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▪ Sagicor Financial Corporation Limited’s proposed bond issue initial rating assigned at CariAA

▪ Dominica Agriculture, Industrial and Development Bank’s rating reaffirmed at CariBB-

▪ Beacon Insurance Company Limited’s rating reaffirmed at CariA-

▪ The Government of the Commonwealth of Dominica rating reaffirmed at CariBB

▪ The Government of the Republic of Trinidad and Tobago rating reaffirmed at CariAA+

▪ Eastern Caribbean Home Mortgage Bank’s rating reaffirmed at CariBBB+

▪ Sagicor Group Jamaica Limited’s initial rating assigned at CariA

▪ NIF Holding Company Limited’s TT$4 billion issue rating reaffirmed CariAA

▪ Goddard Enterprises Limited’s rating reaffirmed at CariAA-

▪ NCB Global Finance Limited’s initial rating assigned at CariA

▪ RHAND Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Development Bank of Jamaica Limited’s rating upgraded to CariA- ▪ Bourse Securities Limited rating reaffirmed at CariA- ▪ PLIPDECO’s rating reaffirmed at CariA+

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REGIONAL

Trinidad and Tobago

NEL leads trading

Overall stock market activity yesterday resulted from trading in 17

securities of which seven advanced, three declined and seven traded

firm.

Sagicor confident of Q4 greenlight

SAGICOR Financial Corporation says it is confident that its arrangement

with Alignvest, the Canadian Special Purpose Acquisition Company

(SPAC), will receive full regulatory approval in fourth quarter of this year,

which begins on October 1 and ends on December 31, 2019.

Govt expands Grant Fund Facility

Government, through the Ministry of Trade and Industry, has expanded

the Grant Fund Facility, which provides funding to qualified small and

medium- sized enterprises (SMEs) in T& T.

Tax amnesty extended to month end

After photos of a queue of anxious taxpayers snaking its way into the

Inland Revenue Division (IRD) building last Friday, the Government

yesterday said the ongoing tax amnesty would be extended to

September 30.

Barbados

No money back

THE FAIR-TRADING COMMISSION (FTC) is concerned about the Barbados

Water Authority’s (BWA) service delivery but says customers will not get

financial compensation given the utility company’s financial woes.

Jamaica

Main Event third-quarter profit slows

Main Event Entertainment Group, which provides lighting and stage

equipment for large events, reported higher revenue but profits slowed by

40 per cent in the July third-quarter 2019 compared with year – earlier

levels.

Jamaica Continued

Jamaica falls seven spots in travel, tourism ranking

Jamaica’s standing in the Travel and Tourism Competitiveness Report 2019

fell by seven spots to 76th out of 140, according to the biennial report

released this month by the World Economic Forum.

Hyperion Equity to acquire stake in SSL

Hyperion Equity Inc, a firm formed by Zachary Harding, has announced

plans to acquire a minority stake in SSL Growth Equity Limited (Barbados),

the parent company of Stocks and Securities Limited (SSL Jamaica).

Sygnus posts record profits for financial year 2018-19

Investment outfit Sygnus Credit Investments (SCI) is reporting record net

profits, core revenues, and earnings for the financial year ended June 30,

2019. Core revenues, or total investment income, grew by 169.5 per cent,

or US$2.02 million, to a record US$3.2 million for the financial year. this

compares with US$1.19 million for the corresponding period in 2018.

General Accident acquires majority shares in Trinidad-based Motor One

Insurance Company

GENERAL Accident Insurance Company Jamaica Limited has acquired a

majority stake in Motor One Insurance Company, a Trinidadian motor

insurance outfit headquartered in Port of Spain with a large branch

network throughout Trinidad.

Guyana

Favourable outlook

The International Monetary Fund (IMF) has released its final assessment of

Guyana projecting the economy to grow 4.4 per cent in 2019 and

pointed out that the medium-term prospects are very favourable with oil

production on schedule to begin in early 2020.

Guyana seeks closer ties with Chile

The Government of Chile is serious about negotiating a Free Trade

Agreement with all member countries of the Caribbean Community

(CARICOM), including Guyana, and hopes that the proposal made for

such is “duly considered”.

The Bahamas

No Plans Yet for Taxes To Pay For Rebuilding

THE DEPUTY prime minister yesterday said there are no plans for new or

increased taxes to finance Dorian rebuilding "at this point", adding: "That is

not part of the discussion."

Dominica

New Portsmouth housing development to be named after Rosie Douglas

The new Housing Development in Georgetown, Portsmouth will be named

after the late Rosie Douglas, a former prime minister of Dominica.

The Dominican Republic

Central Bank releases US$374.5M of bank reserve

The Central Bank said that RD$19.1 billion (US$374.5 million) of the RD$34.0

billion bank reserve have been released, as announced by the Monetary

Board for loans to various productive sectors.

Venezuela

Venezuela slows oil output, blending as stocks mount

Venezuela’s state-run oil company PDVSA has suspended some crude

blending and cut back production as inventories have swelled due to U.S.

sanctions scaring off buyers and shippers, according to internal

documents, sources and data.

INTERNATIONAL

United States

Futures on back foot before Fed policy decision

U.S. stock index futures dipped on Wednesday as investors waited for the

Federal Reserve’s decision on interest rates in what has been a rocky

week for global markets.

United Kingdom

Britain hopes for trade deal with Australia within months of Brexit

Britain’s Trade Minister Liz Truss said on Wednesday she expects to

complete a wide-ranging trade deal with Australia within months of

exiting the European Union.

UK inflation falls to lowest since 2016 in pre-Brexit boost to consumers

Consumer prices in Britain rose last month at the slowest rate since

December 2016, a pre-Brexit boost to the spending power of households

who are also seeing the fastest wage growth in 11 years.

Europe

European shares tread water with Fed decision looming

European shares steadied after early declines on Wednesday, as

technology shares helped offset losses in luxury goods, while many

investors remained on the sidelines ahead of an expected reduction in

U.S. borrowing costs by the Federal Reserve.

Low profits at euro zone banks a concern for supervisors

Thin profits at euro zone banks are a worry for supervisors because,

coupled with depressed stock market prices, they can make it hard for

lenders to boost capital, the bloc’s chief banking supervisor said.

EU warns Britain heading for a no-deal Brexit

The European Union warned on Wednesday that Britain was headed for a

damaging no-deal Brexit, with London’s ideas for solving the contentious

issue of the Irish border still unlikely to unlock a deal just six weeks before

Britain is due to leave.

China

China's Henlius raises $410 million in Hong Kong IPO

Shanghai Henlius Biotech has raised $410 million after pricing its Hong

Kong initial public offering at the bottom end of the indicative pricing

range, two people with direct knowledge of the matter said on

Wednesday.

Global

Dollar edges higher before Fed decision

The dollar held near a seven-week high against the Japanese yen on

Wednesday before the outcome of a Federal Reserve meeting where

officials are widely expected to cut interest rates by a quarter of a

percentage point.

Oil prices slip on Saudi pledge, financial markets look to Fed

Oil prices cooled on Wednesday as Saudi Arabia’s pledge to quickly

restore production eased supply worries, while caution ahead of an

expected U.S. interest rate cut kept wider financial markets in tight ranges.

Oil extends declines after Saudi pledge to restore lost output

Oil prices retreated on Wednesday, extending the previous day’s decline

after Saudi Arabia said it would quickly restore full production following

last weekend’s attacks on its facilities.

Saudi finance minister sees weaker 2019 GDP growth due to OPEC-led cuts

Saudi Arabia’s economic growth in 2019 will be significantly less than the

kingdom had expected because of OPEC-led oil output cuts, but the

attack on Aramco had “zero” impact on revenue, the country’s finance

minister said on Wednesday.

Dollar edges higher before Fed decision Wednesday 18th September, 2019 – Reuters

The dollar held near a seven-week high against the Japanese yen on

Wednesday before the outcome of a Federal Reserve meeting where

officials are widely expected to cut interest rates by a quarter of a

percentage point.

Against the yen JPY=, the dollar edged up 0.1% to 108.23 yen, just below a

seven-week high of 108.37 yen tested overnight. The dollar index against a

basket of other currencies .DXY crept 0.2% up to 98.43.

With recent economic data proving to be strong — a Citigroup U.S.

economic surprise index .CESIUS is holding at its highest levels this year —

some market participants are buying the dollar in case the Fed signals a

more confident view.

“All in, we think the meeting outcome risks disappointing market

expectations, which are perhaps leaning toward a more dovish outcome,

resulting in a renewed bid for the dollar,” Scotiabank strategists said.

The dollar has been driven more by trade tensions between Washington

and Beijing this year than by U.S. monetary policy. The dollar has gained

nearly 1% against the yen since the last rate cut in July.

Morgan Stanley strategists believe that any dollar upside is likely to be

capped, because market expectations are not overly dovish and a trade

deal between the United States and China seems likely.

A retreat in global oil prices also restored some calm to markets. Oil prices

fell in Asia, extending Tuesday’s 6% decline, after Saudi Arabia’s energy

minister said the kingdom had tapped stockpiles to restore oil supplies to

where they stood before weekend attacks shut around 5% of global

output.

The euro edged 0.2% lower at $1.1049, about 1% above the $1.0927 it

reached last week, the lowest in more than two years.

After the Fed releases its policy decision, attention will turn to the Bank of

Japan’s meeting ending on Thursday, to see whether it eases policy, too.

Deepening negative rates will be an option if the BOJ eases, although the

central bank may accompany that with measures to mitigate the pain on

financial institutions, sources have told Reuters.

<< Back to news headlines >>

Oil prices slip on Saudi pledge, financial markets look to Fed Wednesday 18th September, 2019 – Reuters

Oil prices cooled on Wednesday as Saudi Arabia’s pledge to quickly

restore production eased supply worries, while caution ahead of an

expected U.S. interest rate cut kept wider financial markets in tight ranges.

European stocks were largely subdued, with luxury stocks one of the few

sectors seeing activity. Swiss luxury goods group Richemont fell more than

5%, weighing on the pan-European STOXX 600 index, while Swatch

declined 3.3% after a bearish note by UBS.

The pan-European STOXX 600 index edged 0.5% higher.

The MSCI world equity index, which tracks shares in 47 countries, edged

down 0.02%.

Wall Street futures pointed to a softer opening.

Brent crude futures dipped 0.5% to $64.23 a barrel, having conceded a

chunk of their gains made after the weekend attack on Saudi Arabian oil

facilities.

U.S. West Texas Intermediate (WTI) crude CLc1 lost 0.8% to $58.86 per

barrel.

Saudi Energy Minister Prince Abdulaziz bin Salman on Tuesday sought to

reassure markets, saying the kingdom would restore its lost oil production

by month-end having recovered supplies to customers to the levels they

were prior to the weekend’s attacks. The comments prompted oil prices

to tumble 6% on Tuesday.

“I would think a spike in oil prices will likely prove to be short-term given

that the global economy isn’t doing too well,” said Akira Takei, bond fund

manager at Asset Management One.

Still, heightened geopolitical tensions underpinned oil as well as some

safe-haven assets such as U.S. bonds.

A U.S. official said on Tuesday the United States believes the attacks

originated in southwestern Iran, an assessment that could heighten the

rivalry between Tehran and Riyadh. Iran has denied involvement in the

strikes.

Adding to uncertainties in the Middle East were exit polls from Israel’s

election, which showed the race too close to call suggesting Prime

Minister Benjamin Netanyahu’s fight for political survival could drag on.

Spot gold was steady at $1,501.34 per ounce.

In a subdued session ahead of the Federal Reserve meeting later on

Wednesday, Euro zone benchmark 10-year bond yields fell 2-3 basis

points. Germany’s 10-year bond yield dipped to -0.49%, holding below last

week’s six-week high of -0.43%.

Spain’s bond market shrugged off news that the country will hold its fourth

election in four years on Nov. 10, after rival parties failed to break a

months-long impasse in a deeply fragmented parliament.

While a 25-basis point rate cut by the Fed is seen as near-certain, investors

look to the statement and economic projections from Fed policymakers,

given signs of deep disagreements among them.

“People are very cautious right now,” said Christophe Barraud, at Market

Securities in Paris. “They’re waiting for the Fed meeting and potential new

development in Saudi Arabia.”

“For the Fed meeting, people are not betting on a big positive surprise.”

The ongoing U.S.-China trade war has raised policymakers’ concerns

about slowing factory output although resilient domestic consumption has

given hawks some reasons to worry about cutting rates too hastily.

Possibly further complicating their discussions, short-term U.S. interest rates

shot up this week, with overnight repo rates rising to 7%, due largely to

seasonal factors such as huge payments for taxes and bond supply.

That prompted the New York Fed to conduct its first repo operation in

more than a decade to inject funds to stressed money markets.

The New York Federal Reserve said late Tuesday it would conduct a

repurchase agreement operation early on Wednesday “in order to help

maintain the federal funds rate within the target range of” 2.00% to 2.25%.

Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Tuesday

that the repo market squeeze makes it more likely that the Federal

Reserve will resume expansion of its balance sheet “pretty soon.”

Also in focus is the Bank of Japan’s policy meeting due Thursday. While

the latest Reuters poll suggests the BOJ will keep its policy on hold, 28 of 41

economists expect it will ease its policy this year and 13 believe it may

surprise by taking action at the Thursday meeting.

In currencies, sterling fell after British consumer prices in August grew at a

their slowest pace since late 2016, while concerns about whether a last-

minute Brexit deal was achievable acted as an added drag on the

currency.

The pound fell 0.3% to $1.2457, but that followed a decent gain on

Tuesday to $1.2528 on the back of optimism that Prime Minister Boris

Johnson was trying to secure a Brexit deal with the European Union before

the Oct. 31 deadline.

The lower-than-forecast rate comes ahead of the Bank of England’s

monetary policy meeting on Thursday. The BoE targets a 2% inflation rate.

Against the euro sterling was unchanged at 88.585 pence.

Against the yen, the dollar edged up 0.1% to 108.23 yen, below a seven-

week high of 108.37 yen tested overnight.

<< Back to news headlines >>

Oil extends declines after Saudi pledge to restore lost output Wednesday 18th September, 2019 – Reuters

Oil prices retreated on Wednesday, extending the previous day’s decline

after Saudi Arabia said it would quickly restore full production following

last weekend’s attacks on its facilities.

Tension in the Middle East remained elevated, however, after Saudi

Arabia said it would provide evidence on Wednesday linking Iran to the

attacks. The United States had already said it believed the attacks against

the world’s top oil exporter originated in southwestern Iran.

Iran has denied involvement in the strikes.

Brent crude oil futures LCOc1 were down 28 cents, or 0.4%, at $64.27 a

barrel by 1108 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures

were down 45 cents, or 0.8%, at $58.89.

Oil prices tumbled 6% on Tuesday after the Saudi energy minister said the

kingdom had restored oil supplies to customers at their level before the

attacks by drawing from its inventories. Saturday’s attacks effectively shut

5% of global oil output.

“As much as the Saudis have downplayed the extent of the latest

outages, we should not be lulled into a false sense of security,” said

Stephen Brennock, of London-based oil brokerage PVM. “Tensions in the

region are still running high and the specter of a further escalation is

hanging over the oil market.”

‘CHALLENGING TIMES’

Energy Minister Prince Abdulaziz bin Salman had said on Tuesday that

Saudi Arabia’s average oil production in September and October would

be 9.89 million barrels per day (bpd) and that this month’s oil supply

commitments to customers would be met fully.

Production capacity would reach 11 million bpd by the end of September

and 12 million bpd by the end of November, the kingdom’s production

capacity before the attacks, he said.

Relations between the United States and Iran have deteriorated since U.S.

President Donald Trump pulled out of the Iran nuclear accord last year

and reimposed sanctions on its oil exports.

“The oil market is facing challenging times. Recent attacks on oil facilities

in Saudi Arabia have painfully demonstrated the risks to oil supply, which is

why short-term price spikes are possible at any time,” said Commerzbank

analyst Carsten Fritsch.

Still, fundamental supply and demand balances are deteriorating, Fritsch

added, forecasting Brent oil prices of $60 a barrel next year.

“Demand growth is weakening, oil supply outside OPEC is rising

significantly and OPEC+’s production discipline has faded recently,” he

said.

The Organization of the Petroleum Exporting Countries and a number of

other oil producers including Russia agreed last year to cut output by 1.2

million bpd to reduce global stocks and prop up prices.

<< Back to news headlines >>

Saudi finance minister sees weaker 2019 GDP growth due to OPEC-led

cuts Wednesday 18th September, 2019 – Reuters

Saudi Arabia’s economic growth in 2019 will be significantly less than the

kingdom had expected because of OPEC-led oil output cuts, but the

attack on Aramco had “zero” impact on revenue, the country’s finance

minister said on Wednesday.

“Total GDP is going to be significantly less than what we have

forecasted,” Mohammed al-Jadaan told Reuters in an interview in Riyadh,

referring to internal estimates.

Jadaan said the oil-driven GDP is influenced by Saudi Arabia’s lower

petroleum output in the wake of an OPEC-led supply deal to support oil

markets.

He did not give any projections for 2019 GDP growth in the Arab world’s

largest economy, but the International Monetary Fund has said it could

grow 1.9% in 2019, slower than 2.2% in 2018.

The Saudi central bank had said earlier this year the economy will grow no

less than 2% in 2019.

Economists have said the kingdom may have to revise down economic

growth estimates due to lower crude output, with some forecasting a

contraction this year in the world’s biggest oil exporter.

Oil prices surged earlier this week after an attack on Saudi Arabia’s oil

facilities on Saturday knocked out more than 5% of global oil supply, but

prices began to ease on Tuesday after Saudi Arabia said it would restore

production lost by the end of the month.

WITHOUT INTERRUPTION

Jadaan said Aramco continues to supply oil to the markets without

interruption, which meant there is no interruption to oil revenue.

“Our focus is on non-oil GDP, that’s where diversification is,” he said,

saying non-oil GDP is expected to grow at 2.9% in 2019.

He said royalties and taxes are expected to be same from Aramco this

year.

Jadaan also said Saudi Arabia is likely to issue dollar-denominated sukuk,

depending on market conditions.

He said the Aramco IPO is moving ahead as planned and will most likely

happen over the next 12 months.

Aramco’s primary listing will be on Tadawul in Riyadh, but the government

is still considering a secondary listing overseas, he said.

<< Back to news headlines >>

Futures on back foot before Fed policy decision Wednesday 18th September, 2019 – Reuters

U.S. stock index futures dipped on Wednesday as investors waited for the

Federal Reserve’s decision on interest rates in what has been a rocky

week for global markets.

The central bank is expected to lower interest rates by a quarter

percentage point for the second time in three months, but a deep divide

among policymakers has seen traders abandon all bets on a third

reduction this year.

The Fed’s policy statement is due at 2:00 p.m. ET (1800 GMT) followed by

Chair Jerome Powell’s address a half hour later.

Rate-sensitive banks were little changed in premarket trading after the

banking index .SPXBK closed 0.6% lower on Tuesday following an

unexpected squeeze on short-term money market borrowing costs.

Central banks around the world have been taking steps to cushion the

impact of a prolonged U.S.-China trade war and other geopolitical risks.

Last week, the European Central Bank cut interest rates further and said it

would buy back bonds indefinitely.

Expectations of lower rates have spurred a Wall Street rally this year, with

the benchmark S&P 500 .SPX now less than 1% below its all-time high.

At 7:00 a.m. ET, Dow e-minis 1YMcv1 were down 18 points, or 0.07%. S&P

500 e-minis EScv1 were down 3.25 points, or 0.11% and Nasdaq 100 e-minis

NQcv1 were down 9.25 points, or 0.12%.

Markets had come under pressure earlier this week after attacks on Saudi

Arabia’s oil facilities caused a spike in oil prices and fueled geopolitical

tensions.

Package delivery company FedEx Corp (FDX.N) warned its full-year

earnings would miss analysts’ estimates, sending its shares 11.7% lower

premarket.

Adobe Inc (ADBE.O) fell 2.3% after the Photoshop software maker forecast

tepid revenue for the current quarter.

General Mills Inc (GIS.N) dropped 4% after missing quarterly sales

expectations, hit by weak demand for its yogurt and snacks in the U.S

domestic market.

Data expected at 8:30 a.m. ET (1230 GMT) is expected to show U.S.

housing starts rising about 5% to 1.25 million in August from a month earlier.

<< Back to news headlines >>

European shares tread water with Fed decision looming Wednesday 18th September, 2019 – Reuters

European shares steadied after early declines on Wednesday, as

technology shares helped offset losses in luxury goods, while many

investors remained on the sidelines ahead of an expected reduction in

U.S. borrowing costs by the Federal Reserve.

Apple Inc’s (AAPL.O) component suppliers AMS (AMS.S), STMicro (STM.PA)

and Infineon (IFXGn.DE) posted some of the biggest gains on the

European technology subsector .SX8P after strong pre-orders for the latest

iteration of iPhone.

Tech stocks .SX8P rose 0.4%, while the pan-European STOXX 600 index

edged 0.1% higher.

Early market action remained tepid ahead of the Fed’s policy statement

at 2 p.m. EDT (1800 GMT), where it is expected to reduce U.S. interest rates

for the second time this year.

“All eyes are going to be on the Fed. I don’t think we’re going to see

much between now and when the Fed gives its update,” said David

Madden, market analyst at CMC Markets.

The Fed may cut rates to keep markets from selling off but might indicate

that the reduction is “more of an adjustment rather than the beginning of

a rate cutting cycle”, Madden said.

Traders are currently pricing in a 56.5% chance of a quarter of a

percentage point cut, a far cry from a 92% chance just a week ago,

according to the CME Group’s FedWatch tool.

Equity markets were mixed after the European Central Bank’s move last

week to cut rates deeper into negative territory and relaunch bond

purchases with no scheduled end-date.

European stocks opened slightly lower on Wednesday, hurt by declines in

Swiss luxury goods group Richemont (CFR.S) which fell 4% after UBS

downgraded the luxury sector to “neutral” from “overweight.”

“The luxury goods sector has been a key outperformer this year and looks

overbought on technical indicators,” UBS analysts said in a research note.

Among other decliners, DHL owner Deutsche Post (DPWGn.DE) fell 2%

following U.S. rival FedEx’s (FDX.N) profit warning overnight citing the U.S.-

China trade war.

Other European mail delivery firms, DSV (DSV.CO), Kuehne & Nagel

(KNIN.S), Royal Mail (RMG.L), PostNL (PTNL.AS), also declined.

French utility EDF (EDF.PA) was the top gainer on STOXX 600, up 3.5%, after

it said there was no need to close any of its nuclear reactors for now

following the discovery of problems with weldings.

<< Back to news headlines >>

Low profits at euro zone banks a concern for supervisors Wednesday 18th September, 2019 – Reuters

Thin profits at euro zone banks are a worry for supervisors because,

coupled with depressed stock market prices, they can make it hard for

lenders to boost capital, the bloc’s chief banking supervisor said.

Speaking after a meeting with the Association of Italian Banks in Rome,

the European Central Bank’s Supervisory Board head Andrea Enria said

low profits prevented banks from generating sufficient capital internally.

“And if market valuations are very depressed, banks could have

difficulties raising capital on the market should the need arise,” he said.

<< Back to news headlines >>

EU warns Britain heading for a no-deal Brexit Wednesday 18th September, 2019 – Reuters

The European Union warned on Wednesday that Britain was headed for a

damaging no-deal Brexit, with London’s ideas for solving the contentious

issue of the Irish border still unlikely to unlock a deal just six weeks before

Britain is due to leave.

Addressing EU lawmakers in Strasbourg, European Commission President

Jean-Claude Juncker said British Prime Minister Boris Johnson had told him

on Monday that London still wanted a deal, but would leave with or

without one on Oct. 31.

“There is very little time left ... The risk of a no-deal is very real,” said

Juncker, his comments weighing on sterling.

Pro-Brexit lawmakers cheered and applauded in the Strasbourg chamber.

“It’s time for a clean-break Brexit,” said Brexit campaigner Matthew

Patten. Other pro-Brexit EU deputies tried to shout down pro-EU British

colleagues, shouting “you lost!” and “rubbish!”

A majority of EU lawmakers later voted for an extension to Britain’s

scheduled departure date in a resolution that is not binding but which has

political weight.

EU leaders will meet for a make-or-break summit in Brussels on Oct. 17-18,

just a fortnight before Brexit is due to materialise more than three years

after Britons voted to leave.

U.S. investment bank JPMorgan sounded negative on Wednesday about

the prospects of Johnson striking a deal then after recent rounds of talks

between the two sides showed significant gaps remain.

Britain is not likely to present a complete set of detailed, written proposals

of how it would want the text of the existing - but stalled - Brexit deal

changed before the end of the month, UK and EU sources said.

“If that is the case, the summit will end with nothing,” an EU diplomat

dealing with Brexit in Brussels said. “If there is to be a deal, it must be

prepared to a large extent in advance. It is too technical to leave to the

leaders at the last minute.”

In a worst-case scenario, a no-deal Brexit could mean severe disruption to

trade, supplies of medicines, fresh foods and possible public disorder,

according to the British government’s contingency plans.

Such a sharp break in economic ties, ending four decades of EU

membership, “might be the United Kingdom’s choice, but never the

choice of the EU,” Juncker said, highlighting how the bloc wants to avoid

blame if Britain crashes out.

Juncker said London must present realistic proposals to replace the Irish

backstop arrangement in the Britain-EU divorce agreement, which former

premier Theresa May agreed with EU leaders but which was rejected by

the British parliament.

“I am not emotionally attached to the Irish backstop,” Juncker said. “I

have asked the prime minister to make, in writing, alternatives,” he said,

calling it a safety net to avoid a divided Ireland after Brexit.

The backstop would require Britain to obey some EU rules if no other way

could be found to keep the land border between British-ruled Northern

Ireland and EU member Ireland invisible.

His pessimistic tone was echoed by Finland’s minister for European affairs,

Tytti Tuppurainen, who told the parliament that a no-deal Brexit “is a quite

likely outcome.” Finland holds the EU’s rotating presidency.

“STUPID” BREXIT, “DISREPUTABLE” PM

However, many EU lawmakers warned against a no-deal, both to avoid

an economic shock and because they do not want to see Britain

abandon its commitments to EU social and environmental standards and

become a low-tax, low-regulation rival.

“We will not accept a Singapore on the North Sea,” said former Belgian

prime minister Guy Verhofstadt, a liberal EU lawmaker and a member of

the parliament’s Brexit committee.

In an at times bad-tempered debate underscoring general weariness on

the tortured issue of Britain’s pending departure, senior EU lawmakers took

jabs at the noisy contingent of British eurosceptic deputies in the

chamber.

Manfred Weber, leader of the centre-right EPP group, called Brexit

“stupid”. He and Verhofstadt took aim at British plans for greater

sovereignty at a time when the parliament in Westminster has been

suspended by Johnson. British pro-EU deputy Julie Ward called the prime

minister “disreputable”.

“Brexiteers claimed Westminster would take back control, but now they

shut it down,” Weber, a German lawmaker, said in Strasbourg, as the

Supreme Court in London continued hearing arguments on whether

Johnson acted unlawfully in suspending the parliament in the run-up to

Brexit.

The European Parliament formally called on Wednesday for Britain to be

granted another extension to allow more time for London to agree the

terms of its withdrawal. The resolution passed with 544 in favour, 126

against and 38 abstentions.

Britain’s departure has already been delayed twice since March and

Johnson has vowed he would not seek another extension.

The EU’s chief negotiator, Michel Barnier, said a no-deal Brexit would not

resolve any of the issues around the rights of EU citizens, the Irish border

and British obligations under the bloc’s long-term budget.

“If the United Kingdom leaves without a deal, all these questions will not

disappear. They are still there,” Barnier told the EU chamber. “Some three

years after the Brexit referendum we should not be pretending to

negotiate.”

<< Back to news headlines >>

Britain hopes for trade deal with Australia within months of Brexit Wednesday 18th September, 2019 – Reuters

Britain’s Trade Minister Liz Truss said on Wednesday she expects to

complete a wide-ranging trade deal with Australia within months of

exiting the European Union.

In efforts to reduce the economic impact of Brexit, Britain is looking to line-

up a series of trade deals with smaller, non-EU countries.

Truss - who is in the middle of a three-nation tour that includes Australia,

New Zealand and Japan - said she expects a quick conclusion to trade

talks that will begin when Britain leaves the EU.

“The reason that I have chosen to make Australia one of the first countries

I have visited as trade secretary is because it is an absolute priority to get

on with this trade deal,” Truss told reporters in Canberra.

“I would say months rather than years for it to be completed.”

British Prime Minister Boris Johnson has said he will take the country out of

the EU on Oct. 31 with or without a deal with Brussels.

But the British parliament this month passed a law that requires Johnson to

ask the EU for a three-month delay to Brexit if a deal is not approved by

Oct. 19.

Two-way trade between Australia and Britain is worth A$26.6 billion ($18.22

billion), Australian data shows.

Britain is Australia’s seventh-largest trading partner, the data shows.

Australia’s Minister for Trade Simon Birmingham said a trade deal with

Britain will particularly benefit the country’s agricultural sector, worth

around A$60 billion.

“As part of the EU, market access to Britain in terms of agricultural

products has been limited,” Birmingham told reporters. “This is something

we will look to address.”

<< Back to news headlines >>

UK inflation falls to lowest since 2016 in pre-Brexit boost to consumers Wednesday 18th September, 2019 – Reuters

Consumer prices in Britain rose last month at the slowest rate since

December 2016, a pre-Brexit boost to the spending power of households

who are also seeing the fastest wage growth in 11 years.

Prices of goods and services paid by consumers rose at an annual rate of

1.7% in August after a 2.1% increase in July, the Office for National

Statistics (ONS) said on Wednesday. A Reuters poll of economists had

pointed to a rate of 1.9%.

Separate ONS figures showed British house prices rose in July by just 0.7% in

annual terms, the smallest rise since 2012, as weakness in the London

market spread to other parts of England.

Overall, the fall in inflation should boost households whose spending has

fueled the economy while businesses cut investment ahead of the Oct. 31

deadline for leaving the European Union.

The drop came despite a sharp fall in the value of sterling in August as the

Brexit crisis escalated, although it took more than a year for inflation to

peak after the pound’s post-referendum depreciation of 2016. Sterling has

rebounded this month.

“Improved consumer purchasing power is particularly welcome news for

an economy currently struggling markedly amid major Brexit, domestic

political and global economic uncertainties,” said economist Howard

Archer from the EY ITEM Club consultancy.

Sterling extended losses after the data and was last down 0.3% at $1.2454

GBP=D3. British government yields also fell.

The ONS said the fall in inflation was driven mainly by a decrease in

computer game prices, as well as clothing prices falling by less than last

year.

It was the biggest drop in the annual rate of inflation from one month to

another since late 2014.

Last month the Bank of England forecast that inflation would fall to a

three-year low below 1.6% in the final quarter of this year, reflecting lower

oil prices and government caps on household energy bills.

The BoE says underlying inflation pressures mean it is still likely to need to

raise interest rates over the medium term, assuming Britain avoids major

Brexit disruption and the global economy recovers from its slowdown.

Official data last week showed wage growth hit an 11-year high of 4.0% in

the three months to July, a pace which would normally prompt the BoE to

tighten rates.

But underlying inflation pressures are modest for now.

An ONS measure of core inflation, which excludes energy, fuel, alcohol

and tobacco, dropped to 1.5% versus forecasts for it to fall to 1.8%.

The ONS figures also suggested little short-term pressure in the pipeline for

consumer prices.

Among manufacturers, the cost of raw materials - many of them imported

- was 0.8% lower than in August 2018, compared with a 0.9% increase in

July, pushed down by lower oil prices. This was the biggest drop since May

2016. Economists polled by Reuters had expected input prices to fall by

0.5%.

The ONS said house prices in July rose by an annual 0.7% across the United

Kingdom as a whole compared with 0.4% in June, marking the smallest

rise since September 2012.

House prices are now falling in annual terms in four out of nine regions in

England, the ONS said.

<< Back to news headlines >>

China's Henlius raises $410 million in Hong Kong IPO Wednesday 18th September, 2019 – Reuters

Shanghai Henlius Biotech (2696.HK) has raised $410 million after pricing its

Hong Kong initial public offering at the bottom end of the indicative

pricing range, two people with direct knowledge of the matter said on

Wednesday.

Henlius, backed by Chinese conglomerate Fosun International Ltd

(0656.HK), priced shares at HK$49.60 ($6.34) apiece, the people told

Reuters, having indicated a price range of between HK$49.6 and HK$57.8

each share for the public offering.

A spokeswoman for the company did not immediately respond to Reuters

request for comment. The sources declined to be identified as they were

not authorized to talk to the media on this deal.

Co-founded in 2010 by Scott Liu, who was previously with U.S. biotech

giant Amgen Inc (AMGN.O), Henlius is a biotech company which

develops new drugs and biosimilars, or replicas of drugs designed to be as

effective as the original ones.

The Henlius IPO, which was launched last Wednesday, was seen as a test

for investor appetite amid political unrest that has engulfed Hong Kong for

more than three months and has weighed on the stock market.

Markets more generally are also on edge amid a trade dispute between

the United States and China and slowing global growth, with the owner of

U.S. office-sharing startup WeWork postponing its U.S. IPO on Monday.

The Hong Kong IPO activity is, however, seeing a pick up - the Henlius

pricing comes the day after Anheuser-Busch InBev NV (ABI.BR) launched

its second attempt to spin off its Asian business, aiming to raise up to $6.6

billion.

Henlius is selling 12% of the company in the public offering and has

arranged four cornerstone investors, led by the Qatar Investment

authority, to take $140 million worth of the shares being sold.

Apart from one biosimilar product commercially launched in China, the

company’s drug portfolio covers over 20 other products in various stages

of clinical development, according to its updated IPO prospectus.

Trading of its shares is scheduled to start on Sept. 25.

Bank of America Merrill Lynch, CICC, Citigroup and CMB International are

among the deal’s sponsors.

<< Back to news headlines >>

NEL leads trading Wednesday 18th September, 2019 – Trinidad Express Newspaper

OVERALL stock market activity yesterday resulted from trading in 17

securities of which seven advanced, three declined and seven traded

firm.

Trading activity on the First Tier Market registered a volume of 286,486

shares crossing the floor of the Exchange valued at $4,185,962.57.

National Enterprises Ltd was the volume leader with 75,366 shares

changing hands for a value of $450,450.60.

The West Indian Tobacco Company registered the day's largest gain,

increasing $1 to end the day at $106.

On the Mutual Fund Market 4,593 shares changed hands for a value of

$107,536.81.

CLICO Investment Fund was the most active security, with a volume of

4,193 shares valued at $101,336.81.

The Second Tier Market did not witness any activity.

The SME Market did not witness any activity.

The USD Equity Market did not witness any activity.

<< Back to news headlines >>

Sagicor confident of Q4 greenlight Wednesday 18th September, 2019 – Trinidad Express Newspaper

SAGICOR Financial Corporation says it is confident that its arrangement

with Alignvest, the Canadian Special Purpose Acquisition Company

(SPAC), will receive full regulatory approval in fourth quarter of this year,

which begins on October 1 and ends on December 31, 2019.

Contacted for an update last week on the process of regulatory

approvals, a Sagicor executive said the regional financial services

company has received approval from Barbados and is 'making good

progress with all of the key regulators.'

The executive explained that while Sagicor has regulators in all of its

jurisdictions, 'the US, T& T and Jamaica are the locations with our largest

operations and would account for the majority of our business.'

Back on November 27, 2018, Sagicor agreed to an arrangement by which

100 per cent of the financial service company's 306.55 million shares

would be swapped for shares in New Sagicor at a nominal value of

US$1.75 a share with an aggregate value of approximately US $536 million.

Once regulatory approval is received, New Sagicor will be listed on the

Toronto Stock Exchange, which means that Sagicor will delist from the

Barbados Stock Exchange, the Trinidad and Tobago Stock Exchange and

the London Stock Exchange.

In May 2017, Alignvest began a focused effort to identify suitable

qualifying acquisition candidates.

'In particular, AQY targeted insurance companies for three reasons,

notably: the competition for insurance investments is muted relative to

'traditional' industry sectors given the specialised knowledge required to

properly conduct due diligence; AQY believes that insurance company

valuations are currently more attractive than those in many other sectors

given the strong correlation with returns on equity; and AQY's team

includes several members with extensive knowledge of financial

institutions and insurance companies,' Alignvest said in a statement to

coincide with the November 2018 announcement.

Alignvest-Sagicor deal Alignvest said it was introduced to Sagicor in

August 2017 and spent 15 months evaluating this investment opportunity.

In May, 2019, JMMB, announced that it would invest about US$200 million

in Alignvest, which would allow the Jamaican financial services company

to own no less than 20 per cent of the shareholdings of New Sagicor.

In July, a Sagicor official said JMMB's investment would result in a revised

shareholding structure that would see existing Sagicor shareholders

owning about 48 per cent of New Sagicor and JMMB owning 20 per cent.

This would mean Caribbean shareholders would end up owning about 68

per cent of New Sagicor.

It is expected that the New Sagicor board after the transaction will

comprise seven existing Sagicor directors, two JMMB directors, three

Alignvest directors and two other directors representing North American

institutional investment.

If the transaction goes ahead, New Sagicor will have a strong balance

sheet, which is expected to be buttressed by about US$400 million in cash,

net of expenses.

Previously, Sagicor officials had said that the original use of the proceeds

was to fund the acquisition of Bank of Nova Scotia's insurance operations

in Jamaica and Trinidad. Those acquisition total about US$240 million.

Among options Sagicor is considering to use the proceeds left in the

company after the Scotia Insurance acquisitions are: other acquisition

opportunities not yet disclosed; funding increased growth in Sagicor USA

or the prepayment if all or part of the high yield bonds. These options are

all expected to have a positive impact on New Sagicor's core earnings.

T& T shareholders continue to have a significant stake in Sagicor. In its 2018

annual report, Sagicor said 49.41 per cent of the company's 306.55 million

shares were owned by investors resident in T& T, as at December 31, 2018.

On that date, Sagicor indicated that 14,641 individuals resident in T& T

owned Sagicor shares, along with 543 T& T-registered companies.

At a nominal value of US$1.75 a share, the 151,476,984 shares owned by

individuals and companies resident in T& T, would work out to be US$265

million.

<< Back to news headlines >>

Govt expands Grant Fund Facility Wednesday 18th September, 2019 – Trinidad Express Newspaper

Government, through the Ministry of Trade and Industry, has expanded

the Grant Fund Facility, which provides funding to qualified small and

medium- sized enterprises (SMEs) in T& T.

The original Grant Fund Facility was limited in its scope, sectors and

application, but the revision will provide a broader scope of funding

opportunities to local manufactures and service providers that qualify,

said exporTT, the Government entity that will facilitate the updated Grant

Fund Facility.

Administered also by exporTT, and assists SMEs in eight (8) designated

sectors, with the acquisition Through the facility allows local business

persons to access individual grants from the fund up to a maximum of

$250,000 per benec.iary to .nance 50 per cent of the cost of the

acquisition of new capital requirements and/or expenditure.

The grant does not cover working capital, land and building costs, and

installation costs.

The focus is on SMEs that are involved in the production of high value-

added products and services that can compete in export markets; and

that foster the economy's diversification thrust.

<< Back to news headlines >>

Tax amnesty extended to month end Monday 16th September, 2019 – Trinidad and Tobago Newsday

After photos of a queue of anxious taxpayers snaking its way into the

Inland Revenue Division (IRD) building last Friday, the Government

yesterday said the ongoing tax amnesty would be extended to

September 30.

The extension came in a Ministry of Finance statement yesterday, citing

legal notice 290.

The ministry also warned, “There will be no further extensions to the Tax

Amnesty in 2019.”

The amnesty began on June 15 and was initially due to end yesterday

(September 15.)

Minister in the Ministry of Finance Allyson West yesterday told Newsday the

extension would give people time to file their returns.

Of last Friday’s long lines, she observed, “People had three months but

many would have waited until the last minute.”

West otherwise said she was glad people had responded to the amnesty,

mindful of the fact it would be their last chance to do so for a long time to

come.

She recalled that initial estimates had been that a half billion dollars could

be raked in by the amnesty. West could not say exactly by when the

actual sum would be known, but said it would be known before the

October 7 national budget.

Newsday asked about the IRD having discontinued its previous service of

offering taxpayer assistance. “We will reintroduce it with the TT Revenue

Authority. It is a service that is required.”

Asked her final thoughts, West said she was glad people had woken up

and were taking the opportunity to show their records were in order.

She concluded, “Don’t wait till September 30.”

A tax consultant, speaking anonymously to Newsday, said the deadline

ought to have gone to the end of October, due to the great task small

businesses faced in calculating all their receivables and payables and

assessing their equipment for depreciation.

Some businessmen face a choice of paying salaries or paying taxes, he

said.

“I have clients running up and down looking for money. Everybody is

watching their dollar and preparing for what is next. They need time to

collect money, pay their accountants and pay their taxes.”

<< Back to news headlines >>

New Portsmouth housing development to be named after Rosie Douglas Wednesday 18th September, 2019 – Dominica News Online

The new Housing Development in Georgetown, Portsmouth will be named

after the late Rosie Douglas, a former prime minister of Dominica.

Prime Minister Roosevelt Skerrit made the announcement during a

handing-over ceremony recently.

Sixty-eight families have already benefited from this new development.

Twenty-four (24) received keys for their new homes, while the remaining 44

will receive their new homes in the upcoming weeks.

“We have decided to name this housing development in honour of our

late Parl Rep [Parliamentary Representative] and Prime Minister Rosie

Douglas,” he revealed. “This development will be known as the Rosie

Douglas Housing Development.”

Prime Minister Skerrit advised residents to take care of their new homes

and to avoid quarrels with neighbours.

“If you are going to name the place after Rosie who has been good to so

many of us in Dominica, one, you have to maintain the place clean; two,

you have to keep the flowers planted and three, no noise among

neighbours,” he advised. “It’s only peace and love.”

The prime minister cited the CBI-funded project as an example of how the

government has been able to utilize the Citizenship By Investment

Program to directly benefit of families and residents of Dominica.

“We have had the CBI Program since 1993 and the only tangible things

that you have seen the CBI has done for Dominica is under this Dominica

Labour Party [DLP],” Skerrit stated. “This is the only party that can point to

things – housing, infrastructure – that had been done in the country

utilizing these funds, so we are grateful for this medium for raising funds.”

According to him, had it not been for this CBI funds, “and not only the CBI

funds in itself”, but the prudent management of the funds, “we would

have been in great difficulties after this Hurricane Maria.”

<< Back to news headlines >>

Favourable outlook Wednesday 18th September, 2019 – Guyana Chronicle

The International Monetary Fund (IMF) has released its final assessment of

Guyana projecting the economy to grow 4.4 per cent in 2019 and

pointed out that the medium-term prospects are very favourable with oil

production on schedule to begin in early 2020.

However, the bank noted that current account deficit is estimated to rise

to 22.7 per cent of Gross Domestic Product (GDP) on the back of higher

imports related to oil production, which will be largely financed by Foreign

Direct Investment (FDI) in the petroleum sector.

Nevertheless, IMF said the commencement of oil production in 2020 will

substantially improve Guyana’s medium-and long-term outlook. “The oil

sector is projected to grow rapidly, accounting for around 40 per cent of

GDP by 2024 and supporting additional fiscal spending annually of 6.5 per

cent of non-oil GDP on average over the medium term, which will help

meet critical social and infrastructure needs. Public debt and the external

current account deficit are projected to decline steadily following the

onset of oil production,” the bank said in its latest report on Guyana.

It welcomed Guyana’s broad?based economic expansion in recent years

underpinned by prudent macroeconomic policies.

While the bank’s directors said the medium?term outlook is favourable,

they highlighted that the commencement of the oil production presents

both opportunities and challenges. The directors emphasised that to

ensure the effective use of windfall revenues, policies should focus on

reducing macroeconomic vulnerabilities, addressing structural

weaknesses, boosting inclusive growth, and promoting intergenerational

equity.

They also welcomed the authorities’ Natural Resource Fund (NRF)

legislation for managing Guyana’s oil wealth and emphasised the need

to complement it with a fiscal responsibility framework to avoid fiscal

deficits. In addition, they commended that the NRF’s framework aims to

save some of the resource income for future generations and contain the

pickup in public spending.

ACT SMARTLY

To meet these objectives, the directors called on the authorities to

constrain the annual non-oil deficit to not exceed the expected transfer

from the NRF. This rule could be phased in over the next three years to

allow a smooth widening of the non-oil deficit (in relation to non-oil GDP).

The directors also agreed that monetary policy should gradually revert to

a neutral stance to contain potential inflationary pressure as public

spending increases, economic growth strengthens, and credit expands.

Over the medium-term, developing the infrastructure for greater

exchange rate flexibility within the monetary policy framework would help

sustain healthy economic growth while maintaining price stability and

facilitating adjustment to oil price and other external shocks, the IMF said.

The bank’s directors noted the continued progress in strengthening

transparency and governance and encouraged sustained efforts to

implement the recommendations of the 2019 Extractive Industries

Transparency Initiative Report, which would promote effective and

transparent management of the oil wealth.

Further, they supported strengthening anti-corruption frameworks,

including by facilitating the work of the Integrity Commission, to improve

governance, support investor confidence and promote growth.

At the same time, addressing institutional capacity weaknesses would

enable decisive implementation of policy actions to further strengthen

governance.

Directors noted that it is important to further improve the quality,

efficiency, and transparency of public financial management. They

recommended addressing the shortcomings identified by the 2017 Public

Investment Management Assessment (PIMA) and expenditure review

before public investment is significantly scaled?up with oil revenues.

They recommended an asset quality review to assess the credit quality of

banks with high non-performing loans; welcomed the progress made in

implementing the 2016 FSAP recommendations and encouraged

completing the remaining ones. The bank noted that authorities’ progress

in strengthening the AML/CFT framework and called for further efforts in

this regard.

“[The] directors encouraged the authorities to use the opportunity

presented by oil revenues to undertake structural reforms to support

economic diversification, tackle skilled labor shortages, and achieve

inclusive and equitable growth. Priority should be given to address

infrastructure bottlenecks and upgrade the education system. In addition,

promoting more flexible working arrangements could help increase

female labor participation. Directors underscored the importance of

improving the business environment and enhancing competitiveness.

They also recommended putting more efforts into developing climate

resilient infrastructure networks,” the report concluded.

<< Back to news headlines >>

Guyana seeks closer ties with Chile Wednesday 18th September, 2019 – Guyana Chronicle

The Government of Chile is serious about negotiating a Free Trade

Agreement with all member countries of the Caribbean Community

(CARICOM), including Guyana, and hopes that the proposal made for

such is “duly considered”.

This was embedded in the message of Ambassador of Chile to Guyana,

His Excellency Patricio Becker at the celebration of the 209th

Independence Anniversary of Chile on Tuesday at the Marriott Hotel.

The pitch for the Free Trade Agreement was first made in 2018 at the

CARICOM Heads of State and Government Summit 2018. He relayed the

existing interest to President David Granger at the event on behalf of

Chilean President, His Excellency Miguel Juan Sebastián Piñera Echenique.

Also attending were First Lady, Sandra Granger; Speaker of the National

Assembly Barton Scotland; Minister of Foreign Affairs, Dr. Karen Cummings;

Former President, Samuel Hinds; members of the government; members of

the diplomatic corps; private sector representatives and other special

invited guests.

Meanwhile, in his remarks, President David Granger highlighted that

Guyana is interested in partnering with the Republic of Chile in the areas

of petroleum, mining, disaster management and the environment as the

two countries continue over 40 years of diplomatic ties.

STRONG TIES

On September 18, Chileans celebrate ‘fiestas patrias’ which consists two-

three days of celebration in in commemoration of the proclamation of

the First Governing Body of 1810 which marked the beginning of the

Chilean Independence process. Guyana and Chile, situated on the

continent of South America, have shared good relations since the

establishment of formal diplomatic ties on July 22, 1971.

President Granger noted that, in the past, the two states have successfully

collaborated in the fields of diplomacy, language-training, geochemical

and geological mapping, immigration, port security and transportation.

Just recently, on July 6, 2018, the Statement of Intent on Cooperation in

Energy and Mining and the Memorandum of Understanding (MOU) was

signed between the ‘Andres Bello’ Diplomatic Academy of Chile and the

Foreign Service Institute of Guyana as commitment to greater

cooperation for mutual benefit. As noted by the Head of State, relations

between Guyana and Chile have also been strengthened by high-level

exchanges between the respective Presidents at the 19th Summit of the

Rio Group Summit held in Georgetown in 2007; the 23rd Inter-sessional

Meeting of the Conference of Heads of Government of the Caribbean

Community held in Suriname in 2012; the 1st Summit of the Community of

Latin American and Caribbean States (CELAC) held in Chile in 2013 and

the 39th Regular Meeting of the Conference of Heads of Government of

the Caribbean Community held Jamaica in 2018.

SHARED ENVIRONMENTAL CONCERNS

Moving forward, President Granger said that more opportunities are

available for partnerships and these must be pursued as the two

continental countries share common concerns. “Guyana looks forward to

strengthening bilateral cooperation with Chile, especially in the mining

and petroleum sectors, disaster management and environmental

protection,” he began, adding later:

“The raging wildfires in the Amazon and the devastating effects of

hurricanes in the Caribbean highlight the urgent need for intensified

continental cooperation on environmental catastrophe.” He

congratulated the Chilean Government on its hosting of the 25th Session

of the Conference of Parties of the COP [Conference of Parties] 25 to the

United Nations Framework Convention on Climate Change in Santiago in

December 2019.

In a toast to the health of President of Chile, he also reminisced on his

State visit to the country in October 2016. According to Ambassador

Becker, “…on that occasion, the signing of a Visa Exemption Agreement

for ordinary passport holders and an Air Transport Agreement was

achieved. These agreements are progressive construction of common

initiatives that clearly reflect the political will of Chile and Guyana in

exploring a relationship and increased facilitation of tourism and

development of business and investment.”

In his remarks to the audience, the Ambassador expressed his privilege to

host the event noting that the President’s State visit in 2016 allowed the

two countries to boost their relationship by identifying key areas of

corporation. He too noted areas of collaboration shared between the

two countries such as scholarships offered to CARICOM by the Chilean

Agency for International Cooperation for Development (AGCID) and

Spanish Language Teaching programmes for the Guyana Foreign Service.

He expressed his country’s desire to contribute in the future to the

improvement of democracy; the establishment of public policies for

economic and social development and the challenge of climate

change. “I would like to point out that we are certain and confident that

Guyana has a great future with the development of the oil and gas

industry; the exploration and exploitation of a growing mining industry as

well as the development of the timber industry which also allows the

progress of the communities that inhabit the interior of this country…I

would like to offer a toast for the prosperous future of this beautiful

country, its authorities and its citizens.,” Becker said.

At the event, attendees were treated to the taste of Chilean wine with

the help of wine distributors: Demerara Distillers Limited and King’s

Jewellery World.

<< Back to news headlines >>

No Plans Yet for Taxes To Pay For Rebuilding Tuesday 17th September, 2019 – Tribune 242

THE DEPUTY prime minister yesterday said there are no plans for new or

increased taxes to finance Dorian rebuilding "at this point", adding: "That is

not part of the discussion."

K P Turnquest told Tribune Business that the Government had yet "to

exhaust all our options" other than taxes for funding a restoration effort

that will cost several hundred million, if not billions, of dollars.

Confirming that the Government will "likely" have to draw down on the

entire $100m Inter-American Development Bank (IDB) emergency credit

line, Mr Turnquest said The Bahamas did "not have the option" of delaying

post-Dorian recovery given the importance of Grand Bahama and

Abaco to the overall economy.

Estimating that the two island combined generate up to 20 percent of

annual Bahamian gross domestic product (GDP), he added that the loss

of this output was likely to cost the Government some $200m in projected

revenue for the 2019-2020 fiscal year (see other article on Page 1B).

Mr Turnquest said the magnitude of the Government's revenue loss would

depend on how quickly both islands' economies were restored, with the

Ministry of Finance currently assessing how it can re-purpose already-

allocated Budget financing to Dorian recovery efforts.

Conceding that the severity of Dorian's destruction had dealt "a multi-

year" blow to the Government's fiscal consolidation efforts, the deputy

prime minister said it would seek to rebalance rebuilding needs with

"containing any extraordinary expenditure".

He added that Bahamian taxpayers, either via direct loans or government

guarantees, will need to help finance the Abaco restoration efforts of the

two cash-strapped state-owned utilities, Bahamas Power & Light (BPL) and

the Water & Sewerage Corporation, although he declined to specify the

sums involved.

Mr Turnquest, though, was adamant that new and/or increased taxes

were not yet being entertained by the Government as a financial

response to the damage inflicted by Dorian - especially given its

continued ability to tap the local and international capital markets for

debt funding.

"There are no new taxes at this point," he replied, when questioned by

Tribune Business. "That is not part of the discussion. We just haven't

reached there yet. We haven't exhausted all our contingency options

before we get to that."

There has been significant speculation on social media and elsewhere

that the Government has no choice but to levy new or increased taxes,

such as another VAT rate rise to 20 percent, to finance Dorian-related

reconstruction and recovery given the sheer scale of this task.

But Mr Turnquest, in rejecting such fears, said it was examining "a

combination of sources" to finance post-storm rebuilding efforts. "Local

borrowing will be a part of it as well as foreign borrowing," he said.

"We're drawing down on the [$100m IDB] contingent facility, and will

supplement where we have to supplement from both local and foreign

sources." Asked whether The Bahamas will have to fully draw down on the

IDB credit line, he replied: "It's a little early to say, but based upon

estimates, it's likely.

"We have our lending sources. We will look at those and what offers the

best rate of return on interest rate and go for that. We're going to be as

deliberate and cautious about any additional debt as we can."

Mr Turnquest's confirmation that new or increased taxes are not being

considered will likely produce a sigh of relief from both Bahamian

consumers and businesses, not least because further sudden increase in

the taxation burden could well drive the economy into recession.

The Government can access ample excess liquidity in the commercial

banking system, which stood at $1.855bn at end-July 2019, for Dorian

rebuilding. External reserves, too, were relatively healthy, standing at

$1.583bn at the same date, and will likely gain a further boost from the

multi-million dollar foreign currency reinsurance inflows that will materialise

once claims start to be paid.

The international capital markets also remain accessible, as The Bahamas

still retains 'investment grade' status - albeit barely - with Moody's. Neither

that credit rating agency nor its counterpart, Standard & Poor's (S&P),

have yet given an indication they will further downgrade this nation's

creditworthiness although they may be waiting for Dorian's full impact to

emerge.

Gerry Rice, an International Monetary Fund (IMF) spokesman, recently

said The Bahamas has not asked it for financial assistance in Dorian's wake

- a position confirmed by Mr Turnquest yesterday.

"The authorities have not yet requested IMF’s support," Mr Rice said. "We

stand ready to help with other member countries and, of course we are -

Bahamas and the people of Bahamas - are very much in our minds, and

what they’ve gone through with this terrible hurricane. And, again, we

stand ready to help."

Mr Turnquest said the magnitude of Dorian's costs and economic loss

depended on how quickly The Bahamas could restore commercial

activity in Grand Bahama and Abaco.

"It depends on how long the restoration of the economic sector takes," he

told Tribune Business. "We have to get the businesses going, and

construction activity and reinsurance inflows will help in the interim, but we

have to get the tourism sector back up and running as quickly as possible.

"I don't think anyone anticipated, certainly, the magnitude of the

destruction incurred with this hurricane. We have to face it. We don't have

the option of delaying the recovery, as the combined economies of

Grand Bahama and Abaco accounted for 15-20 percent of GDP.

"We don't have the option not to rebuild. We have to get people back

into their homes and the business sector re-energised, building back

smarter and stronger."

Mr Turnquest said the Government was prioritising utilities restoration,

especially water and electricity, to kickstart reconstruction efforts and

private sector rebuilding given that these services are critical to sustaining

livable communities.

While deferring the associated costs to Desmond Bannister, minister of

works, the deputy prime minister said taxpayer support for such an effort

was essential given the loss-making status of the Government-owned

utilities.

"You fully understand BPL is strained to incur this kind of infrastructure

rebuilding cost, so there's going to be some form of mechanism to address

it whether it's direct or guaranteed loans," Mr Turnquest told Tribune

Business. "There will be some public commitment to ensure that

infrastructure gets rebuilt as soon as possible."

While discussions were continuing over whether BPL's post-Dorian

financing needs could be met through its planned $450m-$550m rate

reduction bond issue, Mr Turnquest said the Water & Sewerage

Corporation's repair costs would also be imposed on Bahamian taxpayers.

Asked about the extent to which Dorian will throw the Government's short

and medium-term fiscal recovery plans off-course, he said: "It's difficult to

say until we have the quantum, and I wouldn't want to speculate on that,

but I imagine we've got a multi-year problem."

The Fiscal Responsibility Act mandates that the Government achieve a

fiscal deficit equivalent to 1 percent of Bahamian gross domestic product

(GDP), or $137m, for 2019-2020 but that target will inevitably be breached

to the tune of hundreds of millions of dollars due to Dorian’s shock to the

economy.

The loss of $200m in revenue will likely push the deficit close to $300m by

itself, and the massive borrowing and increased spending necessary to

finance the recovery will probably push those closer to the $660m worth

of "red ink" incurred by the Christie administration in Hurricane Matthew's

aftermath (with a general election thrown in).

Besides having to obtain parliamentary approval for the extra borrowing,

Mr Turnquest and the Ministry of Finance are examining the approved

2019-2020 Budget to locate funding sources that can be reallocated for

Dorian rebuilding.

Acknowledging that the Government "still has a country to run", and that

islands unaffected by Dorian still needed "the resources allocated", he

added: "This is a significant disruption and we are going to have to figure

out how to redeploy the priorities that are best to contain any

unanticipated and extraordinary expenditure."

<< Back to news headlines >>

Main Event third-quarter profit slows Wednesday 18th September, 2019 – Jamaica Gleaner

Main Event Entertainment Group, which provides lighting and stage

equipment for large events, reported higher revenue but profits slowed by

40 per cent in the July third-quarter 2019 compared with year – earlier

levels.

“We have encountered cost control challenges this year. We have taken

note of increased prices in third party inputs and increased incidents of

inefficiency internally,” stated Main Event in the preface to its financials

signed by its directors. “We are actively reviewing our processes and

logistics with the aim to improve efficiencies.”

The company reported net profit of $14.7 million, on revenue of $468.6

million in the quarter compared to $24.5 million in profit a year earlier, on

revenue of $363.7 million. Revenue grew nearly one-third despite the 40

per cent drop in profit, which signalled increased growth and investment

at the company.

The company attributed its revenue growth to its “sustained thrust” to

diversify the company’s core income stream. Main Event spent over $151

million to purchase property and equipment in the ensuing financial year

on new services over nine months.

More than two-thirds of that spend was on audio-visual filming tools and

equipment. A year earlier it also spent $160.3 million, according to the

financials. The company created a business segment called M Style,

which focuses on providing services for wedding, and a training centre

called M Academy, which would augment its traditional entertainment

services.

“The M Style experience, our presence in the west, and the M Academy

project have been material contributors to growth,” stated the company.

Roughly 20 per cent of its revenue now comes from these newer product

offerings. Over nine months, total revenue for the company hit $1.36 billion

from $1.07 billion a year earlier. Profit before tax grew to $108 million over

nine months from $105 million a year earlier.

Higher revenue resulted in cushioning the impact of investments in its new

equipment and increased debt servicing. Consequently, its cash flow and

equivalents at the end of the period totalled $21.7 million, compared to

negative cash flow of $1 million a year earlier.

The group operates with $1.0 billion in total assets with shareholder’s equity

at $631 million as at July 2019.

<< Back to news headlines >>

Jamaica falls seven spots in travel, tourism ranking Wednesday 18th September, 2019 – Jamaica Gleaner

Jamaica’s standing in the Travel and Tourism Competitiveness Report 2019

fell by seven spots to 76th out of 140, according to the biennial report

released this month by the World Economic Forum.

The report tests the competitiveness of the ease with which locals and

foreigners travel in and out of the island, in addition to the country as a

tourism destination.

Spain, France, and Germany maintained their leading positions in the

global ranking. On the other end, Yemen trailed the world, followed by

Chad, Liberia and Burundi, respectively.

The report comes days after Tourism Minister Edmund Bartlett lauded the

island for increasing its rank in another global ­tourism report. That report,

by overseas-based Bloom Consulting, showed Jamaica moving up five

places to enter the top 10 tourism destinations in the Americas for 2019-20.

Contrastingly, the World Eco­nomic Forum report indicated that Jamaica

scored within the top 10 worst in the world in terms of health and hygiene,

price ­competitiveness, environmental sustainability, safety, and security.

The final country rank comprises four sub-indices, 14 pillars, and 90

individual indicators. The four sub-indices include enabling environment,

travel, and tourism policy and enabling conditions, infrastructure, and

natural and cultural resources.

The World Economic Forum think tank, based in Switzerland, publishes

reports such as the Global Competitiveness Report. It does so with

partners in countries around the world, including the Mona School of

Business in Jamaica. The Financial Gleaner sought but did not get

comments from the School of Business.

The report indicated, however, that the Jamaican government places

great emphasis on tourism. “Jamaica ranks second globally, thanks to

government prioritisation, spending on travel and tourism, at third globally,

and effectiveness in tourism marketing, at sixth globally,” stated the

report.

The United States led the Americas, with Jamaica at 14th in the region.

Bettered most peers

The island, however, bettered most peers in the Caribbean, except the

Dominican Republic, which stood at 73rd.

The report indicated that Trinidad and Tobago, which ranked 87th, fell 14

positions, but it acknowledged that that country had improved in the

area of health and hygiene.

Four countries that were covered in the 2017 report – Barbados, Bhutan,

Gabon, and Madagascar – are not covered in the latest report on

account of insufficient data, stated the study’s author. In 2017, Barbados

ranked 58th. In late 2017, Fly Jamaica Airlines, an international carrier,

ceased operations, and that contributed to a reduction in the island’s air

connectivity. In 2019, Jam Air Link Express, a new domestic airline,

emerged, offering cross-country flights.

The 2017 report was released prior to the halt of operations at Fly

Jamaica.

At that time, Fly Jamaica CEO and founder Ronald Reece told the

Financial Gleaner that Jamaica remained strong as a destination

because of its centrality to the US and its competitive advantage with

regard to its beaches, food, music, and culture.

The inaugural Travel and Tourism Competitiveness Report was done in

2007.

The World Economic Forum stated that the report provides a “strategic

benchmarking tool” for businesses and governments to develop the travel

and tourism sector.

“The report provides insight into the strengths and areas for development

of each country to enhance its industry competitiveness, and a platform

for ­multi-stakeholder dialogue at the country level to formulate

­appropriate policies and actions,” says the study.

<< Back to news headlines >>

Hyperion Equity to acquire stake in SSL Wednesday 18th September, 2019 – Jamaica Gleaner

Hyperion Equity Inc, a firm formed by Zachary Harding, has announced

plans to acquire a minority stake in SSL Growth Equity Limited (Barbados),

the parent company of Stocks and Securities Limited (SSL Jamaica).

A Belize registered international business company, Hyperion Equity, is

focused on ­investing in biometric research, media, fintech, entertainment

and traffic management.

The company was launched in 2012 and has grown into a middle market

focused private equity firm. Its acquisition of a stake in SSL Growth Equity

will allow the company to provide a full range of financial and investment

services.

In line with the planned acquisition, Harding has been appointed as

group chief executive officer with responsibility for SSL Growth Equity, SSL

(Jamaica) and SSL Venture Capital Jamaica Limited.

Hugh Croskery, the father of former chairman and CEO of SSL Venture

Capital Jamaica Limited, Mark Croskery, will continue to serve as

chairman of the SSL Group with investor John Bailey.

“SSL is one of the most well-known wealth management and stock

brokerage firms in the region with an impeccable reputation of providing

premium financial services for its client base of over 6,000 investors. The

original company has been a member of the Jamaica Stock Exchange

since 1977 and was the­ ­second brokerage firm set up in Jamaica,”

Harding said in a statement obtained by the Financial Gleaner.

“Under the keen stewardship of Hugh Croskery, SSL became a highly

respected and trusted name in the financial industry. When the

opportunity presented itself to become a part of this company, I knew it

was the right decision for Hyperion and I look forward to leading a team

of highly qualified people, providing a full range of financial and

investment services,” he continued.

SSL also announced the promotion of chief financial officer, Allison

Hemmings, to the position of group chief financial officer with

­responsibility for all companies. Veteran banker Jeffrey Cobham will

transition from executive chairman to non-executive chairman of the

board of SSL and will continue to support the company as a consultant on

a one-year contract. Cobham remains as the responsible officer for the

company to the Jamaica Stock Exchange and the Financial Services

Commission.

While continuing in his role as CEO of SSL Asset Management (Cayman)

Limited, Rajat Khanna will be appointed to the board of SSL Growth Equity

with an eye on expanding the wealth management arm of the business

to Canada and the UK. Jonathan Khoury remains as general manager of

SSL.

Details of the number of shares to be acquired in SSL Growth Equity is still

unclear. However, Harding said the deal is expected to be completed

over the next two months.

The subsidiaries of SSL Growth Equity include SSL Asset Management

Limited (Cayman); Dolla Financial Services Limited; SSL Capital (Cayman)

Limited; SSL REIT Investors Limited (St Lucia) and its Jamaican subsidiary;

and SSL (Jamaica) and its subsidiary, SSL Venture Capital Jamaica

Limited.

Hyperion’s acquisition of a stake in SSL Growth Equity, along with Harding’s

responsibility to oversee the operation of SSL Venture Capital Jamaica

Limited, comes at a time when SSL Venture Capital itself is going through

changes.

Aside from having its shares suspended on the Jamaica Stock Exchange

twice – the latter of which was mandated by the JSE for breaches of the

junior market rules – SSL Ventures is also moving to have management

and structural changes in one of its investments holding companies, Muse

360 Integrated, ratified by its board, following the resignation of the

investment holding’s CEO and founder, André Burnett.

“The mission right now will be to stabilise the ship after a series of recent

changes, and then to plot a clear path to success over the next 12 to 18n

months,” Harding said.

“It’s not a secret that SSL Ventures financials have been going through

some revision. The audited financials are now complete, and they will be

filed at the end of this month, and we are expecting that there will be an

unqualified audit showing a loss. One of the first order of business will be to

look at the venture capital companies and to see how we can reverse

that position,” he continued.

SSL Ventures was formed from a reverse takeover of failed music

publishing outfit C2W Music Limited, which allowed the listed junior market

company to restructure as a venture capital investor. The company

began trading in August 2018 and subsequently announced investments

in Bar Central, Muse 360 and Blue Dot.

On August 9, SSL Ventures also announced plans to acquire an associate

stake of 20 per cent in Alpha Imaging Limited, which intends to set up a

US$3 million (J$405 million) radiology office at Tangerine Place in Kingston.

Days before that Bluedot Data took on a new investor, businessman Craig

Hendrickson, at a higher valuation of US$1.1 million for a 20 per cent share

in the company.

All four investment holding transactions were overseen by Mark Croskery

with a mandate to realise shareholder returns via an exit through an IPO or

private sale. However, efforts by the Financial Gleaner to get a comment

from young Croskery on the changes in the company were unsuccessful

up to press time.

“I have known Zachary for over 30 years, and I have always been

impressed by his solid reputation for strong management, strategic

leadership and brand marketing. I have seen him execute successfully as

a CEO, marketing director and consultant for companies such as

Appliance Traders Limited, Wisynco, Red Stripe, GraceKennedy and

National Commercial Bank. We look forward to his visionary leadership as

we move the companies in the right direction for the future,” Hugh

Croskery, chairman of SSL Growth Equity, said.

<< Back to news headlines >>

Sygnus posts record profits for financial year 2018-19 Wednesday 18th September, 2019 – Jamaica Gleaner

Investment outfit Sygnus Credit Investments (SCI) is reporting record net

profits, core revenues, and earnings for the financial year ended June 30,

2019. Core revenues, or total investment income, grew by 169.5 per cent,

or US$2.02 million, to a record US$3.2 million for the financial year. this

compares with US$1.19 million for the corresponding period in 2018.

Net profit attributable to shareholders was US$2.05 million, US$626,880, or

44 per cent, more than the US$1.42 million earned up to June 2018. CEO

Berisford Grey says that a more aggressive approach to the deployment

of capital was at the heart of the good performance.

“The main thing that drove revenues on our investments was the

increasing velocity of deploying capital raised from the IPO (initial public

offering) into good investments. We raised US$20 million from the IPO last

year, and during the year, we invested over US$18 million in a number of

new investment opportunities in medium – sized firms across the region,”

Grey said.

Sygnus earns through interest income and the upsides of profit-sharing,

according to Grey. He says that SCI is pioneering the business of private

investing where growth comes primarily by raising either new equity by,

say, a rights issue or by using leverage to enhance the equity to investors.

He says the average yield on SCI’s portfolio is 12.8 per cent, which has a

lot to do with how the company structures the deals. Grey says that those

who were sceptical about SCI’s new approach to investing are seeing the

real benefits now.

“We’re in the process of proving our doubters wrong. The company is only

two years old, and the portfolio itself is still growing. Our promise to

investors was that they would get a dividend yield of 7.5 per cent.

Annualised dividend yield is presently running at about six per cent, and

this is under two years into a five-year investment horizon,” he said.

Meanwhile, the SCI board announced interim dividends of US$870,000.

This brings the total payout for the fiscal year ended June 2019 to US$1.48

million, according to Grey. He says that in the context of a firm that is

pioneering private credit investments and non-traditional financing, the

total amount is a significant dividend payout that is better than almost

any stock on the market right now.

Grey says the SCI board has approved US$15 million in capital raise. He

says that this will be timed to coincide with the implementation of projects

that are on stream. Grey says that SCI does not want to have funds

lingering and not invested.

“We want to have the right balance between excess liquidity and

investments, so we manage within a very disciplined plan so that we end

up with a nice average by finding new opportunities that will generate a

return for our investors,” he said, adding that SCI is going for even more

growth in 2020.

“What we’re saying to our stakeholders and the investing public is that we

are committed to establishing and growing Sygnus Credit Investments to

be more than a pioneering credit investment firm but, rather, the leader in

this arena. We will continue to make the strategic investments and

manage risks with a strong overlay of good governance,” Grey said.

<< Back to news headlines >>

General Accident acquires majority shares in Trinidad-based Motor One

Insurance Company Wednesday 18th September, 2019 – Jamaica Gleaner

GENERAL Accident Insurance Company Jamaica Limited has acquired a

majority stake in Motor One Insurance Company, a Trinidadian motor

insurance outfit headquartered in Port of Spain with a large branch

network throughout Trinidad.

Under the terms of the agreement, General Accident will acquire a 55 per

cent stake in Motor One, with the remaining 45 per cent of the shares

acquired by Micon Marketing Limited.

The transaction has received the approval of the Financial Services

Commission in Jamaica and a letter of no objection from the Central

Bank of Trinidad and Tobago. Robert Mowser, an experienced Trinidadian

insurance executive, has been appointed as Motor One's chief executive

officer.

In addition to being a major property insurer, General Accident, which is

considered a market leader in general insurance in Jamaica has recently

increased its presence in the Jamaican motor insurance market through

the General Accident brand and Autosmart, a sub brand dedicated

exclusively to motor insurance.

The acquisition of Motor One will allow General Accident to continue the

growth of its motor insurance business and to enter the Trinidadian market,

its first market outside of Jamaica. According to statistics provided by the

Insurance Association of Jamaica (IAJ) and the Association of Trinidad

and Tobago Insurance Companies (ATTIC), the Trinidadian insurance

market is over 40 per cent larger than the general insurance market in

Jamaica.

In making the announcement of the acquisition of Motor One insurance

yesterday, General Accident's Chairman P B Scott stated, “this acquisition

is an important first step in our wider regional growth strategy, which we

believe will increase our economies of scale, spread our risk and

significantly enhance shareholder value.

Entering the Trinidad market has long been an objective for General

Accident. We look forward to working with our executive team and the

local brokerage community to give Trinidadian consumers exceptional

service and coverage.”

For her part, Sharon Donaldson, General Accident's managing director

commented, “General Accident has strong brands, an outstanding team

of professionals and the support of the world's leading reinsurers. We are

excited to work with our talented local management team to operate in

the Trinidadian market.”

General Accident Insurance Company is one of the fastest growing and

most profitable general insurance companies in Jamaica and is listed on

the Jamaica Stock Exchange. The company was formed in 1981, as a joint

venture between Musson (Jamaica) and General Accident Fire & Life

Assurance Corporation plc.

In 1998, General Accident became a wholly owned subsidiary of Musson

but retained the General Accident brand, underwriting principles and

management philosophy.

In 2011, General Accident listed on the Jamaica Stock Exchange. As at

December 2018 General Accident had 21 per cent of the general

insurance market share of Jamaica. It has been consistently profitable,

with underwriting profits in nine of the last ten years.

In 2018, it was the largest general insurance company in Jamaica by gross

written premiums according to statistics compiled by the IAJ. Motor One

Insurance Company is a direct motor only insurer with thirteen branches

across Trinidad and a wide agent network. Its specialty is third party motor

coverage.

<< Back to news headlines >>

No money back Tuesday 17th September, 2019 – Nation News

THE FAIR-TRADING COMMISSION (FTC) is concerned about the Barbados

Water Authority’s (BWA) service delivery but says customers will not get

financial compensation given the utility company’s financial woes.

“Sub-par” is how the public utility regulator described the state entity’s

performance in relation to the majority of a combined 21 mandatory

guaranteed and overall service metrics that came into effect on January

1 last year.

However, for the time being, Barbadians should not look for

compensation from the BWA if it breaches any of the nine guaranteed

standards, which include meter repair/replacement, wrongful

disconnections and reliability of supply.

The FTC said this was because it suspended the “ordinarily required”

compensatory payments provision “in light of BWA’s financial and

operational challenges”. The inaugural evaluation covered all of last year,

and a similar assessment will be done for 2019.

<< Back to news headlines >>

Central Bank releases US$374.5M of bank reserve Tuesday 17th September, 2019 – Dominican Today

The Central Bank said that RD$19.1 billion (US$374.5 million) of the RD$34.0

billion bank reserve have been released, as announced by the Monetary

Board for loans to various productive sectors.

Central banker Héctor Valdez Albizu made the announcement Tues. to

open the VIII International Communication Seminar.

He also announced that the use of sectoral resources will be more flexible

for all banks in the interim and finished housing loans to further revitalize

credits.

He added that the Central Bank maintains its forecast that the Dominican

economy will grow around 5%. “The adjustments in the monetary policy

rate have allowed greater mobility of resources.”

<< Back to news headlines >>

Venezuela slows oil output, blending as stocks mount Wednesday 18th September, 2019 – Reuters

Venezuela’s state-run oil company PDVSA has suspended some crude

blending and cut back production as inventories have swelled due to U.S.

sanctions scaring off buyers and shippers, according to internal

documents, sources and data.

Washington this year imposed several rounds of sanctions on PDVSA in an

attempt to oust socialist President Nicolas Maduro, whose 2018 re-election

was dismissed by the opposition and most Western democracies as a

sham.

The measures banned U.S. firms from buying PDVSA’s oil, depriving

Venezuela of its former top destination for exports, and scaring off other

customers as U.S. officials also threatened foreign firms with punishment if

they “materially assist” Maduro’s administration.

The OPEC nation’s crude inventories as a result have risen sharply since

late August to more than 38 million barrels, highest since early 2018,

according to data intelligence firm Kpler. Venezuela’s crude storage

capacity is about 65 million barrels, but some tanks are inactive due to

lack of maintenance.

“Storage is almost at top capacity. We are just days ahead of being

forced to shut production at some eastern oilfields,” a PDVSA executive

said.

PDVSA’s portfolio of clients has shrunk, with Russia’s Rosneft now taking

about two thirds of Venezuelan oil exports for reselling to Asia.

The sanctions have also reduced the number of tanker operators willing to

load in Venezuela, and left PDVSA with minimum access to hard currency

to pay contractors and service providers, which has affected output,

according to sources and company documents detailing the state

company’s struggles.

As of August, Venezuela’s crude production is down 60% from January to

979,400 barrels per day (bpd), according to unofficial PDVSA figures seen

by Reuters. Venezuela’s oil exports were 770,000 bpd last month and

active rigs fell to 25, compared with 48 drilling units two years ago.

BLENDING SITES

The Petropiar crude blending facility near the Jose terminal, operated by

PDVSA and U.S.-based Chevron Corp, suspended operations last week.

Production has not yet been halted at the project’s associated oilfield in

the Orinoco belt as of Sep. 17, according to one of the documents and

sources.

Chevron referred questions on its joint projects in Venezuela to PDVSA. The

state-run firm did not reply to a request for comment.

The extra-heavy oil extracted from the Orinoco belt needs to be mixed

with lighter crudes to create exportable grades like Venezuela’s flagship

Merey heavy crude.

With Petropiar’s blending operations halted, Merey production has been

slowed. The neighbouring Petrosinovensa project, operated by PDVSA

and state-run China National Petroleum Corp (CNPC), reduced output by

20,000 bpd last week, according to the same PDVSA document.

“Petropiar is out of service due to high inventories of Merey.

Petrosinovensa’s plant one is in service, output adjusted to 72,000 bpd.

Plant two is re-circulating crude,” it said.

Of the country’s total stocks, 19.6 million barrels were at the country’s

largest oil port - the Jose terminal on its eastern coast - waiting for vessels

and customers as of Sep. 17, according to Kpler.

PDVSA recently switched its focus to Merey, helping it find new customers

in Asia amid sanctions. But it has also caused a faster build-up of stocks in

the country’s east, especially since CNPC and its units stopped loading

Venezuelan oil in August, according to the sources and data.

WESTERN PRODUCTION DECLINES

Off the country’s western coast, a handful of vessels have been acting as

floating storage for months, according to Refinitiv Eikon data.

“We currently have three tankers full of crude waiting for vessels that

would load through ship-to-ship operations. But the vessels have not

arrived,” said an inspector from one of PDVSA’s western ports.

Production had already slowed in Venezuela’s western fields, but the

difficulty in finding vessels for exports added to inventories, forcing PDVSA

and its joint ventures to further curtail or suspend output at oilfields

including Tia Juana, Lagunillas, Bachaquero and Boscan, according to

sources from those projects.

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