to 6%. These would most likely be refinanced. ECHMB’s
primary objective is the development of the secondary
mortgage market within the ECCU. The ECCB is the largest
shareholder, holding 24.9%.
25 sovereign debt issues were auctioned on the primary
market of the Regional Government Securities Market, the
majority representing refinancing of maturing issues.
The Government of Antigua and Barbuda issued two Treasury
notes and a 10-year bond, each closing at its maximum
rate. They also rolled two 365-day Treasury bills. All issues
were oversubscribed. The country, through its Antigua and
Barbuda Investment Authority, has embarked on a new
program to encourage the Antiguan diaspora to participate in
the development of their homeland through investments.
Two 365-day and four 91-day Treasury bills were issued by
Government of Grenada. All closed at the maximum 6%
offered rates with the exception of May’s issue, which closed
at 5.495%. All were fully subscribed or oversubscribed. The
Government of Grenada continues to seek support for a
proposed restructuring of previously restructured debt. The
country’s Prime Minister, Dr. Keith Mitchell, has secured the
support of many non-governmental organizations, including
the Grenada Conference of Churches, the Grenada Private
Sector Organization and the Grenada Trade Union Council.
The program could see as much as XCD193 million in bonds
restructured, most likely with a haircut. In another move to
help alleviate the country’s financial woes, the Government of
Grenada announced in October 2013 its intention to lower the
income tax threshold. Additional tax measures are expected
to pursue tax delinquents. The Government is currently in
discussions with the International Monetary Fund (IMF).
The Government of St. Lucia auctioned XCD40 million
6-year and XCD30 million 8-year Treasury notes at 7% and
7.1%, respectively. The issues were both fully subscribed. The
sovereign’s quarterly 91-day and 180-day Treasury bills were
also refinanced at discount rates ranging from 2.999% to 6%.
Government of St. Lucia also issued a new 365-day XCD15
million Treasury bill. This issue closed at 4.5%, below its
maximum offered rate of 6%.
Also in August, the ECCB assumed control of two indigenous
banks in Anguilla, Caribbean Commercial Bank (Anguilla)
Limited and National Bank of Anguilla, for a period of at least
six months. ECCB Governor Sir Dwight Venner stated that
the banks were suffering from escalating non-performing
loan ratios, beyond the guideline levels set by the monetary
council, and that they failed to meet minimum capital
requirements. This move was strategically taken in an effort
to ensure the stability of the banking system in Anguilla
and contain possible contagion to other indigenous banks in
the ECCU. Prior to the move, the ECCB received technical
assistance and advice from the IMF, World Bank and United
Kingdom’s Foreign and Commonwealth Office.
Jamaica
Real GDP shrank 0.1% (year on year ) in the second
quarter of 2013 up from a contraction of 1.2% during the
first quarter. The poor performance was attributed to a 0.6%
decrease in the output of the goods-producing industries,
as the output of the services industries remained relatively
unchanged. In terms of specific industry performance
during Q213, there was growth in mining (9.4%) and
construction (1.9%) and declines in agriculture (-6.6%) and
utilities (-2.0%).
According to the Jamaica Tourist Board, between January and
August 2013, stop over arrivals declined by 0.7% to 1,429,461
visitors as compared to a year earlier. The United States
continues to be the main tourism source market, comprising
64.7% of arrivals. Canada and the United Kingdom are the
next largest markets with 19.4% and 7.1% respectively. For
the first eight months of the year, US arrivals increased by
0.1% to 924,622 visitors while Canadian visitors declined
5.7% to 277,955 visitors. Efforts to diversify the tourism
source markets are bearing fruit with Latin American arrivals
increasing by 20.0% to 20,397 visitors.
Jamaica’s inflation rate stood at 10.4% in September 2013
(when compared to September 2012). In terms of month on
month changes, prices increased by 2.8% in September 2013,
influenced by the increase in bus and taxi fares, a rise in the
The Government of St. Vincent’s monthly XCD25 million
91-day Treasury bill issue recorded the only undersubscribed
auction for the period. The issue of 24 October 2013 closed
short XCD1.5 million, at the maximum discount rate