Eastern Caribbean Central Bank Report and Statement of Accounts For the Financial Year 1 April 2001 to 31 March 2002 Eastern Caribbean Central Bank Report and Statement of Accounts For the Financial Year Ended 31 March 2002 Eastern Caribbean Central Bank P.O. BOX 89, BASSETERRE, ST KITTS, WEST INDIES 28 June 2002 Sirs/Madam In accordance with Article 48(1) of the Eastern Caribbean Central Bank Agreement 1983, I have the honour to transmit herewith the Bank’s Report for the period ended 31 March 2002 and a Statement of the Bank’s accounts as at that date duly certified by the Auditors. I am, Your Obedient Servant K Dwight Venner GOVERNOR The Honourable Victor Banks The Honourable Margaret Annie Dyer-Howe Minister of Finance Minister of Agriculture, Housing, Land and Environment ANGUILLA MONTSERRAT The Honourable Lester Bird Dr The Honourable Denzil Douglas Prime Minister/Minister of Finance Prime Minister/Minister of Finance ANTIGUA AND BARBUDA ST KITTS AND NEVIS The Honourable Pierre Charles Dr The Honourable Kenny Anthony Minister of Finance Prime Minister/Minister of Finance COMMONWEALTH OF DOMINICA ST LUCIA The Honourable Anthony Boatswain Dr The Honourable Ralph Gonsalves Minister of Finance Prime Minister/Minister of Finance GRENADA ST VINCENT AND THE GRENADINES Tel: (869) 465-2537 · Fax: (869) 465-5614/5615/1051/9562 E-mail: [email protected] · Website: www.eccb-centralbank.org Cable: CENTRALBANK, ST KITTS · SWIFT: ECCBKN i M I S S I O N S T A T E M E N T To maintain the stability of the EC dollar and the integrity of the banking system in order to facilitate the balanced growth and development of the member states. ii B O A R D O F D I R E C T O R S (as at March 31, 2002) Sir K. Dwight Venner, KBE Errol N Allen Carl Harrigan GOVERNOR DEPUTY GOVERNOR ANGUILLA Maurice Edwards Alphonsus Derrick ST VINCENT & THE GRENADINES ANTIGUA & BARBUDA Bernard La Corbiniere Ambrose Sylvester ST LUCIA DOMINICA Wendell Lawrence Vincent Placide Timothy Antoine ST KITTS & NEVIS MONTSERRAT GRENADA iii C O R P O R A T E I N F O R M A T I O N Sir K Dwight Venner, KBE Mrs Sheila Williams Governor Adviser - Research Department Mr Errol N Allen Mrs Janet Harris Deputy Governor Deputy Director - Accounting Department Mr R A Wentworth Harris Ms Brontie Duncan Managing Director Deputy Director - Banking and Monetary Operations Department Mr Eustace Liburd Mr Francis Fontenelle Senior Director - Strategic Policy Department Deputy Director - Banking and Monetary Operations Department Mrs Jennifer Nero Mr Hudson Carr Senior Director - Internal Audit Department Deputy Director - Bank Supervision Department Mrs L Mignon Wade Miss T Shirley Marie Senior Director - Bank Supervision Department Deputy Director - Bank Supervision Department Ms Lydia Elliott Mr Everette Martin Legal Adviser Deputy Director - Bank Supervision Department Mrs Myrna Archibald Miss Inga Millington Director - Support Services Managment Department Deputy Director - Bank Supervision Department Mr Trevor Blake Mrs Adriana Carter Director - Financial and Enterprise Development Department Deputy Director - Corporate Relations Department Miss Susan Lafond Mr Livingstone Sargeant Director - Currency Management Department Deputy Director - Currency Management Department Mr Verieux Mourillon Ms Joan Millington Director - Human Resources Department Deputy Director - Human Resources Department Mr Wayne Myers Mr Carl Greaux Director - Management Information Systems Department Deputy Director - Management Information Systems Department Dr Garth Nicholls Mr Richard Campbell Director - Research Department Deputy Director - Research Department Mr James Simpson Mrs Hazel Corbin Director - Accounting Department Deputy Director - Research Department Miss Elizabeth Tempro Mr Nathaniel Samuel Director - Corporate Relations Department Deputy Director - Research Department Mr John Venner Mr Arthur Williams Director - Banking and Monetary Operations Department Deputy Director - Research Department Mr Peter Adrien Mr Errol Douglas Adviser - Strategic Policy Department Deputy Director - Support Services Management Department Miss Laurel Bain Mr Peter Douglas Adviser - Strategic Policy Department Deputy Director - Support Services Management Department Miss Ingrid Shortte Mrs Pamella Osborne Adviser - Strategic Policy Department Deputy Director - Support Services Management Department Dr June Soomer Adviser - Strategic Policy Department iv C O R P O R A T E I N F O R M A T I O N RESIDENT REPRESENTATIVES Ms Marilyn Bartlett-Richardson Miss Linda Felix ECCB Agency Office ECCB Agency Office P O Box 1385 Harbin’s Building The Valley Young Street ANGUILLA St George’s GRENADA Telephone: 264 497 5050 Telephone: 473 440 3016 Facsimile: 264 497 5150 Facsimile: 473 440 6721 E-mail: [email protected] E-mail: [email protected] Mr Albert Lockhart Mr C T John ECCB Agency Office ECCB Agency Office P O Box 741 P O Box 484 Mutual Financial Centre Brades Factory Road MONTSERRAT St John’s ANTIGUA Telephone: 268 462 2489/480 5000 Telephone: 664 491 6877 Facsimile: 268 462 2490 Facsimile: 664 491 6878 E-mail: [email protected] E-mail: [email protected] Mr Edmund Robinson Mr Gregor Franklyn ECCB Agency Office ECCB Agency Office P O Box 23 P O Box 295 Corner Old Street and Hodges Lane 3rd Floor Financial Centre Roseau Bridge Street DOMINICA Castries ST LUCIA Telephone: 767 448 8001 Telephone: 758 452 7449 Facsimile: 767 448 8002 Facsimile: 758 452 6022 E-mail: [email protected] E-mail: [email protected] Mr Isaac Solomon ECCB Agency Office P O Box 839 Grandby Street Kingstown ST VINCENT AND THE GRENADINES Telephone: 784 456 1413 Facsimile: 784 456 1412 E-mail: [email protected] v O R G A N I S A T I O N A L C H A R T v i C O N T E N T S PAGE LETTER OF TRANSMITTAL ......................................................................................................... i MISSION STATEMENT ................................................................................................................. ii BOARD OF DIRECTORS ............................................................................................................. iii CORPORATE INFORMATION ................................................................................................. iv-vi GOVERNOR’S FOREWORD ......................................................................................................... 1 ECONOMIC REVIEW: International Economic Developments ................................................................................... 6 Regional Economic Developments ........................................................................................ 9 Domestic Economic Developments ......................................................................................13 Country Performance Anguilla ..................................................................................................................25 Antigua and Barbuda ...............................................................................................31 Dominica ................................................................................................................37 Grenada ..................................................................................................................43 Montserrat ..............................................................................................................50 St Kitts and Nevis ...................................................................................................55 St Lucia ..................................................................................................................62 St Vincent and The Grenadines ................................................................................69 REVIEW OF PERFORMANCE .....................................................................................................75 ECCB CHRONOLOGY .................................................................................................................88 STATISTICAL TABLES ................................................................................................................93 AUDITORS’ REPORT AND FINANCIAL STATEMENT ........................................................... 115 FEATURE ARTICLE: The Internet Economy: Challenges and Opportunities for Caribbean Exports ........................ 126 LIST OF CLEARING BANKS ..................................................................................................... 137 vii Foreword F O R E W O R D TOWARDS ECONOMIC REFORM AND TRANSFORMATION The member countries of the Eastern Caribbean Our liberal democratic system has served us well currency union are facing their greatest challenge but must be constantly refreshed and made relevant since most of them attained independence more than to the economic and social needs of our communities. two decades ago. The challenge comes from the The balancing of the short-term requirements of the fundamental changes in the international, financial electoral system with the medium to long-term goals and trading environment, and the need for strategic of the society must be incorporated into the political responses at the political, social and economic culture if economic progress is to be achieved. levels. It is for this reason that societal consensus is such The recent decline in growth rates and the an important ingredient of successful economic reform. increasing fiscal deficits and debt obligations are The public and private sectors as well as civil society manifestations of systemic