Online Banking

Latest News

Commercial banks in Guyana granted over $22Bn in COVID-19 relief for 2021 Published: 20 October 2021

  • In light of the economic pains unleashed by the COVID-19 pandemic, commercial banks on the advice of the country’s regulator, the Bank of Guyana, have provided more than $22Bn in COVID-19 relief to cushion the blow to the economy. 
  • According to the Bank of Guyana’s 2021 Half Year Report, Citizens Bank Guyana Inc. granted $12Bn in relief to sections of the economy, while Guyana Bank for Trade and Industry (GBTI) granted $6Bn and Bank of Nova Scotia granted $4.2Bn. Collectively, they account for $22.2Bn of total relief measures granted at the end of June 2021 by the banking sector. 
  • Expounding further, Central Bank said the services sub-sector continues to receive the largest portion of relief, with 60.2% (G$16.5Bn) of total relief granted at the end of June 2021. The real estate mortgages sector received 19.9% (G$5.5Bn) of total relief followed by the manufacturing subsector with 11.6% (G$3.2Bn). 
  • As for relief granted to the households sector, this represented 3.1% (G$846Mn) of total relief granted and 2.5% of total loans to the households sector.
  • The Bank of Guyana was keen to note that it will continue to monitor the developments in light of COVID-19 relief and take all necessary steps to protect the safety, soundness and stability of the banking system.

(Source: Kaieteur News)

Rising Import Demand To Keep Costa Rica's Current Account Deficit Wide In 2021, 2022 Published: 20 October 2021

  • Fitch Solutions forecast Costa Rica’s current account deficit will be 2.8% of GDP in 2021 and 2.7% of GDP in 2022, from 2.2% in 2020, due to rising import growth and a growing primary income account deficit. 
  • A broadening economic recovery will cause the goods trade deficit and primary income deficit to widen in the near term, though stronger tourism activity in 2022 onwards will help bolster services exports. 
  • Higher international reserves in 2022 will provide a financial buffer and stabilise Costa Rica’s external position over the coming quarters as the government implements fiscal austerity measures as a condition of its USD1.8Bn IMF deal. 
  • Costa Rica reached a fiscal deficit of 3.89% of Gross Domestic Product (GDP) in the first nine months of 2021, lower than the 6.43% posted in the same period last year, the Ministry of Finance reported Monday.

(Source: Fitch Solutions & The Rio Times)

IMF cuts Asia's growth forecast, warns of supply chain risks Published: 20 October 2021

  • The International Monetary Fund on Tuesday slashed this year's economic growth forecast for Asia and warned that a fresh wave of COVID-19 infections, supply chain disruptions and inflation pressures pose downside risks to the outlook. 
  • In its regional outlook report, the IMF cut this year's economic growth forecast for Asia to 6.5%, down 1.1 percentage point from its projection made in April, as a spike in Delta variant cases hit consumption and factory output. However, it raised the growth forecast for 2022 to 5.7% from 5.3%. 
  • "Although Asia and Pacific remains the fastest growing region in the world, the divergence between Asian advanced economies and developing economies is deepening," the report said. 
  • "Risks are tilted to the downside," mainly on uncertainty over the pandemic, supply chain disruptions and potential spillovers from U.S. policy normalization.  

(Source: Reuters)

WHO-led programme aims to buy antiviral COVID-19 pills for $10 Published: 20 October 2021

  • Reuters claims, based on a draft document, that the World Health Organization has a programme to ensure poorer countries get fair access to COVID-19 vaccines, tests and treatments which includes antiviral drugs for patients with mild symptoms for as little as $10. 
  • Merck & Co's experimental pill molnupiravir is likely to be one of the drugs, and other drugs to treat mild symptoms are being developed. 
  • The document says that the programme wants to deliver about 1 billion COVID-19 tests to poorer nations, and procure drugs to treat up to 120 million patients globally, out of about 200 million new cases it estimates in the next 12 months. 
  • The plans highlight how the WHO wants to shore up supplies of drugs and tests at a relatively low price after losing the vaccine race to wealthy nations which scooped up a huge share of the world's supplies, leaving the world's poorest countries with few shots. 
  • An improvement in the inoculation rates would reduce deaths, hospitalisations, the pandemic’s impact on the health care system, and, foster a faster recovery rate for these poorer economies.

(Source: Reuters & NCBCM Research Team)

Over 1.2Mn Visitors, US$1.7Bn in Tourism Earnings Since June 2020 Published: 19 October 2021

  • Tourism Minister, Hon. Edmund Bartlett, says Jamaica has welcomed a total of 1.29Mn visitors since the reopening of the country’s borders in June 2020, with estimated earnings of US$1.70Bn. 
  • These figures, which account for arrivals up to September 2021, comprise approximately 1,276,987 stopover visitors and 8,381 cruise passengers. This puts the country on track to reach the forecast for 2021, which is for 1.57Mn visitors and more than US$2.0Bn in earnings. 
  • However, the forecast for 2021 is still below the visitors in 2019 of 4,233,266 but above the arrivals for 2020 of 1,329,675. Notably, stopover arrivals and cruise arrivals in 2019 were 2,680,920 and 1,552,346 respectively, while for 2020 they were 880,404 and 449,271. 
  • Meanwhile, the Tourism Minister said that the cruise industry should be fully back on track by December with projections for approximately 300,000 cruise passengers by year end. The return of cruise shipping signals the second critical phase of the reopening of the tourism industry and will aid greatly in bringing back much-needed jobs.

(Source: JIS News)

Health Ministry Aims for 40% of Jamaicans to be Vaccinated Before Christmas Published: 19 October 2021

  • Chief Medical Officer (CMO), Dr. Jacquiline Bisasor-McKenzie, has said that the Ministry of Health and Wellness is aiming to have 30.0% to 40.0% of Jamaica’s population receive at least one dose of a coronavirus vaccine before the Christmas holiday. This will help to prevent an increase in hospitalisations, as more persons will be inclined to travel and do much shopping for holiday preparations.
  • To date, the Ministry has reported that the number of cases, deaths and hospitalisations are decreasing; however, the current number of cases still significantly impacts hospital services. As it stands, Jamaica needs to bring its cases down to less than 200 cases to be in the safe zone, where providing health care to persons infected withCOVID-19 won’t severely impact the rest of the activities in the hospitals. 
  • Meanwhile, Dr. Bisasor-McKenzie noted that 80,000 of 120,000 persons who received the jab in August 2021 are due for their second dose of the AstraZeneca vaccine. In total, 7.5% of the population are currently partly vaccinated, while 11.4% are fully vaccinated. Greater vaccination will help to reduce the deaths and hospitalisations and the pandemic’s impact on health services. 
  • If the government is able to achieve its target, it would put it in a position to relax containment measures, which would increase commercial activity and result in a faster rebound in economic activity.

(Source: JIS News & NCBCM Research)

Fitch Downgrades Peru to 'BBB'; Outlook Stable Published: 19 October 2021

  • On October 15, 2021, Fitch Ratings downgraded Peru's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB' from 'BBB+', and maintained its stable outlook. 
  • The downgrade, via the removal of the former positive notch for macro and fiscal policy credibility, reflects the steady erosion over time of Peru's sovereign balance sheet and other key rating metrics. This came on the back of a series of shocks, which has accelerated since 2020 due to the pandemic-related recession and fiscal response. 
  • The government’s debt ratio is materially higher than in 2013 when Fitch upgraded Peru to 'BBB+'. Furthermore liquid fiscal buffers have been depleted, eroding the strength of Peru's government balance sheet relative to peers. 
  • The trend in economic growth has been declining and Fitch believes that Peru's medium-term investment and economic outlook has weakened as a result of political volatility in recent years. 
  • This downgrade of the sovereign could trigger a similar one-notch downgrade of corporates such as Scotiabank Peru whose operations are significantly impacted by the operating environment.

(Source: Fitch Ratings & NCBCM Research)

Cuba Outlook On External Position Published: 19 October 2021

  • Cuba's goods trade deficit will gradually widen in the next decade, as the decline in heavily subsidised oil from Venezuela outweighs the positive impact of currency unification and new trade deals. 
  • The services account will fare better as rising tourist arrivals bode well for service sector export growth. Given expectations of solid hard currency inflows from tourism after the COVID-19 shock fades, the beneficial impact of a currency devaluation on exports and a falling debt burden, Fitch expects the stability of Cuba's external accounts will broadly improve over the next decade. 
  • That being said, the agency forecasts for Cuba's current account balance shows a shift to a large deficit in 2021. This largely reflects the devaluation of the Cuban peso, which has reduced the forecast for Cuba's GDP in US dollar terms and therefore widened the headline deficit relative to GDP in US dollar terms. 
  • Fitch Solutions notes that official data on Cuba's primary and secondary income balances are not regularly updated, introducing significant uncertainty into its forecast.

(Source: Fitch Solutions)

Why Are U.K. Covid Cases So High Compared to the Rest of Europe? Published: 19 October 2021

  • Surging Covid cases in the U.K. have left the country behind the rest of Europe with former U.S. Food and Drug Administration Commissioner Scott Gottlieb calling for urgent research into a mutation known as delta plus. 
  • The delta plus strain Gottlieb highlighted includes the K417N mutation, which has stoked concern because it’s also harbored by the beta variant that’s associated with an increased risk of reinfection. 
  • “We need urgent research to figure out if this delta plus is more transmissible, and has partial immune evasion,” he said in a tweet. “There’s no clear indication that it’s considerably more transmissible, but we should work to more quickly characterize these and other new variants.” 
  • Britain, faster to reopen and relax restrictions than other European countries, reported the highest daily jump in new cases on Sunday since mid-July. Weekly deaths from the virus topped 800 for each of the past six weeks, higher than in other major western European nations, according to Bloomberg’s tracker. 
  • The U.K. also has lagged in rolling out the vaccines to adolescents amid concerns that some side effects undermined the net benefit of the shots given children are less likely to become seriously ill. The delay meant most older children weren’t offered a vaccine until the school year had started, and they’re now seeing the highest levels of infection in the population.

(Source: Bloomberg)

China’s Economic Growth Slows Down Published: 19 October 2021

  • China’s economy grew at its slowest pace in a year in the third quarter of 2021, with a global energy crunch, supply chain bottlenecks, and an unsteady property market also adding pressure on policymakers to bolster a faltering economic recovery. 
  • China’s real GDP for Q321 came at 4.9%, which was in line with expectations for a sharp slowdown owing to COVID-19 outbreaks that resulted in localised lockdowns between July and August 2021, as well as acute power shortages.
  • It is expected that growth will slow further in Q421 given continued shortages, while 2022 will likely see slower growth than pre-pandemic trend levels. A poorer outlook for investment amid Beijing’s regulatory campaign and push for 'common prosperity', as well as a likely end to China’s export outperformance will cap economic growth in China in 2022.

(Source: Investing.com)