Caribbean Energy Chamber

2024, 03/03

First president of the Caribbean Energy Chamber, Eugene Tiah believes the T&T energy sector, viewed through the lens of the production of oil, natural gas and derived commodities such as LNG, ammonia, methanol, and smelted metals, is mature with clear signs of decline.

The challenge is in striking a balance between getting an acceptable rate of return for the people of T&T and providing an acceptable return to international investors, who have other options to consider. An acceptable rate of return is complicated as it is not just a single number.

“It varies based on riskiness of the investment etc. Companies use several factors to arrive at what is an acceptable rate of return considering the risk profile of the investment. For example, there could be a technical subsurface risk, there may be operational risks, there could be commercial risks.”

It is easy to take a “balcony commentary position” on such complicated matters and provide prescriptions.

“It is much harder to be on the playing field, in the heat of the competition, dealing with all the complications and trade-offs that must be considered in making long-term decisions and meeting contractual commitments.”

Tiah, who worked for Phoenix Park Gas Processors Ltd for 23 years, including 13 as president. highlighted the natural gas exploration projects that are advancing through the delineation, assessment, and development phases are further from shore in deep water, smaller and more marginal or are cross-border opportunities.

“All of these have their complexities that impact cost, value sharing, and getting to acceptable rates of return for all stakeholders to make the investments feasible.”

He further advised T&T that there is an incentive to produce oil while it can, rather than delay and find that it is no longer economical to produce.
Regarding the Supplemental Petroleum Tax (SPT), Tiah, a former chairman of the Energy Chamber, said he supported the view that the Supplemental Petroleum Tax (SPT) should be looked at to create greater incentives for exploration and production. Delving into the specifics of the SPT, Tiah described it as “quite complicated.”

“A reduction in SPT requires giving up tax revenue in the short term to hopefully get a similar or greater return arising from additional production which usually can only come from additional investment. The challenge is that additional investment doesn’t necessarily mean additional production.”

There is a risk that exploration may not yield any prospects that are worth developing. There is also the risk that producers will take short-term profits from the tax reduction and not make the additional investments required for additional production. This explains the slow and cautious nature of the government.

He advised that T&T’s tax structure must be considered in assessing its attractiveness/competitiveness relative to other locations.

“I fully support the continued dialogue which could ultimately result in changes that could be value-adding to both T&T and the investors particularly in the context of price volatility and the concerns regarding the rate of progress toward a lower carbon future.”

The Energy Chamber has long advocated that the SPT remains one of the mechanisms to stimulate more investment in existing acreage held under exploration and production licences through fiscal reform.

It has argued for years for amendments to the SPT to encourage investment in oil production in mature acreages and for changes to the Petroleum Profit Tax and royalties to encourage investment in gas, especially from small fields.

Regarding T&T’s energy sector in a broader sense, Tiah noted that the policymakers and technocrats are aware of the actions that can be taken to incentivise investment in exploring, developing, and producing new resources considering the reality that straightforward fields have already been developed and are producing or depleted.

Regional energy security is also national security so it behooves the region to cooperate in a more united way given that international geopolitics often disproportionately affects the region. The CEC is “a formal but informal mechanism” that allows the region to meet energy stakeholders more frequently to address energy issues.

“The objective is to understand as a region where we are and then to enable tangible actions to move the energy security agenda forward.”

On fragmentation amongst Caribbean countries to achieve energy security in the region, Tiah said there are many different and good dimensions of work on energy security taking place. However, he indicated that while there is some cooperation, no entity brings all the energy stakeholders together on a consistent and sustained basis to develop the full energy security picture.

The CEC aims to address this and work on an already developed roadmap to move affordable net zero energy security forward for the Caribbean. Countries need more coordinated dialogue to close such gaps to create unison for energy security.

“That is why CEC is encouraging wide application for membership from all the various sectors since a significant part of the value of CEC is derived from the membership having a voice in defining what priorities should be addressed at a pan-Caribbean level by the CEC.”

Some Caribbean countries are more advanced with their national policies and enabling regulations for the incorporation of renewables in specific technologies. Jamaica with solar and wind resources and Barbados with solar resources, present the opportunity to adopt or adapt what has been developed, thereby avoiding the wastage of resources in replicating what is available.

The Caribbean is faced with major issues of climate change and global conflict, which directly or indirectly affect the region and hold significant importance.

“Climate change has a disproportionate impact on the Caribbean and requires global collaboration to address its effects. Additionally, geopolitical tensions outside the Caribbean, especially recent conflicts resulted in soaring food and energy prices, underscoring the volatility of the global market.”

The CEC is optimistic about the collaboration within the Caribbean and between the Caribbean and the global community, highlighting the importance of recognising differences while focusing on shared values. There is a role for an entity like the CEC to enable, on a consistent and sustained basis, more dialogue and collaboration at a working level to advance at a more rapid pace actions related to the transition to a lower carbon future (net zero), energy security and affordability and resilience of energy systems.

“This is what inspired me to be part of the founding board of CEC.”

Established in St Lucia, the CEC is less than a month old . However, there are already pan-Caribbean board members and board members from Barbados, Dominica, Stt Lucia, and T&T. CECy is in the process of recruiting other board members from other parts of the Caribbean.

 

 

 

Jamaica -World Bank

2024, 03/15

The World Bank approved an investment project to expand coverage and improve the delivery of social protection system, expected to benefit over 290,000 people. The Washington-based financial institution said Jamaica was hit hard by the COVID-19 pandemic, with Gross Domestic Product (GDP) plummeting by 10 per cent between 2019 and 2020, followed by widespread job losses and declines in labour earnings.

“Although employment indicators are showing signs of improvement, challenges persist in employment quality,” the bank said, adding that labour disparities for vulnerable groups, including women, youth and persons with disabilities, also worsened during this time and the impacts of rising food and fuel prices, along with climate-related events, were felt by many.

“We are committed to supporting Jamaica’s efforts to strengthen its social protection system. This new project will provide vital assistance to vulnerable workers and households in Jamaica, while also laying a foundation for a stronger, more effective, and shock-responsive social protection system for the future”, said Lilia Burunciuc, World Bank Country Director for the Caribbean.

Jamaica has established a well-developed social protection system in recent years but the system still faces challenges. The e current National Insurance Scheme covers a broad range of risks but does not include unemployment, “leaving workers unprotected in the face of sudden job loss”.

The Jamaican social protection system also has limited capacity to connect job seekers with employment opportunities and has an outdated delivery system. The World Bank said its Social Protection for Increased Resilience and Opportunity Project aims to address these issues through interventions, including supporting the establishment and implementation of an unemployment insurance benefit to protect workers from job loss.

This will serve as a safety net for workers and their families, especially during shocks. The project will contribute to strengthening employment services by enhancing Jamaica’s Labour Market Information System, offering offline and online services -such as job counselling, job matching algorithms, video interviewing, and more – including for people with disabilities.

The expanded service provision is expected to reach more job seekers across the country. The project will further support development of an “integrated, interoperable and risk-informed social protection information system that will revolutionize the implementation of social assistance programs in Jamaica”.

Among those the project will benefit, over 155,000 will be women. Beneficiaries will include formal workers, as well as vulnerable job seekers, such as informal workers, people with disabilities, women and young people.

 

 

 

 

Suriname- World Bank

2024, 03/19

World Bank Regional Vice President, Carlos Felipe Jaramillo, paid a working visit to President Chandrikapersad Santokhi, the first time the senior vice president for Latin America and the Caribbean has visited the Dutch-speaking Caribbean Community (CARICOM) country.

“We are impressed with how Suriname is gradually emerging from the debt crisis. Many good decisions have been made. Difficult decisions, sometimes painful, but necessary to bring the situation under control and stabilize the economy,” said Jaramillo.rld Bank announced more aid for Suriname, while also providing access to funds from the International Development Association

The Wo (IDA). If the process to become a member of IDA is completed successfully, the country can count on a long-term soft loan of US$22.5 million.

“My visit is also to take the World Bank’s support to Suriname to the ‘next level’ That’s why the most important announcement today is, we are pleased that Suriname is being granted access to the concessional arm of the World Bank, the IDA,” Jaramillo said.

The World Bank is already financing a number of projects in infrastructure and entrepreneurship, such as the clean-up of the Saramacca Canal and favourable loans for small to medium-sized entrepreneurs to increase production. Finance and Planning Minister, Stanley Raghoebarsing, said the IDA is one of the agencies of the World Bank and is accessible to countries in vulnerable positions.

“These were usually island states or small states with major risks. That is our country. We have applied for IDA and it is being processed for approval. When approval comes – we expect it in July – it will mean that US$22.5 million will be available for the first year on very soft terms,” he said, noting that these are ‘concessional’ loans: long-term loans with very low-interest rates.

President Santokhi indicated that the funding will be used for the community and it is time the society begins to experience the stability of the economy.

PARAMARIBO, Suriname, Mar 19, CMC

 

 

 

Noble hires Blue Water to Suriname ops

MARCH 12, 2024, BY MELISA CAVCIC

Blue Water Suriname, part of the Denmark-headquartered transport and logistics solutions provider Blue Water Shipping, wasn hired on a logistics contract by offshore drilling giant, Noble Corporation.

The deal with Noble, which covers customs brokerage, local logistics services, domestic transport, and personnel services for the Noble Voyager drillship, will enable Blue Water to support the offshore drilling player’s operations in Suriname.

The drillship started an exploration campaign north of the capital Paramaribo in February 2024, after it won a one-well contract, plus one option well, with Petronas. This deal has an estimated firm duration of 130 days excluding the extension option.

 

 

 

ExxonMobil, PETRONAS to explore, develop Suriname discovery

March 05, 2024

(WO) – State-owned oil and gas company Staatsolie Maatschappij Suriname N.V. signed a Letter of Agreement (LoA) with PETRONAS and ExxonMobil, on  March 4, 2024 for further exploration of the natural gas discovery made in 2020 with the Sloanea-1 exploration well in Block 52.

The LoA was signed by Datuk Adif Zulkifli, Executive Vice President & CEO Upstream of PETRONAS, Paul Riley, Branch Manager of ExxonMobil Exploration and Production Suriname, and Annand Jagesar, Managing Director of Staatsolie. (Source: Staatsolie)
PETRONAS made a natural gas discovery in 2020 in Block 52 offshore Suriname. This involved a small quantity that was initially seen as commercially unattractive to develop into a production field.

The development of an offshore gas field is more challenging and complex to explore in technical and economical perspective than an offshore oil field. Intensive discussions in recent years to further explore the Sloanea-1 natural gas discovery led to the LoA.

This document broadly sets out the agreements, principles and conditions to further investigate and increase the feasibility of the development of a commercial natural gas field in Block 52. The LoA serves as a basis for further negotiations for an addition, a so-called ‘Gas Addendum’, to the production sharing contract (PSC) for Block 52 signed in April 2013. The PSC contains detailed provisions for the development of an oil discovery into a production field.

In the event of a natural gas discovery, the PSC prescribes that parties will have to negotiate a ‘Gas Addendum’. This addition to the production sharing contract will establish the procedures and conditions under which Block 52 partners PETRONAS and ExxonMobil can assess the natural gas discovery and subsequently develop and produce it.

PETRONAS will drill the Sloanea-2 appraisal well starting in April 2024. A production test will also be carried out. The drilling platform is now drilling the Fusaea-1 exploration well in Block 52 and already drilled the first part of the Sloanea-2 well in February.

For PETRONAS and ExxonMobil, the LoA is therefore important to proceed with the Sloanea-2 well. After the Sloanea-2 appraisal well has been drilled, it will be determined whether a commercial gas field is feasible. If so, first natural gas production would be around 2031 at the earliest, taking into account the construction time of the production installations.

A possible commercial natural gas field will be developed via an “FLNG project”. FLNG (Floating Liquefied Natural Gas) means that the gas is extracted from a floating production platform, liquefied and stored for transport by gas tankers.

President Ali and the BBC

2024, 04/01

Conscious of historical development in the Caribbean Basin by the industrial world, Guyana’s President Irfaan Ali responded with distinction, to BBC Hard Talk host Stephen Sackur inquiries about environmental pollution through the production and use of its offshore hydrocarbon resources, blamed for overheating of the atmosphere.

President Ali asserted that the ‘North’, starting during the 18th century Industrial Revolution, and spanning the world thereafter, brought environmental disaster on the world of today, endangering attempts to limit heating of the environment to the 1.5-degree level since the Industrial Revolution.

President Ali showed his understanding of the threats and the responsibility of all nations to keep their expulsion of dangerous gasses into the atmosphere within limits. He let the audience know that his country left thousands of miles of its vast interior free from intrusion, contributing significantly to the production of oxygen and the expansion of biodiversity. The President made it known that his country is a net producer of clean air and oxygen.

 

 

EU Envoy declares Guyana safe for investment

March 24, 2024

During organisation of the first trade mission, (EU) Ambassador to Guyana, René vas Nes said that investors interested in capitalising on the many opportunities in Guyana expressed concerns regarding the safety of the country. In 2023, an array of European companies travelled to Guyana on the inaugural EU Global Gateway Economic Mission, to explore possible business endeavours.

Ambassador Rene van Nes told the opening of the Regional Security System (RSS) Council of Ministers’ Meeting,

“Safety and security are obviously key considerations in making investment decisions and thanks to your dedication and professionalism, we can answer that question positively,”  emphasizing the link between economic and social development and security.

The government has embarked on a strategic mission to enhance safety and security to attract foreign direct investment from multinational corporations to boost Guyana’s economy and increase innovation. Billions of dollars have been invested yearly to bolster the capabilities of the Guyana Police Force (GPF), Guyana Service (GFS) and Customs Anti-Narcotics Unit (CANU) among other integrated agencies.

The Ambassador told the gathering of security ministers, military and police chiefs from member states, and other international partners, of the EU’s continued support to the RSS, including Guyana, in bolstering law enforcement.

“It’s a constant battle e.g., organised crime purchasing the newest technology and law enforcement trying to stay ahead of them … what is happening here in the Caribbean region has an impact on the region at large and has an impact on Europe … and therefore it can’t be a surprise that [the] European Union is a proud supporter of the RSS.”

These include EL PAcCTO (Europe Latin America Programme of Assistance against Transnational Organised Crime) – initially a programme for Latin America and now being rolled out to the Caribbean region.

“In Latin America, it was a highly successful programme and I have no doubt that the roll out to the Caribbean will be as successful.”

Other programmes include the Latin America Caribbean Cyber Competency Center, Global Illicit Glows Programme and the Latin American and European Union concerning Drug Policies (COPOLAD).

“Organised crime, drugs, cybercrime, all these undermine the very foundation of societies and indeed the core principles of the EU human rights democracy and the rule of law. The EU is therefore committed to pursue these values, increase cooperation with our member states through its support to the RSS and to our wider security-related programmes.”

 

 

Environmental concerns in court

 

Sunil Sookraj, chairman of the Environmental Commission of TT, said justice for environmental matters can be won in the court, said, At the launch of the EnviroRightsTT inception workshop on March 21, representatives from the Caribbean Natural Resources Institute (CANARI), Environment Tobago, the European delegation to TT and the Ministry of Planning met in Belmont to discuss the implementation of the new initiative.

EnviroRightsTT hopes to build civil-society capacity to access information, participate in policy-making and access justice in environmental matters in TT.

The initiative is a partnership between CANARI, Environment Tobago, the Ecuadorian Institute and international partners the Parliamentarians for Global Action and the Environmental Law Alliance Worldwide.

“The Environmental Commission is a superior court of record. It is a specialised environmental court and it is a court that is available to the citizens of TT. People should seek to access these courts,” Sookraj said.

Civil society has been an important sector in TT and would need to get involved in the effort to combat climate change.

“I recognise that for many the environment may not have always been a priority, but we are all experiencing the damage to the environment and changes to the world’s climate. We all recognise that TT is a small island developing state which makes us very susceptible and vulnerable to the effects of climate change. With the changes that have been occurring, which have been happening at a rapid rate, it is necessary for us to adapt strategies as well while we change the way we interact with our environment.”

Nicole Leotaud, executive director of CANARI, noting that a sustainable environment was recognised as a human right by the UN General Assembly, urged the TT government to include it as a constitutional right.

“Protecting this right requires effective environmental governance, particularly to ensure transparency participation that is meaningful in decision-making and accountability. This requires that we protect people’s access to information, the right to participate in decision-making and the right to access justice if they feel they have been wronged in an environmental matter.”

Peter Cavendish, ambassador to the European delegation to TT, said decisions on environmental matters need to be based on facts.

“We know the origin of these problems. We need facts. We are leaving a mountain of debt and a mountain of pollution for our children. The least we could do is be intellectually honest, get the facts and start the process of saving the planet.”

 

 

 

Caricris ratings for NGC

2024, 03/23

Rating agency Caribbean Information and Credit Rating Services Ltd (Caricris), reaffirmed the ratings assigned to the US $400 million debt issue of the National Gas Company of T&T Ltd (NGC) of CariAA (foreign and local currency) on the regional rating scale, and ttAA on the T&T national rating scale.

These ratings indicate that the level of creditworthiness of this obligation, adjudged in relation to other obligations in the Caribbean and within T&T, is high. CariCRIS also assigned a stable outlook on the ratings, premised on the expectation of continued good financial performance by NGC over the next 12 to 15 months, albeit at lower levels.

The company’s profitability is expected to be tempered by lower energy prices, as global supply is anticipated to increase, notwithstanding lingering geopolitical tensions. NGC is expected to maintain strong debt protection metrics going forward. Ratings continue to reflect the company’s strategic importance to the domestic energy sector and the Government.

“Improving prospects for gas supply from strategic alliances also bolstered the ratings supported by NGC’s good financial performance underpinned by increased revenues due to higher energy commodity prices in 2022.  Continued low gearing and robust debt protection metrics also continue to support the NGC ratings.“

These rating strengths are, however, tempered by the company’s high vulnerability to a changing energy landscape characterised by volatile energy prices

 

 

 

 

CARIRI, COSTAATT agree on innovation

2024, 03/20

The Caribbean Industrial Research Institute (CARIRI) and the College of Science, Technology and Applied Arts of Trinidad and Tobago (COSTAATT) signed a Memorandum of Co-Operation (MOC) to establish a strategic partnership focused on science, technology, and innovation (STI)-driven programmes for entrepreneurial development.

The signing ceremony at CARIRI’s Office in St. Augustine was led by Dr Keith Nurse, President of COSTAATT, and Hans-Erich Schulz, Chief Executive Officer of CARIRI. This landmark agreement signifies a commitment to fostering a new generation of entrepreneurs and innovators in Trinidad and Tobago.

The key pillars of the MOC include:

• • o Collaborative Programme Development
  • o Joint Internship and Mentorship Programme
  • o Knowledge Sharing Initiatives.
  • o Support for COSTAATT Initiatives
  • o Research Collaboration.

CARIRI said, “This strategic partnership is a significant step towards building a robust innovation ecosystem in Trinidad and Tobago. By combining COSTAATT’s academic excellence with CARIRI’s industry experience, the collaboration will equip graduates with the necessary skills and knowledge to thrive in the global marketplace. Both entities will work together to elevate the significance of STI in driving national and regional economic progress, while actively seeking avenues for joint project delivery and sustainable programme implementation.”

Schulz expressed his pleasure at the signing of this MOC and stated that “we are thrilled to formalize this partnership with COSTAATT, marking a significant milestone in our shared commitment to advancing innovation and excellence in Trinidad and Tobago. Together, we look forward to leveraging our strengths and expertise to drive transformative change and empower the next generation of leaders in science, technology, and innovation.”

Nurse noted, “This agreement is a game-changer. We’ll co-create programmes that equip our graduates with the future skills and the drive to not just be brilliant minds, but successful business leaders – a potent force, poised to disrupt and dominate their chosen fields.”

 

 

 

Sirju-Ramnarine, new president of NGC Green

2024, 03/20

Toni Sirju-Ramnarine is the newly-appointed president of NGC Green, effective April 15.

Former vice-president of corporate operations and transformation at Atlantic LNG Toni Sirju-Ramnarine has been appointed as president of NGC Green Company Ltd, a wholly-owned subsidiary of the National Gas Company (NGC).

Sirju-Ramnarine comes to NGC Green with a 30-year career in the energy sector where she built a reputation for leading transformation, developing local talent and achieving excellence through high performance. As president, she will lead NGC Green’s strategic focus on clean energy and energy efficiency initiatives including T&T’s first industrial-scale, solar farm project, a partnership with bpTT and Shell in which NGC has 30 per cent equity.

NGC’s chairman Dr Joseph Khan, said, “As you would be aware, we took a strategic decision to expand the operations of NGC, CNG and renamed the company NGC Green Company Ltd, a reflection of NGC’s increasing commitment and investment in the energy transition and climate action. We believe our investment in clean energy and energy efficiency to be equally important as our focus on natural gas as a transition fuel.”

NGC is excited to have Sirju-Ramnarine in the NGC group as “Her distinguished track record of high performance and delivery, especially in the areas of sustainability, transformation, and technology, align with our values as we transition to a clean energy future.”.

NGC Green Company Ltd institutes a cleaner energy future through investment in low-carbon fuels, energy efficiency, sustainable transportation, and associated research and development. Key focus area is on strategic investments in vital decarbonisation projects and technologies, transportation (CNG, electric vehicles, alternative fuels such as hydrogen and methanol), renewable and low-carbon energy (solar, wind, LNG, biogas), energy efficiency (SuperESCOs, education programmes) and research and development.

NGC Green aims to expand its reach into the wider Caribbean region. Leveraging existing capabilities, the company envisions collaboration with regional partners to accelerate the “Green Agenda” and promote sustainable energy practices.

Internationally, NGC Green aims to fulfil targets that support the following targets by 2030.

The NGC Green Ltd aims to implement projects to capture around 1.2 gigatonnes of CO2 by 2030 and by the end of this decade the company must make deforestation a net-zero activity.

 

 

 

Europe Commission

2024, 03/17

European Commission Director for Latin America and the Caribbean, Félix Fernández-Shaw visited T&T in late January for less than 24 hour, his schedule packed with meetings with different stakeholders.

The aim was to address the most pertinent challenges facing the country in the 21st century. His arrival was preceded by similar visits to other islands across the region. His trip was more than a show of Europe’s interests in this corner of the world.

Instead, it meant to continue building on the third EU-CELAC (European Union and the Community of Latin American and Caribbean States) Summit which took place in Brussels, Belgium last July.

Key priority areas included energy transition, national security, digitisation and trade relations across the Atlantic. Of particular interest to Fernández-Shaw is the Caribbean’s thrust towards greener economies.  Energy transition is a key talking point with the associated cost.

It is a point of reference that dominated his trip. Citing the Global Gateway Investment Agenda, he pointed to T&T’s transition to renewable energy but was quick to add, “This costs money. It takes investments. It takes technology. It takes risks. People have to come here with their technology and risk capital to work on technology we’re all experimenting with.”

This is where the Spanish diplomat hopes the European Commission can play a major role as the middleman that encourages European businesses to invest in T&T’s energy transition.

He spent 10 days in the Caribbean exploring how European investors and governments are working together to promote these transitions.

“We looked at problems they have. How can we, from the public side of Europe, unlock those investments? Because these are risky investments, new technologies. We don’t know how societies will respond to them.”

Apart from how societies will respond to the energy transition, the Caribbean carries with it its own challenges. Fernández-Shaw is well aware of them and cited the structural issues, the size of the market and the fragmentation of the market.

“Investors tell me it takes them the same effort in terms of human resources and work to build a gigantic plant in Brazil and a Trinidad-sized plant in the Caribbean. It takes the same amount of work, but the yield and the benefits are completely different, so I’m here to push European investments to come to the Caribbean. These are not going to be the big global companies but there are plenty of midsize companies that are already working in the Caribbean.”

While the Caribbean is “well positioned” in terms of attracting investment, he admitted there is work to be done to successfully green the economy.

“There are a certain number of energy markets, electricity market reforms that need to happen.”

He cited Europe’s liberalisation of the electricity market two decades ago. “It’s difficult to do that when you are a group of islands because it is difficult to liberalise. Nevertheless, we find that a whole conversation between governments, energy utilities, and investors needs to happen because there is always a transition and in that transition, there is financing, regulations, investment and technology.”

He pointed out moving the production of electricity from fossil fuels to renewables and the costs associated with that change.  T&T produces its electricity from natural gas, now in short supply.

Fernández-Shaw also said part of greening the economy is looking at jobs of the future. Two problems when investing in green alternatives are the financial risk and having a workforce that can develop the business and technology.

“If you’re going to green your economy, in the next 20 years, you are going to need to have technicians that work all along the value chain on sustainability assessments, electricians, people that manage power plants, people that manage the software that goes with it, people that do feasibility studies, all these kinds of things bring jobs.”

Greening the economy will mean greening the entire ecosystem that goes with it including the manufacturing sector. It’s why Fernández-Shaw says it is imperative to train people to be equipped for those jobs. He says they are willing to work along with the government and investors to organise vocational training for those wanting to work in those areas.

Another key aspect of cooperation is the development of the green hydrogen sector.
T&T is the largest exporter of hydrogen-related products to the European Union (EU).
The EU is T&T’s second-largest trade partner.

In July last year, according to the UN COMTRADE database, of T&T’s exports to the EU of US$5.88 billion, mineral fuels, oils, and distillation products alone accounted for almost US$4 billion. Inorganic chemicals, precious metal compounds and isotopes ran a distant second at US$684 million and organic chemicals rounded out the top three exports at approximately US$639 Million. Fertilisers were T&T’s fourth largest export at almost US$440 million.

Fernández-Shaw believes T&T has all the necessary resources for a successful hydrogen sector.  “Me being a lawyer, all the engineers laugh when I say, when you have to produce green hydrogen, you need water, wind or sun and you need an industry. You have here all those things. The most costly part of that effort is the industry, which you have.”

One of the main efforts both the Government and the EU are looking for is how the country can continue producing hydrogen in Trinidad “but we slowly go from grey to green.”

He asked what is the new type of renewable energy source that adapts.
“Is it solar? Is it wind? Is it geothermal? We’ve worked with the government on analysing the wind in the southern canal between Trinidad and the continent, there is the enormous potential of wind capacity there to produce the renewable energy to power a hydrogen-producing plant,” Fernández-Shaw said.

On Europe’s renewed interest in this part of the world post-pandemic, he said, “We need to be supportive because the Caribbean is widely affected by climate change because the structural problems the Caribbean has are very difficult to surmount without a bit of support.

If you start looking at the possibility for the Caribbean to power its own future, all you need is sun, water, wind and industry. T&T has the industry, the rest of the Caribbean has sun, water and everything.

This could be a fantastic way to make the Caribbean power independent.”

It makes little sense for Europe to “green itself” while the rest of the world goes in another direction.    For now, he heads back to Europe to try to convince investors that T&T’s enormous potential in green energy can become a reality with an injection of capital in the twin-island nation.

 

 

 

Jamaica

IMF Executive Board Concludes 2024 Article IV Consultation and Second Reviews

Under the Precautionary and Liquidity Line and Under the Resilience and Sustainability Facility Arrangements with Jamaica

Washington, DC: February 28, 2024

https://www.imf.org/en/News/Articles/2024/02/28/pr2461-jamaica-imf-executive-board-concludes-2024-article-iv-consultation-second-reviews-pll-rsf?cid=em-COM-789-47993

The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] and Second Reviews Under the Precautionary and Liquidity Line and

Under the Resilience and Sustainability Facility Arrangements with Jamaica.

Over the last years, Jamaica has successfully reduced public debt, anchored inflation, and strengthened its external position. It has built a strong track record of investing in institutions and prioritizing macroeconomic stability, which allowed Jamaica’s response to recent global shocks to be prudent, agile, and supportive of growth.

After two years of rapid post-pandemic recovery, GDP growth is projected at 1.7 percent in FY2023/24, with tourism well above pre-pandemic levels and unemployment falling to a record-low of 4.5 percent by mid-2023.

Inflation is converging to the Bank of Jamaica’s target band, though it was recently impacted by an increase in transport prices, whose effects are expected to dissipate towards the end of the year.

Projected strong tourism inflows are expected to result in a current account surplus for FY2023/24 supporting a sound international reserves position. The financial system is well capitalized and liquid, and the public debt continues to fall.

The outlook points to sustained growth and inflation falling within the Bank of Jamaica’s target range amid sound external and fiscal positions and financial system stability.

Nonetheless, global risks remain high. A rise in global risk aversion may increase financing costs and lower projected global growth, and regional conflicts could increase global commodity prices.

Finally, climate-related events could weaken economic activity. The Jamaican authorities continue to implement sound macroeconomic policies, aided by strong policy frameworks. Supported by buoyant revenues and strict control of non-wage spending, a prudent fiscal stance continues to support a reduction in public debt towards the target in the Fiscal Responsibility Law.

The Bank of Jamaica has maintained an appropriately tight policy stance, and its data dependent monetary policy is countering the inflationary impulse from a strong economic recovery, tight labor markets, and global commodity prices. This policy mix is placing Jamaica in a good position to respond to shocks, counteract inflationary pressures, and secure debt sustainability.

Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair of the Board, issued the following statement:

“Jamaica has continued to build a strong track record of investing in institutions and prioritizing macroeconomic stability with support of the Precautionary and Liquidity Line and the Resilience and Sustainability Facility Arrangements.

“Sound fiscal and external positions, entrenched macroeconomic stability, and sound policy frameworks continued to support economic growth and a prudent and agile response to global shocks. Inflation is converging to the target and a sustained downward trajectory of public debt and reserve accumulation are enhancing Jamaica’s capacity to face adverse shocks. The authorities also remain committed to SDDS subscription.

“Progress to enhance fiscal policy frameworks has continued, including the operationalization of the Fiscal Commission, the wage bill reform, public debt management, and tax and customs administration reforms. Going forward, efforts to improve the quality of public expenditure and public financial management can further improve policy frameworks.

“The authorities have taken decisive steps to improve the effectiveness of the AML/CFT framework and intend to build on this progress going forward. Efforts continue to improve financial policy frameworks, advancing in the adoption of Basel III, enhancing consolidated supervision, and working to strengthen the resolution regime of financial institutions. Going forward, policy frameworks would benefit from gradual adoption of reforms to capital flow measures and further deepening of FX markets.

“The authorities are advancing their ambitious climate policy agenda to increase resilience to climate change and catalyze climate financing. Recent reforms include steps to establish a natural disaster reserve fund, strengthen climate-related elements in public investment management, and enhance the climate risks assessment in the financial system to embed these risks into supervisory activities.

Going forward, continued efforts to build resilience to global shocks through prudent policies and reforms to tackle supply-side constraints and raise productivity can further unleash Jamaica’s potential and foster inclusive growth over the medium term.”

Executive Board Assessment [2]

Executive Directors agreed with the thrust of the staff appraisal. They welcomed Jamaica’s strong policy frameworks and institutional reforms, which had led to substantial improvements in public debt, international reserves, and macroeconomic stability, and supported a post-pandemic rebound in growth alongside declining inflation and unemployment. Noting the strong program performance, they supported the completion of the second reviews of the Precautionary and Liquidity Line (PLL) and Resilience and Sustainability Facility (RSF) arrangements and the associated decisions. They agreed that Jamaica continues to meet the PLL qualification criteria.

Directors noted the positive medium-term outlook subject to risks from tighter global financial conditions, lower global growth, higher commodity prices, and natural disasters. They supported ambitious reforms to unlock growth potential and strengthen resilience to shocks.

Directors concurred that a data-dependent monetary policy stance is warranted given upside risks to inflation stemming from demand pressures, tight labor markets, and deepening geoeconomic fragmentation.

Directors commended the authorities’ continued progress in reducing public debt through prudent fiscal policies and proactive debt management. They welcomed the independent Fiscal Commission, which will further strengthen the fiscal framework.

While supporting the wage bill reform, which would standardize pay structures and help retain skilled workers, they emphasized the need to avoid crowding out priority non-wage expenditures and to continue to improve public financial management and expenditure efficiency to ensure consistency with the Medium-Term Fiscal Framework. Directors positively noted the ongoing tax and customs administration reforms to support revenue mobilization.

Directors welcomed progress with adoption of Basel III standards, and efforts to strengthen consolidated supervision, enhance the resolution regime of financial institutions, and expand the central bank’s supervisory perimeter. They commended decisive steps addressing deficiencies in the AML/CFT framework and encouraged the authorities to build on this progress. Directors encouraged further efforts to deepen FX markets and noted the central bank’s efforts to expand digital currency use.

Directors advocated reforms to foster productivity and build resilience to shocks, including steps to improve competition and resource allocation, strengthen education and training, upgrade infrastructure, reduce crime and barriers to trade, and close gender gaps. Social policies could benefit from enhanced targeting. Improving data availability will benefit evidence-based policymaking.

Directors encouraged progress on the climate agenda to build resilience, transition to renewables, prepare the financial system to monitor risks, and catalyze climate financing.

It is expected that the next Article IV consultation with Jamaica will take place on the standard 12-month cycle.

 

 

 

Belize: Staff Concluding Statement of the 2024 Article IV Mission

Washington, DC: February 27, 2024

https://www.imf.org/en/News/Articles/2024/02/27/cs22724-belize-staff-concluding-statement-of-the-2024-article-iv-mission?cid=em-COM-789-47993

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. 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 Executive Board for discussion and decision.

Washington, DC: An International Monetary Fund team led by Jaime Guajardo conducted discussions for the 2024 Article IV consultation with Belize during February 12-22.

The team met with Mr. John Briceño, Prime Minister; Mr. Christopher Coye, Minister of State; Mr. Joseph Waight, Financial Secretary; Mr. Kareem Michael, Governor of the Central Bank; and other senior government officials, representatives of the opposition, and private sector.

Recent Developments, Outlook, and Risks

Belize’s economy has continued to perform well. After growing strongly by 17.9 percent in 2021 and 8.7 percent in 2022, real GDP is estimated to have continued to grow robustly by 4.5 percent in 2023 led by the expansion of the tourism, construction, retail and wholesale trade, transport, and business process outsourcing sectors.

As a result, real GDP was 16 percent above pre-pandemic levels in 2023 and the unemployment rate declined from 14 percent in 2020 to 3.4 percent in 2023.

The fiscal position also strengthened. Public debt fell from 103 percent of GDP in 2020 to 66 percent in 2023, driven by strong nominal GDP growth, a substantial improvement in the primary fiscal balance, a debt for marine protection swap with The Nature Conservancy, and a discount in Belize’s Petrocaribe debt with Venezuela.

Real GDP growth is projected to moderate going forward. Growth is projected at 3.5 percent in 2024 and 2.5 percent from 2025 onwards as tourist arrivals return to pre-pandemic levels and the output gap closes. The unemployment rate is projected to stay at 3.4 percent over the medium term as the economy remains at full employment.

Inflation, which fell to 4.4 percent in 2023 led by lower prices of transport and utilities partly offset by higher food inflation, is projected to decline further to 3.1 percent in 2024 and 1.3 percent over the medium term as commodity prices and global inflation moderate.

The fiscal position is projected to remain robust, but debt dynamics have become more difficult. The primary balance is projected to decline from 1.2 percent of GDP in FY2022 to 0.8 percent in FY2023 due to lower nontax revenues and grants, and higher expenditure on goods and services. Going forward, the primary balance is projected to increase to 1.0 percent of GDP from FY2024 onwards as capital expenditure moderates.

However, the overall fiscal deficit is projected to rise from 0.6 percent of GDP in FY2022 to 1.4 percent in FY2023-25 due to higher interest payments on external debt. Public debt is projected to decline more slowly going forward given the projected moderation in growth and still high global interest rates, remaining above 50 percent of GDP over the next decade.

The financial soundness indicators strengthened in 2023 but remain weaker than before the pandemic. Between 2022 and 2023, the domestic banks’ regulatory capital rose from 15.1 percent of risk weighted assets to 16.1 percent; nonperforming loans fell from 6.9 percent of total loans to 5.2 percent; and returns on assets rose from 0.3 percent to 1.5 percent.

However, still high nonperforming loans, low capital buffers, and tight liquidity in some banks relative to the pre pandemic period are constraining private sector credit growth, which is likely to limit investment and real GDP growth going forward.

There are important risks to the outlook. While the risk of a sharp slowdown in the United States-Belize’s main tourism source market-has receded, the risk of higher global food and fuel prices due to armed conflicts in Ukraine and the Middle East remains elevated, which could increase Belize’s inflation and food insecurity.

Global interest rates could stay high for longer, complicating debt dynamics despite the authorities’ efforts to secure concessional financing.

Belize remains vulnerable to climate-related disasters, which can cause severe damages to the agriculture, energy, and tourism sectors. An economic slowdown could also exacerbate existing vulnerabilities in the banking sector.

Policy Priorities

Belize’s key policy priorities include reducing public debt to 50 percent of GDP by FY2030 by raising the primary fiscal balance to 2.0 percent of GDP from FY2025 onwards; increasing priority spending on logistics, utilities and energy infrastructure, targeted social programs, and crime prevention, financed with additional revenues and expenditure reprioritization; implementing structural reforms to boost growth and make it more inclusive and resilient to natural disasters; and remaining vigilant to financial stability risks.

1. Fiscal Policy

The authorities should capitalize on the large reduction in public debt achieved since 2020 and target a reduction of public debt to 50 percent of GDP by 2030. This target is in line with the debt level in emerging market economies with investment grade sovereign credit ratings and it would ensure that public debt stays below the 70 percent of GDP target in the authorities’ 2021 Medium-term Recovery Plan with 95 percent probability given historical shocks.

This requires implementing 1 percent of GDP of fiscal consolidation over two years to increase the primary balance to 2 percent of GDP from FY2025 onwards. Anchoring this plan in a medium-term fiscal strategy with clear targets and measures to achieve them and preparing the groundwork for the adoption of a well-designed Fiscal Responsibility Law (FRL) with specific fiscal rules would enhance its credibility.

Expanding spending in infrastructure, targeted social programs, and crime prevention would help mitigate the adverse effects of fiscal consolidation on vulnerable households, while boosting growth and making it more inclusive and resilient to climate shocks. This includes:

Increasing infrastructure spending in logistics, utilities, and energy by 0.8 percent of GDP from FY2025 onwards to enhance road connectivity, improve the water and sewer systems, expand renewable energy generation and storage, build social housing, and make infrastructure more resilient to raising sea levels and natural disasters.

These efforts also require strengthening public investment management by enhancing and harmonizing public investment strategies with sound costing and performance frameworks to guide future decisions; revising appraisal and selection processes and methods; strengthening oversight of major risks and coordination between public entities; and improving the follow-up and recording of existing liabilities and guarantees. Public Private Partnerships can help further expand and maintain infrastructure.

Expanding targeted transfers to protect vulnerable households against food insecurity by 0.3 percent of GDP from FY2025 onwards. These transfers should be temporary and require the beneficiaries to take training and seek employment. The latest census can help target social spending better. These transfers should be also accompanied by an awareness campaign on food prices across retailers to enable more informed consumer selection.

Introducing 0.2 percent of GDP in subsidies for childcare, after-school programs, and training for vulnerable women from FY2025 onwards to raise female labor force participation, which stood at 45.2 percent in 2023, well below the 71.5 percent for males.

Raising spending to prevent and address crime by 0.1 percent of GDP starting in FY2025 to enhance the capacity of existing personnel and purchase equipment.
The recommended increase in the primary balance and the expansion in priority spending should be financed by revenue mobilization and expenditure reprioritization.

Belize has space to increase revenue by broadening the tax base, raising excise taxes, rebalancing taxes on manufacturing to level the playing field, and strengthening revenue administration. On the expenditure side, reforming the Pension Plan for Public Officials (PPPO) could free up resources, depending on the depth and timing of the reforms. In particular,

Tax policy measures could raise 2.0 percent of GDP in revenue by FY2025. The General Sales Tax (GST) has several items taxed at a zero rate, including non-prescription drugs, processed foods, utilities, appliances, household items, business inputs, and government purchases.

Taxing some non-first necessity items at the 12.5 percent GST rate could raise 1.6 percent of GDP in revenue, while the expansion of targeted transfers would mitigate the impact on food insecurity. Standardizing personal income tax exemption thresholds could raise 0.2 percent of GDP, while raising excise taxes on fuel and fees on vehicle registrations and driver licenses could also raise 0.2 percent of GDP.

Strengthening revenue administration could raise another 0.2 percent of GDP in revenue. This would include (i) creating a unified tax department to enhance efficiency and reduce costs, incorporating the collection of stamp duties and land taxes in the Belize Tax Service Department (BTSD), (ii) increasing tax arrears collection by improving the accuracy of tax accounts and developing enhanced standard operating procedures for arrears collection, (iii) ensuring greater autonomy on HR issues for BTSD, (iv) implementing a risk-based audit case selection, and (v) enacting the draft customs law.

Reforming the PPPO could lower government spending by 0.1 percent of GDP over two years and cut the PPPO’s long-run deficit by two-thirds. This includes gradually introducing a contribution rate of 10 percent; raising the retirement age from 55 to 65; and reducing the replacement rate from 67.5 percent to 50 percent. The sooner these reforms take place, the more gradual they can be.

The government should also continue its successful campaign of securing concessional external financing to keep the interest bill at a manageable level.
The government should also have contingency plans in case public debt does not decline as expected. Adverse shocks may increase public debt, while some measures discussed above may prove difficult to implement. In this context, it will be important to have contingency measures that could be implemented promptly if public debt does not fall as expected, including taxing a larger share of zero-rated items at the 12.5 percent GST rate, raising the GST rate, and reducing nonpriority expenditure.

Further improvements to Public Financial Management systems and procedures are needed. Areas to strengthen include multi-year budget preparations, fiscal risk assessment, public investment management, coverage of government accounts, accounting and fiscal reporting, and internal audit. Progress in these areas would facilitate future implementation of an FRL with explicit fiscal rules to strengthen fiscal discipline and enhance the credibility of fiscal policy.

Publishing procurement contracts and beneficial ownership information of awardees would ensure transparency and accountability.

2. Structural Reforms and Climate Change

Real GDP growth is projected to remain subdued over the medium term. Growth is projected at 2.5 percent over the medium term, just above population growth (2 percent).

Previous studies have identified constraints to growth in Belize in the period before the pandemic, including risks to fiscal and debt sustainability, human capital deficiencies, crime, high costs of finance, infrastructure gaps, and natural disasters.

Fiscal and debt sustainability risks have receded since then, but other factors are still at play and will likely constrain growth going forward. Raising medium term growth will require addressing these factors to boost physical and human capital.

Enhancing female labor force participation and the quality of education would boost employment. At 26.3 percentage points, Belize had one of the largest gaps in labor force participation rates between males and females in the region in 2023. Closing this gap could increase real GDP by over 20 percent in the long run. To address this issue, the authorities are piloting a subsidized daycare and training program in the Cayo district. Further expanding subsidized childcare and after-school programs as well as training for vulnerable households can significantly expand labor force participation, employment, and output over the long term.

Enhancing the quality of education is another priority. Belize spends more on education than its peers and has high primary school enrollment rates. However, secondary school enrollment rates and educational outcomes could be improved. The authorities have recently increased the mandatory school age from 14 to 16; are eliminating copayments for vulnerable households to improve high school attendance; and are working with the Millennium Challenge Corporation on a project to train teachers and enhance the quality of education.

Additional priorities to improve educational outcomes include expanding conditional cash transfers to further promote school attendance, improving schools’ curriculums, retraining teachers, and expanding technical and “soft skill” vocational training programs.

Reducing crime would boost growth. Belize had the fourth largest homicide rate in Latin America and the Caribbean in 2016-19, about 60 percent over what could be expected by the country’s GDP per capita. Recent efforts from the authorities in deterring crime have reduced homicide rates from 37.2 per 100,000 people in 2016-19 to 31.2 in 2021 and 21.2 in 2023.

Further reducing crime in Belize to the Caribbean average could increase annual real GDP growth between 0.04 and 0.3 percent. Key policy priorities include enhancing the capacity of existing personnel, using cutting-edge technology to prevent and address crime, and expanding social and educational programs that support the youth at risk.

Easing access to affordable credit for micro, small and medium size enterprises (MSMEs) would boost investment. Lending rates have declined in the last 20 years but remain high. This reflects lack of competition and high operational costs in the banking system due to low population density and borrower riskiness, many of which are MSMEs. The authorities are incentivizing the formalization of MSMEs by providing tax incentives. Helping MSMEs prepare business plans and setting up a credit bureau and a collateral registry would also improve their access to credit.

Strengthening resilience to climate change and related disasters would reduce output volatility and boost growth. Belize is highly vulnerable to climate change and related disasters, particularly in the agriculture, energy, and tourism sectors.

The authorities are enhancing resilience to climate change and natural disasters through investments in climate resilient crops and infrastructure. The main priority going forward is to implement a Disaster Resilience Strategy that focuses on improving structural, financial, and post-disaster resilience and is based on a multi-year macro-fiscal framework that incorporates climate change and related disasters. This would also improve access to climate finance.

The authorities are also making efforts to reduce greenhouse gas emission by protecting the marine environment in line with the commitments under the blue loan, investing in renewable energy generation, and electrifying public transportation. However, significant financing gaps for mitigation initiatives remain.

3. Monetary and Financial Policies

Increasing the level of international reserves would strengthen the currency peg. International reserves are projected to remain above three months of imports and short-term external debt, but below the IMF’s ARA metric. Additional pressures on the level of reserves are also likely from 2032 onwards, when the repayment of the blue loan starts. Increasing the level of international reserves requires implementing additional fiscal consolidation and growth-enhancing structural reforms, as well as gradually reducing government financing by the Central Bank.

Gradually reducing central bank financing of the government would reduce excess liquidity and help develop the local capital market. The central bank holds more than half of the government’s domestic public debt. Gradually reducing these holdings would give more investment opportunities to banks and the social security fund and reduce excess liquidity in the financial sector. While developing the domestic capital market will require a careful roadmap of structural reforms, introducing a market-based auction for Treasury

Notes in conjunction with outreach to domestic investors to explain the government’s plans for fiscal policy and the low risk of domestic currency denominated government securities would provide price signals across different maturities, help develop a market-oriented government securities yield curve and provide a benchmark for other public and private sector issued domestic currency denominated securities.

This may raise domestic interest rates and lower incentives for capital outflows, allowing for a gradual removal of capital controls. The adverse impact of higher domestic interest rates on public finances would be mitigated by fiscal consolidation.

The Central Bank must remain vigilant to financial stability risks. Prompt actions by the Central Bank, including keeping vulnerable institutions under enhanced supervision and requesting preemptive recapitalizations, have helped reduce financial stability risks.

However, vulnerabilities in some systemic institutions remain. The Central Bank should keep these institutions under enhanced supervision and request pre-emptive actions when necessary. The Central Bank also has appropriate tools in case it needs to intervene, including the provision of liquidity, the imposition of limits on the distribution of dividends, and an adequate bank resolution framework.

 

 

 

 

British Virgin Islands: Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism

Publication Date: February 27, 2024

Electronic Access:Free Download.Use the free Adobe Acrobat Reader to view this PDF file

Summary:This report summarizes the anti-money laundering/combating the financing of terrorism (AML/CFT) measures in place in the Virgin Islands (VI) as at the date of the onsite visit of March 15–30, 2023.

It analyses the level of compliance with the Financial Action Task Force (FATF) 40 Recommendations and the level of effectiveness of VI’s AML/CFT system and provides recommendations on how the system could be strengthened.Country

Report No. 2024/055

 

 

 

Dominica: Staff Concluding Statement of the 2024 Article IV Mission

March 14, 2024

https://www.imf.org/en/News/Articles/2024/03/14/mcs-dominica-staff-concluding-statement-of-the-2024-article-iv-mission?cid=em-COM-789-48076

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. 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 Executive Board for discussion and decision.

Roseau: An International Monetary Fund (IMF) staff team, led by Mr. Christopher Faircloth, visited Roseau and held discussions on the 2024 Article IV consultation with Dominica’s authorities during March 5–14. At the end of the consultation, the mission issued the following statement, which summarizes its main conclusions and recommendations.

The economy has fully recovered to pre-pandemic levels and economic imbalances have gradually narrowed. Real GDP grew by 5.6 percent in 2022 and 4.7 percent in 2023, returning to pre-pandemic output levels. The recovery has been underpinned by an ambitious public sector investment program (PSIP), strong agricultural activity, and a rebound in tourism despite airlift challenges. Inflation fell from its 2022 peak of 9.7 percent to 2.3 percent (y/y) at end 2023, largely due to softening global commodity prices. Favorable terms of trade and strong service exports further reduced the current account deficit to 26.2 percent.

The fiscal position has gradually improved but fiscal space remains tight with elevated public debt. The primary balance improved modestly in FY2022/23 to a deficit of 4.3 percent of GDP supported by record high citizenship-by-investment (CBI) revenues and reduced current expenditures.

These developments were partly offset by increases in capital spending as the construction of resilient infrastructure (roads and bridges, water infrastructure, housing, and emergency shelters), the new airport, and geothermal project advanced. Public debt declined to 102.9 percent of GDP in FY2022/23 but remains elevated above pre-pandemic levels and constrains fiscal space going forward.

The financial system remains liquid despite slow credit growth. Banks remain well-capitalized and liquid, benefiting from a stable and low-cost deposit base, with a substantial portion of assets in overseas holdings. Banks’ asset quality has improved, but nonperforming loans (NPLs) remain elevated while provisioning is modestly below the Eastern Caribbean Central Bank’s (ECCB’s) 60 percent threshold.

Credit Unions (CUs) play a significant role in the financial landscape, accounting for nearly half of private sector credit. Indicators point to relatively low capital adequacy, elevated NPLs, and declining profitability that bears careful monitoring. Overall, private sector credit growth remains subdued.

The outlook remains positive, predicated on the full recovery of stayover arrivals, implementation of key investment plans, and prudent fiscal management. Growth is expected to average 4½ percent during 2024-25, as stayover tourism returns to pre-pandemic levels, agriculture expansion initiatives take hold, and priority infrastructure projects further advance.

Inflation is projected to converge to 2 percent consistent with trading partner dynamics. The transition to geothermal production, the new airport and hotel projects to expand tourism capacity, and projects to bolster resilient infrastructure are expected to yield long-term growth dividends and reduce external imbalances.

The current account deficit should gradually narrow over the medium term with the increase of tourism exports and a steady decline in the imports of investment goods and fuel. Public debt is set to decline in coming years, albeit slowly, supported by a consolidation of public finances.

However, risks stemming from an uncertain global environment, climate change, and volatile CBI flows, weigh on the downside. External risks from geopolitical tensions or tighter global financial conditions cloud the outlook for trade, commodity prices, and global demand, with significant spillovers to Dominica’s economy.

An intensification of natural disasters due to climate change could lead to large output and capital losses, hindering fiscal sustainability and financial stability. Shortfalls in CBI inflows could hamper implementation of planned infrastructure, climate resilience, economic activity, and the fiscal position.

More ambitious fiscal consolidation is needed to achieve objectives under the fiscal rule and adequately self-insure against disaster risks, thus setting the stage for resilient growth.

The ongoing economic expansion provides an opportunity to rebuild essential fiscal buffers, which include not only achieving a minimum 2 percent of GDP primary surplus and reducing public debt to 60 percent of GDP by 2035, but also to adequately capitalize the Vulnerability, Risk and Resilience Fund as envisioned under the 2021 Disaster Resilience Strategy to insure against disaster shocks. On current estimates, this involves identifying roughly EC$65 million in fiscal consolidation measures, phased in over two years, to achieve a primary surplus of 3.5 percent of GDP by FY2025/26.

This consolidation plan should be underpinned by a sizeable improvement in non-CBI fiscal balances, while protecting investment and other priority programs to safeguard growth and the most vulnerable. Stronger fiscal consolidation would also benefit the economy by facilitating external rebalancing and reducing the exposure of the financial system to the public sector.

The recommended consolidation strategy involves broadening the revenue base, strategically rationalizing expenditures, and prioritizing investment with economic returns. Fiscal measures should build on the package advanced in the FY2023/24 budget. Mobilizing tax revenue by streamlining tax incentives (including by curtailing discretionary concession powers), rationalizing personal income tax allowances, and strengthening tax administration and compliance risk management are priorities.

Additional measures include reversing the reduction of VAT on electricity, raising the excise tax on diesel in line with gasoline, and exploring options to transition to a broader property tax regime. On the spending side, the decline in the public wage bill is welcome and should be preserved, including through further civil service reform.

Given limited fiscal space, efforts should further rationalize inefficient spending and prioritize PSIP outlays on projects with clear economic returns. Tariff adjustments on key public services—notably water and sewerage and medical services—should be pursued to strengthen the financial position of state-owned enterprises, thus reducing contingent liability risks and current transfers. The National Employment Program (NEP) has evolved beyond its original mandate and should be reassessed from a cost-benefit standpoint. Reforms that restore the program’s temporary skills-retooling orientation could achieve significant savings.

At the same time, it is critical to safeguard the social protection system and support the vulnerable. The framework of social protection in Dominica is fragmented, partly reflecting capacity constraints and widespread informality in the labor market that hamper the use of conventional income-based targeting.

Streamlining and consolidating these programs to reduce overlap and tailor social assistance to the most vulnerable households is a priority. This involves operationalizing a centralized information system or unified database to track support and identify gaps. The completion of the ongoing population census would further support establishing a comprehensive social registry. A package of parametric reforms should also be pursued to safeguard the viability of the National Insurance Scheme against the backdrop of increasing demographic pressures.

Addressing structural impediments to financial intermediation that constrain private sector credit remains a priority. The operationalization of the regional credit bureau should help streamline the lending process and enhance credit quality. Introducing a movable collateral framework could also help ease credit-access constraints. Recent enhancements to the Eastern Caribbean Partial Credit Guarantee Corporation could better support MSMEs in meeting documentation and collateral requirements for enhanced access to finance. Modernizing national foreclosure and bankruptcy legislation is critical for resolving NPLs.

A modern supervisory framework is necessary to underpin financial stability. Granting the national financial supervisory agency (FSU) statutory independence from the Ministry of Finance would further improve its effectiveness and support risk-based supervision. The FSU should pursue sound underwriting practices, proper asset classification and provisioning, and require CUs with capital shortfalls to submit credible restoration plans.

Participating in ECCB-led initiatives to establish a Regional Standards Setting Body for non-bank financial institutions and regularize data sharing as well as integrating climate risks into supervisory frameworks are also recommended to enhance overall financial resilience.

Structural reforms to modernize the economy will support sustainable, inclusive, and resilient growth. The transition to geothermal energy is pivotal for meeting climate mitigation goals while both enhancing competitiveness and the external balance through lower electricity costs and fuel imports, respectively.

The new international airport will significantly boost connectivity with large markets but should be accompanied by efforts to enhance regional connectivity and marketing strategies to tap new source markets. Initiatives to support the agricultural sector and broaden the export base are welcome and should explore synergies with the growing tourism sector. Reforms to improve the business environment and reduce labor market frictions that hamper inclusive growth are also priorities. This includes policies to reduce burdensome administrative costs and persistent skills mismatches.

Institutional reforms to help mitigate risks and support economic policymaking should continue. Ongoing efforts to strengthen AML/CFT legislation and procedures in line with the latest Caribbean Financial Action Task Force (CFATF) mutual evaluation report should help protect correspondent bank relationships and the integrity of the CBI program. Efforts to further strengthen the CBI regime in line with the principles of the 2023 US-Caribbean Roundtable Agreement are welcome. Deepening regional cooperation on CBI programs in terms of common due diligence, transparency, and disclosure standards, could further safeguard this important source of revenue.

Weaknesses in statistical compilation, tax administration, and public financial management (PFM) frameworks—including under-developed internal CBI reporting systems—complicate policy management such as the implementation of the national fiscal rule. Strengthening institutional capacity in statistical compilation and PFM processes for medium-term budgeting, fiscal reporting, treasury operations, and public investment management remain priorities.

The IMF stands ready to build on its ongoing capacity development program with Dominica in these and other areas.
The IMF team is grateful to the authorities and other local stakeholders for their warm hospitality, collaboration, and constructive dialogue.

 

 

 

St. Kitts and Nevis: Staff Concluding Statement of the 2024 Article IV Mission

Washington, DC:  March 1, 2024

https://www.imf.org/en/News/Articles/2024/03/01/cs30124-st-kitts-and-nevis-concluding-statement-of-the-2024-article-iv-mission?cid=em-COM-789-47993

A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

The authorities have consented to the publication of this statement. 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 Executive Board for discussion and decision.

Washington, DC: An IMF mission, led by Mr. Alexandre Chailloux, visited St. Kitts and Nevis during February 15-26, 2024, for the 2024 Article IV consultation discussions on economic developments and macroeconomic policies. The mission team benefited from candid and constructive discussions with public and private sector counterparts and other stakeholders and issued the following statement:

St. Kitts and Nevis continues to recover from the pandemic and cost of living crisis. The general government has ended 2023 with a surplus, thanks to fiscal prudence and the outperformance of the citizenship-by-investment program (CBI).

The outlook is positive, particularly as large-scale renewable energy projects begin to be implemented. Nonetheless, there are still important downside risks ahead potentially from a less hospitable external environment, natural disasters, or CBI underperformance. Increasing the effectiveness of government spending, improving the tax system, setting up a Sustainability and Resilience Fund, and putting in place an explicit fiscal rule would help strengthen the fiscal framework and insulate the country from possible shocks.

There is also a need to reform the pension system and increase investments in both renewable energy and climate adaptation. Addressing vulnerabilities in the banking sector would improve financial stability, and greater accountability and transparency in the management of CBI resources would strengthen the integrity of the program.

A rebound in tourism has powered growth in the past two years. The economy expanded an estimated 3.4 percent in 2023 after a growth of 8.8 percent in 2022. GDP is expected to return to the pre-pandemic level this year. Higher commodity prices and shipping costs pushed average inflation to an estimated 3.6 percent in 2023 from 2.7 percent in 2022 despite fiscal measures to reduce the pass-through. The 2023 budget recorded a surplus of 1 percent of GDP, thanks to strong CBI performance and continued fiscal prudence.

The economic outlook is positive. While near-term risks are somewhat tilted to the downside, renewable energy projects are likely to provide further growth momentum in the medium-term.

Growth is projected to strengthen to 4.7 percent in 2024, supported by tourism, an acceleration of housing and public infrastructure project execution, and investment in renewable energy. Over the medium term, growth is expected to gradually moderate to 2.9 percent.

Geopolitical risks and commodity price volatility, as well as a global slowdown weighing on tourism, represent key downside risks in the near term. CBI revenues pose a two-sided risk with significant uncertainty. Over a longer horizon, faster-than-expected implementation of solar and geothermal energy projects could boost near term activity, turn the country into a net energy exporter, support economic diversification and incentivize capital investments to utilize surplus energy.

CBI has performed well in recent years but there is scope to further improve integrity of the program. The authorities have improved the governance of the program by advancing CBI legislation and creating the CBI Board of Governors to improve oversight. The transparency and accountability of the CBI program could be enhanced further by publishing an annual financial report on the CBI unit’s operations and key data on applications.

The fiscal stance should be tightened to maintain a balanced budget over the medium term under conservative assumptions about future CBI inflows. While a broadly balanced budget is expected in 2024, achieving a balanced budget over the medium term will require a gradual tightening of the fiscal stance in response to the potential CBI revenue decline expected by IMF staff.

This could be achieved by foregoing further CBI dividends and other untargeted payments and by returning current expenditures to their pre-pandemic level as a share of GDP. This would require firm control of the wage bill and goods and services expenditures and the full phasing-out of electricity subsidies. Progress in these two areas would allow for an expansion of targeted social assistance and capital expenditures (particularly those that improve the resilience of physical infrastructure to natural disasters).

Tax policy reform should move in parallel along multiple tracks. A comprehensive roadmap for tax reform, that increases progressivity and reduces distortions, would help frame a broader platform of improvements and prepare for a potential future decline in CBI revenues. The authorities’ current focus on property tax reform (to reflect the current market value of properties), stamp duty, and a more effective collection of arrears is appropriate.

A review of CIT concessions should be quickly concluded given the window of opportunity opened by the implementation of the OECD pillar II with a view to abolishing negotiated tax concessions and income tax holidays. Consideration should be given to bringing unincorporated businesses under the CIT (rather than subjecting them to turnover taxes), allowing for full expensing of capital spending, and allowing for the full carryforward of losses. There is scope also to scale back VAT exemptions and preferences and expand VAT coverage to professional and financial services.

Infrastructure should be upgraded to boost natural disaster resilience. Public sector investment policy and planning should be consolidated across the public sector, including statutory bodies, through the creation and publication of a consolidated investment budget that carefully prioritizes across projects. There is scope to expand the execution of infrastructure projects with improved feasibility studies and a better procurement process.

Project selection should also include a preference for climate-resilient projects. The classification of capital expenditures in the general government budget should be improved, and better data on capital expenditure plans be collected from statutory bodies to support evaluation and planning.

A Sustainability and Resilience Fund (SRF) should be introduced alongside an explicit fiscal rule. The government’s adherence to implicit fiscal rules of a balanced budget and remaining below the regional debt ceiling has served the country well for over a decade. Enshrining these fiscal rules into law—accompanied by narrowly defined escape clauses—would provide a clear fiscal anchor, improve the transparency of fiscal policy making and provide solid foundations to the establishment of the SRF.

An expenditure rule should be considered that steadily brings current expenditures back to pre-pandemic levels as a percent of GDP and subsequently limit future current spending increases to the nominal growth in potential output. This would avoid unplanned expansions in current spending from volatile CBI inflows, generate higher surpluses to be transferred to the SRF, and support an increase in capital expenditures over time. The bulk of public sector deposits, currently being held at the publicly-owned bank, should be transferred to the SRF and invested abroad according to clear institutional guidelines and a transparent reporting of financial results.

Debt and cash management can be improved. Using some of the large government deposits to pay down expensive short-term debt would reduce interest costs and gross financing needs. Re-establishing a presence on the regional bond market would be useful as a means to diversify sources of financing. The establishment of the SRF and the fiscal rule at the federal level will require greater collaboration between the central[1] and the local government to optimize consolidated debt and cash management costs. More fiscal discipline is required from the local government, which should ideally be enshrined into law and supplemented by joint efforts to reduce the short-term debt.

The social security system requires urgent and decisive action. Without urgent reform the social security fund’s reserves will be depleted within the next two decades, and the fund will accumulate a large actuarial deficit over a few decades that follows.

To protect intergenerational equity, a comprehensive reform is needed to gradually raise the retirement age, increase contribution rates, expand pension coverage, lower the replacement rates and diversify its investment portfolio. The Authorities should ensure that the public Sector employees’ pensions are aligned with those of the broader social security system to ensure that overall replacement rates are not greater than 100 percent.

A successful transition to renewable energy will have a transformative impact on the economy. Planned investments in solar and geothermal energy are expected to reduce energy imports and lower the overall cost of energy. This transition is expected to bring the country to energy self-sufficiency by 2030, boosting economic diversification, supporting the growth of energy-intensive activities, and creating new export opportunities.

Fully harnessing the country’s renewable energy potential requires a comprehensive strategy, including deciding on the optimal energy mix, establishing related investment plans, upgrading and connecting the power grids of St. Kitts and of Nevis and increasing resilience of the grid to natural disasters.

The pricing of both water and electricity needs to reflect costs of production. The drilling of wells, investing in water storage, and creating capacity for desalination are needed to establish a reliable supply of fresh water. More progressive utility rate structures—that increase the tariffs for high use customers—would encourage investments in conservation and provide the resources needed for these investments.

The utility commission should provide guidance on the appropriate cost-recovery pricing of electricity and water. The government should establish a taxation framework that provides incentives for investments in renewable energy while also allowing the public sector to receive a share of future rents from such investments. Broad based exemptions from VAT and corporate income taxes for such investments should be avoided, and more targeted and economically efficient tax incentives considered instead.

The impact of the recent minimum wage increases should be carefully assessed. A two-tier increase in January 2024 and July 2025 will increase the minimum wage by nearly 40 percent compared to the previous level set in 2014, placing it higher than ECCU peers and likely subjecting one-sixth of the workforce to the minimum wage. An analytical assessment should be undertaken to examine the possible impact of the minimum wage decision on employment, informality, and external competitiveness. Public sector wage setting should also consider its cascading effects in the private sector.

The financial system should be strengthened. Provisions and capital for all banks should meet the regulatory minimum established by the ECCB and long-standing non-performing loans be addressed. Any bank that is unable to meet regulatory minimum should continue to work closely with the ECCB through a clear and monitorable capital restoration plan.

The banks have made good progress in de-risking their large foreign investment portfolio, as recommended in the last IMF Staff Report. The establishment of the SRF—which will be accompanied by a reallocation of some of the foreign investments and government deposits from the domestic banking system into the SRF—will allow banks to focus squarely on their primary function of intermediating household and corporate deposits to lend to the private sector and support private-sector led growth and employment. The credit union sector has expanded briskly and should be monitored closely to ensure proper recordation of non-performing loans and adequate provisioning and capital at each institution.

The IMF mission would like to thank the authorities, private sector counterparts and other stakeholders for their warm hospitality and the candid and constructive discussions.

[1] Central Government meaning St-Kitts’ Government and local Government the Nevis Administration.

IMF Communications Department
PRESS OFFICER: ROSA HERNANDEZ
PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

 

 

 

 

IMF Staff Concludes Visit to Barbados

Washington, DC:  February 29, 2024

https://www.imf.org/en/News/Articles/2024/02/29/pr2463-barbados-imf-staff-concludes-visit?cid=em-COM-789-47993

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country or a virtual staff visit. 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. This staff visit will not result in a Board discussion.

Barbados’ economy continued to recover strongly in 2023, with economic growth estimated at 4.4 percent, driven by tourism and related sectors.

Implementation of the Barbados Economic Recovery and Transformation (BERT 2022) program remains strong, supported by the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF).

Program targets under the Fund-supported program for end-December 2023 were met and structural benchmarks were implemented. International reserves rose to US$1.5 billion.

Washington, DC: An International Monetary Fund (IMF) team led by Michael Perks visited Barbados between February 26-29, 2024 to review recent economic developments and reform efforts and prepare the ground for the third review of the Extended Fund Facility (EFF) / Resilience and Sustainability Facility (RSF) programs. To summarize the mission’s findings, Mr. Perks made the following statement:

“Economic activity in Barbados continued to recover strongly in 2023, driven by tourism and related sectors. Real GDP expanded by an estimated 4.4 percent, reaching its pre-pandemic level. Annual inflation remained broadly stable, despite easing international food prices, on account of adverse weather conditions reducing the supply of certain crops and higher prices of dining and other goods and services. The current account deficit is estimated to have narrowed to 8 percent of GDP (from 10.7 percent in 2022).

“The authorities continue making strong progress in implementing their ambitious economic reform program. Indicative targets for end-December 2023 under the EFF were met. International reserves rose to US$1.5 billion, equivalent to 7.3 months of imports. Strong fiscal performance through the first three quarters of FY2023/24 bodes well for meeting the 3.4 percent of GDP primary balance target for the full fiscal year. Preparation of a budget for FY2024/25 is well underway.

“Important steps are being taken to advance the structural reform agenda. End-December structural benchmarks aimed at the reform of state-owned enterprises have been implemented. Work is also underway on reforms to strengthen tax administration, public financial management, and the business environment, while also building resilience to climate change under the RSF. Meanwhile, the significant progress made in strengthening the AML/CFT framework has enabled Barbados to exit the Financial Action Task Force grey list.

“The team is looking forward to conducting discussions for the third review under the EFF and RSF in May and would like to thank the authorities and their technical team for their hospitality, openness and candid discussions.”

IMF Communications Department
PRESS OFFICER: MEERA LOUIS
PHONE: +1 202 623-7100EMAIL: MEDIA@IMF.ORG

@IMFSpokesperson

 

 

 

Missile attack on bulk carrier in Gulf of Aden

MARCH 7, 2024, BY FATIMA BAHTIĆ

Barbados-flagged bulk carrier True Confidence, owned by Liberian shipping company True Confidence Shipping SA, was struck in a missile attack, killing three sailors killed and injuring at least four , according to the United States Central Command (CENTCOM). An anti-ship ballistic missile (ASBM) was launched from Yemen’s Houthi group on March 6 as Barbados-flagged True Confidence was transiting the Gulf of Aden.

After the missile struck the 183-meter-long vessel, the multinational crew reported three fatalities and at least four injuries, of which three are in critical condition. The 50,400 dwt ship, operated by Greek shipping company Third January Maritime, experienced significant damage. Following the attack, the crew abandoned the ship and coalition warships responded. Currently, they are assessing the situation. The event marks the first time civilians have been killed since the Red Sea attacks began.

 

 

UWI , CAS, UNESCO

Young Talents Caribbean Region L’Oréal-UNESCO For Women in Science: Empowering a Generation of Female Researchers

The Young Talents Caribbean Region L’Oréal-UNESCO For Women in Science (FWIS) program is a partnership between L’Oréal Caribe, the UNESCO Office for the Caribbean, with the support of the Caribbean Academy of Sciences – seeking to connect the dots between Caribbean development challenges, scientific research, and female empowerment by recognizing and honoring two young scientists with an endowment of $10,000 USD to further develop their scientific endeavors.

The inaugural FWIS Awards Ceremony was held November 24, at the University of the West Indies, Trinidad during the 23rd Biennial Conference and General Meeting 2023 of the Caribbean Academy of Science. The scientific community celebrated the achievements of two , young women whose futures in STEM are unfolding.

The 2023 FWIS recipients specialize in soil science and geography contributing to research on climate change in the region.

Sarah Buckland, PhD., whose research on climate change at the University of West Indies Jamaica presents its effects in agriculture, with special interest in seasonal climate patterns to manage risks during dry seasons, like the 2014-2015 droughts in Jamaica.

Sunshine De Caires, MSc., whose research on environmental science and agriculture at the University of West Indies Trinidad focuses on the effects climate change on regional soil quality contributes to sustainable land management, a necessary component in the preservation of precious ecosystems.

“L’Oréal Caribe is proud to recognize this first For Women in Science program in the region. This initiative gives women in STEM the visibility and resource contributions to help them excel in their fields, advance their careers and establish themselves as leaders and role models for the next generation of girls.

“We are delighted to showcase this inaugural class of FWIS awardees, who will undoubtedly continue this legacy, complete groundbreaking research and inspire others to impact the world through their game-changing science”, said Gilles Delaunay, General Manager L’Oréal Caribe.

The For Women in Science philanthropic program embodies L’Oréal’s fundamental belief in the indispensable connection between science and women. This initiative aspires to cultivate a doctorate, postdoctoral, and early career community of women, empowering them to persist in their research, attain leadership roles, and become inspirational mentors for the generations of women and girls that will follow in their path.

The Young Talents Caribbean Region marked the 53rd national and regional L’Oréal UNESCO For Women in Science program around the world, covering 24 islands in the region. Caribbean Academy of Sciences chaired the peer review and jury deliberation. Candidates are evaluated based on their intellectual merit, research potential, scientific excellence and their commitment to supporting girls in science.

“Our joint global initiative, the For Women in Science programme, has not only significantly contributed to fostering a more inclusive environment for women in scientific careers, but it has also catalyzed a broader societal transformation among institutions, partners, public authorities, and the scientific and academic community. This has fostered a genuine cultural shift which is so critical to sustainable development.” said Dr. Anna Paolini, Director and Representative, UNESCO Office for the Caribbean.

The need for a Young Talents Caribbean For Women in Science program becomes apparent when we confront the persisting inequalities andf a glass ceiling within the realm of academic research: Only 18% of senior academic positions in science are occupied by women, while on a global scale, only 4% of women have been honored with Nobel Prizes in science, emphasizing the stark gender imbalance that continues to prevail within the scientific community.

“On June 27th, 2023, a significant milestone was achieved through the signing of a Tripartite Agreement between L’Oréal-UNESCO For Women In Science Programme, represented by UNESCO Office for the Caribbean and L’Oréal Caribe, and the Caribbean Academy of Sciences (CAS). This collaborative effort marks a positive step towards sustained support for this well needed programme.

The agreement signifies a commitment to the long-term empowerment of women scientists in the region. With the introduction of this competitive grant, we hope that this will not only encourage the publication of more research but also spur women scientists to leverage their work for regional development. The forward-looking vision is for this impactful initiative to endure in our region for many years to come.”, said Professor Raymond Jagessar, President of the Caribbean Academy of Sciences.

On February 9 De Caires participated in a Unesco Campus roundtable discussion on Fostering Girls’ Interest in Science through Innovative Education in the Digital Age at Unesco headquarters in Paris, part of Unesco’s Closing the Gap in Science event in commemoration of International Day of Women and Girls in Science.

 

 

 

Caricom concerned about CDB

2024, 03/01

Caribbean Community (Caricom) leaders expressed their “immense concern” at the unfolding situation at the Barbados-based Caribbean Development Bank (CDB), where the president of the regional financial institution, Dr Hyginus “Gene” Leon, has been on administrative leave since January.

Following the four-day Caricom summit, Caricom chairman Dr Irfaan Ali, told reporters that this “was a matter that was dealt with by heads,” but would not elaborate.

“This is a regional institution and of course when a regional institution is going through any trauma or any situation it is of concern for the heads. This is of immense concern for the heads because at the end of the day our priority is on the institution,ensuring that the institution remains strong, stable and the credible nature of the institution is kept intact.”

The CDB has remained mum on the circumstances surrounding the decision to send the St Lucian-born economist on administrative leave, with the acting president Isaac Solomon, confirming at a bank news conference in February that:

“there is an internal administrative process involving the president.

“The bank is extremely focussed on preserving the independence, confidentiality and integrity of the process and as you can well appreciate in order for us to maintain the integrity and confidentiality of the process we are unable to provide any other details at this time.”

Ali told reporters that the regional leaders want to be “assured that in a procedural way that rules and procedures are followed in what ever we do in the bank”.

He said whilst regional leaders would not intervene in the governance structure or mechanisms of the bank,

“heads were of the view that the board of directors and governors have certain responsibilities and that certain regards must be afforded to the board of directors and the governors in dealing with issues of the bank

“I don’t want to go deeper because this is an ongoing situation that we do not want to prejudice or we do not want to impute or we don’t want to be accused of anything … so I would leave that there, but I want to say that of course this was a matter that was dealt with by heads.”

Leon is the sixth president of the regional development finance institution. He was elected at a special meeting of the CDB Board of Governors on January 19, 2021, for a five-year term, and assumed office on May 4, 2021. Leon heads a team of overn 200 employees headquartered in Bridgetown, and came to the assignment with 35 years of experience in economics, financial policy development, and executive management, more than 20 of which were spent working with the Washington-based International Monetary Fund (IMF). He succeeded Jamaican Dr Warren Smith who retired in 2021 after serving as president for ten years.

Earlier, Antigua and Barbuda Prime Minister Gaston Browne said concerns had been raised about the method used to send Leon on administrative leave. (CMC)