Suriname

Bids for Suriname blocks

Winners will be revealed at the signing of the production sharing contracts

7 June 2023 12:54
By Fabio Palmigiani in Rio de Janeiro

Several oil companies have submitted proposals for three of the six offshore blocks offered in Suriname’s latest bid round, which targeted the under-explored Demerara area north-east of major discoveries made by TotalEnergies and APA Corporation.

Suriname state-owned oil company and market regulator Staatsolie put up for grabs six blocks — 63, 64, 65, 66, 67 and 68 — in water depths ranging from 400 to 3500 metres in an effort to attract investors as exploration and production activities continue to boom in neighbouring Guyana.

Suriname and the IMF Reach Agreement on the Extended Fund Facility

May 18, 2023

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

The IMF staff team and Surinamese authorities reached a staff-level agreement on the second review of the authorities’ economic recovery program supported by the Extended Fund Facility (EFF). The review is subject to approval by the IMF’s Executive Board.

Suriname’s economy continues its slow post-pandemic recovery, but the shock of higher commodity and food prices in the second half of 2022 on the Suriname’s import-dependent economy compounded significant pre-existing policy challenges and eroded performance under the program. The economic environment remains fragile, with rapid exchange rate depreciation and high inflation imposing a heavy burden on the society.

The Surinamese authorities have made concerted efforts to bring the program back on track. The government’s near-term priority is to implement a prudent fiscal policy that is consistent with stabilizing the economy while protecting vulnerable households and supporting growth-enhancing investment.

Washington, DC: An International Monetary Fund (IMF) team led by Ms. Anastasia Guscina conducted virtual and in-person mission with the Surinamese authorities during May 8-16 to discuss policies to complete the second review of Suriname’s economic recovery program supported by the IMF’s Extended Fund Facility .

At the conclusion of the mission, Ms. Guscina issued the following statement:

“The IMF team and the Surinamese authorities have reached a staff-level agreement on the second review of Suriname’s economic reform program supported by the 36-month EFF arrangement. This agreement is subject to approval by the IMF’s Executive Board, contingent on the implementation by the authorities of prior actions and fulfillment of all relevant Fund policies. Upon completion of this review, Suriname will have access to SDR 39.4 million (about USD 53 million), bringing total program disbursements to date to SDR 118.2 million (about USD 159 million).

“Assuming concerted implementation of Suriname’s reform program, recovery will continue amid moderating inflation. Growth is projected to recover to 2.3 percent in 2023 and converge to the 3 percent potential next year, with real GDP remaining below its pre-pandemic level until 2028. Fiscal consolidation and monetary tightening will facilitate a gradual decline in inflation to 36 percent by end-2023. The authorities face important near-term risks including policy implementation challenges, both due to capacity constraints and a more challenging socio-political climate, and external risks from a renewed worsening in the terms of trade. Over the longer horizon, there are significant upside risks to growth due to the development of large new oil fields.

“In an effort to re-establish macroeconomic stability, the government has passed a conservative 2023 budget, which incorporates critical spending measures, including removing fuel subsidies, phasing out electricity subsidies, containing the public wage bill, while expanding social assistance spending and growth-enhancing infrastructure investment.

“Recalibrating the fiscal policy is key to protect the recovery and to support the most vulnerable. For 2023, the program targets achieving a primary surplus of 1.7 percent of GDP, about half of what was envisaged in the first review, allowing the authorities to increase spending on social programs and critical infrastructure. In 2024, the program targets a primary surplus of 3.5 percent of GDP, which is the medium-term anchor consistent with debt sustainability.

“Completing the ongoing debt restructuring negotiations with Suriname’s official and private creditors is a critical step in restoring the country’s debt sustainability. An agreement was reached with Paris Club (PC) creditors for a two-step debt treatment in June 2022, and bilateral agreements with most of the PC creditors have been completed. An agreement-in-principle with bondholders was reached on May 4, 2023. The authorities are actively negotiating in good faith with China and India on a debt restructuring agreement. On domestic debt, the government has completed the audit of supplier arrears and committed to clearing them, while strengthening public financial management to prevent accumulation of future arrears. In addition, the government has prepared a concrete action plan to complete ongoing domestic debt restructuring in 2023. There has been a good progress in negotiation on the restructuring of the legacy debt owed to the Central Bank of Suriname (CBvS), balancing the government’s financial constraints and CBvS’s financial health.

“The central bank has continued to implement the new reserve money targeting framework. However, the large increase in government spending and structural features of Suriname’s financial system, including uneven distribution of system’s liquidity, has made meeting the central bank’s monetary targets challenging, and interest rate transmission remains weak. To better absorb liquidity and help improve monetary transmission, the CBvS has increased reserve requirements on local currency deposits and provided guidance to contain the credit growth in the near term. The authorities remain committed to a free-floating, market-determined exchange rate. The central bank is taking important steps to improve its knowledge on the financial position and asset quality of the commercial banks and address any shortcomings, strengthen oversight, and develop modern crisis management capabilities.

“The authorities are making effort to strengthen central bank governance and address shortcomings in the anti-corruption and AML/CFT framework. The central bank is working to clear the backlog of audits of financial statements and to normalize the auditing cycle. A recapitalization plan for the central bank is being finalized and will have a clear target of the level of capital and a timeline for completion. The government intends to accelerate implementation of governance reforms in AML/CFT, anti-corruption, and public sector procurement.

“The authorities are working on critical structural measures including submitting to the National Assembly an amended VAT act to broaden the tax base, publicly announcing the planned reforms to electricity tariffs, and finalizing the roadmap for financial sector recapitalization and restructuring.

“The mission would like to thank the authorities for a collaborative and fruitful dialogue. A wide-ranging set of meetings was held with the President of the Republic of Suriname, the Chairman of the National Assembly, the Minister of Finance and Planning, the Central Bank Governor, the Minister of Justice, the Minister of Social Affairs and Housing, the Minister of Home Affairs, the Minister of Natural Resources, other senior officials, representatives of the private sector, civil society organizations, and development partners.

IMF Communications Department

 

2023 a pivotal year for Suriname oil & gas development

TotalEnergies CEO Patrick Pouyanné disclosed to investors back in February at their earning’s conference that by mid-year 2023, Block 58 operator TotalEnergies SE expects to confirm the desired estimated resources to kickstart production offshore Suriname.

This was then followed on April the 26th at TotalEnergies’ First Quarter 2023 Results Conference Call with the CEO announcing that 2023 is set to be a big year for Suriname, as the company looks to consolidate its oil pool offshore

Speaking about the company’s activities, Pouyanné explained that an appraisal well is slated for this year. “We are trying to develop an oil pool. The difficulty in Suriname is that the oil to gas ratio is quite high,” Pouyanne said.

He said TotalEnergies has been working to identify an oil pool with a lower CGR (condensate to gas ratio) in order to facilitate an efficient development. So far, however, TotalEnergies has successfully combined two discoveries to create a pool of around 500+ million barrels of oil. The first two appraisal wells of these discoveries have been positive, and with the last oil well soon to be drilled, the company is hopeful that it will reach 600-650 million barrels of oil. Once this milestone is reached, he said TotalEnergies will be ready to move to the next stage of development.

TotalEnergies is the operator of Block 58 with a 50% stake and is partnered with APA Corporation. Both companies are major supporters and platinum sponsors of the NOC Staatsolie Maatschappij Suriname N.V.’s 3rd Suriname Energy, Oil & Gas Summit & Exhibition on 19-22 June 2023 in Paramaribo, Suriname.

 

 

Suriname Energy Summit

President Chandrikapersad Santokhi of Suriname opened the
Suriname Energy,Oil & Gas Summit & Exhibition hosted by Staatsolie

He delivered the welcome address. 800 delegates, 150 speakers, over 150 exhibitors and over 6000 visitors attended the event on 19-22 June 2023 in Paramaribo.

TT Minister of Energy Stuart Young who is promoting regional energy security and the right for developing nations to exploit their natural resources in a responsible and safe manner, met Albert Ramdin, Suriname Minister of Foreign Affairs, International Business and International Cooperation.

“We discussed the potential of regional integration and in particular the role that we could play along with other Caricom member states in providing regional and extra regional energy security. We are committed to working along with Guyana and other regional hydrocarbon-resourced countries to ensure sustainable energy security for the region.”

Young participated with Ramdin in a ministerial roundtable on “Strategic Regional Cooperation: Challenges and Benefits”

Earlier, Young told a Miami conference that negotiation with the US administration to allow the T&T Government to exploit the Dragon field in Venezuelan waters is an attempt to further regional energy security. Last year he and Prime Minister Dr Keith Rowley met decision makers in Washington DC, negotiating and advocating for the grant of a waiver from Office of Foreign Assets Control (OFAC) for T&T to produce the Dragon gas field with Shell asr partner.

“With the support of other leaders of the Caribbean Community (Caricom), we pursued the ability to access this gas field as there is the immediate excess capacity in Trinidad for us to produce additional LNG, Ammonia and fertiliser products and methanol once we can produce the gas field, thereby contributing to energy security in the Caricom and wider region. We would be able to provide additional LNG supplies to Caricom countries and even Europe as it looks for alternatives to Russian gas.”

Young made a keynote presentation on Energy for Development – Country Spotlights, to p[rioritise TT strategies for continued energy security and sustainability at the ministerial roundtable on strategic regional co-operation: challenges and benefits with Albert R Ramdin, Minister of Foreign Affairs, International Business and International Cooperation, from Suriname and Robert Persaud, foreign secretary, Ministry of Foreign Affairs and International Cooperation from Guyana.

“We must take control of our own destiny and the strategic alliance of Suriname, Guyana and TT in developing our hydrocarbon resources can only benefit Caricom and the region. Development of our resources in a responsible manner will provide energy security and sustainability. The time for meaningful collaboration is now and I look forward to making this happen.”

Young was proud to see TT represented with the largest pavilion in the exhibition hall.

“I enjoyed interacting with our many energy ‘ambassadors. We are committed to working along with Guyana and other regional hydrocarbon-resourced countries to ensure sustainable energy security for the region.”

 

 

Energy security offers bold era of regional cooperation

June 20, 2023

At the opening session of the SEOGS, representatives of Guyana, Trinidad and Tobago, and Suriname emphasised regional cooperation for regional Energy security.

Foreign Secretary, Robert Persaud who represented Guyana engaged in a Ministerial Roundtable with Albert Ramdin, Suriname Minister of Foreign Affairs of ,and Stuart Young, Minister of Energy in Trinidad and Tobago where the need for a strategic alliance in energy security was underscored. This Roundtable discussion centred on Strategic Regional Cooperation, with particular focus on energy, for regional cooperation in energy, which will become a key driver of economic growth and regional integration .

The Foreign Secretary relayed that the region is on the verge of a new and bold era of cooperation, where energy can act as an impetus for renewed and reinvigorated economic and political cooperation in the region.

Cheap and reliable energy underpins strong economic growth and in Guyana, will be used as a platform on which long-term growth and sustainable policies will be enacted, especially in the arena of food security and given the leadership offered to CARICOM by President Dr. Irfaan Ali.

An important caveat is that there must be a balanced approach to this regional development and expansion of the energy industry with particular attention to the environment. Guyana, a global leader and will avail itself to inform such an approach to other countries. The CARICOM representatives concluded by committing to the development of the energy industry in a manner that puts its people first, protects the environment, and safeguards the interests of future generations.

Maximising the benefits to this approach, they committed to strong, strategic, and renewed regional collaboration .

 

 

 

TTMA at SEOGS 2023

The TTMA president led a delegation to the Suriname energy, oil and gas summit in Paramaribo of leaders of 20 companies from the chemicals, printing and packaging; food and beverage; garment and construction sectors. including Blue Waters, DSB Lid, Lazuri Apparel Ltd, VF Packaging Ltd, MIC, Pepe’s Marketing and Christle Ltd among others. The mission, organised by the TTMA and ExporTT, comes on the heels of a 2022 mission in Suriname attended by 17 companies from TT.

The delegation engaged in business–to-business meetings over the three-day period.

The trade mission is geared toward determining business opportunities within the Surinamese market for TT companies and establishing and deepening strategic business and logistical relationships between manufacturers and buyers. The mission is a key project under the Export Booster Initiative, a strategic effort by the government aimed at increasing the value of the non-energy sector to strengthen trade relations.over the next three years.

 

 

Staatsolie Maatschappij Suriname N.V. and TotalEnergies Suriname and QatarEnergy signed production sharing contracts for offshore blocks 6 and 8 on Monday 8 May 2023.

https://www.ogj.com/drilling-production/article/14293817/totalenergies-signs-suriname-psc

 

USAID launches permanent office after four decades

2023 06/21

The United States Agency for International Development (USAID) re-opened its office after 40 years with Washington underscoring the importance of its presence in the Dutch-speaking Caribbean Community (CARICOM) country. At the official opening, Ambassador Robert Faucher said that it will support the US embassy here in its development work implementing programmes, especially in the agricultural, energy and private sector. USAID will continue to work together as an equal partner to deepen the relationship and promote mutual cooperation between the two nations.

USAID/ESC Programme and Strategy Office Director, Stephanie Mikulasek, said,

“We are very pleased to be back”

USAID partners with 11 countries in the region, the Guyana-based CARICOM Secretariat and the St. Lucia-based OECS Secretariat to implement development programmes.

The US administration renewed the US commitment to the Caribbean region and new initiatives announced during last year’s Summit of the Americas are now advancing under the US-Caribbean partnership to address climate challenges, food security and energy cooperation.

While this marks the first time that USAID has had a permanent presence here since 1982, the agency responded to the need of Suriname in natural disasters, including providing humanitarian assistance in the aftermath of major flooding in 2006, 2008 and 2013. Its renewed presence offers the opportunity to more deeply engage with local partners in pursuing development objectives benefitting both nations.

Foreign Affairs Minister, Albert Ramdin, welcoming USAID back, said there was continued cooperation in agriculture, healthcare, environment, investment and incidental assistance during natural disasters.

“This was technical assistance. It helps us as a country to prepare ourselves to improve the programmes we roll out to better the living conditions in the world and in particular in Suriname.

Our country already has a good cooperation with USAID in terms of projects in the field of agriculture, public health, environment and investments, but also with the floods.”USAID is one of the agencies in the Western Hemisphere with enormous potential “and Suriname will make very good use of that.”

USAID is an independent agency of the United States federal government primarily responsible for administering civilian foreign and development assistance. It supports low-income countries through programs in various areas, such as the well-being of young people and combating poverty.

 

 

 

The UWI St. Augustine , Trinidad and Tobago.

16th May, 2023

As the Caribbean Community (CARICOM) reaches a momentous milestone, commemorating its 50th anniversary, The University of the West Indies (UWI) emerges as a dynamic force shaping the region’s development for 75 remarkable years. Against this backdrop, the Institute of International Relations (IIR) at the St. Augustine Campus collaborated with the CARICOM Secretariat to host the ground-breaking “CARICOM at Fifty” events, envisioning a future of seamless integration.

With its rich history spanning twenty nations and housing approximately sixteen million citizens, CARICOM stands as a powerful alliance, with 60% of its population under the age of 30. The journey began on July 4, 1973, as visionary Prime Ministers Errol Barrow, Forbes Burnham, Michael Manley, and Dr. Eric Williams joined forces in signing the transformative Treaty of Chaguaramas.

At the heart of the commemorative events lay a thought-provoking symposium held on Friday, April 14, 2023, at The UWI’s St. Augustine Campus. Delving into fifty years of CARICOM’s history, the symposium becomes a space of reflection, igniting profound discussions on the path traversed and the path that lies ahead. The spirited gathering witnessed the participation of distinguished guests, including Senator the Honourable Dr. Amery Browne, Minister of Foreign and CARICOM Affairs of Trinidad and Tobago, and Dr. Acolla Lewis Cameron, Dean of UWI’s Faculty of Social Sciences.

In her captivating opening remarks, Dr. Annita Montoute, Interim Director of the IIR, highlighted the transformative impact of such events, fuelling public engagement, knowledge dissemination, and policy advancements. With the global and regional landscape growing increasingly intricate, both Minister Browne and Dr. Lewis Cameron underscored the indispensable role of CARICOM in driving Caribbean integration. Against the backdrop of formidable development challenges, The UWI and the IIR become catalysts of reflection and dialogue, fortifying regional efforts and propelling CARICOM’s position as a preeminent regional mechanism.

Dr. Carla Barnett, CARICOM’s Secretary General, updated participants on CARICOM’s objectives and actions considering the shifting international environment and the evolving development challenges that Caribbean SIDS face – from climate change, economic instability to global hegemonic disputes.

The symposium gathered distinguished Caribbean scholars and representatives in two panels. Chairing Panel One: CARICOM’s Experiences: Achievement and Lessons was Professor Jessica Byron, Former IIR Director. Panellists included Professor Wendy Grenade (St. George’s University), Dr. Terri Ann Gilbert-Roberts (Commonwealth Secretariat) and H.E. Ambassador Ivan Ogando (Dominican Republic, Ambassador to Belgium and Head of Mission to the European Union).

Panel Two: Looking Ahead: Prospects and the Way Forward was chaired by Dr. Kai Ann Skeete (Shridath Ramphal Centre for International Trade Law, Policy and Services, UWI Cave Hill Campus). Panellists were Dr. Anthony P. Gonzales (IIR Senior Fellow), Professor Patsy Lewis (Brown University) and Mr. Richard Jones (Caribbean Policy Development Centre).

They reflected on CARICOM’s achievements as well as challenges in meeting its strategic objective to advance Caribbean development and economic integration. Issues related to the organization’s governance structure, youth participation, foreign policy coordination and functional cooperation were discussed. Interesting proposals were presented to lift CARICOM’s role in the region and reinvigorate its performance after a half century of existence. Read more about the IIR at https://sta.uwi.edu/iir/

 

 

Visit of WHO Director General

 

Director General of the World Health Organization (WHO) Dr Tedros Adhanom Ghebreyesus visited Parliament at Red House, Port of Spain. He, Health Minister Terrance Deyalsingh and clients of the North West Regional Health Authority’s Diabetes Wellness Clinic participated in an aerobics session, tour of the Rotunda Gallery and entertainment. He thanked Minister Deyalsingh for his hospitality and praised reduction of non-communicable diseases.

On the request of Minister Deyalsingh, he viewed the Diabetes Wellness Centre and Diabetes Foot Management Clinic at Diego Martin Health Centre. His itinerary began with a virtual participation at the Small Island Developing States (SIDS) Ministerial Conference in Barbados. He was a panellist with Commonwealth Secretary General, Patricia Scotland and the Minister of Health, Terrence Deyalsingh. In a media conference with the Prime Minister, he commended management of the response to the covid19 pandemic.

 

 

 

Guyana joins UN Security Council

June 15, 2023

By a majority vote, Guyana was elected as a non-permanent member of the United Nations Security Council, UNSC, for the period 2024–2025.

The Caribbean Community (CARICOM) congratulated Guyana on its election to the (UNSC), recognising the country’s distinguished record of service in the United Nations. CARICOM noted the election assumes heightened significance against the background of the challenges to current global peace and security for which the council has responsibility. it was also in accordance with security cooperation that is a pillar of the Caribbean Community.

“Guyana is positioned to offer unique perspectives to UN Security Council matters, as a voice for small island and low-lying coastal developing states.”

While presenting budget 2023 in February, Senior Minister for Finance, Dr Ashni Singh, said the decision to present Guyana’s candidature for the UNSC seat was motivated by a desire to further enhance the country’s standing as an active and valuable contributor to global debates, particularly in areas such as the environment and international peace and security.

This is something that a seat on the council would advance.The security council is charged, under the United Nations Charter, with the responsibility for the maintenance of international security and peace. As part of this mandate, the council takes the lead in identifying the existence of a threat to peace and encouraging parties to a dispute to settle it by peaceful means. The council, in some cases, can also impose sanctions to maintain or restore international peace. The theme of the country’s candidacy is ‘Partnering for Peace and Prosperity.’

His Excellency, Dr Mohamed Irfaan Ali, said the country will assume its responsibilities as a member of the council with the utmost seriousness and dedication, in light of the complex and challenging global state of affairs.

“We intend to be a constructive and engaged partner with the members of the council and the wider international community in the search for solutions to the myriad of momentous challenges that beset our human family. The Government of Guyana looks forward to continuing our nation’s contribution to the strengthening of multilateralism and the rule of international law, to the promotion of peace, sustainable development, human rights, and respect for international law both for the people of our own country and for peoples across the globe.”

The UN General Assembly also elected Algeria, Sierra Leone, Slovenia, and South Korea to the Security Council.

 

 

World Bank

This report ignores threats to the private sector, stymied by criminality particularly in Trinidad & Tobago, a once prosperous petrostate, now mired in corruption, neglect, misrule, record murders , violent crime including larceny, armed robbery, burglary, home invasion, gangs, racism and trafficking of drugs, people and arms.,

A Stronger Private Sector Could Drive Long-term Sustainable and Inclusive Growth in the Caribbean: World Bank Group Report

Bridgetown, Barbados, June 9, 2023:

Small Caribbean countries can accelerate private-sector development—a critical step to fostering sustainable and inclusive growth—by addressing key sources of vulnerability and improving the investment climate, according to a new report published today by IFC and the World Bank.

The Caribbean Regional Private Sector Diagnostic (RPSD) identifies ways to reduce cross-cutting constraints to private investment, such as gaps in connectivity and skills mismatches, and break the region’s current low-growth, low-productivity trend.

In addition, the study examines two key sectors—digital economy and renewable energy—in which greater private investment could contribute to export diversification and job creation, enhance productivity, and strengthen resilience to climate change and natural disasters.

“The RPSD provides a roadmap to advancing reforms that will unlock the full economic potential of the Caribbean and further enable the private sector to become an engine for inclusive growth and innovation, including strengthening the digital economy and transitioning to renewable energy,” said Susan Lund, IFC’s Vice President for Economics and Private Sector Development, during a hybrid event in Bridgetown jointly organized with the Caribbean Development Bank (CDB).

The regional diagnostic—the first of its kind—covers 12 small or micro-states (Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, and Trinidad and Tobago) that, despite their marked differences, have a similar culture, language, and geography, and face comparable development challenges. This creates opportunities for collaboration and mutual learning.

“To realize the economic potential of the Caribbean, there is a need to bolster regional linkages and economic diversification and a move to greener and more inclusive growth”, said Lilia Burunciuc, the World Bank’s Country Director for the Caribbean countries.

CDB’s Vice President, Operations, Mr. Isaac Solomon said the Bank sees private enterprise as “an essential factor in the sustainable development equation” as a vibrant Private Sector can build new industries, increase competitiveness in global markets, as well as spur economic growth, and job creation.

“We are gearing up to play a stronger catalytic role in generating private investment. We continue to position ourselves to be at the forefront of transforming the financing landscape, attracting more resources that will help to address many of the challenges facing our populations,” he explained. “Through our new Private Sector Development Framework, which is well advanced, CDB is aiming to facilitate the development of dynamic and internationally competitive, high-growth firms, drive higher incomes and increased economic resilience at both the national and regional levels.”

As per the RPSD, leveraging digital services could be transformational in the region, repositioning itself in newer and more complex services, enhancing the productivity of traditional sectors, and the quality and inclusiveness of public services. Concurrently, transitioning to renewable energy can generate green growth, jobs, and diversified income, while mitigating the region’s dependence on imported heavy fuels and reducing energy costs for key sectors such as tourism.

The private sector in the 12 countries analyzed faces major, cross-cutting constraints—notably, gaps in trade policy, trade facilitation, and connectivity; skills mismatches; limited access to finance, especially for SMEs, and vulnerability to climate change—addressing which would foster an environment more conducive to trade, investment, and growth. Examples of policy recommendations to strengthen the role of the private sector include harmonizing investment regimes, reducing skills mismatches in partnership with the private sector, fostering credit products for SMEs, and developing new financial instruments

 

 

 

CDB

CDB Launches Youth for Innovation and Resilience (Youth FIRE) Programme 2023 to support inclusive and equitable development in the Caribbean

BRIDGETOWN, Barbados, June 15, 2023

The Caribbean Development Bank, (CDB) on June 13, 2023, launched its 2023 Youth for Innovation and Resilience (Youth FIRE) Programme aimed at supporting inclusive and equitable development in the Region through youth empowerment and engagement. The launch was held at the Sir Arthur Lewis Community College in Saint Lucia.

Scheduled to run from June 13 – 16, the Programme includes the Youth FIRE Forum, a one-day event targeting young persons, aged 15-35; the inaugural meeting of the Bank’s Future Leaders Network (FLN), where the 17 Network members and two advisers will take part in two days of personal and professional development and capacity building; and the Youth FIRE Expo, which will showcase the work of young innovators and entrepreneurs across Saint Lucia at the Constitution Park, in Castries on Friday, June 16.

The Youth FIRE Programme forms a core part of the CDB’s strategy to reach youth; support strategic career guidance and life skills training and gather insights from young people regarding its programming and policy for youth development and broader sustainable development. Speaking at the launch, CDB’s Director of Projects, Mr. Daniel Best, emphasised that the Bank remains committed to creating seats at the table for youth.

“While many young people excel, far too many continue to face uncertainty. Across the CDB’s programming and through the work informed by our 2020 Youth Policy and Operational Strategy, we have increased our youth engagement and our focus on ensuring that all investments -in areas including education and training; citizen security; and agriculture; among others, recognise, utilise, and support the building of young people’s capacity,” he said.

“In these trying times for us as Small Island Developing States, we must take the future into our hands. We must be bold and augment or refashion solutions to fit the Caribbean’s reality. You, our young people have the ingenuity and creativity for this mission. You remind us that you are not just the future, you are the now,” Best added.

Saint Lucian Minister of Youth Development and Sport, Hon. Kenson Casimir, noted that the country had taken the lead in the Region in youth innovation and inclusive empowerment for young people, instituting a youth economy agency to deal with every social ill within communities in the Caribbean nation.

“It is a novel idea that says to young people that we believe in you. A novel idea that says to young people (sic) that your ideas can change the landscape of Saint Lucia. With this idea, we have seen over 200 applicants in less than six months of the establishment of this agency (and) it says to us that young people were ready and waiting, wanting to be productive to the economic development of their country.”

The CDB’s youth engagement programme was rebranded ‘Youth for Innovation and Resilience (Youth FIRE)’ in 2022, with a greater focus on inclusion of participation by, perspectives of, and support to capacity building to ensure meaningful participation of, youth with disabilities, youth from underserved communities, migrant youth and indigenous youth and reflect the Bank’s commitment to respond to recommendations from young people regarding branding, content, and methodology. The 2023 programme formally introduces the Bank’s FLN – an institutional mechanism for youth engagement and empowerment and to promote youth mainstreaming in the Bank’s Operations.

 

 

Gates Foundation, Open Society Foundations, Rockefeller Foundation

NEW YORK | June 20, 2023

Ahead of the New Financial Pact Summit, chaired by Emmanuel Macron, President of the French Republic, and Narendra Modi, Prime Minister of India, the Bill & Melinda Gates Foundation, Open Society Foundations, and The Rockefeller Foundation announced USD 2,781,583 in funding from the $5.25 million Multilateral Development Banks Challenge Fund (“the Fund”): Albert Ludwig University of Freiburg, Caribbean Development Bank, FSD Africa, IDB Invest, Risk Control Limited, and University of Leeds. The six grantees, which were selected to help increase efficiency and innovation in the world’s development finance system, advance the Fund’s overarching goal of accelerating investment for the United Nations’ Sustainable Development Goals (SDGs) and Paris Climate Agreement.

The Fund, which is administered by New Venture Fund, was announced in October 2022 to help multilateral development banks’ (MDBs) unlock tens of billions of dollars in new development finance with little to no cost to shareholders and while safeguarding their financial integrity. Aligning assistance around the recommendations in the G20 Independent Review of MDBs’ Capital Adequacy Framework (CAF) report, its three areas of focus are

• • • 1) developing a better understanding of MDBs’ specific features to support better informed discussions about MDB’s risk management and shareholders’ risk appetite;
    • 2) promoting financial innovation and the development of new instruments, with an emphasis on risk transfers and securitization as a means to catalyze private investment; and
    • 3) improving transparency and access to information.

The latest round of projects will help accelerate the design and implementation of new ideas for MDB innovation and finance research to promote ways in which MDB’s unique resources can be maximized. With grants ranging from $140,000 to $750,000:

• Albert Ludwig University of Freiburg, a public research university located in Freiburg in Breisgau, Baden-Württemberg, Germany, will develop a new methodology for assessing concentration risk tailored to MDBs’ portfolio.

This aims to provide an alternative to the leading methodology currently in use (e.g. in S&P supranational ratings), which was designed for commercial entities, usually holding much larger portfolios, and can be considered overly conservative when applied to MDBs portfolios that are structurally concentrated but also have other specific features.

• Caribbean Development Bank (CBD), a regional financial institution, will explore new balance sheet solutions that would enable it to better cushion disaster-related shocks and to provide financing tailored to its members’ needs and challenges. The work on Climate Resilient Debt Instruments has to date predominantly focused on private sector creditors.

This project will build the evidence base for consideration of the introduction of climate-contingent loans into MDBs’ activities, accounting for MDB specific features and considering what additional support may be required to enable the implementation of such mechanisms at scale. A holistic balance sheet approach will consider innovation on both sides of the balance sheet, developing a framework replicable by other development banks. Lazard Frères has been retained as financial advisor to CDB to implement this project.

• FSD Africa, which is incorporated as a non-profit company limited by guarantee in Kenya and funded by the UK Government’s UK aid, will explore the potential for local currency solutions for MDB portfolio transfers, combining the objective of freeing up MDB capital with that of deepening domestic capital markets in smaller emerging markets.
• IDB Invest, which is the private sector arm of the Inter-American Development Bank (IDB) Group, will structure a securitization of a pool of its development related assets as a means of testing appetite and optimizing capital. The preparatory work will be designed with an eye towards building a new asset class and expanding and scaling the MDB investor base and by exploring options for greater standardization and collaboration between MDBs.
• Risk Control Limited, a UK-based firm specializing in developing and implementing risk management assessments for international institutions, will launch two projects. The first project will produce comprehensive analysis to support MDB’s efforts to develop markets in their own risk transfer mechanisms, creating a set technical and analytical tools for Balance Sheet Optimization.

The second project will aim to benchmark capital adequacy across MDBs to increase transparency for their shareholders, boards, and management, while providing metrics of credit standing that are alternatives to agency ratings.

• University of Leeds, a public research university in Leeds, West Yorkshire, England, will be investigating MDBs local currency practices, evaluating the scale of the risks and their determinants, and assessing current risk management frameworks, while testing whether the premise that these risks are currently overestimated by limiting the lending capacity of MDBs.

The six new grantees join the first recipients of funding, ODI and Publish What You Fund, which are working to rapidly develop research to improve understanding of MDBs’ callable capital and a system to track and boost MDB mobilization.

“The MDB Challenge Fund is designed to jump start MDB reforms. These grants should help financial institutions test methods to meaningfully increase their funding and impact, to enable MDBS’s to better confront the crises facing the world – especially climate change, energy, the food crises and debt.” said Mike Muldoon, Chief of Staff at The Rockefeller Foundation and former member of the independent panel commission by the G20 to conduct the Review of MDBs’ Capital Adequacy Frameworks.

“This grant is part of the Bank’s thrust to arrive at innovative solutions for development. Access and affordable financing is the key to resilient prosperity in our region,” said Dr. Hyginus “Gene” Leon. President of the Caribbean Development Bank.

“As political momentum around MDBs reforms continues to grow, the pool of projects supported by the MDB Challenge Fund will contribute to identifying innovative and concrete solutions to design development finance instruments that match the pressing liquidity needs of developing countries and help them implement a just and equitable energy transition,” said Laura Carvalho, Global Director of Equity at OSF.

“Meeting the development finance needs of today and tomorrow requires effective, collaborative, and innovative multilateral development banks, truly operating as part of a responsive system rather than as standalone, static actors. The MDB Challenge Fund is investing in this vision by seeding projects that fill key knowledge gaps and demonstrate deepened MDB capacity, collaboration, and impact.” said Kalpana Kochhar, Director of Development Policy and Finance at the Bill & Melinda Gates Foundation.

“FSD Africa is pleased to be selected among the beneficiaries of the MDB Challenge Fund. We have been at the forefront of innovation and are keen on supporting new ways of doing business to ensure finance works for Africa’s future. Leveraging on the grant FSD Africa intends to undertake detailed assessment and engagement with MDBs and other key stakeholders to curate an innovative approach to unlock MDB capital in a way that enhances efficiency, maximises impact and supports sustainable economic development in Africa,” said Mark Napier, CEO, FSD Africa.

“MDB loan portfolios typically consist of a small number of borrowers and hence are exposed to a significant amount of single name concentration risk. The granularity adjustment method currently applied by some rating agencies can, however, substantially overestimate this risk when applied to such small portfolios. In this project, we will develop a new approach that accurately measures name concentration risk in small and highly concentrated portfolios. A more precise measurement of concentration risk may lead to a significant reduction of capital requirements and hence increased lending capacity for MDBs.” said Professor Luetkebohmert-Holtz of the University of Freiburg.

JUNE 20, 2023

 

 

 

CDB to Build Internal Resilience Capacity in Borrowing Member Countries

CASTRIES, Saint Lucia, June 20, 2023

The President of the Caribbean Development Bank (CDB) Dr. Hyginus Leon has reaffirmed the Bank’s commitment to placing member countries on a higher and more sustainable welfare path by building Internal Resilience Capacity through refining the international development paradigm, building partnerships and strengthening policies.

Delivering the keynote speech at the Opening Ceremony of the 53rd Annual Meeting of the Bank’s Board of Governors in Saint Lucia on Tuesday, June 20, 2023, Dr. Leon said that the Internal Resilience Capacity “Trilogy” was part of the CDB’s commitment “to remain steadfast and single-minded in its aspiration to accelerate the pace of economic activity, close the gap to achieving the Sustainable Development Goals (SDGs) and fundamentally alter the Region’s development path.”

Recognising the challenges that Borrowing Member Countries (BMCs) faced over the last four years, Dr. Leon said the Bank had reimagined its approach to development and pivoted to promote a holistic systems approach, where productive and institutional capacity, environmental sustainability, social resilience, and financial affordability are seen as essential components of the evolution of the system.

“We need to measure better to target better. Let us agree we need to share to grow – sharing opportunities, burdens, and responsibilities. Let us agree we need a suite of instruments and affordable financing, with appropriate governance frameworks, and customise our varying needs and deliver on the promise of resilient prosperity for all,” said Dr. Leon, highlighting the key points of the Trilogy.

“Let us agree that the use of Gross National Product/Income (GDP/GNI) as a proxy for development is insufficient and therefore our usual set of policies to grow GDP will also be insufficient. Let us agree to advance the global development agenda by adopting beyond-GDP measures (like the UN’s Multidimensional Vulnerability Index as our guideposts,” he said.

“Accelerated sustainable development requires partnerships for development between the private sector, government, and the international community. We need policies and supporting instruments that are designed to drive fit-for-purpose investment activities, enhance implementation capacity for building resilience and increase access to adequate and affordable financing for investments,” said Dr. Leon.

The CDB disbursed USD 285.9 million in 2022, an increase of 12.2 percent. This figure comprised USD 180.7 million in loans and USD 105 million in grants. The Bank also committed an estimated USD 41 million of its own funds towards climate change initiatives and adopted a climate finance target of 25-30 per cent of its own resources towards climate change adaptation and mitigation by 2024.

Partnerships were a key highlight of Dr. Leon’s speech with the Bank President citing a new agreement with the Government of Italy, resulting in a USD 50 million soft loan for a Programme to Support Sustainable Development Projects in the Caribbean.

The CDB in partnership with the CARICOM Secretariat and OECS Commission, developed the Let’s REAP Programme to provide schools in BMCs with a roadmap to address the pandemic-related learning gaps and increase inclusion. This saw 2910 educators in Caribbean schools benefit from the REAP Programme while a further 175 special education teachers in St. Lucia benefitted from training on how to better respond to varied student needs and improve their quality of education. Efforts are also underway to establish a more robust architecture to address vulnerable countries’ Loss & Damage (L&D) needs, including through the Santiago Network and the new L&D fund that UNFCCC Parties agreed to establish at COP27.

The Bank was instrumental in interventions to increase climate resilience, trade and agriculture, including EUR 14 million from the European Union to implement the Caribbean Action for Resilience Enhancement (CARE) Programme and a further USD 9.9 million from the Adaptation Fund to implement the “Building Resilience for Adaptation to Climate Change and Climate Variability in Agriculture in Saint Lucia Project.” Key projects were also established in Suriname, Guyana, Bahamas, St Vincent and the Grenadines, and Belize.

“We will continue to build on these achievements and deepen our ambition for the road ahead,” said Dr. Leon.

Pointing out that unprecedented challenges brought on by crises such as the COVID-19 pandemic, existing economic and environmental vulnerabilities, and the war in Ukraine, led to sharp declines in output, and slowed the Region’s progress toward achieving the 2030 SDG target, while also contributing to rising debt and erosion of fiscal space, increased inequality, and poverty, Dr. Leon warned that the Caribbean was potentially exposed to further risk including fractures in the flow of capital, goods, services, and technology across borders could add to inflationary pressures, eliminate jobs and deprive people of food, medicine, and other essentials.

“Fragmentation could result in another supply side shock leading to sharper increases in prices and less output. These difficult circumstances have increased the development challenges in the Region,” he said.

Dr. Leon called on the continued, unwavering support of member countries as the CDB moves to introduce and execute novel and innovative approaches in its goal to remain true to its mandate of transforming Caribbean societies and commitment to safeguarding the vision of Resilient Prosperity.

“Our efforts alone will not take us over the finish line. The fate of the Region and the Bank are inextricably linked. When the Region succeeds, the Bank succeeds,” Dr. Leon said.

 

 

BBC World Questions TT forum

Energy Minister Stuart Young, joined economist Marlene Attz, Heroes Foundation CEO Lawrence Arjoon and Tabaquite MP Anita Haynes at the Central Bank Auditorium for the BBC World Questions TT with BBC royal correspondent Jonny Dymond.

Young thanked God for TT’s oil and gas economy. Former TT energy minister Kevin Ramnarine and UWI economist Dr Marlene Attz agreed that people are grateful and should be for the oil and gas economy as it has developed TT into what is visible today.

Earlier, the energy minister took a position on the local energy sector on international programme BBC World Questions, saying that, while meeting its goals for transitioning to clean energy and achieving net zero, the country still benefits greatly from having oil and natural gas as a means of energy security.

“One thing we should all learn from the Russian/Ukraine war last year is that a lot of developed countries are in a rush to restart coal plants. They didn’t have what we have. …Let us thank God we have an oil and gas economy.”

In March, the Ministry of Planning and Development began construction of a solar farm at Piarco International Airport. The Government also started work on a 112 MWac solar project at Brechin Castle and Orange Grove along with bpAETT (BP Alternative Energy) and Shell. The project is expected to produce approximately 300,000 MWh of green electricity per year. It is TT’s first utility-scale project.

Attz said, “We also have become very aware that our good fortune from the energy sector has in fact been volatile since 2015-2016, but I think that volatility has become more evident since 2019-2020. And the onset of the Russia-Ukraine war has heightened that volatility for us, so the government earned some extra revenue last year simply because the prices escalated.”

Despite the gratitude and the awareness of the positives petroleum brought to the economy, people must be mindful of the global shift from the dependency on oil and gas to renewable energy. Ramnarine said though TT will have to take the transition into consideration, it does not mean that the world will stop needing oil and gas.

“We need to prepare for the transition and we have been making the steps in renewable energy but .. a lot more has to be done.. legislation has to be brought to Parliament to amend the TTEC (TT Electricity Commission) and RIC (Regulated Industries Commission) acts to allow for net metering.”

Ramnarine explained that net metering will allow home-owners to generate power through solar panels or wind turbines who will be credited for power they add to the grid.

“I think the big revolutionary step that is required for TT to make the quantum leap, the exponential leap in renewable energy, is to allow for companies, malls and factories to self-generate electricity and that requires legislation and technology.”

TT also needs to consider wind as a renewable energy source. Assessments muist be conducted to determine the optimal location for wind turbines.

“.. this country also has to look at waste-to-energy because the Beetham landfill generates a lot of biogenic gas, methane, from the decay of organic matter and in the developed world, that is harnessed to generate electricity.”

TT must adjust its mindset as time has run out for implementing renewables.

Attz suggested that the government uses solar panels on homes erected under the Housing Development Corporation since it will set an example for the wider population.

“While we have countries like Barbados, our neighbour, where practically every household, business and certainly the hotels have solar-power water heating, you do not find that commonly in TT. So .. any new construction by the government should include… solar panels, so that there is an example coming from the top.”

Ramnarine added that the issue of developed countries asking developing countries to draw back on their oil and gas production must be addressed. While he understands the need for renewables, there is a moral aspect to look at in which developing countries can do more for themselves with the income that can be generated from oil and gas. He said oil and gas could be a country’s only way of coming out of poverty.

“So, the energy transition is a very complex thing and it’s not a one-size-fits-all solution, different countries have different economic and social realities and what might be the reality for Ghana will not be the reality for the US or the western European countries.”

People must have a deeper understanding of transition, a global phenomenon.

On arrival in the Bahamas for a high-level meeting with US Vice President Kamala Harris, the Prime Minister revealed that an investment of $20 million has been allocated to the US Agency for International Development to provide financial, technical assistance and business development services through the Caribbean Investment Programme to enterprises in renewable energy, energy efficiency and climate adaptation by mobilising private finance and private sector-led actions in TT.

State assets can lead the way with RE from solar and biofuel while cultivating trees on public lands, to sequester carbon , conserve water and stabilise slopes.

 

 

US regional forensic science centre to combat crime

One outcome of the Heads of Government of the Caribbean Community (Caricom) meeting in Nassau, Bahamas, was the USAI assistance for forensic capabilities with the establishment of a regional forensic centre in St Lucia.

The White House Fact Sheet on the event said, in order to bring the Caribbean up to international standards that will meet the International Organisation for Standardisation (IOS) accreditation, it will assist in establishing the forensic science centre.

“The United States will help establish a regional forensics Centre of Excellence in St Lucia in addition to continued support to forensic laboratories in The Bahamas and the Dominican Republic. The project will support the collection of timely, reliable, and admissible forensic evidence to support criminal investigations and prosecutions, increase efficiency and help lower case backlogs.”

The forensic science centre is part of a US$100m investment in the region to address crime and climate change. The centre project comes two months after US Ambassador to TT Candace Bond said between 2010-2023,  the US spent US$832 million on combating illegal guns in the region, at the closing ceremony of the three-day seminar on guns hosted by the Caribbean Basin Security Institute (CBSI) in April.

At the Bahamas meeting, US Vice President Kamala Harris announced that the US Department of Justice will create a position of Coordinator for Caribbean Firearms Prosecutions aimed at addressing gun violence in the region.

“Too many people in all of our countries are dying from gun violence. I will reiterate that our administration is committed to disrupting gun trafficking. We are committed to interdict shipments of arms and ammunition and hold traffickers accountable.”

The co-ordinator for Caribbean Firearms Prosecutions will maximise information to support the prosecution of traffickers. This is not the first prosecutorial assistance TT received from the US.

In March, National Security Minister Fitzgerald Hinds said TT will benefit from a special adviser recruited by the US to address human trafficking.

At a PNM rally on March 9, Hinds said: “We have negotiated that they send a special adviser to us on the business of human trafficking to work closely with our counter trafficking units and our working groups to assist us in meeting the standard of their laws to bring about more convictions in the court.”

The 2022 Department of State Trafficking in Human Report placed TT on the tier two watch list for human trafficking. The grade was given because compliance from officials in public office negatively affected the country’s ability to prosecute and convict human traffickers.

Harris said apart from the financial assistance, the region will have legislative support through the bipartisan Safer Communities Act, which US President Joe Biden signed last year. The law includes new federal criminal offences for firearms trafficking and straw purchases.

“In addition, through the US law enforcement agencies, we are supporting a recently established Caribbean Crime Gun Intelligence Unit (CCGIU) in Trinidad and Tobago to train officials in firearms investigations and help bring criminals to justice.”

The unit, established last year, is currently eight-members strong and will operate through the Caribbean Implementation Agency for Crime and Security (Impacs) funded by the US. The unit will collaborate with regional and international law enforcement agencies such as the Caribbean Community Implementation Agency for Crime and Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Customs and Border Protection, the Bureau of Industry and Security and INTERPOL.

A White House fact sheet stated the unit will “address critical firearms investigation training needs in the Caribbean” and help solve gun-related crime cases and deter gun crimes.

CCGIU will also provide training on real-time collection, management, and analysis of crime, gun intelligence and encourage information sharing with international law enforcement partners.

Corrupt police, military and other cosseted officials often turn a blind eye to crime in which they often participate, receiving generous budgets, with modern vehicles and equipment, unable to solve the simplest crimes while citizens cower daily in barricaded fortresses.

 

 

 

US invests over $100M to help the region

2023 06/09

As United States Vice President Kamala Harris arrived in The Bahamas, a wave of funding has been announced for the region, with over $100m in new assistance.  Prime Minister Dr Keith Rowley met Vice President Kamala Harrisin a high-level meeting in Nassau.

A recently established regional Crime Gun Intelligence Unit (CGIU) headquartered in T&T will be among the beneficiaries of an investment of over US$100 million by the United States that will be used to crack down on weapons trafficking, alleviate Haiti’s humanitarian crisis and support climate change initiatives.

Vice President Kamala Harris announced the investment y as she embarked on an official trip to the Bahamas for a meeting of Caribbean and US leaders hosted jointly with Bahamian Prime Minister Philip Davis. Prime Minister Dr Keith Rowley is among the regional leaders taking part in the meeting.

The CGIU facilitates collaboration and cooperation among regional and international law enforcement agencies, including the Caribbean Community Implementation Agency for Crime and Security; U.S. agencies including the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations (HSI), Customs and Border Protection, the Bureau of Industry and Security); and INTERPOL.

It will address critical firearms investigation training needs in the Caribbean to solve gun-related crime cases, deterring gun crimes and bringing criminals to justice. The CGIU will provide training on real-time collection, management, and analysis of crime gun intelligence and encourage information sharing with international law enforcement partners.

The US Justice Department will appoint a coordinator to oversee cases involving illegal weapons smuggling in the Caribbean where there has been a rise in violent crimes.  The US, with help from the UK, will establish a programme in the eastern Caribbean to mentor local judges and prosecutors in a bid to improve prosecutions of gun-related crimes as island nations struggle with a backlog of cases.

The State Department also expects to work with Haiti’s National Police, a severely underfunded and understaffed agency struggling to quell a surge in gang violence, to help investigate and prosecute crimes with US ties that involve gangs, weapons smuggling and human trafficking.

That initiative is considered key given that gangs are estimated to control up to 80 per cent of the Haitian capital of Port-au-Prince as killings and kidnappings soar across the metropolitan area and beyond.

US senior administration officials said the worsening security situation requires an international response, and that the US strongly supports the deployment of a multinational force to Haiti.

In October, Haitian Prime Minister Ariel Henry requested the immediate deployment of a foreign armed force, but the UN Security Council, along with the US and Canada, have yet to respond. Henry, along with other leaders of Caribbean nations, was expected to attend yesterday’s meeting with Harris.

US senior administration officials said discussion are ongoing, and that any decision about military force would be done in consultation with the U.N. and Haiti’s government.

Harris announced that the US Agency for International Development will invest nearly $54 million in Haiti to help fight a sharp rise in starvation and provide access to potable water and healthcare. Almost half of Haiti’s more than 11 million people are facing acute food insecurity, and 19,000 are in catastrophic famine conditions.

USAID also expects to invest $20 million to help Caribbean businesses that use technologies related to renewable energy and energy efficiency. Another nearly $15 million will be used to boost emergency response and preparedness across the region.

Additional funds will help low-lying island nations whose economies largely depend on tourism prepare and adapt to climate change.

 

 

The Bahamas

TT Prime Minister Keith Rowley held comprehensive discussions with US Vice President Kamala Harris. Supporting the Prime Minister at the Bahamas meeting is Foreign and Caricom Affairs Minister Dr Amery Browne who said the PM gave particular focus to the issues of regional security and regional energy security and spoke in the interest of all the people of the Caribbean Community as lead Head in Caricom for Regional Security matters.

Arising out of the Summit of the Americas meeting in Los Angeles last year, a structure was established to facilitate working contacts between the US and Caricom. Rowley co-chairs the Caribbean/US Energy Security Action Committee.

Vice President Harris announced a suite of initiatives aimed at bolstering co-operation between the US and the Caribbean. As it relates to security and firearms trafficking, the US will appoint an experienced prosecutor from the Department of Justice as a Co-ordinator for Caribbean Firearms Prosecutions. This co-ordinator will work to implement the provisions of the Bipartisan Safer Communities Act with its new criminal provisions on firearms trafficking and straw purchases.

A straw purchase or nominee purchase is any purchase wherein an agent agrees to acquire a good or service for someone who is often unable or unwilling to purchase the good or service themselves, and the agent transfers the goods or services to that person after purchasing them.

The US has also pledged support for the regional Crime Gun Intelligence Unit (CGIU) established in Trinidad and Tobago. The CGIU will facilitate gun intelligence sharing with international law enforcement partners, provide critical firearms and investigate training and assist the region with deterring and solving gun-related crimes.

Measures to develop financing in the Caribbean were also announced as the Inter-American Development Bank (IDB) Group shareholders have mandated that the bank should become more relevant and effective for Caribbean nations, by expanding private sector operations in the Caribbean.

A $20 million investment has been allocated for USAID to provide financial, technical assistance, and business development services through the Caribbean Climate Investment Program (CCIP) to enterprises deploying technologies in renewable energy, energy efficiency, and climate adaptation by mobilizing private finance and private sector-led actions.

Close to $15 million will be made available through USAID to support disaster risk reduction, emergency response capacity strengthening, and resilience building across the Caribbean.

VP Harris highlighted the progress thus far since the launch of the Partnership to Address the Climate Crisis 2030 (PACC 2030) in June 2022.

The US Department of State’s Power Sector Program is providing Trinidad and Tobago technical assistance for solar grid integration and regulation, renewable energy financial models and bankability, and capacity building to enhance grid resilience and climate adaptation.

 

 

TTPM to meet US VP, Caricom leaders

TT Prime Minister is in the Bahamas,accompanied by Foreign and Caricom Affairs Minister Dr Amery Browne, for a high-level meeting with US vice-president Kamala Harris and heads of Caricom governments. The Office of the Prime Minister said Harris and Caricom chairman, Bahamian Prime Minister Philip Davis will be co-hosts.

“The talks will build on the vice- president’s previous meetings with regional leaders last year at the Summit of the Americas in Los Angeles and in September 2022.”

Minister of Finance Colm Imbert will act as prime minister until Rowley’s return.

Rowley met Harris and Caricom leaders last September in Washington, DC, to discuss energy, finance and food security.

[The USA can end this costly circus and acquire these murderous states as Unincorporated Territories before their populations are massacred, as the murder toll breaks records. They can then be offered repatriation to resource-rich AU domiciles of origin, free from natural hazards of hurricanes, volcanoes and earthquakes. The cosmopolitan remnant can then be protected from totalitarian tyranny as they develop the economy.]

 

 

Caribcan arrangement extended to 2033

VISHANNA PHAGOO

Canada won approval from the World Trade Organisation (WTO) to extend the Caribbean-Canada trade agreement (Caribcan) until December 31, 2033.

TT Trade and Industry Ministry said Caribcan grants TT’s exporters access to over 38 million consumers in the Canadian market, a significant portion of which represents the TT diaspora.

With the Caribcan arrangement, Canada is now considered an important trading partner for TT, as seen by the increase in trade between the two countries.

In 2016, exports to Canada stood at $405 million and has since increased to $936 million in 2022. In 2021, TT was recorded as the single largest exporter to Canada among Caribcan beneficiaries, as 98 per cent of exports – methanol, rum and biscuits – entered Canada duty-free under the Caribcan arrangement, showing its importance in supporting export growth and diversification goals.

Caribcan is a non-reciprocal economic and trade development assistance programme offered to Commonwealth Caribbean countries and territories by the Canadian government since 1986. The agreement being non-reciprocal means Caribbean countries are not required to provide duty-free access to Canadian products but it allows for duty-free access into the Canadian market for most commodities from Commonwealth Caribbean countries, including TT.

The objectives are to enhance Commonwealth Caribbean trade and export earnings, improve trade and economic development prospects of the region, promote new investment opportunities and encourage enhanced economic integration and cooperation. The ministry is keen on increasing TT’s utilisation of the arrangement, and exporters are encouraged to employ the benefits of Caribcan to expand exports to the Canadian market.

To ensure that Caribcan remains available to countries like TT, Canada is required to periodically obtain a waiver from the WTO. In May, the WTO granted the waiver that would allow Canada to continue the Caribcan arrangement until 2033. The ministry expressed its appreciation to the government and people of Canada for their continued support to TT and other Caribcan beneficiary countries. Historically, trade began in the 18th century with Canadian exports of lumber and fish to British colonies, which led to the Canadian Presbyterian Mission to Indians in 1868 in Trinidad.

 

 

IMF- Aruba, Curaçao and Sint Maarten, Barbados & Dominican Republic

Country Report No. 2023/170 : Kingdom of the Netherlands-Aruba: Technical Assistance Report-Financial Stability Diagnostic and Scoping Mission

Summary: Aruba has a sizeable financial sector, dominated by commercial banks that are generally well capitalized and hold ample liquidity buffers. Within the context of a conservative business model, capital adequacy and liquid assets to total assets ratios have been around double the regulatory minima. Banks are profitable and before the pandemic the NPL ratio was at a moderate level. Due to the Covid-19 pandemic, the NPL risks increased, but have remained within acceptable ranges.

 

High Level Summary Technical Assistance Report No. 2023/005 : Curaçao and Sint Maarten: Report on the Financial Soundness Indicators
Author/Editor: Brian Kwok Chung Yee,Bidisha Das

Summary: The International Monetary Fund’s (IMF’s) Statistics Department (STA) provided technical assistance (TA) on financial soundness indicators (FSIs) to Centrale Bank van Curaçao en Sint Maarten (CBCS) during April 25–May 9, 2022.

The mission worked with the staff of the CBCS on the development of FSIs that are in line with the IMF’s 2019 FSIs Guide. The mission :

• (i) reviewed the institutional framework for collection and dissemination of FSIs data for both Curaçao and Sint Maarten;
• (ii) examined the source data, institutional coverage, and accounting and regulatory frameworks used in the compilation of the FSIs for deposit takers (DTs);
• (iii) assisted the CBCS in compiling FSIs for DTs on the basis of internationally accepted standards as set out in the IMF’s 2019 FSIs Compilation Guide (2019 FSIs Guide) separately for Curaçao and Sint Maarten with the aim of reporting to STA for dissemination;
• (iv)prepared the accompanying metadata for posting on the IMF’s FSI website;
• (v) assessed dataavailability to compile FSIs for other financial corporations (OFCs); and
• (vi) addressed some other issuesrelated to the FSIs compilation and reporting that the CBCS’s staff raised.

Barbados

IMF Executive Board Completes the First Reviews under the Extended Fund Facility and the Resilience and Sustainability Facility with Barbados

Dominican Republic

IMF Executive Board Concludes 2023 Article IV Consultation with the Dominican Republic

Country Report No. 2023/225 : Dominican Republic: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Dominican Republic

Summary: Supported by sound policies and positive spillovers, the Dominican Republic  has staged an impressive recovery from the pandemic, cementing its place as one of the most dynamic and resilient economies in the Western Hemisphere.

The strong recovery began moderating at the end of 2022 in response to tighter global financial conditions, lower global demand, and policy accommodation withdrawal, helping ease inflationary pressures.

The current account deficit widened in 2022 to 5.6 percent of GDP and was mostly financed by Foreign Direct Investment (FDI) flows, with the country maintaining sound market access. The financial sector appears well-capitalized, liquid, and profitable.