Online Banking

Latest News

FosRich Eyes Guyanese Market Expansion with $900Mn Bond Raise Published: 12 March 2024

  • In a strategic move to tap into burgeoning demand in the Guyanese market, FosRich Company Limited has successfully secured $900Mn through a bond offering orchestrated by JN Fund Managers.
  • The funds from the bond issuance is earmarked to bolster FosRich’s operations in Guyana, where the company aims to cater to the surging demand for PVC pipes and electric transformer repairs. With Guyana embarking on an ambitious infrastructure development agenda, FosRich is strategically positioning itself to capitalize on the opportunities presented by the country’s robust growth trajectory.
  • Beyond catering to the demand for PVC pipes, FosRich is exploring additional avenues for expansion in Guyana’s burgeoning market. Leveraging its expertise in electricity transformer repairs, akin to its operations in Jamaica, the company is in advanced discussions with Guyana Power and Light Incorporated to formalize business collaborations in this domain.
  • In a bid to bolster its foothold in Guyana’s infrastructure landscape, FosRich has forged strategic alliances with industry players such as Huawei and China Harbour Engineering Company (CHEC). These partnerships entail the implementation of solar projects and the provision of essential supplies for infrastructure development initiatives, including the renovation of key transportation hubs and the construction of vital bridges.
  • As FosRich embarks on its expansion journey in Guyana, fueled by the recent bond raise, the company remains poised to seize emerging opportunities and contribute to the country’s dynamic economic landscape.

(Source: Caribbean National Weekly)

Express Catering Limited (ECL) - Basis of Allotment of Senior Unsecured Bonds Due 2027 Published: 12 March 2024

  • Express Catering Limited (ECL), issuer of the invitation for subscription of Senior Unsecured Bonds Due 2027 made subject to a prospectus dated January 31, 2024, announces that the basis of allotment has been determined in accordance with the terms and conditions set out in the Prospectus.
  • The allocation is as follows: All Applicants who successfully completed their applications for the Senior Unsecured Bonds Due 2027 by 4:30 pm on Friday, March 1, 2024, will receive full allotment of their subscription on a first come, first served basis.

(Source: JSE)

 

IDB Group Caribbean Governors Endorse Regional Programme, ‘One Caribbean’ Published: 12 March 2024

  • The Caribbean Governors of the Inter-American Development Bank Group (IDB Group) endorsed the “One Caribbean” programme, a comprehensive framework designed to support enhancing living standards across the Caribbean region.
  • The programme focuses on four pillars: climate adaptation, disaster risk management and resilience; citizen security; private sector engagement; and food security, as well as two cross-cutting areas, strengthening institutions and facilitating digital transformation.
  • The signing of this endorsement statement took place during the IDB and IDB Invest Annual Meetings in Punta Cana, Dominican Republic. The signatories included economic and financial leaders within the region. IDB President Ilan Goldfajn signed as a witness of honour.
  • President Goldfajn said: “Today’s signing is another important step in our over half-a-century-long relationship with the Caribbean and its people. In 2023, we started a discussion about shared challenges and the need to create a regional programme to address these issues. ‘One Caribbean’ is proof that we at the IDB Group are committed to partnering with the region in their efforts to achieve inclusive and sustainable growth with an emphasis on high-impact initiatives. It is the first initiative under the group’s new institutional strategy.”
  • By 2030 “One Caribbean” is expected to successfully support the region in increasing access to resilient infrastructure, promoting safer communities, enhancing private sector engagement and productivity, and improving food availability, access, use, and stability. The initiative will facilitate greater impact and the increased flow of resources for the Caribbean with the support of the IDB Group.
  • The IDB Group noted that it will deploy all its windows to address inter-dependent underlying challenges, provide mechanisms to increase innovative financing and boost collaboration with partners that work in the region.

(Source: Guyana Chronicle)

World Bank Approves $350Mn Loan for Costa Rica Published: 12 March 2024

  • The World Bank approved a $350Mn loan for Costa Rica to fund infrastructure and climate and disaster resilience projects.
  • The program is intended to fund investments in critical infrastructure for flood control and slope stabilisation, as well as the reconstruction of bridges and roads damaged by weather-related disasters.
  • Costa Rica "remains highly exposed to extreme weather events and natural hazards, which increase the impact of these risks," the country's finance minister, Nogui Acosta, said in a statement from the World Bank.
  • "This project is aligned with the country's strategy for mitigating and adapting to climate change and will support our priority of investing in resilient infrastructure and services to protect people living in the most vulnerable areas," Acosta added.

 (Source: Reuters)

Biden's $7.3Tn Budget is Campaign Pitch for Spending, Tax Goals Published: 12 March 2024

  • President Joe Biden outlined a $7.3Tn budget proposal as part of his vision for a potential second term, presenting it as a key tool for demonstrating his economic competency compared to his predecessor, Donald Trump.
  • Biden proposes a significant tax increase, targeting corporations and high-income individuals to generate trillions in revenue. The goal is to address the budget deficit and finance new programs designed to assist lower-income individuals in managing challenges such as high housing and childcare costs.
  • The 2025 fiscal year budget includes specific measures like raising the corporate income tax rate from 21.0% to 28.0%, instituting a minimum tax on individuals with wealth exceeding $100Mn, and allowing the government to negotiate drug costs.
  • Additionally, the budget allocates funds for crucial social programs, such as reinstating child tax credits, supporting childcare initiatives, investing $258Bn in home construction, providing 12 weeks of paid family leave, and allocating resources to law enforcement.
  • However, Republican House Speaker Mike Johnson swiftly rejects Biden's proposed budget, characterising it as reflective of an "insatiable appetite for reckless spending" and a "disregard for fiscal responsibility." This reflects the broader political divide on budgetary issues.
  • Despite Biden's efforts to showcase his economic vision, public skepticism persists. According to a Reuters/Ipsos poll, 40.0% of Americans believe Trump would handle the economy better, compared to 31.0% favouring Biden.
  • The proposed budget aims to raise tax receipts by $4.951Tn over a decade, with criticism from some quarters asserting that it falls short in addressing deficit and debt concerns, highlighting the ongoing political and economic challenges.

 (Source: Reuters)

Fed to Start Rate Cuts in June; Risk Fewer Delivered this Year Published: 12 March 2024

  • The U.S. Federal Reserve will cut its key interest rate in June, according to a stronger majority of economists in the latest Reuters poll, as the central bank waits for more data to confirm whether inflation is headed convincingly toward its 2.0% target.
  • The survey also showed respondents saw it more likely that if Fed policymakers change their rate projections at the March 19-20 meeting, the median view would signal fewer cuts this year, not more.
  • In his latest testimony to Congress, Fed Chair Jerome Powell reiterated policy easing would likely be "appropriate" at some point this year. However, still-sticky inflation and a very resilient labour market could prevent an early rate cut.
  • "The Fed is seeking 'greater confidence' in inflation before it starts normalising its policy stance. We expect progress on inflation in coming months will give the Fed enough confidence to begin a gradual cutting cycle in June," said Michael Gapen, chief U.S. economist at Bank of America. "A more forward-looking Fed might put more weight on low inflation expectations and cut sooner, but this Fed is data dependent and wants to avoid backtracking after it starts," he added.
  • Despite personal consumption expenditure (PCE) inflation falling to 2.4% in January from its peak of around 7.0% in June 2022, policymakers have said they are waiting for more confidence inflation is moving sustainably to the Fed's 2% target. However, Powell noted, "We're not far from it."
  • PCE inflation, the Fed's preferred gauge, was forecast to average 2.2% this year and 2.0% in 2025 and 2026, according to the poll. But other inflation measures - the consumer price index (CPI), core CPI, and core PCE - were still seen above target at least until 2026.

(Source: Reuters

Government to Introduce Business Improvement District Published: 08 March 2024

  • The Government plans to institute legislation for the establishment of a business improvement district. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, disclosed during Tuesday’s (March 5) meeting of the Standing Finance Committee of the House of Representatives, whose members are reviewing the 2024/25 Estimates of Expenditure.
  • He noted that the government is working on a project with the World Bank to introduce a concept of a business improvement district that will provide the legislative framework for the Government to involve the private sector in the maintenance of an area.
  • Clarke was responding to concerns about the state of the drainage network along Marcus Garvey Drive and Tinson Pen in Kingston, and the potential impact on commerce.
  • He highlighted that the private sector in that area has expressed to the Government their desire and willingness to invest in that area and maintain it at a standard that they believe is consistent with what they need to do business.
  • Clarke pointed out that the concept has been successfully implemented in several countries, adding that the Government desires to make it a reality in Jamaica.

(Source: JIS)

Trade Board Launches ‘Export Jamaica’ Platform, New Logo Published: 08 March 2024

  • The Jamaica Trade Board Limited has launched a new trading platform that will better enable local manufacturers and exporters to unlock and take advantage of business opportunities across the globe.
  • The online platform, dubbed ‘EXPORT Jamaica’, will provide businesspeople with information to identify and enter new markets and successfully promote and sell their products.
  • The website will allow users to obtain information on import and export compliance requirements, access tools to aid in the calculation and conversion of customs duties and form meaningful connections through business directories, tradeshows, and marketplaces. It is designed for exporters, potential suppliers and manufacturers, and government entities.
  • ‘EXPORT Jamaica’ is another major achievement for the Jamaica Trade Board Limited, with a vision to lead in the provision of vital market intelligence that plays a pivotal role in supporting Jamaican businesses as they ambitiously expand into markets around the world. That’s according to the Minister Hill. He noted that micro, small and medium-sized enterprises (MSMEs) will benefit from the platform, as they will be able to export to larger companies and markets.
  • The Minister urged manufacturers, irrespective of the size or niche, to embrace the potential of EXPORT Jamaica and appealed to larger companies to invest in smaller Jamaican businesses and purposely trade with them using online platforms like EXPORT Jamaica to strengthen the economy.
  • The launch also included the introduction of the new Trade Board logo as part of the rebranding of the agency to reflect a renewed commitment to enhancing trade services, particularly export, and facilitating the growth of Jamaican businesses

 (Source: JIS)

Oil Leak From Capsized Barge Off Tobago Stopped After A Month Published: 08 March 2024

  • An oil leak from a barge carrying up to 35,000 barrels of fuel oil that capsized in early February off the Caribbean island of Tobago has stopped, said the twin islands' government on Thursday.
  • The spill, which was first spotted off the coast of Tobago's Atlantic coast on Feb. 7, damaged some of the island's mangroves and threatened its tourism and fishing sector. The spill also entered the Caribbean Sea, threatening nearby Venezuela and Caribbean islands, including Bonaire.
  • "The hydrocarbon discharge emanating from the overturned vessel located off the coast of Tobago has stopped," said a release from Trinidad and Tobago's Ministry of Energy. The compartments of the vessel from which the oil was leaking are now filled with sea water above the leak point, effectively blocking further flow of the fuel oil, the ministry said
  • The volume of the spill, its origin, intended destination and ownership of the barge remain unknown. Further, the vessel carrying fuel oil was navigating alongside a tugboat that has not been located.

(Source: Reuters)

Wealth Gap Widening in LAC Published: 08 March 2024

  • The Inter-American Development Bank (IDB) says Latin America and the Caribbean (LAC) is the world's most unequal region with the 10% highest earners making 12 times more than the poorest 10%.
  • It noted that this compares to a ratio of 4 for developed countries in the Organisation for Economic Cooperation and Development (OECD). In addition, the Washington-based financial institution said one in five citizens of Latin America and the Caribbean is poor.
  • The bank noted that between 1990 and 2014, the region saw its inequality reduced, but it said progress since has stalled.
  • 'Governments need better evidence on how to tackle this problem, which has different causes and drivers in each of the region's countries,' it said, noting that it had teamed up with the London School of Economics, Yale University, the Institute for Fiscal Studies, and academics from more a dozen leading universities to launch a comprehensive rethink of the inequality problem through critical reviews of the literature, new data, and new analyses.
  • These new studies indicate that wealth inequality seems to be deeper than income inequality in the region. Many low-income households have negative equity because their outstanding debts are greater than the value of their home, vehicles and other assets.
  • 'Traditional strategies such as expanding and improving the quality of education and offering cash assistance to low-income households can be effective but not sufficient. Governments must promote economic growth that can generate more productive (and formal) jobs and adopt smarter, more adaptive fiscal policies.'

 (Source: Trinidad Express Newspaper)