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Inflation slowed, unemployment remained low and for the first time since 2004, the income-generating sectors, mainly tourism and manufacturing, were the engines of economic activity, rather than the foreign exchange-using construction and retail sectors. On top of that, the country's net international reserves of foreign currency rose by $110.3 million to reach $1.65 billion at the end of March 2008. That was the report card of Governor of the Central Bank of Barbados Dr Marion Williams as she spoke yesterday during her review of the economy for the first quarter of 2008 at a media briefing at the Tom Adams Financial Centre . "There was a pick-up in travel credits reflecting the resurgence in tourism activity which offset surging imports," she said. The Governor said early figures showed tourism's value rose by 9.7 per cent during the quarter, with long-stay arrivals up by ten per cent and cruise passenger arrivals increasing by 8.7 per cent. Sugar production, however, proved challenging and after a 14.1 per cent decline a year ago, a similarly large drop was recorded in the first three months of this year. Amid the creditable performance of the economy, however, the Governor urged Barbadians to be cautious in their spending and not to "overexpose themselves". Using the United States as an example of what could happen to people who took out big loans and found themselves in trouble when interest rates rose, Williams warned Barbadians to "be more careful in spending" and "exercise caution in not extending oneself in terms of borrowing". She said too that rising inflation was a global problem and people should expect the cost of imported products to rise and that companies that imported would pass on those costs to consumers. In this connection, she said wage increases should not only relate to the cost of living but to what "companies can afford as well". "There may be companies that can afford increases equivalent to the inflation rate but there may also be companies that cannot," she added. Noting that while data was not available for inflation for February and March 2008, the country's lead economist said "expectations are that the rate at the end of the first quarter would have moderated further". While the biggest challenge is expected to be rising inflation, the Governor's projections for the rest of the year included a worsening of the current account balance, moderate growth in retained imports, an increase in credit as a result of more borrowing as a result of an expected a drop in lending rates, and stronger overall revenue growth.
Campbell, who resigned from the previous PNP Government at the height of the controversy, is seeking a declaration from the Supreme Court that the defendants wrongfully and "without any lawful obligation, duty or proper authority" disclosed confidential information relating to his account in the name of CCOC Association to unauthorised third parties. Campbell is also seeking a declaration that the defendants "wrongfully and without any lawful obligation, duty or proper authority and in bad faith and/or in abuse of their duty of trust and confidence as bankers, obtained confidential information" regarding his relationship to an account held by the First Global Bank in the name of SW Services (Team Jamaica). Campbell is seeking damages of $30,010,000, a million dollars shy of the $31 million that the PNP had to return to the Dutch oil trader, Trafigura Beheer BV, due to mounting public pressure. According to court documents filed on April 21, the former minister of information and development is also seeking damages for breach of confidence and breach of statutory duty, among other things. The scandal came to the fore in early October 2006 when then Opposition Leader Bruce Golding revealed that the PNP had received $31 million from Trafigura, which at the time, lifted and sold Nigerian crude for Jamaica. Golding also called for the resignation of the entire Government.
It will include a modern multifunctional printing press, new textile milling equipment and a research and development (R&D) facility for the manufacture of pharmaceuticals. The investment promises 1,200 new jobs, half of which should be a reality by the end of this year. This is according to a joint statement issued by National Industrial and Commercial Investments (NICIL), Queens Atlantic Investment Incorporated (QAII) and the New GPC Incorporated (NGPC) yesterday. QAII is the parent company of NGPC, which was established after the privatisation of Guyana Pharmaceutical Corporation. The privatisation of Sanata has taken the form of the issuance of a 99 years lease to QAII at a substantive rental of approximately $50 million per annum. The government through NICIL has implemented strict guidelines for the execution of this project. The release said the investor envisages an overall investment of US$30 million and the creation of 1,200 jobs of which 600 new permanent jobs would become a reality by the end of 2008. Rehabilitation and construction of the facilities, which commenced in June 2007, are being phased over a three-year period. It said installation of machinery and renovation works on the complex are currently moving apace with an estimated $1.5 billion in investments to date. Prior to this $400 million was spent on the removal of asbestos from the buildings. Upon completion, the complex will house a modern textile mill for gauze, bandages and denim production, a state-of-the-art printery, an antibiotics plant and R&D facility, a pharmaceutical export processing facility, and a hardware manufacturing division. The joint release said that with the ever-increasing competition in the textile industry from China, India, Pakistan and some Central American counties QAII took the decision to embark on the production of medicated and non-medicated gauze and bandage and the production of denim fabric. "To this end QAII has acquired machinery for the textile mill worth some US$3.5 million. The new mill, which will comprise components from China and Italy, has the capacity for denim production in excess of two million yards of fabric per annum for the export market," the joint release said. The textile mill is scheduled to commence operations in July/August of this year. The complex will also include a hardware manufacturing division, which will produce dimensional stones and tubing to replace copper pipes used in various industries. The release said the printery will house a flexographic machine, a Mann Roland offset press and components for web printing. It said these presses will be used to vertically integrate the printing needs of NGPC as well as to support local manufacturers. "The flexographic machine, which will be a first in Guyana, will create a number of exciting opportunities and stimulate the local packaging industry. In particular the many small and medium sized manufacturers who find it difficult to acquire custom designed packaging for their products will find this press most beneficial," the statement said. It said that the machine can produce a wide assortment of labels, bags, boxes for various juices, beverages and pharmaceuticals. It will be equipped with the latest technology in digital offset and web printing and will allow QAII to print books, magazines, brochures, leaflets, newsprint and newsletters. Speculation is rife that the intention of the new company is to put out a publication of some kind, but none of the officials would say whether this is so. "It can also design and create any printed material to package vegetables, fruits and a wide range of other farm produce. With its numerous capabilities this press will be a big boost to the country's efforts to diversify the economy through value-added industries," the joint statement said. The release said the antibiotic plant and R&D facility will be set up through a collaborative effort between NGPC and a leading multinational pharmaceutical company from India. "In 2001 NGPC was the first company in the region to manufacture anti-retroviral drugs with assistance also from India. In another partnership i.e. with Heinz and Ped Med Canada, the company manufactures micronutrient supplements for the Basic Nutrition Programme," the release said. It said that the pharmaceutical export processing facility would be used to consolidate the export of NGPC products and bulk medicines to the region and North America. The local health sector will again benefit significantly from the availability of a wider range of medicines. Prior to government approving the privatization, Sanata was leased to and managed by the China Textiles Industrial Corporation for Foreign Economic and Technical Cooperation of China. In 2000, the assets of the company were brought under NICIL's control and subsequently a new company G&C Sanata was established. This was followed by further investments but due to high production and electricity costs as well as the loss of preferential markets, the company was forced to cease operations in 2005. The release said that following this, the government advertised for investors to lease the property. It said that in the ensuing period, there was widespread vandalism and flooding and the property became totally overgrown with vegetation. "After a challenging start, this company was successfully returned to profitability by the investor. In the process, the future and prestige of the world famous Limacol, Ferrol and other household brands have been restored. More importantly, through various social and collaborative programs NGPC is now an important contributor to and the undisputed leader in the local and regional health sector. The company also takes pride in providing sustainable employment to its employees, in being an environmentally friendly manufacturer and in its track record as a good corporate citizen," the statement said of NGPC.
He will be an alternate executive director for the Caribbean. Bernal's resignation will take effect on June 30, six months after the completing negotiations with the European Union (EU) for a free trade deal that has grown deeply contentious in the region. Timely career move Yesterday, Bernal confirmed that he sent his resignation to the Caribbean Community's (CARI-COM) chairman, Bahamian Prime Minister Hubert Ingraham, but declined to discuss the reasons for his decision beyond that it was a timely career move. However, other informed obsevers, as well as people who know Bernal say that he has grown disenchanted with the post-negotiations attitude of some regional leaders to the so-called Economic Partnership Agreement (EPA) he struck with the Europeans and the manner with which some intellectuals have attacked the pact. Significantly, Bernal is leaving the job as the Caribbean prepares to negotiate a trade agreement with Canada to replace Caribcan, Ottawa's non-reciprocal free trade pact with the Caribbean. Bernal is also known to have had private concerns about the lack robust mechanism for decision-making within CARICOM, a fledgling single market and economy, and a failure of regional leaders to substantively address the issue. "Richard had made his views known within the councils of CARICOM," one source said yesterday. Under the EPA, one of several the EU hopes to conclude with countries in Africa, Caribbean and Pacific that were previously covered by the Cotonou Agreement, Caribbean states have duty free access to the European markets for all their products. The region will, starting in three years, progressively open its market, leading to full reciprocity in a decade-and-half. However, not long after the pact was initialled in December, Guyana's president Bharrat Jagdeo, suggested that the Caribbean and caved in the Europeans for fear of losing markets. Additionally, a group of regional intellectuals have argued that the Caribbean gave up much more than it got, and have lambasted negotiators for failing to tie down promised financial support to transform their economies. Bernal has insisted that the agreement offers great opportunities for Caribbean economies, opening a market of over 400 million people for their goods and services. Bernal, an academic and economist who worked in the public and private sectors, first joined the CRNM as its top technical man, serving initially under Sir Shridath Ramphal. He succeeded Sir Shridath as executive director. Prior to joining the CRNM he served for a decade as Jamaica's ambassador to the United States, so in joining the IDB is returning to a city in whose ways he is familiar. "The first two years I will be the alternate executive director. For the next two years I will be the executive director for the Caribbean," he told Jamaica's Financial Gleaner . He explained: "The first two years I will represent Jamaica's interest basically. It is a rotation, Barbados will be the executive director for two years and I will be the alternate."
Reynald, who is retiring early, was celebrated by directors and staff at a function in Port-of-Spain this week, and in the group's just-released report to shareholders, chairman Fred Gallop hailed Reynald's performance in the decade as the group's boss, having taken over from Ken Gordon of what was thenthe Caribbean Communications Network (CCN). "In his years of service, he was able to significantly improve the group's performance, not only financially, but among viewers, readers and advertisers," Gallop said. "His contribution to the merger of CCN and the Nation Group deserves the highest commendation." Cricket world cup loss For the year to December 31, 2007, One Caribbean reported net profit of TT$88.57, a mere TT$1.71 million or two per cent higher than the previous year. The profit was on the back of revenues of TT$482.26 million, up seven and a half per cent on the previous year. Part of the reason for the anaemic profit growth, the company explained, was a loss of Cricket World Cup publications last year. Rising newsprint prices Projected advertising levels did not materialise because of the early elimination from the tournament of teams like Pakistan, England and India. The company was also hit by rising newsprint prices and the cost of restructuring. CCN, which started life as Trinidad's 40-year-old Express Newspaper , was listed on the Port-of-Spain exchange in the early 1990s, shortly after Reynald joined as finance director. One Caribbean was created earlier this decade when CCN merged with the Nation Group of Barbados, which includes te Starcom radio network and Barbados' Nation newspaper, one of several that the Express helped to launch and nurture in the Caribbean. In fact, One Caribbean officially holds 10 per cent of the Jamaica Observer , which it gained for technical help to the newspaper at the time of its launch in 1993. Expansion Reynald and his former boss, Ken Gordon, still appear in the Observer 's corporate box as directors. Apart from the Express and Nation newspapers, One Caribbean, until recently, controlled six radio channels in Barbados, radio and television in Grenada and TV6 in Trinidad. It recently acquired additional radio stations in Trinidad, St Lucia, Antigua, St Kitts and Montserrat, which Gallop said would lead to the "first truly pan-Caribbean media network". Vision fulfilled The group also has commercial printing operations in Barbados and Trinidad. Gordon had long articulated a vision of, and began the effort to forge, a regionwide media group through a series of mergers. Reynald has been credited with substantially following through on and fulfilling the idea, although he remained unsuccessful at enticing Jamaican entities into One Caribbean. While broadly satisfied in establishing itself as a Caribbean media conglomerate, Reynald has identified the failure so far to forge a regional television network as an outstanding mission. "We originally conceptualised this could be best achieved through strategic relationships and/or acquisitions of television stations throughout the region and, therefore, began the process by acquiring majority shareholding in Grenada Broadcasting Network," Reynald explained. "This, however, has proven long and tedious, since most of the television stations are government-owned and, therefore, private sector participation is not easily facilitated." But, he added: "We remain determined, however, to bring this into reality and are currently pursuing other strategies.
Jose Luis Machinea, head of the Economic Commission for Latin America and the Caribbean, yesterday told reporters the Caribbean region is forecasted to grow by 4.1 percent compared to 3.9 percent last year. Haiti is forecasted to grow from 3.2 to 3.5 percent but Cuba and the Dominican Republic are forecasted to see a drop in growth from 7.5 to 7.0 percent and 8.5 to 5 percent, respectively. The forecast comes, Machinea said, despite the fact that the U.S. is entering `a mild recession.` Still the top economist warned that the steep and persistent rise in international food prices could plunge some 10 million in Latin America and the Caribbean in to poverty. He recommended that given that the high food prices apparently are not transitory, but rather `are here to stay,` countries should design medium and long range proposals to increase supply and productivity in a sustainable manner, as well as maintain specific policies focused on low-income sectors.
Williams also called yesterday for an urgent reduction in Government spending. The T&T inflation rate hit 10 per cent in October, 2006, but declined since then, reaching a low of 7.3 per cent in November, last year. However, Williams said it was registered at 9.4 per cent at the end of February, "and (increases in) food prices don't seem to be ending." Addressing journalists in Port-of-Spain, as the bank presented its Monetary Policy Report for April, 2008, Williams said: "We need to reduce the growth of public expenditure," noting that he was referring both to spending directly by the central government, as well as expenditure by quasi-government institutions. He said governments all over the world, whether in developed or developing countries, were scared about the prospect of inflation increasing to double digits and remaining established at those levels. "Everybody has now recognised that the global food crisis and financial turmoil threaten stability and certainly price stability." He said that TT must do something urgently to get the agricultural thrust going quickly, adding that agriculture was on the agenda of all countries, both developing and developed countries. Williams suggested that one solution might be a social compact among the three sectors-government, business and labour-to control rising prices and costs. He said the Central Bank was particularly worried about the impact on the economy of the massive payments to be made by the Royal Bank of Canada (RBC) to shareholders of RBTT, who agreed recently to sell their shares in the takeover. RBTT shareholders voted in a special general meeting at the Hilton on March 26 to approve the sale of RBTT to RBC. Williams said some $7.5 billion would hit the local financial system later this year, when RBC pays TT shareholders for the RBTT shares. The bank's Monetary Policy Report said that the size of this influx made it especially necessary for the Government to rethink its expenditure. "The potential pressures that could come from these capital inflows further underscore the critical need for a re-phasing of government expenditures, " it said. In response to questions, Williams said achieving the Government's inflation target of 6 per cent by the end of this year might present "serious challenges" in the current domestic and international conditions. He said one of the biggest problems facing the country was consumer spending, adding that bank credit for the purchase of motor vehicles had risen by 50 per cent the past year. In the Monetary Policy Report, the bank said "stronger monetary policy action and considerable expenditure tightening" would be needed to tame "existing demand pressures." The report continued: "In the present circumstances, the latter would need to be informed by an expenditure review geared towards re-phasing some budget expenditure in order to accommodate a possible increase in poverty alleviation programmes and projects geared to accelerate the resuscitation of the agricultural sector."
This significant earnings growth was fuelled by two adjustments. Firstly, the Group recorded a US$26.4M gain on the acquisition of Sagicor at Lloyd's Insurance Syndicate which was effected in September of 2007. Secondly, adjustments were made to the carrying value of certain intangible assets recorded during previous acquisitions to the sum of US$3.7M. The overall impact of these two items was a positive addition to Net Income of US$22.7M. Net Premium Revenue and Net Investment Income experienced year on year increases of 14 per cent and 9.6 per cent respectively. This ultimately led to a 16.7 per cent boost in Total Revenue from US$662.3M to US$773M. Excluding the previously mentioned gain, Total Revenue increased to $746.6M. 'Total Policy Benefits and Expenses' underwent a 14.7 per cent increase from US$561.8M to US$644.4M. However, when the adjustments are excluded, this component experienced a somewhat smaller increase to US$640.7M. The Group succeeded in reducing its ratio of Expenses & Benefits to Total Revenue by approximately 1.7 per cent, from 84.8 per cent to 83.4 per cent over the year. Income from Ordinary Activities saw a 27.9 per cent advance to US$128.6M when compared to the US$100.5M of 2006. An 11.6 per cent higher effective taxation rate resulted in an increase in bottom line profit of 25.5 per cent to US$108.7M. When a year on year comparison is made on Net Income Attributable to Shareholders, a 27.5 per cent increase is revealed, from US$67.7M to US$86.3M. The Group was able to maintain a strong Balance Sheet as at the end of 2007 with Assets totaling US$3.6B and Total Equity of US$586.7M. At the end of the financial year, the Group's total debt financing was US$152.7M with a debt to equity ratio of 26 per cent. The chairman reported that its US insurance subsidiary, Sagicor Life Insurance Company, fell short of its revenue targets for 2007 as the Group underestimated the length of time it would take to file new products and establish additional distribution. However, the chairman relayed that revenue levels for the last quarter of 2007 and the first quarter of 2008 are on track with the Group's expectations. Sagicor General, the Caribbean property and casualty insurance subsidiary also experienced some operational challenges during 2007, particularly the T&T operations, which hindered it from reaching its profit target for the year. However, all other significant subsidiaries within the Group met or exceeded expectations. The financial year 2007 has been a year filled with expansions and growth with many acquisitions taking place over the year, from Gerling at Lloyd's Group, Byrne & Stacey Underwriting Limited, and Barbados Farms Limited, to name a few. These acquisitions have confirmed SFC's drive and determination to become an international contender in the financial services industry. In February of last year, SFC took a large step forward with its listing on the London Stock Exchange. Since its listing, trading has remained very light. Over first quarter of 2008, only 87,000 shares have traded with the last recorded price at $1.17. The successful growth strategy adopted by SFC, projects a very optimistic and profitable outlook for the Group in the 2008 financial year and by extension, the years to follow. With the completion of the Neal & Massy Holdings Limited takeover of Barbados Shipping & Trading Company Limited (BS&T), SFC will be receiving an influx of cash during the new financial year in terms of gains on its shareholding, since the Group holds a substantial interest of approximately 12 per cent of the total issued and outstanding shares of BS&T. Being one of the best performing stocks on the local equity market, Sagicor had a 2007 return of 17.49 per cent, and has appreciated 17 per cent year to date. At a current price of TT$18.50, this security is trading at a forward P/E multiple of about 9.5 times, which is one of the lowest multiples in the Non-banking sector and on the local market as a whole.With another strong performance expected in the year ahead, BOURSE maintains its BUY recommendation for the medium term.
Third Party Revenue growth fuelled the Group's results with an increase of 21 per cent from $4.1B to $5B. The chairman noted that the performance of all the operating sectors within the Group were consistent with the objectives set for them. The chairman also made mention of AMCL's unending efforts to achieve operational and cost efficiencies, which was reflected in the Group's Operating Income figure, which improved 28 per cent year on year reaching $1B from $811.9M in 2006. The Operating Profit margin also saw an improvement from 19.7 per cent to 20.9 per cent, again confirming the Group's success in controlling expenses. Finance costs on the other hand, suffered a 16 per cent increase from $118.9M to $138.1M, while similarly, share of results of Associated Company/Joint Venture sustained a $10.2M decline to $6.6M. These shortfalls did not encumber the Group's success at attaining 28 per cent growth in Profit before tax from $709.6M to $907.9M. Moreover, an 18.5 per cent increase in the effective rate of taxation still did not hamper the Group from recording 22.5 per cent growth in After tax profit from $579.2M to $709.8M. As a percentage of Net Profit, Minority Interest declined from 18 per cent to 14.8 per cent and contributed to the 27.3 per cent increase in Profit Attributable to Shareholders from $474.9M to $604.6M. AMCL has succeeded in proving itself to be a worthy contender in terms of efficiency, as the Group continues to be successful in keeping its operational costs under control, which led to its outstanding 2007 performance. This Group has maintained a five year average earnings growth rate of 24 per cent with continued growth anticipated in the new year barring any unforeseen circumstances. With a current price of $53.01, this stock is trading at a trailing P/E multiple of approximately 15 times and a forward multiple of 12.6 times on projected earnings, which is still below the five year historical multiple of 16.8 times. BOURSE maintains a short term HOLD, with a BUY recommendation for the medium term.
Net income for the San Juan-based company fell to $103.3 million, or 36 cents per share, from $118.6 million, or 41 cents, a year earlier. The latest quarter included a one-time gain of $49.3 million on the sale of shares of credit card processor Visa, which went public in March. Analysts on average expected a profit of 14 cents a share, according to Reuters Estimates. Popular set aside $168.2 million as provision for bad loans, an increase of $71.9 million from the year-ago quarter. The rise in provision reflects potential losses due to the weak economy, deteriorating credit quality trends, primarily in the commercial and construction loan portfolio and in the US consumer loan portfolio, the company said. Net interest income rose $2.2 million to $357.2 million. Shares of the company were trading up about 2 percent at $11.94 in early morning trade on Nasdaq.
At the same time, the Dominican Republic must do with less revenue from falling exports, Jamaica is being forced to face a drop in earnings from alumina, and most of their neighbours which rely on remittances to boost their economies may be in danger of reduced foreign currency because of United States economic woes. The publication also warned about a possible return of the International Monetary Fund to the Caribbean. "The worry for the countries lining up for Venezuelan help is that Petroleous de Venezuela, the state oil company, may be unable to maintain oil shipments indefinitely," the publication stated. "The only shelter from this brewing storm is a rickety one: a scheme known as PetroCaribe under which Venezuela's President, Hugo Chavez, provides oil to 15 Caribbean and Central American countries on easy terms," it stated. The trouble is that Chavez is becoming increasingly unpopular at home, and that could be bad news for Cuba and PetroCaribe. Cuba gets about US$2 billion in subsidies from Venezuela every year and while it is not in the same boat as other Caribbean nations when it comes to dependence on the United States economy, Havana shares a Caribbean predicament: it imports much of its food.
It has come from Assistant Secretary General of the Organisation of American States (OAS) Albert Ramdin who said that for countries of Latin America and the Caribbean, migration is a core component of economy and social life. Speaking yesterday at the launch of a Migration Information System of the Americas (SIMA), he cited World Bank research showing the impact of remittances as one element of the benefits of migration. According to the statistics, total remittances to Latin American and Caribbean countries have increased ten-fold, "in real terms," over the past two decades. Ramdin asserted that in some countries, remittances constitute a major portion of the Gross Domestic Product (GDP) and pointed to Haiti where, in 2004, they accounted for more than half of GDP. He noted that the same World Bank report underscored remittances as having a positive impact on the economy of the countries receiving them. Ramdin however insisted that the positive impact of remittances should not be a pretext for delaying or refraining from implementing sustainable long-term development policies. He suggested to delegates and international experts at the Special Forum on Migration Issues at OAS headquarters that migration must be factored into countries' development plans and poverty-reduction strategies. "From an integral, cross-cutting perspective, the subject of migration involves a host of issues," he continued, identifying human rights, political, social, economic and cultural dimensions, along with integration, security, health, labor rights, and regulatory frameworks among key issues. "As such, it is of fundamental importance for the hemisphere, and for the OAS." Ramdin expressed the hope that the forum will provide a genuine opportunity for dialogue and cooperation, based on the understanding that no country or region on its own can address the challenges and opportunities that accompany the movement of people effectively, without working in a multilateral framework to establish the most appropriate measures to benefit from migration optimally.
FirstCaribbean and RBC Capital Markets were the joint-lead managers for the transaction. The bond, which was oversubscribed, was placed with international and regional investors and was the first type of deal from a Caribbean sovereign since the start of the year. Ian Chinapoo, Managing Director, Capital Markets, noted the achievement of this particular bond issue. "Given the challenging market conditions, the Bahamas has done well to achieve a 30-year tenor and oversubscription of the deal. This deal represents several firsts for the Bank and the Capital Markets team." He explained that this bond issue was the longest tenor paper placed by the FirstCaribbean Capital Markets team to date and equals the longest tenor achieved by the Commonwealth of the Bahamas in the international debt market. The proceeds of the bond will help the government of the Bahamas to finance general development in the country. The bank continues to deliver capital markets financing solutions to governments, state-owned enterprises and corporations to facilitate the development and expansion to the region's economies. FirstCaribbean's team of Capital Markets professionals has helped clients across the Caribbean raise more than US $1.5 billion to finance projects and other strategic goals over the last 24 months. Its product and service suite includes equity and debt underwriting, mergers and acquisitions financing, project finance and structured financing.
"Given the assessment of Cuba's debt position, governmnent is of the view that Cuba was not in a position to meet its obligations in the forseeable future," Themba Maseko was quoted as saying by the SAPA news agency. The 926.8-million-rand (117-million-dollar) debt was owed for insurance cover provided by the Export Credit Insurance Corporation of SA for the export of diesel engines and pesticides in 1996. Maseko said Cuban debt could undermine future trade in areas such as biotechnology and pharmaceuticals.
The case will be heard by the Caribbean Court of Justice. TCL had set up a US$10 million bagging plant in Guyana during the construction boom there as the country prepared to host games in the Cricket World Cup. The Bharrat Jagdeo administration said it had waived the Common External Tariff (CET) required by the Revised Treaty of Chaguaramas to extra-regional importers because TCL could not meet local demands. TCL said the decision was made unilaterally and the Guyana government on several occasions failed to approach the Caribbean Community's (CARICOM) Council on Trade and Development (COTED) to approve the waiver as required by the Revised Treaty. The TCL Group produces and markets cement and ready-mix products in the Caribbean. The group consists of eight operating companies in Trinidad, Barbados, Guyana,Jamaica and Anguilla.
Jamaica owes the UK more than $1.6 billion, which the write-off would cut by approximately 43 per cent. "High levels of debt are a significant drag on economic growth and on the ability of any government to adequately address social needs," said UK Minister for International Development Shahid Malik in a DFID-issued release. "Rather than money leaving Jamaica, it can now go towards key services like education, water and sanitation, security and justice, that will improve the well-being of Jamaican citizens." External creditors At the end of March, Jamaica's overall debt stock hit the $1 trillion mark for the first time, up 8.4 per cent year on year. But the finance ministry is reporting that on the plus side, the debt to GDP ratio, a key indicator of the debt's performance, has fallen six points to 126.1 per cent, down from 132.4 per cent. Jamaica owes $438.6 billion to external creditors and, outside of the multilaterals who, combined, are owed $85 billion, is most heavily indebted to the United States and Japan. Total bilateral debt, that is, money largely owed to country governments and their agencies, is now $49 billion. Another $280.55 billion is held by bondholders, which, together with the funds owed to other commercial creditors, places more than 69 per cent of the external debt in private hands. The UK write-off was announced as a signal of confidence in the Golding administration. "The Jamaican Government led by Bruce Golding has made commitments to bring about faster progress in economic management, good government and poverty reduction and we want to seize this opportunity to align our support behind these positive steps," said Malik. Within the past decade, under the Commonwealth Debt Initiative launched in 1997, the UK has written off £51 million of Jamaican debt, said DFID. It also provides £2.5 million of aid annually.
UK Minister for International Development, Shahid Malik has said that his government has written off the debt as the government of the Caribbean island takes important steps to reform the country. He said the debt forgiveness will allow the Bruce Golding government to spend more money on improving public services and tackling poverty. "Cancelling £5 million of Jamaica's debt means the government can use the money to improve public services instead. It underscores the close relationship our two countries enjoy and the UK's aim to help the poorest people in Jamaica," Mr Malik said. "High levels of debt are a significant drag on economic growth and on the ability of any government to adequately address social needs. Rather than money leaving Jamaica, it can now go towards key services like education, water and sanitation, security and justice that will improve the well being of Jamaican citizens." "The Jamaican government led by Bruce Golding has made commitments to bring about faster progress in economic management, good government and poverty reduction and we want to seize this opportunity to align our support behind these positive steps," the UK minister added. The UK has written off £51 million (US$100 million) of Jamaican debt between 1998 and 2008 and has also given the country an additional £2.5 million (US$4.9 million) every year to help the poorest citizens. The debt relief takes place through the Commonwealth Debt Initiative (CDI), which was launched in 1997 as part of the UK's efforts to ensure more resources go towards meeting the United Nation's global anti-poverty targets by 2015.
The achievement was announced there last week. These two products will be listed on the competition site for the rest of the year, giving them more worldwide publicity. Incidentally, the ten Cane rum made by Louis Vuitton Moet Hennessy (LVMH), in Trinidad, also received a silver medal in the rum category. The judging was held from March 15-16 with Angostura's products alongside more than 800 spirits from 63 countries making this the largest liquor competition in America. The San Francisco World Spirits Competition is the first comprehensive, international, spirits judging event held in the US on an annual basis. Angostura is extremely proud to win this international recognition yet again. It shows that the company continues to produce premium quality products recognised worldwide.
The charges come four days following Hill`s arrest at his home last Thursday, following public reports that his company had no money to repay investors. Hill's brother Bertram Hill and Cash Plus Chief Financial Officer Peter Wilson are also expected to be charged in court today. Police claim the arrest came after investors reported they were defrauded. Head of the Major Investigations Task Force Assistant Commissioner of Police, Les Green, last week told reporters that investigators will also be turning the spotlight on Hill's overseas business interests. Green also called on anyone with knowledge of property or assets that may have been recently transferred to Cash Plus to contact police. Cash Plus and Cash Plus International Group of Companies was established in 2002 by mortgage banker Hill. The company has a range of entities within the umbrella with the investment club being only one part of the operation. However, that has become a major part of the investigation by security officials.
They had been dating for six years. Few details of the wedding ceremony and all-night after party have trickled down the grapevine, but Trinidadian Colin Abraham, president of the event organising company, Pollen Nation, gave Sunday Newsday a full description of the couple's magical night. Abraham's job was to take care of the decor at Jay-Z's Manhattan apartment, the wedding's venue. Abraham, an event planner, grew up in Barataria. He was a student at the Barataria Senior Comprehensive school and after that he entered the Prison Service and then to the Police Service before leaving the country in 1998 to pursue a course in sound engineering in New York. While studying he worked part time as a floral decorator at the Waldorf-Astoria hotel before launching Pollen Nation in 1999. One of his first major clients was hip-hop mogul Sean 'P Diddy' Combs when he started decorating for his famous annual "White Party" at his home in the East Hamptons. "I have been working with Diddy for seven years now and with that I have been introduced to many people in the music industry and through him Shawn 'Jay-Z' Carter saw my work and he also became a client," he explained. Working with Jay-Z, Abraham learned that the entrepreneur likes to live a very private life. "That is why the wedding was so hush hush, no one knew when it was going to happen, what or who was involved," he said. He revealed he only saw Jay-Z twice throughout all the planning because he was still on tour with fellow artiste Mary J Blige. "Beyonce worked hands on with me on everything, from the type of flowers to the colour theme we would use at Jay-Z's penthouse in Manhattan," the 39-year-old said. Beyonce's choice for the colour theme was ivory and cream with whites and greens. "Her choice for flowers were orchids and what I did was set up foot long garlands from the floor to the ceiling, then there were columns of branches with crystals at the end," he revealed. He touched on the internet reports that said that Asian florist, Amy Vongpitaka was the one responsible for the wedding's floral decor. "That woman is just a wholesaler, I ordered 100,000 orchids from her and she sent it down to me. She did not even know what or who the flowers were for," Abraham explained. To make sure everything went smoothly Abraham and his staff of 12 worked nights three days before the big day. Abraham described the entire wedding as "very simple and intimate." "Less is more and when we were done, we transformed the whole place and it was magnificent. Beyonce was really happy she could not stop kissing me," he said. The wedding began at 8 pm on Friday when Beyonce walked down the aisle accompanied by her father Matthew Knowles without any bridesmaids. After the ceremony the newlyweds celebrated their nuptials until six the next morning. The 40 invited guests, which included Gwyneth Paltrow and former members of Destiny's Child, Kelly Rowland and Michelle Williams, dined on "soul food" which included chicken, shrimp and "gumbo" a dish popular in southern states and had the choice of champagne or tequila shots. "After they had dinner they transformed the dining area into a dance floor and everybody had a good time," he revealed. In 2006 Abraham planned more than 150 events and has worked with LA Reid and Warner Music. Abraham who recently married last year is a father of three with one on the way. His business has branches in Manhattan, Brooklyn. He hopes to open one in New Jersey. His clientele ranges from President George Bush to Queen Latifah.
The net loss means that Angostura shareholders will receive no further dividends for that financial period. The Laventille-based rum maker reported an improvement in core operating performance for the year ended December 31, 2007, up from the previous year, with an increase in gross operating profit from $243.2 million to $299.3 million, Angostura chairman Lawrence Duprey said in his published report of the company's audited financial statements. The company's core spirits business reflected a solid increase of $102 million, primarily as a result of increased liquor sales and marketing efforts locally and abroad, with all classes of its spirits business, including bulk rum, local and export cases, achieving positive gains, Duprey said. Last year, the group sold its ethanol production subsidiary to parent group CL Financial and this resulted in a reduction of $97.4 million in reported revenue for Angostura. Even with higher sales and better marketing, the group still showed a $137 million loss, largely as a result of a dispute in a business deal with French spirits company Belvedere SA. Angostura had to reverse its non-cash gains for Belvedere in 2006 when it disposed of the French company last August for around $3 billion. This followed a "serious shareholder dispute between our group and the founding shareholders of Belvedere SA", Duprey said in the Angostura financial statement yesterday. Angostura and CL Financial are currently in the process of finalising another sale, this time for the 86 per cent acquisition of the Lascelles de Mercado Group, owners of Appleton Rum and other brands. "In view of the year-end loss position, arising primarily out of our Belvedere acquisition and subsequent disposal and the fact that an interim dividend of five cents per share was already paid, your board has decided that no final dividend will be declared this year," Duprey told shareholders.
Minister of Finance Audley Shaw has also projected three per cent economic growth during the new fiscal year, with the main drivers being the agricultural and tourism sectors. The government also said that inflation for this fiscal year will be between nine and 10 per cent. Shaw also announced a six-month tax amnesty as the Bruce Golding government on Thursday signalled its move to collect a billion dollars in revenues to finance its first national budget since coming to power following the general election last September. The amnesty ends on October 31 and Shaw said it was estimated that the Tax Department was owed JAM$138 billion (US$1.9 billion) in arrears. Shaw also announced an increase in several taxes as part of efforts to raise revenue during the current fiscal year. "Motor vehicle licensing fees were increased in 2003 and it's proposed to increase all licensing fees by 50 per cent. (Therefore) the increase is 50 per cent on the existing rates. This will yield a gross of JAM$1.61 billion (US$225 million)," the minister said. There will also be a hike in the general consumption tax on importation of some motor vehicles from May 1. Shaw also announced a new tax on tobacco with an expected yield of JAM$2.88 billion (US$391 million). (CMC)
This was made public on Wednesday when the Barbados Manufacturers' Association (BMA) launched the annual event, scheduled for May9 to12 at Sherbourne Conference Centre , with various presentations from sponsors at its Harbour Industrial Estate, St Michael office. This year's theme will be It's Our Business , in keeping with its goal of encouraging the Barbadian public to embrace and promote local products. BMA's special projects coordinator, Shelly Ann Austin-Taylor, said Bajan Brands Mart would allow patrons at BMEX to come under one roof to see local food and products from brands not commonly known. "There are a lot of things made by brands here in Barbados that the public are not aware of . . . . They may know the bigger brands like Pine Hill Dairy but don't know the many smaller brands at home," she added. BMA executive director Bobbi McKay said not only was the event designed to develop local manufacturing, but "more importantly, to educate the people and exhibitors about the importance of buying local". The expo, now in its 27th year, has expanded to include a fourth component construction to the other three categories of food, fashion and furniture. Also new to BMEX this year will be the official launch of Caribbean Fashion Week with an evening tea and fashion show during the opening ceremony; while the Barbados Agricultural Development and Marketing Corporation will also be inaugurating a TV food show to promote healthy, indigenous foods at the exposition. McKay also said patrons could look forward to various door prizes and the chance to win "Bajan Brand Baskets" in daily raffles. Present at the launch were Nicola Greaves, marketing officer of Butterfield Bank; Digicel's marketing executive Marquita Sugrim, and Christine Bourne, head of marketing for the Caribbean Broadcasting Corporation . ( JM )
Burton has been promoted to deputy group CEO, even as he keeps his position as CEO of the food division, GK Foods. Burton's recall and promotion and Ranglin's February dispatch to the United Kingdom subsidiary are among a raft of managerial reassignments made by GraceKennedy's chairman and CEO, Douglas Orane, since his former deputy and head of the group's financial services arm, G K Investments, resigned last September for a seat in Prime Minister Bruce Golding's Cabinet as minister without portfolio in the Finance Ministry. Wehby was replaced as the boss of GK Investments by Joe Taffe, who is still acting in the post. Making the switch in the UK is Michael Ranglin, who is answerable to Burton. Promoted With Ranglin assigned to the UK, Ryan Mack, formerly the general manager of Grace Foods & Services Company, has been promoted to senior general manager of domestic business since January 1. He has taken over some of the duties Ranglin had in Jamaica. Mack's old job has gone to Gilroy Graham, formerly the general manager of World Brands Services Division. Stanley Beckford, formerly an assistant general manager at GK Foods and sales and marketing manager for its world brands services division, is now the general manager of the World Brands Services Division.
Kingston-based Red Stripe is a subsidiary of the international food and drinks firm, Diageo Plc, under whose ownership the company has pushed hard to market its lager internationally, as a premium brand. But this attempt at top-tier positioning of the product overseas, managers apparently felt, was in danger of being undermined by some of what happens at live shows where some Jamaican dancehall openly promote violence, often against gays. Some dancehall artistes faced gay-promoted boycotts in several United States cities, Britain and several countries in continental Europe. Banned in UK "Two years ago, the company was banned from a leading entertainment chain in the United Kingdom because it sponsored an event in which lyrics glorifying violence were used," Red Stripe's CEO, Mark McKenzie, told members of the Rotary Club of St Andrew in a speech this week. Last week, Red Stripe, which trades on the Jamaica Stock Exchange as Desnoes and Geddes, announced that it would end its long-standing sponsorship of the 15-year-old music festival, 'Reggae Sumfest', which takes place in August in the north-shore city of Montego Bay. Despite standing to lose an estimated US$2 million in value as a result of cancelling its headline sponsorship - according to a highly placed executive - Red Stripe said that it could no longer place its reputation "at risk" by being associated with events where violence might be promoted. While not reversing the decision, Red Stripe this week appeared to have softened its position. McKenzie told the Rotary Club members that the company might still offer some financial support to 'Sumfest', but without the trappings of being a title sponsor. McKenzie, however, declined to tell the Financial Gleaner how much the company might be prepared to spend on such a scaled-down sponsorship arrangement and how it might work for the brand. Cancelled He, however, suggested that without some Red Stripe support, the festival - seen as a significant attraction for Montego Bay's tourism and an economic boon to the city - might have been cancelled. A year ago, Red Stripe reported that it had spent around J$400 million on its sponsorship of 'Sumfest' over the years, but did not give a breakdown of how the money was allocated and whether it was all in cash. For the year to last December 31, Red Stripe had a turnover of $6.48 billion, an increase of 15 per cent over the previous year. The company's net profit decreased by 20 per cent at the end of its six-month period ending December 31, 2007, relative to the corresponding period. Profits declined from $756 million to $608 million last year. Total sales volume (including exports) increased three per cent during the first half of 2007 relative to the year before. But even while its domestic volumes grew by four per cent, export volumes for the six-month period was flat when measured against last year. Deeper penetration Against this backdrop, the imperative for Red Stripe to even more jealously guard its brand would be strong, as it tries for deeper penetration into the European market. It recently acquired a new distributor in Sweden, according to the company's website. In his Rotary club speech, McKenzie, as the company had done when it announced it was pulling out of the sponsorship of live shows, underlined Red Stripe's obligation to its shareholders and its responsibility to remain profitable. "We will not put the integrity of this company or ourselves on the line (not) to deliver results," he said. "I don't think anybody would expect that of us.
In a Press release issued Tuesday, OCM chairman Sir Fred Gollop confirmed that Farrell would replace incumbent CEO Craig Reynald within the next two months. Gollop said Farrell's appointment would take effect on June 1, 2008. Farrell is now the president of Business Insight, a company dedicated to strategy consulting and economic research and forecasting, and will be entering the media field after gaining more than 30 years' experience in economic research, forecasting, policy analysis and strategy formation. OCM came into being in March 2006, after an agreement was signed between Caribbean Communications Network Ltd (CCN), parent company of the Trinidad Express and TV6 , and the Nation Corporation (Nation) of Barbados, in order to create a publicly-owned and regionally-focused media company quoted on the stock exchanges of Trinidad and Tobago and of Barbados. In addition to the Express and TV6 , OCM owns or partly owns THE NATION newspaper and the Starcom radio networks in Barbados, and has a majority interest in the Grenada Broadcasting Network (GBN) . OCM posted $88.5 million or just over US$14 million in profits in 2007. Farrell had served as deputy governor of the Central Bank from 1992 to 1995. Before this, he had also served as the bank's research director from 1987. He studied economics at the University of the West Indies and the University of Toronto where he obtained his PhD in 1979, and holds an LLB (London) degree. (Trinidad Express)
Minister of Finance Dr Ashni Singh and Head of the EC Delegation Ambassador Geert Heikens signed the agreement in the Ministry of Finance Boardroom yesterday morning in the presence of Minister of Agriculture Robert Persaud, and Chief Executive of the Guyana Sugar Corporation (GUYSUCO), Nick Jackson among others. The 2007 agreement is part of a total package of assistance being provided by the European Union to Guyana and other countries of the African, Caribbean and Pacific (ACP) regions following the phased 36% slash in the price of sugar paid by the EU to ACP producers. EU support to 2013 The EU support will extend to 2013 with the first period covering 2006 to 2010 for which 89 million Euros have been allocated for Guyana, Heikens explained, adding that the decision on the financial allocation for the period 2011 to 2013 would be taken after the evaluation of the first phase. Heikens said that the total allocation will be released via annual financial agreements. The government and the EC Delegation signed the 2006 financial agreement in February last year clearing the way for the disbursement of 5 million Euros. The government received the first tranche of the 5 million Euros towards the end of last year and it is still to receive the other part which the EC Delegation officials present said would be handed over shortly. Asked when funding under the 2007 financial agreement would be disbursed, the EC delegation said that due to the bureaucracy, disbursement of the first of two tranches could be expected after another two months. Heikens and Singh noted that the funds were being delivered by means of direct untargeted sector budget support, which means that the monies would be channelled through the national budget and the government would have the final say on the disbursement to the sugar sector. Asked what percentage of the funds government is expected to give to the sugar industry, Singh said that all the funds received would be placed in the Consolidated Fund and the sugar sector would receive funding based on plans already in place and as the need arises. While he would not anticipate a percentage of the funds that would go directly to the sugar sector, he said that in relation to the 2008 budget the government was making available the sum of US$7 million to start the modernisation of the Enmore factory and the Enmore Packaging Plant. This comes out of the 2006 Financial Agreement which was provided in the form of budgetary support and which the government will transfer to Guysuco. Both he and Heikens explained that the budget support uses a system of performance indicators to trigger funding. EC confidence Singh said the fact that the funds were being channelled through budgetary support was an indication of the confidence the EC has in the government's institutional financial mechanisms for the disbursement of funds in the context of poverty reduction. Stating that a permanent exercise of programming, planning and monitoring will be pivotal in the coming six years if the plan is to be implemented smoothly and the policy objectives achieved, Heikens said that the EU supports the government's commitment to prevent and mitigate as much as possible, any negative social impact that may come about during the implementation of the restructuring of the sugar industry. In his remarks Persaud said that unlike Trinidad and Tobago and St Kitts, which have already made decisions to get out of sugar, Guyana has made a firm commitment to sugar, which contributes 18% of the annual GDP and makes up 57% of the agriculture sector export. In addition sugar provides direct employment for 19,500 workers and indirectly about 125,000. In spite of the challenges presented by the price cuts, Persaud said that the Guyana National Action Plan (GNAP) was among the first, if not the first, to be submitted and to obtain approval from the EC. The GNAP focuses on expansion, development and diversification of the sugar cane industry in Guyana, growth and expansion of specific non-traditional agricultural sub-sectors, and infrastructural and human resource development. Action plan funding The resources allocated by the EU are woefully inadequate to fund the action plan, Persaud said, adding that the government, through sound economic management and unwavering determination, has made much progress in the plan's implementation. However, on the funding of the GNAP, both Heikens and Singh said that other donors have agreed to support some components of the plan that cover sectors other than sugar, including diversification of non-traditional crops, and the government will have to ensure good donor coordination to effectively combine the different sources of funding. Meanwhile, Persaud said that the government will continue to pursue the plan's broad objectives, including increasing sugar production and expanding market share; diversifying the sugar industry and adding value to the final product; improving the efficiency and profitability of sugar cane and sugar production; mitigating the social impacts of the sugar action plan; and reinforcing farmers' organization. Business plan Noting that Guyana has met the indicators set to receive the first tranche under the 2007 financial agreement, Persaud said the Guysuco business plan from which further indicators will be developed has already been submitted to the EC. In addition a sectoral expenditure framework document has been completed and the 2008 budget for Guysuco has been submitted to the government and Guysuco's audited accounts are now before Parliament.
"The closure in 2005 of the sugar industry-the historical mainstay of the economy-set the stage for a new economic course," the IMF said in its Executive Board article IV Consultation released on April 1, 2008. "Indeed, despite the closure, growth remained strong in 2006, with output increasing by 4 percent, driven by tourism, construction, and communications. Some slowdown is expected for 2007, with growth projected at 3.3 percent. Medium-term prospects look promising, with a number of high-end foreign investment tourism projects in the pipeline," said the IMF. It noted that large adjustments in retail fuel prices and a new fuel surcharge for electricity created a temporary inflation spike in 2006, but inflation has since decelerated as these one-off effects dissipated. "Reflecting strong construction-related imports, the current account deficit increased to around 30 percent of GDP in 2006/07, but has been largely financed by tourism-related foreign direct investment (FDI)," it reported. The IMF added that considerable progress has been made in strengthening the fiscal accounts. The government achieved a sizable primary surplus in 2006 for the second year in a row. A buoyant economy, the electricity surcharge, strengthened tax administration, and wage restraint have contributed to this improvement. However, expenditure management remains a challenge. The primary surplus is projected to decline to 2 percent of GDP in 2007 (from around 412 percent in 2006), largely because of a sharp increase in net lending in St. Kitts and a near-tripling of capital expenditure in Nevis, with major road projects underway. Despite the fiscal improvement, public debt remains high-at about 185 percent of GDP at end-2006 - leaving little room for maneuver in the event of an adverse shock. Facing tightened external borrowing conditions, the government has relied mainly on domestic sources to meet its financing needs. There also continues to be insufficient financial information on public enterprises, whose share in public debt reached 38 percent by end-June 2007. According to the IMF, monetary and financial developments have been largely favorable, although the high and rising public sector exposure of the banking system is a concern. Credit to the private sector rebounded on the back of buoyant economic activity and, partly reflecting this, the nonperforming loans ratio declined. However, the banking system's holdings of public debt had risen to 44 percent as of end-June 2007. The non-bank sector has been growing rapidly, while progress in establishing an appropriate supervisory and regulatory framework for this sector has been limited so far. The IMF Executive Directors commended the authorities of St. Kitts and Nevis for their efforts to strengthen macroeconomic performance, with growth rebounding and fiscal balances improving markedly. Directors observed, however, that the country's high public debt leaves little room for maneuver in the event of adverse shocks. Sustained fiscal consolidation, backed up with the development of a contingency plan to respond to economic shocks, would help mitigate the risks associated with the high debt stock. Directors welcomed the important steps that have been taken towards strengthening fiscal performance, including the improvement of tax administration and the adoption of an automatic pass-through of fuel prices. They encouraged the authorities to continue their efforts to achieve their medium-term fiscal goals and put debt on a solid downward trajectory. Expenditure restraint, including comprehensive civil service reform, will be key. Plans to broaden the tax base, improve the oversight and transparency of public enterprises and strengthen debt management capacity will also support these goals. Directors noted that public debt would remain elevated throughout the medium term, and encouraged the authorities to explore options for a more rapid debt reduction, including by accelerating the pace of asset sales, which could also promote private sector-led growth. Directors noted that the real effective exchange rate does appear broadly in line with fundamentals. Further fiscal consolidation would support external competitiveness and underpin the regional currency arrangement. Directors also encouraged the authorities to accelerate the implementation of planned structural reforms aimed at improving the business climate and strengthening the economy's flexibility and resilience. Directors noted that the country's large external current account deficit, mainly financed by foreign direct investment, although likely to remain high over the medium term, could be expected to decline as investment in infrastructure and tourism projects taper off. Directors noted that financial sector risks need to be carefully monitored and called for further progress in mitigating risks, including through enhancing supervision of vulnerable banks and reducing the large government exposure. They welcomed the authorities' plan to establish a single regulatory unit for the non-bank financial sector. Directors also welcomed the progress made in improving the quality and coverage of fiscal data, and looked forward to similar progress in other areas.
The International Monetary Fund (IMF) yesterday released its Public Information Notice (PIN) on its 2007 Article IV consultation on Guyana. It said that directors also encouraged the Government to supplement the ongoing sugar modernisation programme with administrative reforms, and welcomed the Government's efforts to diversity the sugar product and its export markets. "They also supported the authorities' efforts to deepen customs reform, strengthen the rule of law and the judiciary, and further reduce the perception of corruption," the PIN said. Directors emphasised that progress in the key structural reforms and infrastructure upgrading is crucial to enhance external competitiveness, improve the business climate and attract private investment. "They stressed the importance of rehabilitating the electricity infrastructure and welcomed the increase in electricity tariffs as well as measures to mitigate the impact on the poor," the PIN said. A Committee looking at the reform of the NIS has completed its work and its report which details a number of recommendations including raising the pensionable age from 60 to 65 is with Cabinet for consideration. Directors welcomed efforts to further improve tax policy, efficiency and tax administration, enhance the quality and efficiency of public expenditure, strengthen governance and upgrade the government's debt management capacity, the document said. "Directors stressed the importance of further fiscal consolidation, prudent monetary policy, and additional structural reforms to strengthen the financial system, the business environment, and Guyana's external competitiveness", the PIN said. The IMF Directors also encouraged the Government of Guyana to reach agreement on creditors that have yet to provide debt relief under the Heavily Indebted Poor Countries Initiative (HIPC). The IMF said that economic performance for 2007 was strong for a second consecutive year although inflation increased. The PIN said that real GDP growth is estimated to have been about 5 ? per cent a record for the last decade and is projected to remain robust at 4 ? per cent this year. According to the IMF, the drivers of the recovery have been investment and consumption, supported by external financing and grants, Foreign Direct Investment (FDI), remittances and domestic credit. "Inflation is estimated to have risen to about 14 per cent at the end 2007 (compared with 4 ? per cent at the end of 2006) mainly reflecting high food and fuel prices as well as the initial adjustments following VAT implementation, and is projected to decline to about 6 ? per cent in 2008," the PIN said. The document said that Directors commended the Guyanese authorities for a second consecutive year of strong real GDP growth. It said too that they welcomed the authorities' commitment to sound macro-economic and structural policies, as evidenced by the perseverance with adjustment and reform and cautious use of external financing. They have considered this commitment crucial to diversify the economy, reduce its vulnerability to commodity price and other external shocks, and achieve the Millennium Development Goals (MDG). The Directors said that they welcomed the forthcoming Poverty Reduction Strategy Paper, which they said will guide the Government's medium term expenditure plans. They noted that macro-economic stability and growth are key to ameliorating poverty and called for well-targeted assistance to the poor to achieve faster progress towards the MDGs. It was also felt by the Directors that a gradual move to a more flexible exchange rate could help buffer the economy from exogenous shocks. Also advised by the Directors was the upgrading of the Bank of Guyana's monetary policy framework "by improving liquidity management, making treasury bills negotiable, and promoting the development of the inter-bank market."
The acquisition brings an end to the control of the company by the Devaux family since the inception of the company in 1864. M&C comprises seven subsidiaries and two divisions, and employs approximately 600 people throughout the group. In a statement announcing the move, GEL indicated that under this strategic alliance, the Devaux family will retain an interest in the family business and will also acquire a shareholding in the Barbadian company. "It is anticipated that there will be no changes in the management and staff of M&C as a result of this new shareholding arrangement. Recognising the opportunities and challenges that will be associated with regional integration and consolidation, this alliance is seen as a vote of confidence in the ability of Caribbean based companies to grow in an increasingly competitive market place," the GEL statement indicated, added that the company was fully behind the concept of the CARICOM Single Market and Economy (CSME). "We...see this acquisition as an ongoing strategy to continue to grow our group both regionally and extra-regionally. The diversity and strength of the combined entities will allow us to take advantage of numerous expansion possibilities throughout the region and to capitalise on the economies of scale which will accrue to the larger combined entity going forward," it added. M&C has operations in hardware retail and distribution, food and liquor distribution, insurance, shipping, pharmaceutical retail & distribution and the distribution of Texaco domestic cooking gas and related petroleum products. The group also has a controlling interest in Solar Dynamics (EC) Limited which manufactures and distributes solar water heaters throughout the region. GEL has varied business portfolio that encompasses interests in the Caribbean as well as Central and South America. It's subsidiary companies are in airline catering, industrial and restaurant catering, meat processing, bakery operations, automobile retail and automotive parts, real estate, the manufacture of aerosols and liquid detergents, investments, rum distilling, general trading, packaging, fish and shrimp processing, property rentals, general insurance, financing as well as shipping agents and stevedoring.
The fund, registered in the Channel Islands, announced this week it raised its capital by 18 million euros ($28 million) to 88 million euros ($137.3 million) in a share placing that was 70 percent oversubscribed. CEIBA is the only fund dedicated exclusively to investing in Cuba, focusing on real estate development and tourism. It is the foreign shareholder of the Cuban joint venture that owns the Miramar Trade Center, Havana's main business district. "We will be the first vehicle for investment in Cuba to be quoted on a major market," said the fund's managing director, Sebastiaan Berger, a Dutch lawyer. Berger said the oversubscription of shares at a time of gloom on financial markets showed that investors were really interested in Cuba. Steps to liberalize Cuba's state-dominated economy have begun under President Raul Castro, who succeeded his brother Fidel on Feb. 24 as the first new Cuban leader in half a century. CEIBA's management is not betting on Communist Cuba opening up to capitalism any time soon, though the lifting of US sanctions against Havana would likely result in a large increase in the fund's asset value. "We are not an event-driven fund. We are investing in ventures that make sense today in Cuba and our aim is long-term capital growth," Berger said. The fund's investors include investment trust SVM Global and hedge fund Value Catalyst, as well as pension funds and banks. For three years, the fund has had a yield of 6 percent to 8 percent and paid shareholders annual dividends of 6 percent. US investors cannot buy shares due to Washington's trade and financial embargo against Cuba, maintained since 1962. The only other fund aimed at Cuba-related business is the Herzfeld Caribbean Basin Fund CUBA.O, which invests in US companies that stand to gain from an end to the embargo on Cuba, such as shipping companies, holiday cruise lines and other Florida-based concerns. Share prices of the fund started in 1994 by investment guru Thomas Herzfeld fluctuated wildly when Fidel Castro fell ill in 2006 and disappeared from public sight, fueling speculation he was dead. Leisure Canada (LCN.V: Quote, Profile, Research), a Vancouver company listed in Toronto, plans to develop hotel resorts with golf courses in Cuba, but so far no investment has been made. CEIBA plans to invest some $36 million in a 290-room beach hotel near the colonial town of Trinidad and build an amusement park in Varadero, Cuba's main holiday resort, that will include a water park. A futuristic plan on the drawing board involves floating 22-room hotels off tropical keys on Cuba's south coast. Floating on water is one way to avoid any risk of US sanctions that penalize companies that invest in property confiscated in Cuba after Fidel Castro's 1959 revolution.
The EPA, which was brokered last December, gives Caribbean countries duty and quota free access in goods (with the temporary exception of rice and sugar) and services to EU, and is supposed to be the replacement for preferential trade agreements. Girvan's warning came as Antony Hylton, Jamaica's former minister of foreign affairs and foreign trade, argued in an essay published on Page 13 of today's Sunday Observer that the Jamaican Opposition and Government should work together on getting an amendment to the EPA, particularly the Most Favoured Nation (MFN) Clause. "Our concern about the scope of the agreement to cover areas not yet settled in the Caricom arrangements, for example, government procurement, are for very much the same reason, that is, lack of resources to adequately meet the challenges inherent in these far-reaching obligations," said Hylton. "However, our greatest concern then and now is the severe limitation on policy option by future governments implied by the 11th-hour acceptance of the MFN Clause, proposed by Europe, and recommended for acceptance by Prime Minister Golding to the rest of CARIFORUM governments in the dying moments of the negotiations. The MFN Clause obliges Jamaica and its CARIFORUM partners to give to Europe any more favourable treatment/benefit it gives to a third party with which it enters into a subsequent agreement," added Hylton. Girvan, who was being honoured at the conference, said there was room for possible conflict between the provisions of the EPA and those of the treaty that formed Caricom. "The jury is still out on what happens if there is a conflict between the provisions of governance for the EPA - which entrenches a joint council of the European Commission and the CARIFORUM states, and gives that council the power to make legally binding decisions on the parties, who are obliged to carry them out on pain of being submitted to the disputes settlement provisions. "And the jury is still out on what would happen if there is a conflict between the organs of governance and the provisions of the Treaty of Chagaramus and the EPA," Girvan said. He said, too, that the wording of the EPA does not make clear when CARIFORUM states can or should act individually or collectively. ".It states that the parties to this agreement are the European Commission representing EU member states on the one hand, and CARIFORUM states acting collectively on the other hand, but it also goes on to say, 'for the purpose of this agreement the CARIFORUM states act collectively', but that where the provisions of the agreement require the individual CARIFORUM states to exercise their rights or to undertake obligations, the reference in the document is to signatory CARIFORUM states," Girvan said. He said the Caribbean had come to a metaphorical fork in the road. One path (the CSME) led to greater regional integration "with the purpose of exercising greater autonomy", and the other path (the EPA) led to "loss of autonomy to shape our own future". Girvan said greater regionalism should have existed before any sort of agreement with the Europeans. Whether the Caribbean would actually ever be in a position to change its fortunes, Girvan said, was left to regional governments and time. He said part of the solution also lay in a "reassertion of the intellectual space" and more critical, individual thought, particularly among the young. "In the words of [Marcus] Garvey, 'I want our people to think for themselves'," Girvan said. In the words of [Lloyd] Best, 'We are at the centre of our world'. In the words of [George] Beckford, 'We have the resources in this region and we have the ingenuity among our people to make of this region a veritable paradise on this earth.'"
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