital markets • Detect credit deterioration early and focus your management on hedging risks

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

REGIONAL

Trinidad and Tobago

T&T ranking improves on corruption index T&T has improved in its ranking on the Corruption Perception Index (CPI), moving from 101 in 2016, to 77 in 2017.

Massy Holdings Ltd registers largest gain Overall Market activity resulted from trading in 14 securities of which three advanced, two declined and nine traded firm.

Witco profit down 26 % for 2017 West Indian Tobacco (Witco) has reported a 26 per cent decrease in Profit after Tax for its financial year ended December 31, 2017.

Bartercoin: TT joins digital coin revolution BarterCoin Exchange Ltd and Zip Coin, through Rentier Company Limited, will launch with a gala event at Hilton Trinidad and Conference Centre tomorrow. Rentier Company Limited has partnered with an international team to establish BarterCoin exchange.

Barbados

Stakeholders meet in Barbados to develop regional strategic plan for water sector Water specialists from across the region have been meeting in Barbados to continue work on the development of a regional strategic plan for the water sector. The plan will propose possible solutions for the challenges facing the industry in the Caribbean, and will be presented at the eighth World Water Forum to be held in Brasilia, Brazil, in March.

Full of promise He has been here for little over two months, but already Argentina’s new ambassador to Barbados Gustavo Martinez Pandiani is confidently proclaiming the island as his home away from home.

Jamaica

Caribbean Cement to restart exports Caribbean Cement says it expects to restart cement exports following the completion of its US$50-m modernisation programme.

SBA seeks new approach to meet needs of micro sector Would you invest in a microbusiness that is traded on a transparent platform in which the price of the shares showcases the value of the start- up?

Gov't introduces to IBC Bill accelerate growth An International Business Companies (IBCs) Bill, which is being debated in the House of Representatives, has raised a glimmer of hope that despite the setbacks there are still encouraging signs for improved economic growth in the short term.

Elite lists first for 2018 On Tuesday Elite Diagnostic Ltd, became the first company to list on the Jamaica Stock Exchange (JSE) for 2018, bringing the market value of the Junior Market to more than $121 billion.

Guyana

Gov’t will not renege on ExxonMobil Contract GOVERNMENT will not renege on the 2016 Petroleum Sharing Agreement (PSA) it signed with Esso Exploration and Production Guyana Limited – a subsidiary of U.S. oil giant ExxonMobil, Minister of State Joseph Harmon said.

The Bahamas

The Bahamas to Get US$4.5 Billion Oil Refinery and Storage Facility US-based Oban Energies is developing a US$4.5-billion oil refinery and oil storage facility off the southern tip of Grand Bahamas Island.

$100m Bob Bail-Out Borrow Won't Hit Deficit THE Government's newly-announced $100 million borrowing to facilitate the Bank of the Bahamas bail-out will not add to this year's deficit, a top official said yesterday.

St. Kitts and Nevis

Saint Kitts-Nevis tourism industry continues to receive prestigious accolades, says Minister of Tourism The Ministry of Tourism has been buzzing with good news for the 2017 – 2018 tourism season. At a special sitting of National Assembly to commemorate the 3rd Anniversary of the Team Unity Government on February 21, Minister of Tourism, the Honourable Lindsay Grant, shared the good news of his ministry.

Haiti

IOM helps hundreds of Haitians back from DR to have a small business Providing 700 migrants and migrants of Haitian origin, returning from the , the ability to carry out income-generating activities to promote their sustainable reintegration in , is one of the objectives of a project of the International Organization for Migration (IOM-Haiti).

Other Regional interCaribbean to launch Dominica to and St Lucia services interCaribbean Airways, celebrating 26 years of continuous services, will launch new nonstop scheduled services from Dominica to St Lucia and Tortola, with one-stop easy connections via Tortola to St Thomas, St Croix, St Maarten, San Juan, Providenciales and .

INTERNATIONAL

United States

U.S. shale investors still waiting on payoff from oil boom U.S. oil production has topped 10 million barrels per day, approaching a record set in 1970, but many investors in the companies driving the shale oil revolution are still waiting for their payday.

United States tells WTO of concerns over China's new web access rules The United States told the World Trade Organization on Friday that Chinese internet access rules coming into force next month appeared to create significant new restrictions for cross-border service suppliers and should be discussed at the WTO.

United States Continued

Oil slips to $66 a barrel as U.S. output offsets OPEC curbs Oil slipped to $66 a barrel on Friday, under pressure from concerns that rising U.S. oil output and exports will offset OPEC-led attempts to erode stockpiles with output curbs.

United Kingdom

Sterling edges up as soft data is offset by BoE hike expectations Sterling edged up against the dollar and euro on Friday but finished the week in much the same place as it had started, with weaker-than- expected economic data being offset by hawkish comments from Bank of England policymakers.

Europe

Euro set for second biggest weekly drop since October as risk looms The euro slipped on Friday and is set to post its second biggest weekly loss in nearly four months as investors trim positions before a big week for global currency markets from a European politics perspective.

Japan

Japan stocks gain in thin trade, defensive sector gets boost Tokyo stocks rose on Friday in light trade as receding fears of more aggressive U.S. interest rate hikes boosted sentiment, with defensive shares such as construction and utilities outperforming.

Global

Global stocks stay subdued as dollar edges higher A stronger dollar and slightly higher global borrowing costs kept world shares subdued on Friday and left gold limping toward its worst week since December.

Royal Bank of Canada earnings beat market expectations Royal Bank of Canada (RY.TO) reported first-quarter earnings that were above market expectations helped by a strong performance in wealth management.

Gov’t will not renege on ExxonMobil Contract Friday 23rd February, 2018 – Guyana Chronicle

GOVERNMENT will not renege on the 2016 Petroleum Sharing Agreement (PSA) it signed with Esso Exploration and Production Guyana Limited – a subsidiary of U.S. oil giant ExxonMobil, Minister of State Joseph Harmon said.

Since the release of the ExxonMobil Contract late December last year, Government has received fierce criticisms from both civil society and the political opposition over several aspects of the agreement – from the percentage of royalty to the signature bonus and on issues such as local- content provisions.

On Thursday while responding to reporters at the Ministry of the Presidency, the Minister of State said the Government will uphold its commitment under the contract with ExxonMobil and will not back pedal. “The President has said that we have dealt with the ExxonMobil contract and that we are not going back on it. We are not back on it. It was dealt with at Cabinet and the President has pronounced on the matter and that is the final pronouncement as far as we are concerned,” Minister Harmon told reporters.

Reminding reporters that Government and the country by extension have commitments under the contract, he said “we will work with what we have”.

Under the present contract, which was reviewed by the A Partnership for National Unity + Alliance for Change (APNU+AFC) Administration, Guyana will receive 50 per cent of the profits as an equal partner, in addition to a two per cent Royalty.

Additionally, Guyanese are expected to benefit from “preferential treatment” in the provision of goods, materials and sub-contractual arrangements with ExxonMobil’s petroleum operations here, in keeping with Article 18 of the Agreement.

According to a section of the agreement, within a 60-day period prior to the commencement of a calendar year, Esso and its partners CNOOOC Nexen Petroleum Guyana and Hess Exploration Guyana Limited which hold interests in the Stabroek Block , and the subject minister shall provide a yearly plan for the utilisation of qualified Guyanese personnel for the upcoming year. Both parties shall then meet to discuss the plan’s effectiveness.

Additionally, the oil company is required under the agreement to provide the subject minister, within a month after the end of each half-year, reports outlining the company’s achievements in utilising the services of qualified Guyanese personnel.

But the Private Sector Commission (PSC) back in January had expressed the view that much more should have been done to incorporate local content and greater benefits for businesses here in the petroleum agreement between the Government and ExxonMobil’s subsidiary.

Pointing out that the cost of energy is presently the primary limitation to the expansion of business and growth in Guyana, the PSC said there is nothing in the agreement to indicate that Guyana owning such large oil reserves would translate into reduction of the costs of energy to Guyanese.

Minister Harmon, on Thursday, said Government is cognisant of the issues which have arisen.

GUIDED BY EXPERTS

“There are issues which have arisen and we will be guided by international experts. We will be guided by what is best practice going forward,” he posited.

“We are looking at the benefits to be accrued from this contract and from all future contracts,” he added while making reference to the decision to release all contracts.

The minister of state also used the opportunity to warn against misleading the nation as he took a shot at a local newspaper which, in recent days, has been reporting on a Petroleum Agreement Ghana has signed with ExxonMobil.

“Sometimes we hear and we read some things that are happening in other countries and countries whose economic conditions are different from ours, but if we import these things as if it is Guyana, one gets the impression that all of these things are happening in Guyana…. We understand what best practices are, we understand also that there are implications of decisions which are made but when we seek to make it appear as if these things are happening in Guyana by putting it on the front page of a newspaper, I believe that that is a little bit disingenuous and I think that it is having an impact on people who read the newspaper,” Minister Harmon posited.

Meanwhile, over at the Opposition Leader’s Church Street Office on Thursday, former President, now Opposition Leader, Bharrat Jagdeo said some persons have been using the contract signed between Ramotar and Canadian oil and gas exploration company, CGX, to attribute Minister Raphael Trotman’s “inspiration” for the recent contract signed with ExxonMobil.

“That contract that Donald Ramotar signed with CGX was signed in a period when we were exploring for oil. They didn’t have any find, we did not know whether we were going to find oil,” Jagdeo posited.

He said when Natural Resources Minister Raphael Trotman renegotiated the contract, he knew that there were $3.2B barrels of recoverable oil, that they were finding more oil and that other countries had greater interest in Guyana.

“A lot of those provisions that found their way into the CGX contract were not in the Janet Jagan contract, so if Trotman argued that he renegotiated a better deal; he had to negotiate a better deal on the Janet Jagan’s agreement because that was what was up for re- negotiation,” he opined.

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The Bahamas to Get US$4.5 Billion Oil Refinery and Storage Facility Thursday 22nd February, 2018 – Caribbean 360

US-based Oban Energies is developing a US$4.5-billion oil refinery and oil storage facility off the southern tip of Grand Bahamas Island.

Prime Minister Dr Hubert Minnis says the project is expected to create 600 direct jobs and 1,000 indirect jobs during the construction phase.

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. Oban Energies will construct a harbour and deep-sea loading docks to service large vessels, as well as a 50,000 barrel per day petroleum refinery, with plans to expand to 250,000 barrels per day by year four.

Representatives from the government and Oban Energies on Monday signed the Heads of Agreement (HOA) that paves the way for the Environmental Impact Assessment (EIA) process.

The EIA, which is already underway, will ensure that the project advances in an environmentally safe and sustainable manner.

Prime Minister Minnis said the signing was “an important step in the approval process for Oban Energies.”

“In December of 2016, the Government of The Bahamas approved Oban Energies to proceed with the construction of an oil refinery and oil storage facility in Grand Bahama.

“My Government is pleased to have moved this project forward and has successfully completed negotiating the Heads of Agreement, which paves the way for the commencement of this important project,” he said.

Oban envisions that the terminal will play a key strategic role as one of only two facilities close to the US Gulf and East Coasts for deep water marine terminal servicing of crude and other products that are unloaded from large tankers at the marine terminal and either stored or loaded onto smaller ships that can access the shallower water berths along the East Coast and the Caribbean.

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$100m Bob Bail-Out Borrow Won't Hit Deficit Thursday 22nd February, 2018 – Tribune 242

THE Government's newly-announced $100 million borrowing to facilitate the Bank of the Bahamas bail-out will not add to this year's deficit, a top official said yesterday.

Marlon Johnson, the Ministry of Finance's acting financial secretary, told Tribune Business that international accounting standards required the borrowing to be treated as a financial investment and "purchase of an asset".

"It doesn't factor into the deficit because they are investments in assets," he said of the funds. "It doesn't count against the deficit and deficit number."

Mr Johnson was speaking after the Government yesterday tabled a Parliamentary resolution to borrow an extra $100 million beyond the amount approved in last May's Budget, which led many observers to believe it would increase the projected $323 million deficit.

The $100 million, which will be raised from local investors in the Bahamian capital markets, will be invested by the Government in Bahamas Resolve, the special purpose vehicle (SPV) that facilitated the Bank of the Bahamas rescue by accepting two tranches of its 'toxic loans'.

The first 'bail-out', in October 2014, saw the Government inject $100 million in promissory notes (bonds) into the stricken BISX-listed institution's balance sheet to fill the 'hole' created by the removal of those loans.

The Government has now agreed to pay-out those bonds and replace them with cash, having financed some $69 million worth of redemptions to-date from its own resources. The $100 million borrowing will thus replace the monies it has spent to-date through Bahamas Resolve, and finance redemption of the remaining $31 million before the end-June fiscal close. "In the first half of this fiscal year, some $69 million was expended from current Government resources as part of the $100 million that the Government is to invest in Resolve," K P Turnquest, the Deputy Prime Minister, said in the mid-year Budget address yesterday.

"As I foreshadowed in my statement to Parliament on Resolve in September of last year, and as was disclosed at the time of our recent international bond issuance, the Government committed to facilitate Resolve retiring the original $100 million promissory note issued to the Bank of the Bahamas in respect of the initial tranche of toxic loan transfers, in accordance with an agreed schedule.

"After exploring funding options, the Government is of the view that it would be best to access the domestic market, given the ample levels of excess liquidity. In line with this commitment, new corresponding borrowing authority will be sought from Parliament today to cover this sum."

Another $167 million worth of promissory notes was injected into Bank of the Bahamas as a result of the second 'bail out' deal last summer, which resulted in more 'toxic loans' being transferred to Bahamas Resolve.

The two 'bail outs' mean that the liabilities associated with the 'toxic loans' have been switched from Bank of the Bahamas and its shareholders to the Bahamian taxpayer through Bahamas Resolve.

With the time and difficulties involved in realising the collateral for these loans, many have questioned Bahamas Resolve's ability to pay the interest due to Bank of the Bahamas on the promissory notes through collection activities. There are fears that the taxpayer, too, may be saddled with the interest payment burden.

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Saint Kitts-Nevis tourism industry continues to receive prestigious accolades, says Minister of Tourism Thursday 22nd February, 2018 – SKN Vibes

The Ministry of Tourism has been buzzing with good news for the 2017 – 2018 tourism season. At a special sitting of National Assembly to commemorate the 3rd Anniversary of the Team Unity Government on February 21, Minister of Tourism, the Honourable Lindsay Grant, shared the good news of his ministry.

Minister Grant commended the Ministry of Tourism and the St. Kitts Tourism Authority for their stellar work that led to various accolades in the Federation of St. Kitts and Nevis received over the past year and early 2018.

“It is important for us to understand in St. Kitts and Nevis that under this government something good is happening,” said Minister Grant, as he noted that the federation has been named among the “22 Hotspots of Where to go in 2018” by Bloomberg Pursuits and listed as one of the “Top 21 Places to Travel in 2018” by the Robb Report.

St. Kitts and Nevis has also been named one of the best destinations in the Caribbean to watch for 2018 by travel agents and also recognized as one of the best 18 Caribbean Destinations to Visit in 2018. He also noted that the newly opened Park Hyatt St. Kitts – Christophe Habour has been named number one of the “14 Best New Caribbean Hotels.”

Minister Grant said that there was a substantial increase in stay-overs in 2017 from 115,000 in previous years to approximately 140,000, despite the 2017 Hurricane Season with Hurricanes’ Irma and Maria.

“The increase was driven in part by marked improvements in our American Flight out of JFK and Miami in the latter half of 2017,” he added. There has also been an addition of a Delta Airlines direct flight from Atlanta to St. Kitts that was started in December 2017.

He also highlighted an increase in cruise ship passengers coming to the federation since the change of government in 2015. He noted that the federation welcomed over 1 million cruise passengers from 2015 to present.

Additionally, Minister Grant lauded the St. Kitts Tourism Authority for receiving the Routes Americas Marketing Award for 2018 for Excellence in Destination Marketing.

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IOM helps hundreds of Haitians back from DR to have a small business Thursday 22nd February, 2018 – Haiti Libre

Providing 700 migrants and migrants of Haitian origin, returning from the Dominican Republic, the ability to carry out income-generating activities to promote their sustainable reintegration in Haiti, is one of the objectives of a project of the International Organization for Migration (IOM-Haiti).

Those past few weeks, from Cap Haitien to Anse-à-Pîtres, through Ouanaminthe, Belladere, Port-au-Prince and Cornillon Grand Bois, migrants men and women trained in the management of Income Generating Activities (IGAs) have received their starter kit that will allow them to open up to empowerment !

Each distributed kit contains: a 25 kg bag of rice, a pea bag of 12.50 kg, a 25 kg bag of sugar, a 25 kg bag of maize, a 25 kg bag of flour, a can of oil of 10 Liters, a box of herrings, a case of bouillon-cube of chicken, a box of milk, butter, packets of spaghetti, cans of concentrated tomatoes and 5 kg of garlic.

A total of 700 adults will benefit from this vocational training and support for the creation of small businesses through income-generating micro projects. To date, 195 men and 387 women have already received this training.

These activities are put in place thanks to the generous support of the Government of Canada and the field work of our partner CAPAC (Centre d'Animation Paysanne et d'Action Communautaire).

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T&T ranking improves on corruption index Friday 23rd February, 2018 – Trinidad and Tobago Guardian

T&T has improved in its ranking on the Corruption Perception Index (CPI), moving from 101 in 2016, to 77 in 2017.

The country recorded a score of 41 to go with its improved ranking.

While 41 shows the need for T&T to still improve its CPI score, this is an improvement from its 2016 score of 35 and ranking of 101.

A zero scoring means that the particular country is highly corrupted.

Looking at the performance of other countries in the region, Guyana scored 38 and ranked 91, Jamaica scored 44 and ranked 68 and Barbados scored 68 with a ranking of 25.

Commenting on T&T's position, David West, director of the Police Complaints Authority (PCA) said he was happy to see that T&T had moved up a couple notches on the CPI.

He suggested that T&T should implement an anti-corruption agency like Jamaica did.

"I want to see us (T&T) go the way of Jamaica, where they actually have an anti-corruption agency. I think that is something that we should be pushing to allow us to investigate and prosecute" West said, in an interview at the launch of CPI 2018 which was held yesterday at the Arthur Lok Jack Graduate School of Business, Mt Hope.

West, said, "this institution (the anti-corruption agency) would be able to prosecute for corrupt practice of public officials, so I think that would be a step forward."

Commenting on the results, anti-corruption activist Afra Raymond said there were new metrics added to the scoring and the inclusion of those metrics assisted T&T to improve its score.

"Of course, scoring 41 is less than 50 so it is a failing mark. We have a lot of room to work for improvement. We've had the appointment of a procurement board, which is an important development. We now have to insist that the procurement board let us know when they have completed their regulations and when they would be implementing the system fully."

Raymond added that institutions such as the office of the Director of Public Prosecutions, the Integrity Commission and the Procurement board needed to be more accountable to the public, suggesting that this be done through Parliament.

"I believe that there should be a proper channel. A procedure needs to be developed for those important independent institutions, a protocol where they report to the public what is happening like reporting to the Parliament on a routine basis."

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Massy Holdings Ltd registers largest gain Friday 23rd February, 2018 – Trinidad and Tobago Guardian

Overall Market activity resulted from trading in 14 securities of which three advanced, two declined and nine traded firm.

Trading activity on the First Tier Market registered a volume of 153,137 shares crossing the floor of the Exchange valued at $1,332,037.50.

L J Williams Limited B was the volume leader with 80,000 shares changing hands for a value of $60,000.00, followed by National Enterprises Limited with a volume of 25,000 shares being traded for $241,250.00.

JMMB Group Limited contributed 18,346 shares with a value of $33,573.18, while Agostini’s Limited added 6,502 shares valued at $136,542.00.

Massy Holdings Ltd registered the day’s largest gain, increasing $0.29 to end the day at $47.29.

Conversely, Clico Investment Fund registered the day’s largest decline, falling $0.01 to close at $20.00.

Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 18,360 shares valued at $367,219.60. Clico Investment Fund declined by $0.01 to end at $20.00.

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Witco profit down 26 % for 2017 Friday 23rd February, 2018 – Trinidad and Tobago Guardian

West Indian Tobacco (Witco) has reported a 26 per cent decrease in Profit after Tax for its financial year ended December 31, 2017.

In its published preliminary announcement of results, the company reported profit after tax of $380.2 million for 2017, as compared to 2016 when it reported $515.5 million in after tax profit.

Commenting on the company's performance, Witco chairman Anthony Phillip said: "Given the prevailing economic conditions together with increased excise and Corporation tax the business environment continued to be challenging"

He said this resulted in significant changes in consumption patterns which adversely affected revenue.

"Similar challenges were also experienced by some of our Caricom export markets."

According to the announcement, the company's revenue declined year on year, moving from $1 billion in 2016, to $867.6 million in 2017

Phillip said the company continued to be a net earner of foreign exchange which covers its operational requirements.

Focusing on Witco's external environment, Phillip said the company "continues to proactively respond to evolving market conditions with ongoing reviews of its business strategies including: marketing, distribution and operations as well as prudent cost management."

He added that illicit products continue to be an issue for the company.

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Bartercoin: TT joins digital coin revolution Friday 23rd February, 2018 – Trinidad and Tobago Newsday

BarterCoin Exchange Ltd and Zip Coin, through Rentier Company Limited, will launch with a gala event at Hilton Trinidad and Conference Centre tomorrow. Rentier Company Limited has partnered with an international team to establish BarterCoin exchange.

In a media release, the company said, “Our executive team has been on a promotional campaign in London, Dubai, China and the US.

Two offices are established in London and at the World Trade Centre in New York. As part of the infrastructure for facilitating this digital currency, BarterCoin Exchange Ltd, was duly incorporated under the laws of the Republic of Trinidad and Tobago and is head quartered in Port of Spain.”

Unlike Bitcoin, BarterCoin allows you to cash out after six months on the platform.

BarterCoin is offering 1 billion coins and seeks, it said, “to contribute to the branding of Port of Spain as the 22nd century financial capital of the region and a pioneer in financial services; targeting global markets.”

While other currencies have been launched globally, BarterCoin is head quartered in TT. The launch of the digital currency also promises job creation.

The press release added, “The company anticipates that upwards of 50 to 100 direct jobs will be created within the first year of operations and an estimated 300 indirect jobs.

The job creation does not only end with T&T but for the Caricom region, an estimated 105 direct jobs and estimated 450 indirect jobs will be created through BarterCoin’s existence.”

The company added that Bartercoin as a tradable asset is secured by gold, silver and corporations. BarterCoin Ltd intends to register on the local stock exchange and conduct an IPO, with the view of facilitating the citizens of T&T participation at another level and grow value from their investments, the company release added.

In what was called “the first Token Generation Event” the company sold “300 million coins at US $1 per coin in three minutes which has since appreciated to US$4.92 per coin.

This also comes on the heels of neighbouring Venezuela launching its national cryptocurrency called the petro.

Since its launch the petro has raised US $735 million. A February 22 article on moneycontrol.com said, “Venezuelan President Nicolas Maduro on Wednesday claimed the pre-mined cryptocurrency Petro, the first such token issued by a sovereign government, has raised USD 735 million on the first day of its pre-sale.

The oil-backed coin was offered for pre-sale on a discount starting Tuesday, the same day Venezuelan government released the white paper and buyers’ manual.”

The article further states, “The government will issue 100 million coins of Petro of which 38.4 million is available for pre-sale and 44 million coins will be offered in an ICO in March. The rest 17.6 million coins will be retained by the Venezuelan Superintendency of Currency and Related Activities (SUPCACVEN).”

<< Back to news headlines >>

interCaribbean to launch Dominica to Tortola and St Lucia services Thursday 22nd February, 2018 – Caribbean News Now interCaribbean Airways, celebrating 26 years of continuous services, will launch new nonstop scheduled services from Dominica to St Lucia and Tortola, with one-stop easy connections via Tortola to St Thomas, St Croix, St Maarten, San Juan, Providenciales and Santo Domingo.

Travelers can make two-stop connections via interCaribbean flights to Kingston and Nassau. Even allowing for two stops this is still one of the fastest travel times in the Caribbean.

Flights to and from Dominica begin on March 22 with three weekly flights. interCaribbean has expanded its schedule to new points throughout the Caribbean connecting more of the Caribbean than any other Caribbean .

CEO Trevor Sadler stated, “We are pleased to begin connecting Dominica with our Caribbean, bringing affordable air fares to this latest interCaribbean destination. We look forward to welcoming citizens and residents aboard and adding new connections and cities that Dominica can enjoy.”

Colin Piper, director of tourism, Dominica, welcomed the new service, stating, “interCaribbean is giving Dominicans new choices to fly to and from Dominica and more connections to more places, the service is very timely and very welcome. We look forward to the launch and anticipation of service to further islands.”

<< Back to news headlines >>

Global stocks stay subdued as dollar edges higher Friday 23rd February, 2018 – Reuters

A stronger dollar and slightly higher global borrowing costs kept world shares subdued on Friday and left gold limping toward its worst week since December.

Europe’s main London, Frankfurt and Paris markets <0#.INDEXE> barely budged in early moves, keeping MSCI’s 47- country world index just in the black on the day but facing its third red week in the last four.

Modest gains for the dollar meant the euro was set to post its second biggest weekly loss in nearly four months [/FRX], as caution over the Italian election gave bond markets there their toughest week of 2018.

Polls point to a hung parliament in Italy, where no one party or coalition has an outright majority to form a government, and analysts expect a short-term volatility that could weigh on traditionally sensitive euro zone markets.

Italy’s 10-year bond yield was up 1 bps at 2.09 percent. It has risen about 10 basis points this week.

“Some long-forgotten patterns return to euro bond markets with Bunds rallying while Italy sells off,” said Commerzbank rates strategist Christoph Rieger.

He noted comments from European Commission President Jean-Claude Juncker this week, who was reported to have warned about Italian election risks.

Broader global cross-asset issues remained much the same as they have during a choppy few weeks. How far and fast U.S. interest rates can rise and what would it mean for global borrowing costs, risk appetite and business confidence.

That caution is reverberating in the bond markets with U.S. yields rising by more than 50 basis points since early December, more than the 38 basis points for German government debt.

Benchmark Treasury 10-year note yields rose to a four-year high of 2.957 percent on Wednesday though they were a shade down at 2.904 percent on Friday.

The backsliding also stalled the dollar’s overnight gains in Asia. It was virtually treading water against most major currencies by 0930 GMT, buying 106.8 yen and at $1.2325 and $1.3965 against the euro and pound.

It was still up more than 1 percent for the week and headed for its third gain in the last four weeks.

“We think the Fed could well put U.S. (interest) rates up four times this year but even then it only takes U.S. rates to 2.5 by the end of the year,” said JPMorgan Asset Management global strategist Mike Bell. “So the question is would they continue at that pace in 2019?”

One of the Fed’s chief doves, St Louis Fed President James Bullard, tried to tamp down expectations of four rate hikes on Thursday, saying policymakers needed to be careful not to slow the economy.

NOT SO PRECIOUS

Russian markets were readying for a big day with S&P Global due to review Moscow’s credit rating.

It is just one step away from returning Russia to the investment grade bracket that it ejected it from after the 2014-2015 slump in oil prices and Ukraine crisis. Its restatement would also see Russian foreign currency bonds return to some widely-tracked bond indices.

In Asian trading overnight, MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.9 percent on Friday to add to the previous week’s 3.9 percent gain.

It is still down more than 4 percent in February so far, however, after global equity markets were mauled at the start of the month by worries that inflation was picking up.

Japan’s Nikkei rose 0.7 percent, though China’s SSE Composite index and the blue-chip CSI300 both pared their early gains after the government seized control of acquisitive financial conglomerate Anbang Insurance.

It was seen as a dramatic move that underscores Beijing’s intent to crackdown on financial risk.

The dollar’s strength meant it remained a tough environment for commodities which are priced in the U.S. currency.

U.S. West Texas Intermediate (WTI) crude futures were at $62.74 a barrel, down 3 cents from their last settlement, while Brent crude futures were down 2 cents at $66.37 a barrel.

There were concerns about high U.S. crude export levels which outweighed an unexpected drop in oil inventories in the country which is also the world’s biggest fuel consumer.

Industrial metals such as copper eased as they headed for a small weekly drop and as trading slowly picked up again after Chinese markets had been shut following the Lunar New Year holiday.

Gold remained the stand-out mover though and looking increasingly less precious.

Its spot market price was down 0.2 percent at $1,328, heading for a fifth session of falls in six. It has shed 1.6 percent this week, its biggest drop since early December.

“We remain somewhat cautious on gold over the short term given that we think the dollar rally is still not over, especially in the light of U.S. Treasury yields remaining elevated,” said INTL FCStone analyst Edward Meir.

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U.S. shale investors still waiting on payoff from oil boom Friday 23rd February, 2018 – Reuters

U.S. oil production has topped 10 million barrels per day, approaching a record set in 1970, but many investors in the companies driving the shale oil revolution are still waiting for their payday.

Shale producers have raised and spent billions of dollars to produce more oil and gas, ending decades of declining output and redrawing the global energy trade map. But most U.S. shale producers have failed for years to turn a profit with the increased output, frustrating their financial backers.

Wall Street’s patience ran out late last year as investors called for producers to shift more cash to dividends and share buybacks.

“‘Give me some cash, please.’ That’s what investors have said,” said Anoop Poddar, a partner at private equity firm Energy Ventures.

And yet such calls for payouts remain a debate in the industry as oil prices have recently creeped up to four-year highs. Investors demanding immediate returns could risk forcing firms to curb expansion that could have a higher long-term payoff if oil prices continue to rise.

(For an interactive graphic charting the global impacts of the U.S. shale oil boom, see: tmsnrt.rs/2EtJgen )

For now, share prices of shale producers have yet to fully recover from the 2014 oil price CLc1 collapse, when many investors took losses as hundreds of firms went bankrupt and those that survived struggled.

The energy sector has lagged the rally that took the broader stock market to record highs. The S&P 500 Energy Index .SPNY remains nearly a third off its peak in mid-2014, when oil prices CLc1LCOc1 topped $100 a barrel. The broader S&P 500 index .INX is up 39 percent during the same period.

A Reuters analysis of corporate dividend disclosures shows a split in how shale firms are reacting to increased pressure from investors - and the impact on their market value.

This year, five of the 15 largest U.S. independent shale firms have started paying or raised quarterly dividends, the documents show. But six of the firms have never offered a dividend or have not restored cuts implemented since the 2014 oil price collapse.

Anadarko Petroleum Corp (APC.N) earlier this month added $500 million to an existing buyback program and raised its dividend by 20 percent, sending its shares up 4.5 percent the next trading day. Buybacks reduce the number of shares outstanding, boosting the value of stock that remains.

Shares in Pioneer Natural Resources Co (PXD.N) also rose 4 percent immediately after raising its dividend four-fold and posting better-than- forecast fourth quarter results earlier this month. Tim Dove, Pioneer’s chief executive, called the increase “a step toward our goal of returning cash to shareholders.”

Companies that have resisted boosting dividends, by contrast, have seen their valuations fall.

Of the six, shares in four - Cimarex Energy Co (XEC.N), Devon Energy Corp (DVN.N), Parsley Energy Inc (PE.N) and Noble Energy Inc (NBL.N) - have lost at least 19 percent in the last 12 months. Only one, Continental Resources Inc (CLR.N), is higher than a year ago.

Four producers, including Hess Corp (HES.N), kept dividends steady through the downturn.

A PASS FOR SMALL, HIGH-GROWTH FIRMS

Recent oil price gains have eased the pressure from shareholders.

In January, U.S. oil futures CLc1 jumped to $66.14 a barrel, up 56 percent from last year’s low and at a level not seen in four years.

Since then, prices have cooled to about $63 a barrel, but remain 17 percent above a year ago, boosting cash flow for firms that have expanded output.

“A lot of these smaller companies have gotten a pass for outspending cash flow due to their very high growth rates,” said Todd Heltman of asset manager Neuberger Berman, which invests in shale producers.

Shale output growth continues to outpace forecasts. The U.S. Energy Information Administration this month said United States production could top 11 million barrels per day by the end of 2018, a year earlier than it had expected just a month ago.

Heltman has pressed shale firms to show restraint even amid rising prices. And despite higher revenues, spending increases have so far been restrained.

Producers have pushed up spending plans for all of 2018 by 10 percent over last year, according to a tally of 41 of the 65 producers tracked by financial services firm Cowen & Co.

Some companies have maintained conservative assumptions for the average oil price for 2018, budgeting for prices between $50 and $55 a barrel.

A higher price will mean they can cover new drilling investments and still pay dividends.

Investors are searching for firms that can find the optimal balance between the conflicting goals of controlling costs, paying dividends and increasing production.

“We’re looking to invest in those companies who have been able to improve their production and win the battle as far as cost of extraction,” said Derek Rollingson, portfolio manager of the ICON Energy Fund (ICENX.O), which holds shares of more than a dozen U.S. shale producers.

A further rise in oil prices, however, could lead investors to take on more risk and penalize more conservative companies, said Mike Breard, an energy analyst at Hodges Capital Management in Dallas.

“If oil is $65 by Easter,” he said, “investors are going to go to the companies and say, ‘Why don’t you borrow more money and drill more wells?'”

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United States tells WTO of concerns over China's new web access rules Friday 23rd February, 2018 – Reuters

The United States told the World Trade Organization on Friday that Chinese internet access rules coming into force next month appeared to create significant new restrictions for cross-border service suppliers and should be discussed at the WTO.

“The United States urges China to address these concerns quickly and pursue new policies that promote rather than disrupt cross-border transfers of information and trade in services,” it said in a statement to the WTO’s Services Council.

In January 2017, China published a circular on “Cleaning up and Regulating the Internet Access Service Market”, which seemed to put new restrictions on virtual private networks (VPNs) and leased lines, it said.

VPNs can be used to access websites that are banned in China, which aggressively censors the internet, blocking sites it thinks could challenge the rule of the Communist Party or threaten stability.

The circular would expressly ban VPNs or leased lines from connecting data centers inside and outside China, the U.S. statement said.

It gave examples of services that might be affected, such as travel agents in China accessing international flight information, or clients using text messages to access technical support or customer service based abroad.

VPNs were also a key mechanism to ensure the security and confidentiality of data flows, it added.

WTO rules required that any measure affecting telecommunications networks should be notified to the WTO by China, which should consult with affected WTO members, it said.

“Since this measure is due to enter into force by 31 March 2018, we request that China expeditiously respond to these questions and concerns,” the United States said.

Washington already raised concerns last September about China’s cyber security law, asking Beijing not to enforce it until it addressed the risk of it disrupting, deterring or prohibiting cross-border transfers of information.

Friday’s statement said concern among the foreign business community remained high, and there were other more effective ways of achieving legitimate policy objectives without disrupting commerce.

“U.S. industry is particularly concerned that the measures contemplated by China would disrupt communications between a company’s China facilities and its other global operations, increase costs, and reduce rather than enhance data security.”

The U.S. statement said China had not provided any assurance that it would resolve concerns about the cyber security law.

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Royal Bank of Canada earnings beat market expectations Friday 23rd February, 2018 – Reuters

Royal Bank of Canada (RY.TO) reported first-quarter earnings that were above market expectations helped by a strong performance in wealth management.

Canada’s biggest bank by market value reported earnings per share, excluding one-off items, of C$2.05 for the quarter to Jan. 31. Analysts had on average forecast earnings of C$1.99 per share, Thomson Reuters I/B/E/S data showed.

RBC reported net income of C$3 billion ($2.4 billion), up 7 percent from a year earlier. That included a writedown of C$178 million as a result of a tax overhaul in the United States.

The bank’s core personal & commercial banking division produced a 10 percent rise in net income to C$1.5 billion, benefiting from a 6 percent increase in sales of residential mortgages despite concerns over Canada’s housing markets.

Canadian authorities have taken a number of steps over the past 18 months to cool overheating housing markets in Vancouver and Toronto, including imposing taxes on foreign buyers. The country’s banking regulator in January introduced stricter rules on mortgage lending.

RBC said net income at its wealth management business rose by 39 percent to C$597 billion, benefiting in part from the U.S. tax changes. Net income at its capital markets business rose 13 percent to C$748 million, also benefiting from the U.S. tax changes.

The bank reported an increase of 3 cents in its quarterly dividend to C$0.94 and said it planned to buy back more shares.

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Japan stocks gain in thin trade, defensive sector gets boost Friday 23rd February, 2018 – Reuters

Tokyo stocks rose on Friday in light trade as receding fears of more aggressive U.S. interest rate hikes boosted sentiment, with defensive shares such as construction and utilities outperforming.

The benchmark Nikkei ended 0.7 percent higher at 21,892.78. For the week, it was up 0.8 percent, rising for two straight weeks.

The broader Topix gained 0.8 percent to 1,760.53, but trading was thin, with only 1.19 billion shares changing hands, the lowest since late December.

Construction companies Kajima Corp and Taisei Corp climbed 3.4 percent and 2.9 percent, respectively, and Tokyo Electric Power Co rose 1.8 percent and Kansai Electric Power jumping 5.0 percent.

Mining stocks also gained, with Inpex and Japan Petroleum Exploration rising 2.1 percent and 1.1 percent, respectively, after oil prices rose to two- week highs on Thursday before dipping on Friday.

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Sterling edges up as soft data is offset by BoE hike expectations Friday 23rd February, 2018 – Reuters

Sterling edged up against the dollar and euro on Friday but finished the week in much the same place as it had started, with weaker-than- expected economic data being offset by hawkish comments from Bank of England policymakers.

The BoE’s chief economist Andy Haldane told parliament on Wednesday the central bank could end up needing to raise interest rates faster than investors currently expect, sending the pound higher.

Though Haldane’s colleagues at the Bank struck a slightly less hawkish tone, they were still upbeat. Governor Mark Carney said there was no need to give a direct commitment on rates as markets - which have largely priced in a May rate hike - had broadly understood the BoE’s message.

Thus an unexpected downward revision to Britain’s fourth-quarter GDP on Thursday only resulted in a temporary bout of sterling weakness.

The pound was up 0.2 percent on Friday at $1.3988, and was down 0.3 percent on the week.

Against the euro, it was up 0.3 percent at 88.04 pence, and up 0.4 percent on the week.

“The key takeaway from the Bank of England... was that policymakers’ tolerance of inflation well above target has ended,” said City Index analyst Ken Odeluga.

“Sterling uncertainty remains, not least given the relapse of the dollar as its recent revival threatens to fade. But as UK monetary policy catches up with a stronger-than-forecast economy, probabilities for a sustained sterling recovery are rising,” Odeluga added.

Other data released this week showed wage growth steady in the last three-month period, but the jobless rate unexpectedly ticked higher. Again, the numbers had only a temporary and modestly negative effect on sterling.

BoE officials are likely to have noted pay jumping 2.8 percent in December alone in the same labour market numbers, though that was still weaker than the 3.0 percent reading of British consumer price inflation for December.

“We believe that the pound will be supported mainly by two factors: reduced political uncertainty, and a hawkish Bank of England,” UBS Wealth Management strategists wrote in a research note on Friday, adding that they saw a rate hike coming in May, and perhaps another later in the year.

“The December agreement between the EU and the UK to start negotiating a transition deal for 2019–2020 was an important breakthrough,” they continued. “It suggests there is enough political will to not let the talks end in a cliff-edge ”hard Brexit“ situation.”

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Euro set for second biggest weekly drop since October as risk looms Friday 23rd February, 2018 – Caribbean News Now

The euro slipped on Friday and is set to post its second biggest weekly loss in nearly four months as investors trim positions before a big week for global currency markets from a European politics perspective.

The outcome of the Italian general election is due on March 4 and the German Social Democrats poll of its members on joining another coalition government with Chancellor Merkel’s conservatives is also due that day, both events which may trigger fresh market volatility.

With recent surveys and the European Central Bank’s minutes of its January policy showing some signs of caution among policymakers about the bloc’s economic prospects with the backdrop of a strong euro, investors are searching fresh catalysts to drive the currency higher.

In a market where long euro bets are at their largest on record, according to CFTC positioning data, any less than optimal results from either of these two major political events may prompt some funds to sell the single currency.

“Apart from the political factors, the dollar’s outlook also appears to be more constructive in the short term thanks to the rising yields,” said Manuel Oliveri, an FX strategist at Credit Agricole in London.

Markets are assuming from opinion polls that there will be no clear winner to the Italian polls, with either some loose coalition or a minority government likely to emerge.

Indicating the growing caution among European policymakers, ECB officials rejected even a token change in the bank’s policy message, arguing that it was premature to signal policy normalization given weak inflation, the minutes of its January meeting showed on Thursday.

That caution is also reverberating in the bond markets with U.S. yields rising by more than 50 basis points since early December, more than a 38 basis point in German government debt.

Benchmark Treasury 10-year note yields US10YT=RR rose to a four-year high of 2.957 percent on Wednesday before falling back to 2.904 percent on Thursday.

The prospect of the U.S. government boosting debt issuance to fund expanded stimulus and the Federal Reserve hiking interest rates steadily this year are some of the factors that have contributed to the rise in yields.

The dollar index against a basket of six major currencies rose 0.2 percent to 89.873 .DXY.

The index reached a 10-day high of 90.235 on Thursday, from a three-year trough of 88.253 late last week, before its rally lost a bit of steam. It was on still on track to gain 0.9 percent on the week.

The yen showed little reaction to data which showed Japan’s annual core consumer inflation rate was unchanged in January from the previous month, reinforcing views that the Bank of Japan remains distant from exiting its super loose monetary policy.

Japan’s nationwide core consumer price index, which includes oil products but excludes volatile fresh food costs, rose 0.9 percent in January. The pace remained far from the BOJ’s 2 percent inflation target.

The dollar edged up 0.1 percent to 106.850 yen JPY=EBS.

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Oil slips to $66 a barrel as U.S. output offsets OPEC curbs Friday 23rd February, 2018 – Reuters

Oil slipped to $66 a barrel on Friday, under pressure from concerns that rising U.S. oil output and exports will offset OPEC-led attempts to erode stockpiles with output curbs.

U.S. oil production last week was steady at 10.27 million barrels per day, a record level if confirmed by monthly figures. Crude exports jumped to more than 2 million bpd, close to a record 2.1 million hit in October.

“The U.S. is pumping out a record amount of oil,” said Naeem Aslam, chief market analyst at Think Markets UK Ltd.

“The bull rally which we have seen for the black gold could fade away as the U.S. oil production undermines the OPEC production cut commitments,” he said.

Brent crude, the global benchmark, was down 45 cents at $65.94 at 1052 GMT. Prices had rallied in early 2018 and reached $71.28 on Jan. 25, the highest since December 2014. U.S. crude fell 34 cents to $62.43.

Oil also slipped as the U.S. dollar strengthened. A stronger dollar can make oil and other commodities denominated in the U.S. currency more expensive for other currency holders.

The latest decline for crude came despite the U.S. Energy Information Administration reporting crude stocks fell unexpectedly by 1.6 million barrels. Analysts said low import figures contributed to the decline.

U.S. production is expected to rise even more this year and top 11 million bpd in late 2018, a headwind for OPEC efforts to drain stockpiles.

But the Organization of the Petroleum Exporting Countries is not outwardly worried by rising U.S. output and says it is comfortable at the speed the market is moving toward balance.

“I think the pace is excellent, the deal is working and we’re very happy with it,” United Arab Emirates Energy Minister Suhail al-Mazroui, the current OPEC president, told Reuters on Wednesday. “But the job is not yet complete.”

In January 2017, OPEC and allies including Russia began to cut production by about 1.8 million bpd, almost 2 percent of global supply, to get rid of a glut that had built up since 2014 and that led to a price collapse.

OPEC wants to reduce oil inventories held by industrialized nations to their five-year average and is getting closer to that goal, although officials are starting to talk about looking at different metrics.

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Stakeholders meet in Barbados to develop regional strategic plan for water sector Thursday 22nd February, 2018 – Caribbean news Now

Water specialists from across the region have been meeting in Barbados to continue work on the development of a regional strategic plan for the water sector. The plan will propose possible solutions for the challenges facing the industry in the Caribbean, and will be presented at the eighth World Water Forum to be held in Brasilia, Brazil, in March.

The development of a strategic plan for the water sector in the Caribbean Region project is being supported by the Caribbean Development Bank (CDB), in partnership with the Inter-American Development Bank (IDB) and the Caribbean Water and Wastewater Association (CWWA).

Despite several initiatives, many countries in the region still struggle to provide potable water at an affordable rate, while covering operating costs. L. O’Reilly Lewis, division chief, Economic Infrastructure Department, CDB, said that some of the problems facing the water sector included issues posed by climate change, inadequate governance arrangements, and lack of financing and investment.

“Pipes and water treatment plants alone will not solve our water challenges. The problem is much deeper than failing infrastructure. Excessive water usage, inadequate management of water resources, weak policies and governance systems also contribute to unsustainable water supply service provision in the Caribbean. We, at the CDB, believe that the approach has to be a holistic one and there must be collaboration between the countries and amongst the various organisations,” Lewis said.

This project is expected to facilitate regional dialogue on the critical issues facing the water sector, resulting in the development of a clear strategy. It will also enable CDB to better support its borrowing member countries in implementing policies, projects and programmes in the water sector.

Patricia Aquing, executive director, CWWA, said that the development of the strategic plan is a positive step for the region.

“We have to be able to think ahead, and consider, how do we do this strategically? How do we go from fixing when your pipe goes down, or your sewer system erupts, to thinking ahead to how we manage this resource which we have,” Aquing said.

The regional coordination meeting for the development of a strategic action plan for water governance and climate resilience ended on February 21, 2018, at the Pan-American Health Organisation offices in Barbados. Approximately 20 representatives from water ministries and organisations in the region attended the session.

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Full of promise Thursday 22nd February, 2018 – Barbados Today

He has been here for little over two months, but already Argentina’s new ambassador to Barbados Gustavo Martinez Pandiani is confidently proclaiming the island as his home away from home.

“I really feel at home here. I have been here for a little less than two months, but I truly feel as if I’m in a place I have grown up,” he said in an interview with Barbados TODAY earlier this week.

“I have my friends here, I have my football. I play in the Master’s league. So I’m having a great time,” he said.

As a born and bred Argentinian, football naturally runs through his veins and though he is no Lionel Messi, he is equally as passionate about the sport, which he sees as an important tool in strengthening his country’s overall relationship with Barbados.

When he is not attending official engagements, the very affable Ambassador Martinez can be found playing with the over-50s at Wanderers club and boasts of having the best strike rate in the Master’s division even though he is currently sidelined with injury that has admittedly left him feeling somewhat like “an old car”.

“In three games, I have four goals. I am the top scorer of my team, but I got injured,” he said, explaining that he had been unable to play for the last two games and that “once I get a problem in my ankle it goes to my knee and then it goes to the other ankle”.

However, injury or no injury there is no denying his love for the game as he eagerly looks forward to getting back in action within the next two weeks.

In the meantime, the ambassador has been looking at ways of sharing the Argentine expertise in football with Barbados, and at the same time to get Barbados to share its expertise in cricket with Argentina.

His football injury has also not stopped him from taking in all there is culturally that Barbados has to offer since he detests the idea of “living in the diplomatic ghetto”.

“I like the idea of sharing your experiences, your way of life, your culture, your sports, your arts,” he told Barbados TODAY while stressing that these will be areas of focus during his tenure at the helm of the Argentine embassy here.

“I think it is important for us to share our own expressions and to know about your expressions,” he said, adding that “this is why we are trying to get some [Argentine] music groups to Crop Over for the first time – an Argentine music band and some Tango dancers . . . . We are also having a theatre play emphasis called La Negra Fea which is the story about the life and work of Josephine Baker with an Argentine director and we are going to have a week of Barbadian movies in Argentina and a week of Argentine films here as well,” he said, adding that his embassy was currently working with the university to put on a film show in June.

Argentina, which currently produces enough food to feed about 200 million people even though its population is only 40 million, is also looking to have more of its products on Barbadian shelves.

However, the ambassador said: “I don’t believe that I’m here only to sell our products. Of course, I want to have more Argentine wine in your supermarkets, in your restaurants and in your hotels, the same as with the meat and all our food. You know, we are a very important food producing country. But, together with that, together with the trade, I want to have more tourists coming to Barbados. That is why we’re working with your Government to have more connections with the airlines coming from South America,” he said, while welcoming the recent decision by Copa Airlines to resume direct flights between Panama City and .

“So trade is important, culture is important, sport is important and cooperation in general is important,” he stressed, while acknowledging that the current disconnect between Barbados and Argentina was not only in terms air links.

“It is a problem of knowing each other. So I’m trying to get as much of Barbados as possible to Argentina. I’m taking your filming there, your music. I want to get some of your very good cricket coaches because we have our national team and we have a female team but we are not that strong, so I want to have the Barbadian expertise,” he said, adding that preliminary discussions were already in train with the relevant Barbadian and Argentinian sporting officials to have these plans effected by next year.

Asked about the possibility of having the country’s best known professional football player, Messi, visit Barbados, the Argentine diplomat could not give any such commitment. However, he promised that if Argentina made it to the World Cup final in June, he would host “a huge party in the Argentine residence to see the final with all of my Barbadian friends”.

In the meantime, the ambassador is looking forward to hosting a major cooperation seminar in May at which he said one of the focuses will be agriculture.

“My idea is to work with your business people to have Argentine foods in your supermarkets . . . . We are going to have a trade mission to Argentina for one of your big businessmen . . . and we are ready to be in your market,” he said, while expressing particular interest in supplying food and beverage to Barbados, which relies heavily on such imports.

Martinez is eager to have more Argentine wine in Barbados and more Bajan rum in his country.

His vision is also to “have more soca dancing in Argentina and more tango dancing in Barbados”.

“So every time I am trying to think about a project, I’m thinking about a two-way project – sports, products, tourism – I want to have exchange,” he said, while emphasizing that “international affairs is a two-way road.

“We have to see it that way. I don’t like the idea of sometimes the most powerful countries they come to our countries, the smaller countries, and they say, ‘Well you know I’m the expert here. I know everything, you know nothing. I’m going to give you this’ . . . [but] we are not giving away anything. We are cooperating. Cooperation means you do your best and show me what is your best and I do my best and show you what is my best. Your expertise and my expertise are equally valued, so that is my approach for everything we are going to do with Barbados. We can learn from you many, many things. For example about tourism management, about hospitality management, so it is not a question of a country helping out another country, it is two countries helping out themselves,” he explained.

After nearly 50 years of diplomatic relations with Bridgetown, Argentina only moved earlier this year to establish a permanent embassy here.

Asked to explain why, the Spanish-speaking diplomat said: “It is right time. The world is changing fast.

“The United States is in the process of re-engineering their politics and especially re-engineering their foreign policy. I don’t know if the present government of the United States is prioritizing the Caribbean . . . but I know that South America is prioritizing the Caribbean,” he said.

“We are too close not to be friends. We share the same geographical area . . . . We don’t share the same languages, but we can work on that,” he added, while disclosing that by April he was hoping to launch a Spanish teaching programme here.

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Caribbean Cement to restart exports Friday 23rd February, 2018 – Jamaica Observer

Caribbean Cement says it expects to restart cement exports following the completion of its US$50-m modernisation programme.

The programme also includes the commissioning of a new coal mill scheduled for the second quarter of this year, upgrades to both cement mills, a new packing line, and the upgrade and replacement of conveyor belts and dust collectors to boost production to 1.2Mta.

“It must be noted that every step has been taken to ensure that the Jamaican market is well covered and serviced during this period, a key ethos being the fulsome return to the export market with the resultant foreign exchange earnings,” said general manager Peter Donkersloot.

“As it relates to return to exports,” he added, “we continue to assess the opportunities that are available within the Caribbean markets — both previous and new — as we look towards other opportunities within the wider region.”

Caribbean Cement suspended exports in April 2016 to focus on supplying its home market.

At the time the cement plant was also securing additional supplies from sister plants in the region to augment supplies to the Jamaican market.

In 2017 the company's cement exports fell by 21 per cent to 119,098t, while clinker exports dropped 78 per cent to 39,540t.

Export sales of cement were mainly to Suriname and Haiti, while clinker was supplied to Caribbean Cement's sister plant in Barbados, as well as to Venezuela. Production at the Rockfort, Kingston-based plant in 2017 amounted to around 910,000t.

Donkersloot added that Caribbean Cement would also be working in conjunction with its parent company Cemex to introduce new technologies and promote different applications of cement to drive demand.

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SBA seeks new approach to meet needs of micro sector Friday 23rd February, 2018 – Jamaica Observer

Would you invest in a microbusiness that is traded on a transparent platform in which the price of the shares showcases the value of the start- up?

The Small Business Association (SBA) hopes that first the regulators will approve such a partnership with the Jamaica Stock Exchange (JSE) and that small businesses and the investment brokerage community will embrace a new way to access financing.

Currently, the small business sector is mainly financed by debt or personal savings of the business owners.

Jamaica has characterised the sector in terms of medium, small, and microenterprises and the attention of many organisations has been on the medium enterprises and perhaps the small. But what about micro organisations?

That is where Hugh Johnson, President of the Small Business Association of Jamaica (SBAJ) sees a gap that his organsation can bring value to. Currently with an excess of 2,000 members, the SBA is in refresh mode to bring greater value to its members and give them a voice at the policymaking table.

Johnson is of the view that the micro sector must receive serious focus to allow it to blossom and scale up.

“Think of it this way. As a country we fail to address primary education and then turn around and spend millions in remedial secondary education. So too with the business sector. I am appealing to the powers that be to take greater risk with the micro sector because that is the nation's engine of growth.”

“We in this country we talk about microlending as the financiers of the micro sector. And yes, they are serving a worthwhile purpose to get people to `eat a food`. However, it is time to help people scale up to Fortune 500. While micro financing may benefit traders who buy today to sell this evening and are able to pay back the loan by the next day, it will not be prudent for the producer who operates today and doesn't generate a profit until six months down the road.”

The president continues, “I am calling on the government, the Development Bank of Jamaica and the financial sector to consider the micro producers who need support.”

However, Johnson says that one organisation has heard the call of the SBAJ and has come to the table. And that is the Jamaica Stock Exchange.

“If I go to the bank and ask for a $5-million loan to re-tool my business, it is likely that I will be denied because the bank says my business is too risky. Now my employee goes to the bank for a $50-million car loan and uses his salary that I pay him as the proof of being able to service the debt. He then gets a new car. So how is it that my business is too risky for a re- tooling loan, but my payroll is a safe bet for an employee car loan? That just doesn't make sense to me.”

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Gov't introduces to IBC Bill accelerate growth Thursday 22nd February, 2018 – Jamaica Observer

An International Business Companies (IBCs) Bill, which is being debated in the House of Representatives, has raised a glimmer of hope that despite the setbacks there are still encouraging signs for improved economic growth in the short term.

Minister without portfolio in the Ministry of Economic Growth and Job Creation (EGJC), Daryl Vaz, who opened debate on the Bill — “the International Business Companies Act”— in Gordon House on February 13, says that it will modernise Jamaica's appeal as the ideal investment market for international investors, and create a more desirable and competitive business environment in line with international standards and practices.

According to Vaz, the Bill is a key component in a suite of legislation required to support international business and financial activities in Jamaica. The regime is under the supervision of the Jamaica International Financial Services Authority (JIFSA), and the Bill follows on the Partnership Bills for General and Limited Partnerships passed by the House in 2016.

The International Business Companies Act, 1984 was a statute of the which permitted the incorporation of International Business Companies (IBCs) within the territory. The Act played a major role in the economic and financial development of the territory in the 1990s, and has been called “the most important piece of legislation in BVI history since the emancipation”.

But Vaz said that Jamaica's IBC Bill is primarily based on the Ontario Business Corporations Act, but provides for the establishment and operation of IBCs in Jamaica.

The IBC Bill provides that these companies shall be incorporated in Jamaica, but may only conduct business activities outside Jamaica (save for a limited number of activities as listed in the Bill), and therefore may not compete in the domestic Jamaica market.

The IBC Bill contains a number of sophisticated features which will prove attractive to international investors, he said. These features include:

(1) Amalgamation of IBCs

(2) Continuance of foreign bodies corporate into Jamaica

It is designed to attract and facilitate a wide variety of international business activities and may be used for a number of purposes including:

(1) Serving as holding companies providing asset protection for intellectual property rights, real property, and the shares of other companies

(2) Serving as vehicles for licensing and franchising

(3) Conducting international trade and investment activities

(4) Acting as special purpose vehicles in international financial transactions

(5) Serving as the international headquarters for global business operations.

“This system will generate economic growth and job opportunities for local personnel who are needed for professional and administrative services,” Vaz said.

The activities within the international financial and business services sector will stimulate significant growth, generate revenues and create direct and indirect employment opportunities for Jamaicans, residing here and within the Diaspora, he stated.

“It is estimated that in the medium term, this industry will generate millions of dollars in foreign exchange and create thousands of jobs for local professionals — lawyers, accountants, corporate secretaries, to name a few, thereby creating a multiplier effect in the local economy,” Vaz insisted.

He said that the implementation of the new JIFSA legislation is done with a view to creating a new sector of business for the island, which, instead of eroding the tax base, would generate further revenue for the Government, through fees derived from company incorporations, registrations, regulatory licences and work permits for expatriate workers.

In terms of incorporation, every company incorporated under this Act must have a company seal, and must maintain a registered office in Jamaica and current records of the office address must be provided to the registrar.

To be incorporated as an IBC, one or more individuals or bodies corporate must submit to the registrar: Articles of Incorporation duly signed, notice of location of the registered office of the company, and the prescribed fee.

The registrar will then issue a certificate of incorporation and assign a company number, which must be printed on the certificate of incorporation provided that the name of the IBC is approved by the registrar and is not a prohibited name.

The IBC must maintain separate capital accounts for each class and series of shares issued by it and the account must be properly updated to include the full amount of consideration received, where the share was issued for money.

Vaz noted that the Bill has three schedules:

(i) The First Schedule outlines how the by-laws for the management of a company limited by shares is to be outlined

(ii) The Second Schedule outlines those offences with respect of which liability is on summary conviction, the monetary penalties applicable to each as well as the relevant sections in the Bill creating the offence

(iii) The Third Schedule outlines those offences in respect of which liability to conviction may be discharged by payment of a fixed penalty, the said fixed penalty and the relevant sections in the Bill creating the offence.

He said that the Bill is designed to attract and facilitate a wide variety of international business activities and boost Jamaica's standing in the international forum, as the ideal location to foster and grow investment.

He added that the IBCs may serve as holding companies for international assets including intellectual property rights, real property and the shares of other companies.

The debate is expected to continue when the House of Representatives resumes sitting.

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Elite lists first for 2018 Friday 23rd February, 2018 – Jamaica Observer

On Tuesday Elite Diagnostic Ltd, became the first company to list on the Jamaica Stock Exchange (JSE) for 2018, bringing the market value of the Junior Market to more than $121 billion.

The five-year-old diagnostic imaging centre exceeded expectations with a 768 per cent oversubscription of its Initial Public Offering (IPO), which raised $144 million when it opened and closed on February 5, according to a recent news release.

While 70.68 million ordinary shares were offered to the public, Elite on Tuesday listed some 353,400,000 ordinary shares on the Junior Market of the stock exchange. Its IPO raised $144 million.

Elite brings to the market 3,000 new shareholders, which far surpasses the minimum requirement of 25 to list on the Junior Market. According to Marlene Street Forrest, managing director, JSE, this puts Elite in an elite group of companies whose shares were also oversubscribed. She also commended the team of arrangers and brokers from NCB Capital Markets (NCBCM) and Sagicor Investments who partnered to bring Elite into the JSE family.

Elite now takes the 35th space on the Junior Market, raising the number of securities to 39. Overall, the company is now 72nd on the list of companies on the entire exchange, bringing the total number of securities to 93.

To date capital raised by the 35 companies on the Junior Market accounts for $7.6 billion. Elite's listing additionally raises the market capitalisation of the Junior Market to $121.4 billion, indicating the success of the JSE Junior Market which has grown from $503 million when the first company listed in 2009.

“With more people having access to equity capital, it means that more investors are investing in the market and can grow their portfolio. It is a matter of wealth creation. When they invest in companies that do well, then they will benefit also and thus invest in other areas of the economy,” Street Forrest explained.

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