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▪ Eastern Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-
▪ Trinidad and Tobago Unit Trust Corporation’s initial rating assigned at CariAA
▪ Massy Holdings Ltd. rating reaffirmed at CariAA+
▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA
▪ National Flour Mills Limited’s rating reaffirmed at CariA-
▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO)
▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-
▪ Government of Barbados’s local currency rating upgraded to CariBB
▪ PanJam Investment Limited’s initial rating assigned at CariBBB+
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+
▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+
▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+
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REGIONAL
Trinidad and Tobago
T&T to host CDB meeting
The annual board of governors' meeting of the Caribbean Development
Bank (CDB) will be held in T& T on June 5 and 6, Planning Minister Camille
Robinson-Regis and CDB President Warren Smith officially announced
yesterday.
CAL expands cargo offering
Majority State-owned Caribbean Airlines Ltd (CAL) has formed an alliance
with ground transport handlers Forward Air, to facilitate the trucking of
large-volume cargo from New York and Fort Lauderdale to the airline's
Cargo Hub in Miami, for shipments into the Caribbean.
Index Fund gains $0.54
Overall market activity resulted from trading in 16 securities of which six
advanced, four declined and six traded firm.
Barbados
Govt to build nation’s quality standards system – Sutherland
Admitting that Barbados’ national quality infrastructure is not yet fully
developed, the Minister of Commerce has pledged urgent attention to
the system by which international standards are measured and enforced
here.
‘Route master’
The Transport Board is in the early stages of developing a new and
improved “master plan” for its future operations, which could see
Government’s role reduced to a mere regulator of a privately-owned,
public route network.
Jamaica
IMF puts Jamaican growth at 1.7% for 2019
THE latest publication of the International Monetary Fund's World
Economic Outlook projects growth in GDP of 1.7 per cent for Jamaica in
2019.
Jamaica continued
Increase in NIS deductions takes effect
JAMAICANS currently contributing to the National Insurance Scheme (NIS)
will see an increase in the amount deducted from their salaries this month.
NCB relocates Negril branch to better serve customers
National Commercial Bank (NCB) recently relocated its Negril branch to
the Boardwalk Shopping Village along the Norman Manley Boulevard, in
an effort to better serve its growing number of customers.
Management and operational changes planned for PCJ
CHANGES are to be made to management and operational practices at
Petroleum Corporation of Jamaica (PCJ) to conform with Government
policy in light of serious inefficiencies identified in the auditor general's
damning December 2018 compendium report on the State-run oil refinery
and its subsidiary, Petrojam.
14 countries participate in Kingston fisheries workshop
MORE than 30 government officials from 14 countries are in Jamaica
taking part in the three-day World Trade Organization (WTO) Regional
Workshop on 'Fisheries Subsidies for Caribbean Countries'.
Civil servants’ uncertainty led to low take-up of early retirement
The Jamaican Government did not meet the objective of its Special Early
Retirement Programme (SERP) as the level of participation achieved was
only 37 per cent, or 597 public-sector workers of the take-up target of
1,600.
Guyana
Don’t approve Liza Phase Two Permit until all issues are resolved–Dr. Jan
Mangal
Oil and Gas Consultant, Dr. Jan Mangal, is of the firm view that the
Environmental Permit for the Liza Phase Two project should not be
approved until a long list of issues has been resolved.
The Bahamas
Web Shops Told: ‘Get on Board and Pay Up’
Web shops were last night warned by a Cabinet minister to “get on board
and pay your fair share to the Treasury” otherwise their licences will not be
renewed if taxes remain owing.
The Bahamas continued
Security Expert Unveils Bahamas Clean-Up Strategy
THE Bahamas is a popular destination for Canadian fraudsters, a global
security expert has warned, revealing that he has proposed a plan to
recover millions this nation has lost to corruption.
Haiti
IMF loan of $229M, Haiti is trying to negotiate a deadline
Tuesday in Washington, Jean Baden Dubois, the Governor of the Bank of
the Republic of Haiti (BRH), accompanied by Gary Bodeau the Speaker of
the Chamber of Deputies on tour in Washington until April 11 participated
in a high-level working session at the headquarters of the International
Monetary Fund (IMF). Discussions focused on the $229 million 0% three-
year concessional loan signed last March whose deadline for approval
(with conditions) is April 24th.
Costa Rica
Recope’s Plan for Ethanol Nixed
The central government announced this Tuesday morning the suspension
until further notice the plan by the State refinery to replace super gasoline
with an ethanol mix by the end of May.
Cuba
Cuba Proclaimed Its New Constitution
The new Constitution of the Republic of Cuba was proclaimed in Havana
on Wednesday in a solemn session of Parliament, after a speech
pronounced by the First Secretary of the Central Committee of the
Communist Party, Raul Castro.
The Dominican Republic
Flap over severance pay trumps push for wage hike
Unions Federation (CNUS) president Rafael (Pepe) Abreu, said on
Wednesday that the trade unions are not going to allow the severance
pay to be “stripped” from the country’s workers.
Venezuela
Venezuela pledges to honour oil commitments to Cuba despite sanctions
Venezuela will “fulfil its commitments” to Cuba despite United States
sanctions targeting oil shipments from the South American country to its
ideological ally, Foreign Minister Jorge Arreaza said on Monday.
Fund sues Venezuela for $26 million in unpaid bonds, interest
Global fund manager Pharo has sued Venezuela for $26 million in unpaid
bond principal and interest, a U.S. court filing showed, as legal claims by
creditors piled up against the OPEC nation whose economy is suffering
from a hyperinflationary collapse.
Two of Venezuela's four crude upgraders restart after blackout: document
Two of Venezuela’s four crude oil upgraders, which are necessary to
process the country’s extra-heavy crude into exportable grades, have
restarted after halting activities due to blackouts in March, according to a
document seen by Reuters on Tuesday.
Exclusive: Venezuela removes eight tonnes of gold from central bank –
sources
Venezuela removed eight tonnes of gold from the central bank’s vaults
last week, and the cash-strapped socialist state is expected to sell the
bullion abroad as it seeks to raise hard currency in the face of U.S.
sanctions, a lawmaker and one government source said.
Venezuela congress allows parallel PDVSA board to negotiate foreign
debt
Venezuela’s opposition-controlled National Assembly on Tuesday allowed
a parallel board of directors of state-run oil company PDVSA to negotiate
foreign debt ahead of a looming payment deadline that could put its
crown jewel overseas asset, U.S. refiner Citgo, at risk.
INTERNATIONAL
United States
Futures indicate slightly higher open for Wall Street
U.S. stock index futures pointed to a slightly higher open for Wall Street on
Thursday, as investors assessed warnings from major central banks about a
global slowdown.
Europe
Airline stocks lift European equities after Brexit delay
Airline stocks helped European shares advance on Thursday after
European Union leaders gave Britain another six months to leave the bloc,
while sterling simply shrugged.
European shares slip on growth slowdown fears; luxury shares shine
European shares slipped on Thursday as comments from the U.S. and
European central banks added to concerns about the risks of a slowdown
in global growth, but strong gains by LVMH boosted luxury goods stocks
and buoyed equities in France.
Euro steady on ECB caution; pound indifferent to Brexit delay
The dollar and euro were little changed on Thursday after the Federal
Reserve and the European Central Bank hinted they were willing to leave
interest rates alone amid trade tensions and signs of flagging growth.
EU gives May till October for Brexit, seeking clarity
European Union leaders gave Britain six more months to leave the bloc,
more than Prime Minister Theresa May says she needs but less than many
in the bloc wanted, thanks to fierce resistance from France.
China
China's Geely launches new electric car brand 'Geometry'
Geely, China’s highest profile car maker with investments in Volvo and
Daimler, launched a premium all-electric car brand “Geometry” on
Thursday as it pushes ahead with its plans to boost production of new
energy vehicles.
India
Big turnout for India's giant election, where Modi has an edge
Indians voted enthusiastically on Thursday at the start of a mammoth
general election, with Prime Minister Narendra Modi seeking a second
term after campaigning fervently on a plank of national security, following
tension with neighbouring Pakistan.
Global
Oil prices slip as U.S. stocks surge, but global market tightens
Rising U.S. crude stocks dragged oil lower on Thursday but prices
continued to find a floor as OPEC-led cuts and freefalling Venezuelan
output tightened global supplies.
Airline stocks lift European equities after Brexit delay Thursday 11th April, 2019 – Reuters
Airline stocks helped European shares advance on Thursday after
European Union leaders gave Britain another six months to leave the bloc,
while sterling simply shrugged.
Gains for airlines from easyJet to Lufthansa helped European indexes gain
0.2 percent, with the EU’s Brexit extension to Oct. 31 clearing some of the
uncertainty previously clouding the key summer holiday period.
The summit deal in Brussels, struck in the early hours of Thursday, means
that Britain will not crash out of the bloc on Friday without a treaty -
though it offers scant clarity on when, how or even if Brexit will happen.
Markets in London and Frankfurt ticked up and Paris outperformed as
luxury stocks also gained ground, even with concern over protectionism
rumbling and markets digesting central bank warnings over slowing
growth.
Futures indicate that Wall Street was set to open higher, a turnaround for
global equities after a disappointing day in Asia, where four consecutive
days of gains ground to a halt.
The dollar and euro held steady.
Equities and other risky assets have been volatile this year, while bonds
have rallied over worries of a slowdown in the United States and other
major economies, including the euro zone. Many central banks have
taken a dovish stance, pivoting away from moves toward interest rate
increases.
The Federal Reserve will likely leave U.S. rates unchanged this year,
minutes from its policy meeting last month showed, given risks to the U.S.
economy from financial conditions and protectionist trade policies.
The European Central Bank maintained its loose policy stance on
Wednesday, highlighting threats to global growth and raising the prospect
of more support being pumped into the struggling euro zone economy.
Looming in the background has been concern over a retreat to
protectionism, with U.S. President Donald Trump threatening new tariffs on
EU while the Sino-U.S. trade dispute rumbles on.
The world’s two biggest economies have largely agreed on a mechanism
to police any trade agreement they reach, including establishing new
“enforcement offices”, U.S. Treasury Secretary Steven Mnuchin said, with
talks due to resume on Thursday.
“We do expect U.S. growth to remain relatively tepid this year compared
to what we saw last year, and it will probably lose further momentum as
we head toward the end of the year,” said Chris Scicluna, head of
economic research at Daiwa Capital Markets
MSCI’s world equity index, which tracks shares in 47 countries, hovered
around this week’s six-month highs.
European trading was thin, a trend likely to continue during upcoming
disrupted trading weeks in major markets. Easter lies ahead and Japan is
due for a 10-day break from late April to mark the ascension of its new
emperor.
STERLING STEADY
Major currencies struggled, with the dollar hanging near two-week lows
and the euro unmoved.
But most notably sterling was unchanged below $1.31, remaining within
the trading range it has held to during the past month or so.
Markets now see less chance Britain will crash out of the EU, so the focus
of traders will turn - for the coming months at least - to the underlying state
of the British economy, said Thu Lan Nguyen, FX strategist at
Commerzbank in Frankfurt.
“People have been focused on Brexit ... In the short-term, maybe these
investors or traders will look more at the economic fundamentals,” she
said.
Rising U.S. crude stocks dragged oil lower, though prices found a floor as
OPEC-led cuts and plunging Venezuelan output tightened global
supplies.
International benchmark Brent futures stood at $71.25 a barrel around
midday, down 0.9 percent from their last close.
<< Back to news headlines >>
European shares slip on growth slowdown fears; luxury shares shine Thursday 11th April, 2019 – Reuters
European shares slipped on Thursday as comments from the U.S. and
European central banks added to concerns about the risks of a slowdown
in global growth, but strong gains by LVMH boosted luxury goods stocks
and buoyed equities in France.
The pan-European STOXX 600 index was down 0.2 percent by 0907 GMT,
led by declines in Milan and Madrid, but Paris rose 0.3 percent.
The European Central Bank stood pat on borrowing rates on Wednesday
and said threats to global economic growth remained, while the U.S.
Federal Reserve reiterated its patient stance on similar grounds, citing risks
from an unresolved trade dispute with China and potentially, Europe.
“At least on (the) part of the ECB, they seem to be slightly less certain on
their outlook that (growth) will rebound but they are still hoping this,” said
Bas van Geffen, a quantitative analyst ECB at Rabobank.
“The question is to what extent are markets going to see this as indeed
‘low rates for longer’ and, if so, how concerned are they on the growth
cautions.”
Ireland’s ISEQ stock index was flat after the European Union gave British
Prime Minister Theresa May until October to leave the bloc, but the lack of
clarity on when, how or even if Brexit will happen, kept a lid on gains.
ASML was one of the biggest drags on the pan-region index after a media
report said Chinese employees stole corporate secrets from the Dutch
semiconductor equipment maker, resulting in hundreds of millions of euros
(dollars) in losses. ASML, in response, said that a U.S. software subsidiary
was the victim of corporate theft several years ago, but denied that the
information stolen was a blueprint for its lithography machines.
German silicon wafer maker Siltronic fell 2.1 percent after Credit Suisse cut
its target price for the company by 12 euros.
Material stocks lost 1.2 percent with mining majors BHP and Rio Tinto,
tracking a decline in iron ore and copper prices.
Utilities were dragged 1 percent lower, with Engie down 1.8 percent after
Morgan Stanley downgraded it to “equal-weight” from “overweight” as it
sees headwinds in 2019.
Prysmian shed more than 8.5 percent and was among the biggest
percentage decliners on the STOXX 600 as the Italian cable maker said it
would review its financial results for last year.
On the other hand, LVMH surged to an all-time high, up 4 percent after
sales growth at the luxury goods conglomerate picked up pace in the first
quarter.
Other luxury good stocks such as Kering, Christian Dior, Moncler and
Burberry also climbed.
Sodexo jumped 5.4 percent after the French food services group reported
a stronger-than-expected rise in first-half revenues as growth accelerated
in North America during the second quarter.
EssilorLuxottica SA was also among the biggest boosts as Citigroup
upgraded shares of the world’s largest eyewear maker to “neutral”.
<< Back to news headlines >>
Euro steady on ECB caution; pound indifferent to Brexit delay Thursday 11th April, 2019 – Reuters
The dollar and euro were little changed on Thursday after the Federal
Reserve and the European Central Bank hinted they were willing to leave
interest rates alone amid trade tensions and signs of flagging growth.
Sterling traded flat after European Union leaders extended the deadline
for Britain to leave the EU, suggesting fears remain about where Brexit is
headed.
Currency markets are waiting for key economic data from China: trade
figures due on Friday and first-quarter gross domestic product due next
week.
The Fed on Wednesday released the minutes on its March 19-20 meeting
at which policy-makers signalled they would not raise rates in 2019.
ECB President Mario Draghi underscored the risks facing the euro zone
economy, reinforcing bets on further stimulus to prevent the region from
slipping into recession.
Investors are focused on where the pound is headed after another delay
to Brexit.
The advantages for sterling, as well as UK and European equities, include
the removal of a near-term, no-deal Brexit. But that is offset by the
prospects of UK Prime Minister Theresa May’s replacement, a general
election and the threat to the UK economy of prolonged uncertainty.
As a result, no conviction bets emerged on the pound and it remains
stuck just below $1.31.
“The extension is unlikely to improve business confidence much, thus
limiting the upside to GBP,” said Chris Turner, head of foreign exchange
strategy at ING.
“The rising probability of a change in Conservative Party leadership
ahead of the new October deadline suggests a difficulty for EUR/GBP to
move below the 0.85 pence level,” he said.
Concern about big swings in the pound have subsided, according to one-
month implied volatility, which fell to a seven-month low.
The dollar index last stood at 96.95, flat on the day, after slipping to a two-
week low of 96.823 on Wednesday.
The euro last held at $1.1278, recovering from Wednesday’s low of
$1.12295, keeping intact its slow rise from $1.1183 on April 2.
Commodity currencies including the Aussie were also helped by recent
gains in commodity prices.
<< Back to news headlines >>
EU gives May till October for Brexit, seeking clarity Thursday 11th April, 2019 – Reuters
European Union leaders gave Britain six more months to leave the bloc,
more than Prime Minister Theresa May says she needs but less than many
in the bloc wanted, thanks to fierce resistance from France.
The summit deal in Brussels in the early hours of Thursday meant Britain will
not crash out on Friday without a treaty to smooth its passage. But it offers
little clarity on when, how or even if Brexit will happen, as May struggles to
build support in parliament for withdrawal terms agreed with the EU last
year.
With German Chancellor Angela Merkel insisting that Britain would not be
forced out and that a chaotic no-deal departure must be avoided if at all
possible, there was never any real doubt that May would get an
extension.
The drama was about its length and conditions.
French President Emmanuel Macron, reprising a role he took last month
when May got a first, two-week delay, pushed leaders into hours of
debate over dinner as he fought a largely solo campaign to persuade
them not to give the British up to another year.
Summit chair Donald Tusk and others argued that obliging May to accept
a much longer deadline than the June 30 date she had sought could
help swing pro-Brexit hardliners within her own Conservative party behind
her deal, fearing a long delay could see the British public turning against a
withdrawal altogether.
But Macron, while irritating some peers who saw his stance as Gallic
grandstanding, insisted that letting Britain stay in the Union any longer
risked undermining the project of European integration that is one of his
main policy goals.
The result was a compromise on the date, with a deadline of Oct. 31, for
Britain to leave, deal or no deal — on condition that May holds an
election on May 23 to return British members to a new European
Parliament that convenes in July, and that it pledge not to disrupt key EU
decision-making before it leaves.
If May fails to win over lawmakers on the treaty or fails to hold an election,
Britain will leave with no deal on June 1.
MAY EYES BREXIT SOON
The prime minister was keen to stress that the extension to Oct. 31 — and
several leaders refused to rule out further delays — did not mean she
would not deliver Brexit sooner and before, as she promised her rebellious
party, she steps down.
“I know that there is huge frustration from many people that I had to
request this extension,” she told reporters, as her team prepared for
another round of talks on Thursday with the Labour opposition, to whom
May turned for help last week.
“But the choices we now face are stark and the timetable is clear. So we
must now press on at pace with our efforts to reach consensus on a deal
that is in the national interest,” she added, acknowledging the coming
weeks would not be easy.
Tusk, a former Polish premier who has long tried to keep a door open for
Britons to change their minds and stay, said the delay until Halloween
gave time for London to ratify May’s deal, tweak elements of the future
EU-UK relationship to Labour’s liking — or give it a chance to “cancel Brexit
altogether”.
Merkel, who eased tension at the start of the talks by sharing a joke with
May over photographs of them both wearing very similar jackets, stressed
a need for calm and order: “We want an orderly exit by Britain,” she said.
“And an orderly exit by Britain can be best ensured if we give it some
time.”
FRENCH RESISTANCE
Macron defended his resistance to giving Britain nine months or a year
more, saying it was for the “common good”. French officials, pointing to
threats by some of May’s pro-Brexit potential successors, spoke of the EU
facing “blackmail” by a future British government blocking decisions in
Brussels.
“It’s true that the majority was more in favour of a very long extension. But
it was not logical in my view, and above all, it was neither good for us, nor
for the UK,” said Macron.
French pressure also tightened clauses referring to Britain not disrupting EU
affairs if it stays in longer and a reference to a June 20-21 EU summit taking
stock of the position again.
May addressed the other 27 for an hour at the start of the summit and
failed to convince many, notably Macron, that she truly had a new
strategy for securing ratification.
Leaders are exasperated with May’s handling of a tortuous and costly
divorce that is a distraction from ensuring the bloc can hold its own
against global economic challenges.
Across from the summit venue, the EU executive celebrated its part in
funding a global project that produced the first picture of a black hole,
prompting no shortage of ironic comments on social media about the
juxtaposition.
Blogger Eliot Higgins tweeted: “We’re now more certain about what black
holes look like than what Brexit looks like.”
<< Back to news headlines >>
Futures indicate slightly higher open for Wall Street Thursday 11th April, 2019 – Reuters
U.S. stock index futures pointed to a slightly higher open for Wall Street on
Thursday, as investors assessed warnings from major central banks about a
global slowdown.
Minutes from the Federal Reserve’s March meeting on Wednesday
showed that it was likely to leave interest rates unchanged this year given
risks to the U.S. economy from the slowdown and uncertainty over trade
policies and financial conditions.
The European Central Bank also maintained its loose policy stance, raising
the prospect of more support being pumped into the struggling euro zone
economy.
Concerns about trade and financial conditions have pushed central
banks to take a dovish stance, broadly supporting appetite for risk assets.
Investors are hoping that a trade deal with China and a better-than-
feared quarterly earnings season will help Wall Street extend its strong start
to the year.
U.S. Treasury Secretary Steven Mnuchin said on Wednesday that trade
talks continued to make progress and both sides have largely agreed on
a mechanism to police any trade agreement they reach, including
establishing new “enforcement offices”.
At 7:12 a.m. ET, Dow e-minis were up 47 points, or 0.18%. S&P 500 e-minis
were up 4.5 points, or 0.16% and Nasdaq 100 e-minis were up 9 points, or
0.12%.
Profit forecasts for the first quarter have dropped steadily in the last six
months, with S&P 500 earnings now seen falling 2.5%, which would mark
the first year-on-year contraction since 2016, according to Refinitiv data.
Bed Bath & Beyond Inc shares tumbled 9.7% after the home furnishing
retailer forecast weak current-quarter profit.
Tesla Inc shares fell 3.5% after the Nikkei reported the electric carmaker
and Panasonic Corp were rethinking plans to expand the capacity of
Gigafactory 1. Panasonic said it was studying further investments.
United States Steel Corp was down 3.2% after Bank of America Merrill
downgraded the stock to “underperform”.
<< Back to news headlines >>
China's Geely launches new electric car brand 'Geometry' Thursday 11th April, 2019 – Reuters
Geely, China’s highest profile car maker with investments in Volvo and
Daimler, launched a premium all-electric car brand “Geometry” on
Thursday as it pushes ahead with its plans to boost production of new
energy vehicles.
The move comes as automakers race to develop vehicles powered by
means other than petrol to meet an expected rise in demand as the
world’s top car market enforces official production quotas designed to
reduce smog.
Geometry will take overseas orders but will mainly focus on the Chinese
market and will launch more than 10 pure electric models in multiple
segments by 2025, Geely said in a statement on Thursday.
The company added it had already received more than 26,000 orders
globally for its first model, the Geometry A. The longer-range version of the
model has an ability to travel up to 500 kilometres (310.69 miles) on a
single charge, Geely said.
Geely launched Geometry at an event in Singapore and said the city-
state would eventually become a target market.
“The launch of Geometry and its first product advances Geely’s strategic
goal of becoming one of world top 10 automotive groups,” An Conghui,
president of Zhejiang Geely Holding Group, said in the statement.
Geely set up a new joint venture with Germany’s Daimler just last month to
build the next generation of Smart electric cars in China. Smart is Daimler’s
small-car brand.
Geely is also developing new energy commercial vehicles like pickup
trucks at another unit, Yuan Cheng Auto.
China has been a keen supporter of new energy vehicles (NEV) including
pure battery electric, hybrid, and plug-in hybrid technologies, and started
implementing NEV sales quota requirements for automakers.
According to a Reuters report, global automakers are planning a $300
billion surge in spending on electric vehicle technology over the next five
to 10 years, with nearly half of the money targeted at China.
Geely posted sales growth of 20 percent in 2018. However, it is forecasting
largely steady sales this year as the country’s giant auto market struggles
with slowing economic growth and more cautious consumers. Last year,
the overall market contracted for the first time since the 1990s.
The Chinese carmaker bought Volvo Cars in 2010 from Ford Motor Co in
what was China’s biggest acquisition of a foreign car maker at the time.
<< Back to news headlines >>
Big turnout for India's giant election, where Modi has an edge Thursday 11th April, 2019 – Reuters
Indians voted enthusiastically on Thursday at the start of a mammoth
general election, with Prime Minister Narendra Modi seeking a second
term after campaigning fervently on a plank of national security, following
tension with neighbouring Pakistan.
People trekked, rode bicycles and drove tractors to polling stations in the
world’s biggest democratic exercise, with nearly 900 million eligible to
vote during seven phases of balloting spread over 39 days, and vote-
counting set for May 23.
“I’ve never missed my vote in my life,” said Anima Saikia, a 61-year-old
woman in Assam, who was among early voters in the first phase.
“This is the only time we can do something. The game is in our hands right
now.”
Boosted by a surge in nationalist fervour after hostilities with Pakistan in
February, Modi’s Hindu nationalist Bharatiya Janata Party (BJP) held the
advantage going into the election, opinion polls showed.
But distress over growing unemployment and weak farm incomes in rural
areas, home to two-thirds of Indians, is expected to shrink the tally of
Modi’s BJP alliance to a far smaller majority than in the 2014 election.
“He’s improved India’s global standing, and taken revenge against our
enemies,” Sachin Tyagi, 38, the owner of a mobile telephone shop, told
Reuters near a polling station in Uttar Pradesh, India’s most populous state.
“I am happy with Modi-ji but the employment situation could be
improved,” he added, using an honorific suffix.
By 3 p.m., with three hours to the close of polling, more than half of voters
had turned out in most states, the Election Commission said. Voter
participation was the highest, at 70 percent, in the eastern state of West
Bengal, where the BJP is on a collision course with a firebrand regional
politician.
While tension with Pakistan has fuelled nationalist sentiment, political
analysts say the BJP has soft-pedalled its agenda to spread Hindu culture
in a country where a fifth of the population of about 1.3 billion belongs to
other religions.
One of the Uttar Pradesh constituencies voting was Muzaffarnagar, where
Hindu-Muslim riots killed 65 people months before the last election.
“Modi has worked, but not done enough for us,” Shadab Ali, a Muslim first-
time voter in a polling queue, told Reuters. “We want development. I’ve
voted for development.”
The main opposition Congress is leading the fight against the BJP,
partnering with smaller parties in some places and elsewhere going it
alone, hoping to bank on the charisma of its president, Rahul Gandhi,
drawn from the Nehru-Gandhi family.
On Thursday, it raised concerns over security for Gandhi, saying there
could have been an attempt to assassinate him this week when he met
reporters in the family borough in Uttar Pradesh, the state that sends the
most lawmakers to parliament.
A suicide bomb blast killed Gandhi’s father, former prime minister Rajiv
Gandhi, during election campaigning in 1991. His grandmother, Indira
Gandhi, was assassinated by her bodyguards while prime minister.
In a letter, Congress told the home ministry a green laser had been
pointed at Rahul Gandhi’s head intermittently during the meeting, making
a total of seven instances.
Feedback from former security personnel suggested the laser could have
come from a potential weapon, such as a sniper gun, the party added.
The home ministry dismissed the fears, saying the “green light” was found
to be a mobile phone used by a Congress photographer.
In the southern state of Andhra Pradesh, a scuffle between supporters of
two regional parties turned violent, killing at least one person and injuring
four, Reuters’ Indian partner ANI said.
Roads were bare and shops and schools shut in the disputed Himalayan
region of Kashmir after separatists called a strike in protest against the
election.
NATIONALIST UPSURGE
As voting began, Modi said the mood was firmly in favour of his National
Democratic Alliance (NDA), whose senior party is the BJP. “NDA’s aim is -
development, more development and all-round development,” he said
on Twitter.
Congress, which promised more jobs and “Love over hate” in its own
rallying cry on Twitter, had wrested three key states from the BJP in state
polls in December by promising to waive the outstanding loans of
distressed farmers.
It has sought allies among regional parties to defeat the BJP over its
economic record, but pollsters say support for the ruling party grew over
Modi’s tough stance against Pakistan.
Aerial clashes between the nuclear-armed neighbours followed a suicide
attack in February by a militant group based in Pakistan that killed 40
Indian paramilitary police in Kashmir.
An average of four opinion polls showed the BJP alliance on course to win
273 of the 545 seats in parliament’s lower house, a much-reduced majority
from the more than 330 it won in 2014.
<< Back to news headlines >>
Oil prices slip as U.S. stocks surge, but global market tightens Thursday 11th April, 2019 – Reuters
Rising U.S. crude stocks dragged oil lower on Thursday but prices
continued to find a floor as OPEC-led cuts and freefalling Venezuelan
output tightened global supplies.
International benchmark Brent futures were at $71.13 a barrel at 1201
GMT, down 60 cents from their last close.
U.S. West Texas Intermediate (WTI) crude oil futures were down 55 cents at
$64.06 per barrel.
U.S. crude inventories surged by 7 million barrels to a 17-month high of
456.6 million barrels last week, the Energy Information Administration said
on Wednesday.
U.S. crude oil production remained at a record 12.2 million barrels per day
(bpd), making the United States the world’s biggest oil producer ahead of
Russia and Saudi Arabia.
“While U.S. crude stocks built last week, a massive draw on (gasoline)
inventories likely buoyed the whole complex,” Vienna-based consultancy
JBC Energy said.
U.S. gasoline stocks fell by a whopping 7.7 million barrels, sending U.S.
RBOB up 3.5 percent from its close on Wednesday.
Tightening global oil supplies also kept a lid on further price losses.
U.S. sanctions and power outages pushed OPEC member Venezuela’s
crude output to a long-term low of 870,000 bpd, the International Energy
Agency said on Thursday, even lower than OPEC had reported the day
before.
Overall output from the Organization of the Petroleum Exporting
Countries, which has agreed with allies to withhold 1.2 million bpd of
crude from the market since the start of 2019, fell 550,000 bpd in March to
30.1 million bpd, the IEA said.
The agency, which coordinates the energy policies of developed nations,
saw oil stocks in industrialized countries fall in February by 21.7 million
barrels, putting inventories 16 million barrels above their five-year average.
Oil markets will remain tight “as long as Saudi Arabia continues to back
the production cut deal as aggressively as it has done so far”, said Ole
Hansen, head of commodity strategy at Saxo Bank.
Beyond the short-term outlook for oil markets, a lot of attention is on the
future of demand amid the rise of alternative transport fuels.
“We believe global demand has another 10 million bpd of growth, with
over half from China,” Bernstein Energy said in a note.
Current oil demand stands at around 100 million bpd.
Bernstein said it expected oil demand to peak around 2030.
“While no industry lasts forever, the age of oil is far from over,” Bernstein
said.
<< Back to news headlines >>
Don’t approve Liza Phase Two Permit until all issues are resolved–Dr. Jan
Mangal Thursday 11th April, 2019 – Kaieteur News
Oil and Gas Consultant, Dr. Jan Mangal, is of the firm view that the
Environmental Permit for the Liza Phase Two project should not be
approved until a long list of issues has been resolved.
These include the need for all oil companies to have internationally
recognized insurance policies and for the industry to be governed by a
robust legislative and regulatory framework.
He made this remark, among others, during an exclusive interview with
Kaieteur News recently.
The former Presidential Advisor said, “We need new legislation which is all
aligned. But this cannot happen without teams of oil professionals which
we do not have. And these teams cannot include the ‘experts’ popping
up who have zero years’ experience with the major oil companies.”
He added, “We have people who went off to do a Masters, have never
worked for a major oil company, but are prancing around Guyana as oil
experts and consultants.
“We cannot do anything without the right people, and we do not have
the right people now.”
Dr. Mangal commented that the only way Guyana has a chance to do a
modicum of justice to its own interests, is by slowing the pace of
ExxonMobil so as to give the country a chance to catch-up.
He emphasized that the players in government are obviously desperate to
give the impression that they are in control and that Guyana is being well
served. But this is not the case, the Oil Consultant said.
FURTHER DELAYS
ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited
(EEPGL), was supposed to receive its permit for the Liza Phase Two Project
on or before March 1, 2019. But a few issues related to its permit are still
being worked out before this can happen.
Confirming this was Head of the Environmental Protection Agency (EPA),
Dr. Vincent Adams.
He said that the Energy Department is conducting a rigorous review of the
Field Development Plans (FDP) for the Phase Two Project. He reminded
that the EPA has to work along with the Energy Department where these
matters are concerned.
The Environmental Engineer said, “We are working together to ensure
everything is in order before signing off on the permit. I wouldn’t go and
sign off on the permit if their plans are not approved or if the Department
is not comfortable with the development plans.”
He assured that permit would be granted once the aforementioned issue
is addressed.
It was in February that the Energy Department announced that UK-based
firm, Bayphase Oil and Gas Consultants, won the contract from Guyana
to review the Field Development Plans (FDPs) of its client, ExxonMobil.
But prior to this, Kaieteur News had exposed that this company is not only
a client of Exxon, but even some of its primary contractors working here.
In fact, Bayphase which was established in 1986 is also contracted by
NEXEN, a subsidiary of the Hong Kong based China National Offshore Oil
Corporation (CNOOC). CNOOC holds 25 percent interest in the Stabroek
Block.
Bayphase also works for Exxon’s subcontractors which include
Schlumberger and Technip FMC.
<< Back to news headlines >>
Web Shops Told: ‘Get on Board and Pay Up’ Wednesday 10th April, 2019 –Tribune 242
Web shops were last night warned by a Cabinet minister to “get on board
and pay your fair share to the Treasury” otherwise their licences will not be
renewed if taxes remain owing.
Dionisio D’Aguilar, minister of tourism and aviation, who has responsibility
for gaming, said there was no good reason for continued foot-dragging
by some operators now that the industry’s taxation settlement with the
government had been given legal effect.
He revealed that two web shop chains, which he did not name, had
been waiting for the Gaming Board to confirm the “specifics” of the
agreement before they began to pay taxes owing for both the first half of
the 2018-2019 fiscal year and under the new structure.
Warning that operators may “have a large mountain to climb” if they did
not soon begin paying what is owed, Mr D’Aguilar said tax non-
compliance would result in the withholding of licence renewals by the
Gaming Board.
He admitted, though, that he was unaware of Wayne Munroe QC’s
revelation to Tribune Business last week that none of his three web shop
clients had signed up to the mid-February settlement with the government
that was unveiled with much fanfare by the Minnis administration.
Mr Munroe, who represents the Island Game, Paradise Games and Asure
Win chains, said “resolution wasn’t agreed” between his clients and the
Government, and that a legal challenge remained a possibility once he
had assessed the proposed legal reforms and received their instructions.
Mr D’Aguilar, though, yesterday argued that the tabling of legal and
regulatory reforms in Parliament to give effect to the settlement should
act as the trigger to “put this behind us and move on” for the benefit of
both sides.
“We’ve laid the legislation to concretise what was agreed between legal
representatives of the operators and the Government,” Mr D’Aguilar told
Tribune Business: “I strongly suggest that every operator begins to abide by
these rules and pays the taxes, because these taxes are obviously
accruing.
“If they don’t pay them this is a large mountain for them to climb to
remain compliant, and they need to receive the necessary licences from
the Gaming Board. If we feel they are non-compliant, then we’re not able
to issue the licences unless they’re able to pay the taxes.”
While Mr Munroe said Sebas Bastian’s Island Luck and Ultra Games were
the only two operators “as far as I’m aware” who had agreed to the
settlement terms with the Government, Mr D’Aguilar argued that he did
“not see any reason” to drag the issue out any further.
“We should put this behind us and move on,” he said. “Nothing is gained
by dragging this on further. The gaming house operators agreed to this. I
don’t see why these two have not. I would suggest they get on board and
pay their fair share to the Treasury or what they are mandated to pay to
the Treasury.”
Mr D’Aguilar said the “two” web shops he was referring to were awaiting
“official notification” of the settlement and what they have to pay,
adding: “I don’t think there was a disagreement to pay... The Bills should
be all the notification they require, and I would suggest they begin to
abide by the agreement.
“One or two of them were wanting a letter from the Gaming Board
outlining the specifics of the agreement, but I was under the impression
everyone has agreed to pay the taxes from July to December and the
new tax increases from January to June.
“I think we’ve reached a compromise rather than endless litigation. The
agreement with the gaming house operators has been implemented.
Let’s move on. We don’t need it to be any more contentious in any way
or for this to be dragged on any longer than it has already been dragged
out.”
Confirming that he expects all web shops to be current with their tax
payments by the 2018-2019 fiscal year’s close at end-June, Mr D’Aguilar
said: “I’m led to believe that for the period July 2018 to December 2018,
the gaming houses are now paying those taxes.
“So in February they will pay for January and July of last year. Every month
they will pay two months to catch up so that by the end of the fiscal year
everyone will be current. I don’t know the specific numbers but they are
paying the amount calculated. By June 30 they will be up-to-date.”
So-called “back taxes” for the first half of the 2018-2019 fiscal year - from
July 1-December 31, 2018 - are to be levied using the web shop’s old
taxation rate of 11 percent of gaming revenues.
Mr D’Aguilar previously estimated this will generate around $11-$12m for
the Treasury based on previous full-year collections of $21m, which is less
than 50 percent of what the Ministry of Finance had projected to earn -
$15m “sliding scale”, and $10m from the “patron tax” - during that period.
The Government last week tabled changes to both the Gaming Act and
Gaming House Operator Regulations to give effect to the “settlement”, as
well as amending the Stamp Act to eliminate the previously proposed 5
percent “patron tax” on customer deposits and over-the-counter lottery
ticket sales.
That has been replaced by a “winnings tax”, which was due to be levied
from April 1 (Monday) on winnings associated with lottery bets. The
changes, which confirm that the tax will only be levied on the actual
winnings, provide for the “sliding scale” whereby winnings up to $1,000 will
attract a 5 percent rate.
Anything greater will attract a 7.5 percent rate, and the Government
expects this to generate $15m as opposed to the initial “patron tax”
forecast of $25m. Web shops must submit monthly tax returns, and
payment of the operator “sliding scale” and winnings tax, by no later than
the 10th of the following month or “the next business day” if that is Sunday.
The operator tax is due to take effect retroactively from January 1, 2019.
The settlement, and the Government’s position, has shifted much closer to
that taken by the web shop industry in the immediate aftermath of the
2018-2019 Budget’s unveiling, as the operator tax rates now fall into the
15-20 percent range that the sector’s consultants argue represents the
global gaming average.
The Government, in unveiling the agreement, said it would reduce its
projected take from the “sliding scale” by $15m annually - from the initially
projected $50m to $35m - as a result of shrinking the six rates to just two,
lower levies of 15 percent and 17.5 percent, respectively. The latter rate
kicks in for taxable revenue higher than $24m.
Tribune Business previously reported that Island Luck is the prime web shop
industry beneficiary of the settlement since it was virtually the only
operator exposed to the higher tax rates under the Government’s original
“sliding scale” taxation structure.
It was the sole web shop chain exposed to rates ranging from 30 percent
to 50 percent on its gross gaming revenues, whereas five of the remaining
six operators would only have faced the lowest 20 percent rate. Chances
was the only chain, apart from Island Luck, which would have seen a 25
percent rate levied on a miniscule portion of its revenue.
The bulk of Island Luck’s revenues will now be taxed at 17.5 percent,
which is much lower than the rates originally proposed in the 2018-2019
Budget. While its six rivals will largely only attract the lower 15 percent rate,
this still represents a 36.3 percent - or more than one-third increase - upon
the 11 percent rate they were originally paying. And the five-percentage
point reduction in the originally proposed 20 percent rate means they will
likely see fewer benefits than Island Luck.
<< Back to news headlines >>
Security Expert Unveils Bahamas Clean-Up Strategy Wednesday 9th April, 2019 – Tribune 242
THE Bahamas is a popular destination for Canadian fraudsters, a global
security expert has warned, revealing that he has proposed a plan to
recover millions this nation has lost to corruption.
Juval Aviv, former Israeli counter-intelligence officer, and founder and
chief executive of New York-based security consulting company, Interfor,
told Tribune Business: “I do a lot of work in Canada. Maybe you guys don’t
know but Canadian fraudsters put their money in The Bahamas. They
don’t go anywhere else, in a hope maybe to move here and live here in
the future.”
“Right now The Bahamas is on some lists that are not favourable. Serious
investors are not going to come to The Bahamas. We are already a
vendor of the EU. We are going to third world countries to really help them
to come up to a level that the EU can loan them money.”
Mr Aviv, a speaker at an Insurance Management cyber security and risk
management seminar, added that the fight against corruption and other
forms of financial crime must be led from the top by national leaders.
Referring to nations unable to access European Union (EU) grants and
other forms of funding, he added: “Today, those countries cannot borrow
money anywhere. One of the goals is to really clean it up so we can have
a favourable rating for countries to trust us and come and do some
business here.
“It has to start with the top. You cannot do it with mid-level officials. They
don’t have the authority to make decisions. They need to know that the
top guy is interested in it. That if he’s criticising the old regime he shouldn’t
fall for the same type of activity.”
Mr Aviv said he has presented the government with a proposal to fight
corruption. “With the proposal that I gave the government I want to build
a reputation for The Bahamas,” he added.
“If you have fraud in mind, go to some other islands. We mean business.
You’re not going to be able to do it. If you have done it in the past we are
going to crack down. We want to build a reputation with people who
really want to invest money.”
Mr Aviv continued: “The programme is really about coming in, looking at
the system, looking at the previous government and their activities. We
know from rumours and stories that money has left The Bahamas into
private pockets. The programme is going after that money, recovering it
and bringing it back home. That could make a big change in the
Government’s budget.
“We are talking about hundreds of millions of dollars. It’s not just small
amounts. The second thing is to really work on prevention. What do we do
in systems we can introduce, teach law enforcement here, teach the
police, teach other law enforcement agencies how to deal with those
type of frauds and prevention.
“The key is prevention. In other countries we also look at the legal area.
We found out in some other countries that judges accepted bribes. It just
needs the will of the Government to do it.”
<< Back to news headlines >>
IMF loan of $229M, Haiti is trying to negotiate a deadline Wednesday 10th April, 2019 – Haiti Libre
Tuesday in Washington, Jean Baden Dubois, the Governor of the Bank of
the Republic of Haiti (BRH), accompanied by Gary Bodeau the Speaker of
the Chamber of Deputies on tour in Washington until April 11 participated
in a high-level working session at the headquarters of the International
Monetary Fund (IMF). Discussions focused on the $229 million 0% three-
year concessional loan signed last March whose deadline for approval
(with conditions) is April 24th.
Recall that the process of advancing the file at the IMF is currently
suspended as announced by Gerry Rice, Director of Communications of
the IMF "We cannot move the process forward to the IMF Executive Board
without a little more clarification on the establishment of a new
government and the introduction of the budget [...] We hope that
political uncertainties can be quickly dissipated so that we take back the
work to help Haiti and the Haitian people facing enormous socio-
economic challenges."
The purpose of this meeting was to try to obtain an extension of the
deadline. At the end of the meeting, Gary Bodeau was satisfied saying
that he had managed to negotiate a new deadline of up to June given
the time required for the installation of the new Government. Bodeau
believes he managed to convince the IMF team that there was no other
choice that to postpone the deadline and promised to grant the benefit
of urgency to the draft budget, once submitted to the lower chamber.
No official comment for the moment from the Governor of the BRH nor the
IMF, while a source close to the file indicates that the IMF would want a
new Government to be installed in Haiti within 30 days... one of the
conditions required before making any disbursement.
<< Back to news headlines >>
T&T to host CDB meeting Thursday 11th April, 2019 – Trinidad Express Newspaper
The annual board of governors' meeting of the Caribbean Development
Bank (CDB) will be held in T& T on June 5 and 6, Planning Minister Camille
Robinson-Regis and CDB President Warren Smith officially announced
yesterday.
The meeting, which is the CDB's 49th, is expected to attract about 400
delegates, comprising government ministers and officials, development
partners, private sector representatives, members of civil society,
academia and media.
The meeting which will focus on the buzzword 'Transformation'.
Smith said transformation is a priority for the region as a whole as well as
for the bank as it approaches its 50th anniversary year.
'Our borrowing member countries are operating in an increasingly
complex global environment.
The challenges are new, different and becoming increasingly complex
relative to what obtained when the Bank was founded in 1970.
As a region and as an institution we need to, not just keep up but actually
use innovation as a vehicle to leap ahead in this changing world.
That is what we are anticipating in Trinidad and Tobago – a rich exchange
of ideas, approaches and innovation that places the region's
development at the forefront.
We extend our thanks to the Government and people of Trinidad and
Tobago for hosting this important meeting,' said Smith.
In her capacity as chair elect of the board of governors for the meeting,
Robinson-Regis echoed the President's sentiments, stating that this is also a
year of transformation for Trinidad and Tobago as the country is emerging
from a period of recession and all of the efforts over the past three years
to transform the economy in terms of the creative sector, agriculture,
climate change and trade are coming to a head, and the CDB has also
projected economic growth at an average rate of 2 per cent for 2019 for
Trinidad and Tobago.
Robinson-Regis was invited by the CDB to undertake an official visit to the
bank's headquarters in Barbados yesterday. She met with the CDB
President and other members of senior management. The official visit
served to discuss matters of mutual interest between the bank and T& T. It
also provided an opportunity to update the bank on the plans for the
upcoming annual meeting, which are being undertaken by the Ministry of
Planning and Development.
CDB's board of governors
The board of governors is the highest policy making body of CDB. The
governors meet once a year in one of the member countries of CDB. All of
the powers of CDB are in the hands of the board of governors, which can
delegate its powers to the board of directors except on certain matters
such as: the admission of new members. The last time Trinidad and
Tobago hosted the board of governors was in May 2011.
The Caribbean Development Bank's 19 borrowing member countries, are
allowed to borrow funds from the bank and also have voting rights, which
entitles them to be a part of the decision-making process of the bank.
Together, they have 55.26 percent of the voting power on the bank's
board, of which T& T is the chair.
<< Back to news headlines >>
CAL expands cargo offering Thursday 11th April, 2019 – Trinidad Express Newspaper
Majority State-owned Caribbean Airlines Ltd (CAL) has formed an alliance
with ground transport handlers Forward Air, to facilitate the trucking of
large-volume cargo from New York and Fort Lauderdale to the airline's
Cargo Hub in Miami, for shipments into the Caribbean.
Commenting on the alliance, chief executive officer Garvin Medera
stated: 'Starting April 2, customers shipping cargo to the Caribbean out of
New York and Fort Lauderdale can now do so at one flat rate with no
capacity restrictions. The freighting process is seamless and hassle-free as
Forward Air will handle all ground transport needs to Caribbean Airlines'
Cargo hub in Miami and we will handle the air freight. Customers will only
be required to drop off their cargo at designated ports and we will take
care of delivery to the intended destinations.'
Caribbean Airlines cargo freighter service operates five times a week on
Monday, Tuesday, Wednesday, Thursday and Friday, offering connections
to/from North American and Caribbean gateway to rest of the world with
its fully-developed air and ground transportation network.
<< Back to news headlines >>
Index Fund gains $0.54 Thursday 11th April, 2019 – Trinidad Express Newspaper
Overall market activity resulted from trading in 16 securities of which six
advanced, four declined and six traded firm.
The Composite Index declined by 2.72 points (0.20 per cent to close at
1,327.77. The All T& T Index declined by 7.45 points (0.4 per cent) to close
at 1,762.49. The Cross Listed Index advanced by 0.29 points (0.24 per cent)
to close at 120.50. The SME Index remained at 99.50.
Trading activity on the first-tier market registered a volume of 271,889
shares crossing the floor of the Exchange valued at $2,388,460.65. Sagicor
Financial Corporation was the volume leader with 130,100 shares
changing hands for a value of $1,106,681.00, followed by JMMB Group Ltd
with a volume of 77,751 shares being traded for $136,841.76. TTNGL
contributed 17,443 shares with a value of $513,243.05, while NCB Financial
Group added 17,372 shares valued at $143,319.00.
Calypso Macro Index Fund registered the day's largest gain, increasing
$0.54 to end the day at $15.00. Conversely, National Enterprises Ltd
registered the day's largest decline, falling $0.80 to close at $6.80.
On the mutual fund market 106,919 shares changed hands for a value of
$2,454,087. CLICO Investment Fund was the most active security, with a
volume of 106,319 shares valued at $2,445,087. CLICO Investment Fund
remained at $23. Calypso Macro Index Fund advanced by $0.54 to end
at $15.
The second-tier market did not witness any activity.
The SME market did not witness any activity. CinemaOne remained at
$9.95.
The USD equity market did not witness any activity. MPC Caribbean Clean
Energy remained at US$1.
<< Back to news headlines >>
Recope’s Plan for Ethanol Nixed Tuesday 9th April, 2019 – Today Costa Rica
The central government announced this Tuesday morning the suspension
until further notice the plan by the State refinery to replace super gasoline
with an ethanol mix by the end of May.
Five days ago the Refinadora Costarricense de Petróleo (Recope)
announced its intention to replace super gasoline with Eco 95, a 8%
ethanol and 92% gasoline mix.
According to Recope’s plans, ethanol would also be included in regular
gasoline in 2020.
“By mutual agreement between the Presidency, the minister of Energy,
Carlos Manuel Rodríguez, and Recope, in the general opinion that it is
necessary to postpone the launching the mixture of gasoline with
ethanol,” said Alejandro Muñoz, president of Recope.
Muñoz added that the Recope would “start a socialization program with
all sectors so that people have better information about the technical
and bibliographical studies and, later, the Minae can develop some tools
and actions that allow greater strength in terms of environmental
protection.”
The central government also announced that it will begin a volunteer
program for eventual users interested in using the mix.
The plan for Recope to buy ethanol was also declared void, while the
‘recurso amparo’ (writs of appeal) filed on Monday with the Constitutional
Court were voided.
Muñoz said the issue of ethanol could be raised again in a year.
<< Back to news headlines >>
IMF puts Jamaican growth at 1.7% for 2019 Thursday 11th April, 2019 – Jamaica Observer
THE latest publication of the International Monetary Fund's World
Economic Outlook projects growth in GDP of 1.7 per cent for Jamaica in
2019.
The projection comes as the report anticipates a reduction in growth this
year for 70 per cent of the world economy. Growth in the global
economy which was 3.6 per cent in 2018 is expected to decrease to 3.3
per cent in 2019 but should pick up in the second half of the year.
The report further projects growth for Jamaica to increase to 1.9 per cent
in 2020 and 2.4 per cent in 2024. The 2019 projection is in line with a recent
assessment from the Caribbean Development Bank (CDB) which
expected 1.7 per cent growth for the financial year 2018-19.
The CDB had warned, however, that “key downside risks, such as a
slowdown in global growth, macroeconomic and/or weather-related
shocks, policy reversal of the structural reforms, and high crime, could
derail growth prospects.”
The projected figures are an improvement over the past three years as
the World Economic Outlook report shows growth in Jamaica was 1.5 per
cent in 2016, 0.7 per cent in 2017 and 1.4 per cent in 2018.
In light of the current global situation, the World Economic Outlook states
in its foreword that, “Across all economies, the imperative is to take
actions that boost potential output, improve inclusiveness, and strengthen
resilience.”
This statement comes only days after Jamaica's finance minister Dr Nigel
Clarke stressed the necessity for greater local investments to maintain
Jamaica's economic growth.
The minister was speaking at the Destination Experience Masters of
Industry Reception held at the Mercedes Benz showroom in Kingston on
April 5. He revealed that policies designed to “encourage and incentivise
greater levels of domestic and foreign investment” were being
implemented by the government to stabilise the economy.
“We believe that the environment today and the policy choices we have
made will encourage domestic investment to be unleashed in Jamaica in
ways that it hasn't in a long period of time,” he stated.
The finance minister stressed the necessity for greater “value-added” in
output and production which he believes can take place in the tourism
industry through “backward integration” and in the manufacturing sector
through allowing more manufacturing businesses to be established in
Jamaica.
“We are seeing firms from the region establish manufacturing companies
in Jamaica to access the northern markets; that's something that never
happened before,” the finance minister revealed.
He also called for greater efficiency in the economy which can be
achieved by addressing associated cost factors.
“In the last budget, we dealt with some of those fiscal costs, those
transaction costs that lead to inefficiency and lead to inefficient
allocation,” he stated. “We have a lot more work to do, not just in the
fiscal side, but on the regulatory side and on the microeconomic
structures that lead to inefficiency.”
Increasing worker productivity through training was another pathway he
identified for greater efficiency to support growth.
The IMF notes that while the growth of the global economy continues to
be reasonable despite the current decline, there are a number of
downside risks including tensions in trade policy, Brexit-related hazards,
potential deterioration in market sentiment and unexpected growth on
the downside in China and the Euro area that could take place.
“This is a delicate moment for the global economy,” states a post from the
IMF Blog. “If the downside risks do not materialise and the policy support
put in place is effective, global growth should rebound. If, however, any
of the major risks materialise, then the expected recoveries in stressed
economies, export dependent economies, and highly-indebted
economies may be derailed. In that case, policymakers will need to
adjust.”
<< Back to news headlines >>
Increase in NIS deductions takes effect Thursday 11th April, 2019 – Jamaica Observer
JAMAICANS currently contributing to the National Insurance Scheme (NIS)
will see an increase in the amount deducted from their salaries this month.
The 0.5 per cent increase announced by Minister of Finance and the
Public Service Dr Nigel Clarke in December took effect two Mondays ago,
moving NIS deductions from five per cent to 5.5 per cent.
Additionally, Dr Clarke told Parliament that the contributions will further
increase to six per cent by April 1, 2020.
The increase is to be shared equally between employer and employee,
with each absorbing 0.25 per cent.
NIS is a compulsory contributory-funded social security scheme covering
all employed individuals in Jamaica. It is administered under the National
Insurance Act and offers some financial protection to the worker and his
or her family, against the loss of income arising from injury on the job,
sickness, retirement and/or death of the breadwinner.
Clarke had cited an actuarial study in 2016, which revealed that the
National Insurance Fund would have a negative cash flow by 2029 if the
contributions were not increased, and by 2037, would be completely
depleted.
He explained that this was due to the fund paying out more than the
amount being generated.
In 2016, the fund paid out pensions to 100,000 individuals, resulting in
outflows of $14.87 billion, while inflows only amounted to $12.8 billion, the
minister revealed.
According to the latest Statistical Institute of Jamaica Labour Force
Survey, at October 2018, the country's employed labour force stood at
1,219,700. Only 470,000 people are actively contributing to the insurance
scheme.
Part II subsections I and II of the National Insurance Act outline that a
person who, on or after the appointed day, being over the age of 18 and
under retirement age, and having fulfilled residence in Jamaica, is
gainfully occupied in Jamaica, or is in such employment outside Jamaica
as is specified in (certain instances) shall become insured under the Act
and remain insured until he reaches retirement age. It said insured persons
are divided into two classes, employed and self-employed.
Employed persons are defined as those who work in a business, not their
own. This category includes factory workers; private household workers
such as butlers, chauffeurs, cooks, gardeners, general helpers,
housekeepers, and nurse-maids; and all other employed persons including
civil servants, teachers, nurses, and members of the security forces.
Self-employed are those who work independently in their own business.
Included in this category are doctors, lawyers, accountants, consultants,
vendors, informal commercial importers, dressmakers, tailors, hairdressers,
barbers, fisherfolk, farmers, and Jamaican nationals employed in foreign
embassies in Jamaica.
<< Back to news headlines >>
NCB relocates Negril branch to better serve customers Thursday 11th April, 2019 – Jamaica Observer
National Commercial Bank (NCB) recently relocated its Negril branch to
the Boardwalk Shopping Village along the Norman Manley Boulevard, in
an effort to better serve its growing number of customers.
The decision to undertake the construction of a new facility under its
transformation programme, has cost the financial conglomerate millions
of dollars.
However, senior general manager for NCB's Retail Banking Division, Brian
Boothe, is encouraged that it is money wisely spent.
“We offer a full suite of banking products at the Negril branch and with
our in-branch digital platform, new accounts can be opened in under 10
minutes. Customers will have 24-hour access to three automated banking
machines, one of which facilitates withdrawals in US currency for both
locals and visitors,” said Boothe, adding that “a drive- thru will be
constructed shortly”.
Boothe also stated that NCB is now in the process of launching their new
Pay Advance Plus loan product, aimed at offering a short-term loan
facility until customers' next pay cycle. This, he said, is being offered at an
attractive interest rate, even lower than other loan products.
For several years, the NCB Negril branch operated from the Sunshine
Shopping Village along the Westend main road.
Now, Boothe is pleased with its new location.
“We think the location fits in quite nicely with the environmental
characteristics of Negril and we are pleased that the developer took that
into consideration,” he argued.
In the meantime, Boardwalk Village developer, Richard Wallace, said he
was pleased with the partnership between his company and NCB.
“I can't explain how thrilled I am now that NCB has opened. This is a huge
upgrade for Negril – a community that is deserving of a development as
this. It is a major investment that they have undertaken, which
demonstrates that they do care about their customers in Negril,” said
Wallace.
<< Back to news headlines >>
Management and operational changes planned for PCJ Thursday 11th April, 2019 – Jamaica Observer
CHANGES are to be made to management and operational practices at
Petroleum Corporation of Jamaica (PCJ) to conform with Government
policy in light of serious inefficiencies identified in the auditor general's
damning December 2018 compendium report on the State-run oil refinery
and its subsidiary, Petrojam.
Permanent secretary in the Ministry of Science, Energy, and Technology
Carol Palmer gave this indication Tuesday at another meeting of the
Public Accounts Committee (PAC), where the PCJ's employment
practices came under scrutiny.
Among the issues brought to the fore, from information contained in an
extensive document submitted to the committee yesterday by the
ministry, was a list of people hired to the PCJ without interviews or
assessments, or the positions being advertised, or reference checks in
some instances.
Palmer said she is now in discussions with portfolio minister Fayval Williams,
but that the changes will require a Cabinet submission.
“I have been in discussions with the minister up to yesterday (Monday) on
this particular entity and we will be taking steps to address the issues,
which I am not prepared to divulge at this time... suffice it to say that the
actions we are taking will require us also going to the Cabinet for a
decision,” Palmer said.
Since the publishing of the auditor general's report, in which the PCJ was
cited for poor oversight of Petrojam as well as questionable practices of its
own, there have been calls from the Opposition for the management of
the corporation to be held to account.
Palmer also said she has received a list of the approved establishments for
all agencies that fall under the ministry.
“I have made it very clear that we must return to the proper policies that
govern operations… yes, you may seek approval for short-term
engagement but any intention for longer-term engagement must require
an appropriate submission to the ministry for approval for that post to be a
part of the establishment,” she said.
“This is the challenge that we now face, as I have been provided by the
Ministry of Finance with the establishment of all the bodies within the
portfolio, and I am going through with a fine-tooth comb to establish the
irregularities because it has to be remedied. It cannot be that you just
decide that you need more people, and you have money so you go
ahead, totally oblivious of the policy direction that you must obtain from
the Government,” Palmer said.
“This appears to be the practice, and so I shall be writing to indicate that
the process must be observed or else the appropriate sanctions must
therefore be applied. It cannot be that we continue business as usual,
which is all unusual in my estimation, as I delve into this process, now nine
weeks on the job,” she stated.
St Catherine Southern Member of Parliament Fitz Jackson had raised
questions about a three-year contract for the post of manager of finance
and administration, which paid a salary of $5.2 million per annum; $25,000
for duty allowance; $75,700 for transportation, and other benefits, and
included a loan provision as well as gratuity entitlement of 25 per cent of
gross salary after two years.
Palmer told the PAC that as far as she was aware, there is in fact no such
position. “It's not on the establishment as I have been provided by the
Ministry of Finance. It's a position that has been established by the board, I
would assume, and the person was employed,” she said.
The PAC is scheduled to meet on April 23 to continue the discussions.
<< Back to news headlines >>
14 countries participate in Kingston fisheries workshop Thursday 11th April, 2019 – Jamaica Observer
MORE than 30 government officials from 14 countries are in Jamaica
taking part in the three-day World Trade Organization (WTO) Regional
Workshop on 'Fisheries Subsidies for Caribbean Countries'.
The workshop, which opened on Tuesday at the Courtyard by Marriott
Hotel in New Kingston, aims to update the participants on the current
status and main issues in the global fisheries subsidies negotiations, and
facilitate discussions on specific interests and concerns.
The negotiations, which were launched at the fourth WTO Ministerial
Conference in Doha, Qatar, in 2001, aim to clarify and improve existing
WTO disciplines on fisheries subsidies; strengthen WTO rules on subsidies
provided to the fisheries sector; and eliminate subsidies contributing to
illegal, unreported and unregulated (IUU) fishing.
Delegates attending the 11th WTO Ministerial Conference in Buenos Aires,
Argentina, in 2017, agreed to conclude the negotiations this year.
The importance and the need for stakeholder adherence to the laws and
regulations governing the oceans and seas was underscored by chief
technical director for Special Projects in the Ministry of Industry,
Commerce, Agriculture and Fisheries, Courtney Cole, at the opening
ceremony.
He noted that IUU fishing remains a global challenge for developed and
developing countries, and emphasised the universal recognition of the
“vast importance of the blue (marine) economy, and the need to
properly manage the resources of our oceans and seas”.
“Ours is the shared responsibility to be good stewards of the economic
and environmental value of the [fisheries] sector… so that we can
sustainably manage, protect and preserve the oceans and seas for this
and future generations,” he said.
Cole further stressed the importance of broad stakeholder access to the
“fairest parameters possible” and ensuring that all parties are able to
operate in a global space that prohibits fisheries subsidies facilitating
overcapacity, and IUU fishing practices.
He said Jamaica's position underscores the need to tackle IUU fishing
practices at the local, bilateral, regional and international levels, hence
the ministry's embarking on a comprehensive strategy to address the issue.
Cole reiterated the strategy's focus on modernising the regulatory
framework and technical capacity to monitor Jamaica's territorial waters,
enhancing surveillance, and “ultimately [ensuring] that IUU vessels do not
cross into our territories”.
“As largely small island developing states, we in the Caribbean region will
require, not just technical assistance to address IUU issues and monitor fish
stocks towards improving sustainability, but we also need to work
collaboratively to ensure the best outcomes in the current negotiations on
subsidies,” he added.
Cole, in acknowledging that the region's fishing fleet and industries are
“relatively small”, emphasised the need for flexibility to facilitate
development within sustainable levels through subsidies.
Ultimately, the Chief Technical Director said the discussions and
negotiations must be “rooted in our commitment to develop the capacity
to fully exploit fisheries resources within our exclusive economic zones and
other legal spaces”.
It is anticipated that the workshop, which ends today, will facilitate
increased stakeholder awareness and knowledge about the issues being
discussed in the fisheries subsidies negotiations, now under way at the
WTO in Geneva, Switzerland.
This is expected to encourage greater participation by Caricom in the
negotiations, with a view to contributing to the outcome.
Also represented at the workshop are The Bahamas, Barbados, Belize,
Dominica, Guyana, Haiti, St Kitts and Nevis, St Lucia, St Vincent and the
Grenadines, Suriname, and Trinidad and Tobago.
<< Back to news headlines >>
Civil servants’ uncertainty led to low take-up of early retirement Wednesday 10th April, 2019 – Jamaica Gleaner
The Jamaican Government did not meet the objective of its Special Early
Retirement Programme (SERP) as the level of participation achieved was
only 37 per cent, or 597 public-sector workers of the take-up target of
1,600.
The minister of finance, in February 2017, approved the programme for
eligible employees in the public sector aged 50 to 59 to take up early
retirement through an incentivised package.
It was intended to support public-sector pension reform and cut the
Government’s wage bill to nine per cent of gross domestic product by
March 2018, in line with commitments made under its economic
programme with the International Monetary Fund.
However, Auditor General Pamela Monroe Ellis, in a report posted on the
department’s website, said the Ministry of Finance implemented the
programme without first ensuring that all the requirements for financial
viability had been met.
In the report of an audit she commissioned, Monroe Ellis said that despite
securing Cabinet approval over one year before, the ministry failed to
undertake a comprehensive survey of eligible civil servants in order to
gauge whether the programme could be successful.
“We found that the Government implemented SERP without first
conducting a comprehensive survey to determine interest and possible
take-up rates from the total eligible population,” Monroe Ellis said.
The ministry’s measure of the financial viability of the programme also did
not include a metric for the impact on service delivery, she said.
Hence, there was a disjuncture between the expected reduction in the
wage bill and maintenance of essential job functions.
Heads of ministries, departments and agencies were also advised that
any rehire that takes place consequent on the programme should not
exceed 15 per cent of the total savings generated by the SERP.
Monroe Ellis said it was therefore not surprising that some heads of
department and permanent secretaries could not reconcile how they
could contribute to the success of the programme while maintaining the
level of service delivery.
Records of the programme’s oversight committee also revealed that
some members believed that after the retirees left the public service, the
posts would be deactivated or abolished.
“This apparent confusion underscored the important role of the ministry to
engage permanent secretaries and heads of department to obtain buy-
ins for the programme,” the auditor general said.
“This may have also influenced the low level of applications and
approvals. Our survey of permanent secretaries and heads of department
revealed that some viewed the 15 per cent cap as limiting their ability to
employ suitable replacements to maintain service delivery,” Monroe Ellis
said.
Noting that the programme suffered from inadequate planning and
monitoring, she also said the oversight committee did not effectively
oversee its implementation.
Since inception, the committee, which was responsible for providing
overall guidance, has met only three times, with the last meeting held on
January 30, 2018, a month before the February 28, 2018, deadline for the
submission of applications.
She said the Ministry of Finance provided information that the accountant
general paid $1.7 billion with respect to 538 approved applicants.
However, it was unable to provide information on payments through
municipal corporations and executive agencies.
Information obtained directly from four agencies revealed total payments
of $37.3 million for incentives and gratuity to 22 of the retirees.
“This deficiency undermined credibility and transparency in the
implementation and monitoring of SERP,” Monroe Ellis said.
The auditor general also said the programme’s communications strategy
was less successful than anticipated in building awareness and
encouraging buy-ins.
“The ministry scheduled the communication and public-relations activities
to take place over the period December 2017 to March 2018,” she said.
However, the ministry cancelled its planned press conference, which
would have provided further opportunity for the Government to directly
engage and clarify concerns of prospective retirees and stakeholders,
and instead issued a news release, citing ongoing tense public-sector
wage negotiations as a reason for the change.
Monroe Ellis said more than 35 per cent of heads of department and
permanent secretaries surveyed, as well as human resources managers of
seven ministries, departments and agencies, believed that the time frame
for submitting applications was too short.
Respondents also identified a lack of clarity regarding the implementation
and implications of the programme as factors deterring their
participation, as demonstrated by the low take-up rate.
<< Back to news headlines >>
Govt to build nation’s quality standards system – Sutherland Thursday 11th April, 2019 – Barbados Today
Admitting that Barbados’ national quality infrastructure is not yet fully
developed, the Minister of Commerce has pledged urgent attention to
the system by which international standards are measured and enforced
here.
Assuring delegates to the 34th meeting of the CARICOM Regional
Organisation for Standards and Quality (CROSQ), Minister Dwight
Sutherland said the Barbados National Standards Institution (BNSI) and
CROSQ would ensure the infrastructure’s development, under a new NQI
policy aimed at boosting export competitiveness.
“Government considers this goal as urgent, and of very
high priority, in our efforts to enhance the national competitiveness of our
local micro-small and medium size (MSMEs) businesses, industries and the
promotion of fair trade,” he said.
The Commerce Minister said the proposed NQI policy is to improve the
export competitiveness of Barbados’ goods, services and produce, and
strengthen the capacity of MSME businesses and entrepreneurs to flourish
and succeed locally, intra-regionally, and in extra-regional markets.
Stressing that the NQI policy would also serve to defend our domestic and
regional borders from inferior, hazardous and illicit goods and services, he
said that it was also Government’s objective to use the application of the
NQI to rebuild the economy “in a sustainable manner”.
Sutherland said to expand international trade, countries cannot
underestimate the importance of adopting and implementing
internationally recognised and accepted metrology, accreditation,
standardisation, and quality practices.
Meeting global standards is the gateway to global trade, market access
and export competitiveness, and contributes to consumer confidence in
product safety, quality, health and the environment, he told the
delegates.
Sutherland said regional economies needed to continuously upgrade on
new trade standards and be able to conform to an increasing number of
new regulations, or question the validity of proposed regulations that they
consider discriminatory, and put the region’s perspective strongly.
He added that the basic enabling environment for providing proof of
compliance was the national quality infrastructure, and he stressed if
CARICOM countries wanted to attract foreign investments, they must
keep in mind that infrastructure, including quality infrastructure, was one
of the key pre-requisites which foreign investors considered.
Sutherland said: “In the case of a national quality infrastructure (NQI), they
must at the very least ensure access to international standards and
technical regulations, guarantee reliable measurements, and set up a
system that will allow accreditation of their testing and certification
facilities in such a way that the results of these bodies will be
internationally accepted.”
<< Back to news headlines >>
‘Route master’ Thursday 11th April, 2019 – Barbados Today
The Transport Board is in the early stages of developing a new and
improved “master plan” for its future operations, which could see
Government’s role reduced to a mere regulator of a privately-owned,
public route network.
Chairman Gregory Nicholls in an interview with Barbados TODAY
indicated that it is still “early days yet”, but predicted that the new
structure would significantly reduce the financial burden currently placed
on Government.
“All the buses will be painted the same, the drivers will continue to wear
the same uniforms, but the Transport Board, instead of being an operator
of 300 plus buses, will instead be a route manager,” said Nicholls.
“Instead of sinking $60 million of taxpayers’ money into the Transport
Board, we will be trying to create a platform for the public transport sector
to operate on a much more regulated and orderly basis but without the
requirement of being subsidised to that extent by the public purse.
“We’re talking about a system where the Transport Board is not the owner
of 300 plus buses, but more the regulator of a route network which will
have much more private sector participation in the delivery of those
services. That is the Government’s plan going forward,” revealed Nicholls.
He added that the new, profit-making endeavour would afford drivers at
least a 20 per cent stake in the new entities to create opportunities for
current drivers and operators to have an ownership in the business.
On Wednesday, Nicholls revealed that Government had awarded a
tender for the provision of electric buses, adding that the Transport Board
was well on the way to having the buses in the country by year-end.
“First of all, we have to sit down and negotiate a contract that is
beneficial to the Government and people of Barbados while ensuring that
the entity which won the bid is happy with the arrangement as well. So we
have to make those determinations during negotiations,” he said.
Approximately two weeks ago, 85 workers, mostly bus drivers, accepted
voluntary separation and early retirement packages as the Transport
Board intensified restructuring efforts.
With further reform on the horizon, Nicholls said the Transport Board was
engaged with trade unions on the structure of the entity amid numerous
operational challenges, reduced subvention and a significantly depleted
fleet.
“No one is anticipating that the Transport Board will have to own in excess
of 300 buses again in order to service the network,” he said, adding that
the plans could only be rolled out, when all stakeholders were on the
same page.
“We have designed a master plan which we have submitted to Cabinet
for approval. The unions have responded to a number of things that
concern them and we have to continue those discussions and
negotiations,” said Nicholls.
<< Back to news headlines >>
Flap over severance pay trumps push for wage hike Wednesday 10th April, 2019 – Dominican Today
Unions Federation (CNUS) president Rafael (Pepe) Abreu, said on
Wednesday that the trade unions are not going to allow the severance
pay to be “stripped” from the country’s workers.
During a march to the National Palace to protest the employers’
proposal, Abreu said the attempt to eliminate the severance pay stems
from “the ambition of business owners.”
He also demanded that, “to avoid difficulties for the country and for
labour peace to be lost,” the bill that would amend the labour code must
be withdrawn from Congress.
Wage hike takes a hike
The heated debate over the severance pay has displaced labour’s
demand for a 30% wage hike from the headlines, while business leaders
have quietly faded to the background.
<< Back to news headlines >>
Venezuela pledges to honour oil commitments to Cuba despite sanctions Monday 8th April, 2019 – Reuters
Venezuela will “fulfil its commitments” to Cuba despite United States
sanctions targeting oil shipments from the South American country to its
ideological ally, Foreign Minister Jorge Arreaza said on Monday.
Washington on Friday imposed sanctions on 34 vessels owned or operated
by state-run oil company Petroleos de Venezuela as well as on two
companies and a vessel that have previously delivered oil to Cuba,
aiming to choke off a crucial supply of crude to the Communist-run island.
Venezuela has long sent subsidized crude to Cuba. The United States
describes the arrangement as an “oil-for-repression” scheme in which
Havana helps socialist President Nicolas Maduro weather an economic
crisis and power struggle with the opposition in exchange for fuel.
Arreaza said he would not reveal Venezuela’s “strategy,” but that the
sanctions would not stop the shipments.
“When the conventional power of capitalism attacks you, you have to
know how to respond through non-conventional means, always
respecting international law,” Arreaza told reporters.
Friday’s measure came after broader sanctions Washington had slapped
on PDVSA in January as part of its bid to oust Maduro.
The United States, along with most Western nations, recognizes Juan
Guaido, the leader of the opposition-controlled National Assembly, as
Venezuela’s rightful leader. Guaido invoked the country’s constitution to
assume an interim presidency in January, arguing Maduro’s May 2018 re-
election was a sham.
The opposition last month ordered an end to oil shipments to Cuba, but
PDVSA - controlled by military officers loyal to Maduro - has continued the
exports.
The most recent fuel shipment to Cuba left Venezuela’s Jose port on April
4, carrying liquefied petroleum gas, according to Refinitiv Eikon data. In
the second half of March, two tankers carrying crude and two tankers
carrying refined products left for Cuba.
The only tanker sanctioned on Friday, the Despina Andrianna, is currently
returning to Jose after unloading crude at Cuba’s Cienfuegos refinery in
March. Another three vessels are waiting off Venezuela to load with
shipments destined for Cuba.
<< Back to news headlines >>
Fund sues Venezuela for $26 million in unpaid bonds, interest Tuesday 9th April, 2019 – Reuters
Global fund manager Pharo has sued Venezuela for $26 million in unpaid
bond principal and interest, a U.S. court filing showed, as legal claims by
creditors piled up against the OPEC nation whose economy is suffering
from a hyperinflationary collapse.
In a complaint filed with the New York State Supreme Court late on
Monday, Pharo said two funds that it controls own $1.5 million in bonds
that matured in 2018 and more than $200 million in bonds set to mature in
October 2019. Venezuela failed to pay interest and principal on the 2018
bonds and missed three interest payments on the 2019 bonds, it added.
Pharo manages around $10 billion from offices in London, New York and
Hong Kong, according to its website.
Venezuela’s information ministry did not respond to a request for
comment.
The government of President Nicolas Maduro stopped making payments
on nearly all bonds issued by the South American country and state oil
company Petroleos de Venezuela last year, and has accumulated some
$8 billion in pending interest and principal.
Investors had taken few concrete actions in response to the default until
last December, when a group of creditors demanded payment on a $1.5
billion bond, though they did not take the claim to court. Later that
month, a little-known Florida firm sued Venezuela for $34 million in
defaulted bonds.
A group of bondholders in January said they would not negotiate a
potential restructuring of debt with Maduro, saying the opposition-
controlled National Assembly was the country’s “only legitimately elected
body.” Western countries and the domestic opposition deride Maduro’s
2018 re-election as a sham, while Maduro, a socialist, argues Venezuela is
the victim of a U.S.-led “economic war.”
Maduro in 2017 invited creditors to a brief meeting in Caracas to discuss a
potential debt renegotiation, but no agreement was reached, and
sanctions placed on Venezuela by the United States will complicate any
effort to reach an agreement.
<< Back to news headlines >>
Two of Venezuela's four crude upgraders restart after blackout: document Tuesday 9th April, 2019 – Reuters
Two of Venezuela’s four crude oil upgraders, which are necessary to
process the country’s extra-heavy crude into exportable grades, have
restarted after halting activities due to blackouts in March, according to a
document seen by Reuters on Tuesday.
The Petrocedeno upgrader, a joint venture between state oil company
PDVSA, France’s Total SA and Norway’s Equinor ASA, and the Petropiar
joint venture with U.S. Chevron Corp both restarted, according to the
document.
The upgraders, together with the Petrosinovensa mixing facility, were set
to produce 298,000 barrels of upgraded crude on Tuesday.
Activities at the Petromonagas upgrader, a joint venture with Russia’s
Rosneft, along with PDVSA’s Petrosanfelix upgrader remained halted.
<< Back to news headlines >>
Exclusive: Venezuela removes eight tonnes of gold from central bank –
sources Tuesday 9th April, 2019 – Reuters
Venezuela removed eight tonnes of gold from the central bank’s vaults
last week, and the cash-strapped socialist state is expected to sell the
bullion abroad as it seeks to raise hard currency in the face of U.S.
sanctions, a lawmaker and one government source said.
With sanctions imposed by Washington choking off revenues from exports
by state oil company PDVSA, President Nicolas Maduro’s increasingly
isolated administration has turned to sales of Venezuela’s substantial gold
reserves as one of the only sources of foreign currency.
The government source said the central bank’s reserves had fallen by 30
tonnes since the start of the year before U.S. President Donald Trump
tightened sanctions, leaving the bank with around 100 tonnes in its vaults,
worth more than $4 billion.
At that rate of decline, the central bank’s reserves would nearly disappear
by the end of the year, leaving Maduro’s government struggling to pay
for imports of basic goods.
Venezuela’s central bank and its information ministry responded to
requests for comment.
Trump’s administration has declared Venezuela part of a “troika of
tyranny” in Latin America, including left-leaning governments in Cuba and
Nicaragua. It is seeking to cut off cash flow to Maduro’s government,
foster dissent in the armed forces and oust him from power in the OPEC
nation.
The United States and 50 other Western nations have recognized
opposition leader Juan Guaido as Venezuela’s legitimate president.
Asked to comment on the new removal of gold, a U.S. State Department
spokesman said, “The United States condemns all attempts by Maduro
and his supporters to steal resources from the Venezuelan people.”
“We encourage companies, banks, and other entities, whether in the
United States or in other countries, not to participate in the former Maduro
regime’s fire sale of Venezuelan resources,” the spokesman said.
Guaido invoked the Constitution in January to assume an interim
presidency, saying Maduro’s May 2018 re-election vote was a sham.
Maduro has branded Guaido a U.S. puppet and accused him of
collaborating with Washington to sabotage the economy.
Opposition lawmakers have blasted companies buying Venezuelan gold
or holding it as collateral for loans, saying they are giving Maduro a
financial lifeline during an economic and humanitarian crisis.
Aside from the reserves held by the central bank in Caracas, Guaido is
attempting to freeze bank accounts and gold owned by Venezuela
abroad. This includes 31 tonnes in the Bank of England worth an estimated
$1.3 billion.
BLACKOUTS AND WATER SHORTAGES
Venezuela’s economy is in a sixth year of recession, suffering
hyperinflation and shortages of basic goods like food and medicine.
Maduro eased restrictions on foreign exchange this year, but the
economy remains desperately short of hard currency needed to import
goods.
Last week’s operation took place while only high-level officials were
present at the central bank’s offices, given that most rank-and-file
employees stayed home due to blackouts and water shortages that have
plagued Venezuela in the past month, the government source said.
“They moved gold out while the central bank was in contingency mode,”
opposition lawmaker Angel Alvarado said, adding that the bars would be
sold abroad, though he did not know the destination.
A similar quantity of gold was removed from the central bank’s vaults in
February.
Washington in January asked foreign gold buyers to stop doing business
with the Venezuelan government. This prompted Venezuela to cancel a
planned sale of 29 tonnes of gold to the United Arab Emirates.
But in February and March the central bank continued to authorize the
movement of gold, the government source said, adding that it was
aiming to sell small quantities.
Earlier this year, Abu Dhabi investment firm Noor Capital said it bought 3
tonnes of gold from Venezuela on Jan. 21, but would not buy more until
the situation in the country stabilized.
And in March, Ugandan authorities said they were investigating the
country’s biggest gold refinery over imports of an estimated 7.4 tonnes of
gold - valued at around $300 million - after state-run media reported it
could have originated from Venezuela.
The State Department spokesman said countries should take “appropriate
legal measures” to stop “corrupt individuals” from selling off Venezuelan
assets.
<< Back to news headlines >>
Venezuela congress allows parallel PDVSA board to negotiate foreign
debt Tuesday 9th April, 2019 – Reuters
Venezuela’s opposition-controlled National Assembly on Tuesday allowed
a parallel board of directors of state-run oil company PDVSA to negotiate
foreign debt ahead of a looming payment deadline that could put its
crown jewel overseas asset, U.S. refiner Citgo, at risk.
The ad hoc board, which the Assembly on Tuesday expanded to nine
members from five, is part an effort by opposition leaders who have
disavowed the government of President Nicolas Maduro to control
PDVSA’s overseas assets. Maduro’s ruling Socialist Party continues to
control the company’s day-to-day operations.
The move will allow the board to decide whether or not to make a $71
million interest payment due April 27 on PDVSA’s 2020 bond, which is
backed by a 49 percent stake in Citgo, said opposition lawmaker Elias
Matta, the head of the Assembly’s energy commission.
“They will evaluate if they are going to pay the bonds. That is now their
decision,” Matta said in a telephone interview, adding that the board
would have to inform the Assembly should it decide to pay. “We will do
everything we have to do to protect the republic’s assets.”
Failure to pay the bond could allow bondholders to seize shares in Citgo
as compensation. PDVSA has a 30-day grace period following the April 27
deadline to make the payment.
The board’s new head will be former PDVSA executive Luis Pacheco,
Matta said.
National Assembly leader Juan Guaido, who invoked the country’s
constitution to assume an interim presidency in January, appointed the
ad-hoc board in February to protect PDVSA’s assets from “continued
destruction” by Maduro.
Guaido, who is recognized by most Western countries including the United
States, as Venezuela’s rightful leader, argues Maduro’s May 2018 re-
election was a sham.
Maduro, who retains control of the military and basic operations of
government, calls Guaido a puppet of the United States and accuses the
opposition of trying to “steal” Citgo.
Neither PDVSA nor Venezuela’s oil or information ministries responded to
requests for comment.
Oil production is the lifeblood of Venezuela’s economy, but its crude
exports have tumbled sharply in recent years as the country suffers a
hyperinflation collapse.
In the past month, that has been compounded by a wave of nationwide
blackouts, which have led the main oil export terminal, Jose, and the
country’s four crucial crude upgraders to halt operations in March.
Two of those upgraders - which convert extra-heavy crude from the
country’s Orinoco Belt into exportable grades - have restarted, according
to a document seen by Reuters on Tuesday.
The Petrocedeno upgrader, a joint venture between PDVSA, France’s
Total SA and Norway’s Equinor ASA, and the Petropiar joint venture with
U.S. Chevron Corp both restarted. The Petromonagas upgrader, a joint
venture with Russia’s Rosneft, along with PDVSA’s Petrosanfelix upgrader,
remained halted.
The upgraders, together with the Petrosinovensa mixing facility, were set
to produce 298,000 barrels of upgraded crude on Tuesday. That was still
below the 326,000 barrels that PDVSA expected them to produce,
according to the document.
The document also shows that PDVSA has a deficit of 70,700 barrels of
naphtha, a light oil product that it uses to dilute its extra-heavy crude into
an exportable grade when the upgraders are out of service. Most of
Venezuela’s naphtha is imported.
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Cuba Proclaimed Its New Constitution Wednesday 10th April, 2019 – Prensa Latina
The new Constitution of the Republic of Cuba was proclaimed in Havana
on Wednesday in a solemn session of Parliament, after a speech
pronounced by the First Secretary of the Central Committee of the
Communist Party, Raul Castro.
The leader pointed out at the Convention Centre and before almost 600
MPs that once the Magna Carta is proclaimed, it will be published in the
Official Gazette of the Republic for its entry into force.
The Cuban leader insisted in his speech that the set of laws approved at
the polls, in the February 24 referendum, by a large majority of Cubans,
meets the purpose of achieving an increasingly prosperous, sustainable,
inclusive and participative socialism.
It establishes changes in the structure of the State such as the
establishment of the position of Prime Minister, recognizes various forms of
ownership, including the private one and the importance of foreign
investment, strengthens popular power from the municipalities and
expands individual and collective rights and guarantees.
Raul Castro stressed Cuba is committed to its vocation for peace, but
does not fear threats such as those arising from the aggressiveness of the
US Government.
He also said that this position has been conveyed to the current White
House administration through diplomatic channels and in a public
manner.
Faced with the threat posed by the hostility of the White House and its
policies of domination and meddling, he said Cuba is working on two
priorities of equal importance, to ready for defence and work for
developing national economy.
Raul Castro drew attention to the challenge Cuba could face due to a
possible worsening of the situation, based on the actions by Washington
that is tightening the blockade to cause economic suffocation and
hardship.
However, he explained that the scenario does not mean a return to the
so-called special period that in the 1990s after the collapse of the socialist
camp in Eastern Europe, because the Cuban economy presents a
different scenario, considering its diversification.
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