Michele Robinson - Debt Management Consultant

News

This provides news related to public debt management in or of relevance to the Caribbean.

February 2012

Week ending February 10, 2012

• Grenada: The Government of Grenada's 91-day Treasury Bill issues, auctioned on the Regional Government Securities Market (RGSM) using the primary market platform of the Eastern Caribbean Securities Exchange (ECSE) is oversubscribed by EC$8.48 million. The Treasury bill was offered for an initial EC$15.o million , with the option to accept an additional EC$5.0 million in the event of over-subscription. Total bids amounted to EC$23.48 million. The over-subscription option was exercised, resulting in an issue amount of EC$20.0 million.

Week ending February 3, 2012

• Caribbean: Inter-American Development Bank General Manager for the Caribbean Department, Gerard Johnson, ratifies the IADB's firm commitment to the region by supporting countries to tackle their economic, financial, social and environmental challenges. IADB lending to borrowing member countries in the English-speaking Caribbean and Suriname reached more than US$900 million per year in 2010 and 2011.

January 2012

Week ending January 27, 2012

• St. Kitts and Nevis: The Executive Board of the International Monetary Fund (IMF) completes the first review of St. Kitts and Nevis's economic performance under a programme supported by a 36-month Stand-By arrangement (SBA). The completion of the review allows the immediate disbursement of an amount equivalent to SDR11.47 million (about US$17.6 million) bringing total disbursements under the arrangements to SDR33.62 million (about US$51.6 million)

Week ending January 20, 2012

• Bahamas, The: The government of the Bahamas and the Inter-American Development (IADB) sign a US$612,000 technical cooperation grant to support strengthening the country's fiscal policy. The programme will consist of the following components: tax administration strengthening, a comprehensive multi-year action plan for the property tax system, an in-depth analysis of quality of expenditure, and an assessment of fiscal risks in the areas of health and pensions. The activities will also include the design and implementation of a multi-year debt strategy programme.

• Eastern Caribbean Currency Union (ECCU): ECCU member countries meet at a one-day meeting of the Eastern Caribbean Monetary Council in Antigua and discuss the need to formulate a regional debt strategy for their members.

Week ending January 13, 2012

• Dominica: The Executive Board of the International Monetary Fund (IMF) approves a disbursement of an amount equivalent to SDR 2.05 million (US$3.1 million) under the Rapid Credit Facility (RCF) for Dominica to help manage the economic impact of a series o natural disasters from July to September 2011. The Board's approval enables the immediate disbursement of the full amount. Dominica was ht by a number of natural disasters during the summer and fall of 2011, with major flooding and landslides damaging infrastructure and housing. The cost of reconstruction and rehabilitation is expected to be high at 6 percent of gross domestic product (GDP and will weakened Dominica's balance of payments.

Week ending January 6, 2012

• Bahamas, The: The Government of the Bahamas signs an agreement with the Chinese government for a loan of US$40 million for two infrastructural development in Abaco. A specific formal loan agreement will be executed between the Export-Import Bank of China and the Bahamian Ministry of Finance. The terms of the loan will include a low concessional interest rate of two percent per annum over a period of 20 years. With this loan, the monetary value of bilateral technical support from China to the Bahamas would be US$109 million.
• Barbados: The regional credit ratings agency, Caribbean Information and Credit Rating Services Limited (CariCRIS) reaffirms its on the debt issues (notional ) of a size of US$300 million of the Government of Barbados of CariAA- (foreign currency rating) and CariAA (local currency rating) on its regional scaled. The ratings indicate that creditworthiness of this obligation, in relation to other obligations in the Caribbean is high. The reaffirmation of Barbados' rating is based on the return of some measure of stability in its macroeconomic performance in 2011 as evidenced by positive growth in real gross domestic product (GDP) and a narrowing of the fiscal deficit. The ratings o Barbados reflects its long history of strong governance and political stability, excellent human development indicators and the diversity of the government's revenue sources. These strengths are tempered by persistent fiscal deficits, high and rising public debt levels and increasing debt-servicing costs.
  

• St. Kitts and Nevis: The Caribbean Development Bank (CDB) approves a package of exceptional financial assistance for the government of St. Kitts and Nevis. As part of the assistance package, the CDB is providing a guarantee equivalent to US$12 million on a portion of the Government's restructured debt, converting a previously approved Policy-Based Guarantee in to a loan equivalent to US$8.3 million, and converting the outstanding balance of four previously approved loans from the Bank's Ordinary Capital Resources to concessional loans. The CDB's provision of this financing is part of the Bank's broader assistance strategy for St. Kitts and Nevis. This strategy seeks to improve the country's debt dynamics, enhance public sector management systems to improved outcomes, foster fiscal sustainability and improve the overall macroeconomic fundamentals.

December 2011

Week ending December 30, 2011

Week ending December 23, 2011

• Bahamas, The: The Inter-American Development Bank (IADB) approves a US$50 million loan to The Bahamas to support an air transport reform programme. The programme will promote the development of safe and efficient air transport in the country following international standards. The loan consists of two components: (i) US$47.5 million in budget support on the basis of agreed advances in the reform of the sector, and (ii) US$2.5 million in technical support which will help implement the reform, assess the Family Islands transport, carry out the airport optimisation, and monitor and evaluate Programme results.
• Guyana: The EXIM Bank of India approves and makes available concessionary funding for the construction of a specialty hospital at Liliendaal in Guyana. When completed, the hospital will provide services including cardio-related and cosmetic surgeries and organ transplants. Construction is anticipated to commence by the first quarter of 2012. The Indian government indicated that its approval of the soft loan to fund construction of the state-of-the-art facility will not only become part of what is being offered within the public health system, but will also allow Guyanese to access the best quality tertiary health care at an affordable cost.
• Suriname: The Inter-American Development Bank (IADB) approves a US$5 million loan, National Population and Housing Census and Household Budget Survey: Increasing Use of Basic Statistics, to increase and facilitate the use of basic demographic, social, economic, and cultural information in Suriname.

Week ending December 16, 2011

• Haiti: The Inter-American Development Bank (IADB) approves a US$20 million grant to complete and supplement the financing needed to refurbish the Peligre hydroelectric plant, Haiti's largest renewable energy generation facility. The project will enable Haiti to restore and preserve Peligre's original installed capacity of 54 megawatts, while safeguarding the dam's functions of controlling floods and supplying water for irrigation in the Artibonite valley, the country's principal farming area.
• Suriname: Suriname plans to strengthen its financial sector with a US$40 million loan from the Inter-American Development Bank. The loan in support of Suriname's financial sector reform programme is designed to strengthen financial institutions and financial markets and increase their effectiveness. This financing is the first of a series of three policy-based loans estimated to total US$70 million.
• Suriname: Suriname will strengthen its public capital expenditure management with a US$20 million loan from the Inter-American Development Bank (IADB). The project will address the management of public investment, procurement and financial management and audit to support an ambitious government development programme.

Week ending December 9, 2011

• Anguilla: Based on a notional debt issue of US$25 million, the regional ratings agency, CariCRIS, lowers the government of Anguilla's credit rating by one notch to CariA- for both its foreign currency and local currency debt. Declining revenue and the government's apparent unwillingness to implement tax reforms have left the government highly exposed to the changes in economic cycles as reflected in four consecutive years of significant revenue contraction. The ratings reflect limited fiscal flexibility; limited access to funding, exacerbated by the breach of debt management benchmarks; the small narrow economic structure; and the significant current account deficits that characterise the external sector.

• Antigua and Barbuda: The Caribbean Development Bank (CDB) is to provide a technical assistance grant equivalent to US$169,000 to the government of Antigua and Barbuda to assist with conducting function and efficiency reviews of eight government ministries, in pursuit of the Government's Public Sector Transformation programme.

• Bahamas, The: The Inter-American Development Bank (IADB) and Bahamian government officials, policy makers, economists and members of academia meet to discuss debt and fiscal sustainability at a debt sustainability workshop. Top officials and experts discussed the priorities of The Bahamas and identified opportunities for enhancing debt management and fiscal conditions and best practices.
• Barbados: The Barbadian government will receive a loan from the Caribbean Development Bank equivalent to US$35 million for an education enhancement project. The project is intended to improve the quality of education at the primary and secondary levels by enhancing the learning/teaching environment, improving the planning and management of the education sector and enhancing teacher effectiveness and school leadership.
• Dominica: The government of Dominica is to receive a loan equivalent to US$10.887 million from the Caribbean Development Bank (CDB) to assist in the recovery from the impact of the dam break and subsequent flooding which occurred in the Layou River Valley in July of 2011.
• Grenada: The Caribbean Development Bank (CDB) assists the government of Grenada by providing a loan equivalent to US$8.612 million to repair a bridge and roads that were damaged as a result of flash flooding during extreme weather in April of this year. The loan will also be used for flood mitigation works.
• Haiti: The Inter-American Development Bank (IADB) approves a US$55 million grant to Haiti to help upgrade key highway sections and pave streets. The investments will improve transportation among urban areas and with the neighbouring Dominican Republic, as well as generate temporary jobs in several cities.
• St. Vincent and the Grenadines:The government of St. Vincent and the Grenadines will receive financial support through a US$5 million loan from the Caribbean Development Bank (CDB) in an effort to expand the supply of skilled and employable labour with regional acceptable certification.
• Suriname: The Inter-American Development Bank approves a US$15 million loan for a social protection support programme in Suriname. The project will support the efforts of the government of Suriname to enhance the effectiveness of spending on social protection programmes. A key goal is to improve the efficiency of the targeting of low-income households so as to break the inter-generational transmission of poverty through the development of the human capital of children.
• Trinidad and Tobago:Trinidad and Tobago will benefit from a US$80 million loan approved by the Inter-American Development Bank to reduce vulnerability and greenhouse gas emissions. The loan will fund a programme to strengthen and modernise the regulatory, institutional and policy framework to develop and promote instruments to assess and reduce vulnerability and risks associated with climate change.The loan is for a 20 year term, with a four-year grace period, at a variable rate based on LIBOR.
• Trinidad and Tobago: The Inter-American Development Bank (IADB) approves a US$50 million loan for Trinidad and Tobago to strengthen its financial sector supervisory and regulatory framework. The financing is the first of a programme of two policy-based loans. This first operation has also identified the the policies and reforms that will be implemented with the second one. The IADB loan is for a 20-year term, with a five-year period, at a variable interest rate based on LIBOR.

Week ending December 2, 2011

• Haiti: The World Bank board of directors endorses a new 12-month strategy for Haiti that will hep protect the country's population from natural disasters, support the return of 22,500 people to safe housing, improve neighbourhoods for 75,000 people, finance tuition for 100,000 children and school feeding for 75,000 children. In addition, the strategy aims to revitalise the economy, improve conditions for investment, and strengthen the productivity and sustainability of agriculture and rural development. The 2012 Haiti Interim Strategy Note programmes US$255 million in grants from the International Developments Association's (IDA) Crisis Response Window.

November 2011

Week ending November 25, 2011

• Barbados: Standard and Poor's (S&P), the international ratings agency lowers its outlook on Barbados from stable to negative, reflecting increasing credit risks driven by a weakening external financial and economic environment. The local and foreign currency ratings were affirmed at 'BBB-/A-3, just above junk bond status. S&P said that the Barbados government's large fiscal deficits and rising debt burden, which are not sustainable in the long-term and present an increasing risk to the government's credit profile, especially in the context of the small, open, and vulnerable economics structure, constrain the ratings. The negative outlook reflects the view that downside risks to Barbados' creditworthiness are increasing as the external financial and economic environment weakens.
• Haiti: The Inter-American Development Bank (IADB) announces the approval of a US$50 million grant to support the education reform programme launched in Haiti in 2010. The programme seeks to expand access to free, quality education for all Haitian children. The IADB has offered to support the ambitious five-year plan with US$250 million from its own resources and to raise US$250 million more from other donors. Among other goals, the reform calls for the construction of thousands of schools, training tens of thousands of teachers and free education for millions of children.
• Suriname: The Inter-American Development Bank announces the approval by the board of executive directors of the 2011-2015 country strategy with Suriname, which aims to support the country's efforts to modernise its public sector, diversify the economy and ensure adequate protection and future investment in human capital. The IADB said that lending during this new five-year strategy is expected to increase notably to around US$300 million, from US$103 million in the previous strategy.

Week ending November 18, 2011

• Jamaica: The Inter-American Development Bank (IADB) approves a total of US$153 million for Jamaica including US$133 million to improve water supply in the Kingston Metropolitan area and US$20 million for energy. The US$133 million programme will improve the efficiency, quality and sustainability of the potable water services provided by the Kingston Metropolitan Area and increase access to water in selected urban centres of Jamaica. The US$ 20 million will help Jamaica enhance its energy efficiency and conservation potential.

Week ending November 11, 2011

• Barbados: The Inter-American Development Bank (IADB) approves a US$70 million loan to help Barbados reduce its dependence on fossil fuels by diversifying its energy matrix, promoting sustainable energy sources and supporting power saving efforts. The operation, the second in a series of two programmatic loans for the sector, will support policy and legislation moves aimed at promoting renewable energies as well as the rational and efficient use of fossil fuels. The loan is a 20-year term, with a five-year grace period, and at a variable interest rate based on LIBOR.

Week ending November 4, 2011

• Bahamas: International credit ratings agency, Standard and Poor's (S&P) downgrades The Bahamas sovereign credit rating for the second time in two years. The Bahamas downgrade from a long-term credit rating of BBB+ to BBB came after S&P recently revised the way it evaluates sovereign ratings, placing heavier weight on "economic diversity" and "growth prospects". The Bahamas dependence on tourism, particularly from the United States, was a major factor in the downgrade.

• Jamaica: The international ratings agency, Standard and Poor's, revises the outlook on Jamaica from stable to negative. It also affirms Jamaica's B- long-term and C short-term sovereign credit ratings. The negative outlook reflects the view that the fiscal room to manoeuvre is narrowing as the government tries to implement an austerity plan in a slow economic growth environment.In addition, it reflects the rating's agency view of the likelihood of a downgrade if the government fails to increase its primary surplus and meet other requirements by 2012 that are necessary to restart IMF and other multilateral funding. The IMF programme has come to a halt, with the last four reviews not completed because of delays in the implementation of agreed measures.

October 2011

Week ending October 28, 2011

• Eastern Caribbean: The Eastern Caribbean Central Bank (ECCB) revises downwards its growth projections for Eastern Caribbean Currency Union (ECCU) member countries. The ECCU is projected to record real growth of 0.4 percent in 2011 following two previous years of negative growth. However, the latest ECCB forecast is still below earlier projections.
• Trinidad and Tobago: Trinidad and Tobago will improve environmental conditions and the efficiency of the national Water and Sewerage Authority (WASA) with a US$50 million loan approved by the Inter-American Development Bank (IADB). The operation will target a number of malfunctioning or abandoned waste-water treatment plants in three sub-catchments draining in the Caroni River Basin. The loan is for a 25-year term, with a five-year grace period, at a variable interest rate based on LIBOR.

Week ending October 21, 2011

• Caribbean: The Caribbean Debt Management Forum, jointly hosted by the Caribbean Regional Technical Assistance Centre (CARTAC) and the Commonwealth Secretariat, stresses the need to find creative initiatives to fund investment in health, education and infrastructure to promote growth in Caribbean economies and in turn help alleviate the debt burden.
• Caribbean: A new association, the Caribbean Association of Debt Managers (CARADEM), is established at the one-day Caribbean Debt Management Forum held in Jamaica. A five member executive is elected with President - Mrs. Pamella McLaren (Jamaica); Vice President - Mrs. Michelle Doyle-Lowe (Barbados); Secretary - Ms. Marlene Jeffers (St. Kitts and Nevis); Executive Member - Mr. Francis Fontenelle (St. Lucia); and Executive Member - Ms. Patlian Johnson (British Virgin Islands).
• Guyana: The Head of the Debt Management Division in the Ministry of Finance, Guyana, Ms. Donna Marie Yearwood, receives the third highest national award - the Cacique Crown of Honour (CCH) - for outstanding work in the area of public debt management. The honour was formally bestowed on October 21, 2011.

Week ending October 14, 2011

• Dominica: The government of Dominica is to receive a loan from the Caribbean Development Bank equivalent to US$750,000 to assist with the recovery from damage caused by the collapse of a dam earlier this year. The financing is to assist the government with clearing and cleaning of affected areas and with the emergency restoration of services following the collapse of the dam and subsequent flooding.
• Haiti: The Caribbean Development Bank (CDB) approves the equivalent of US$150,000 in financing to assist the Government of Haiti in providing office furniture and equipment for three agencies within the Ministry of Public Works, Transport and Communication. The office furniture was destroyed or severely damaged by the January 2010 earthquake. The furniture is to be installed in prefabricated office accommodation previously funded by the CDB.
• St. Lucia: The Caribbean Development Bank is to provide a loan equivalent to US$6.233 million to assist the Government of St. Lucia in continuing its settlement regularisation programme and improving the living conditions of its citizens, especially lower-income earners.
• Trinidad and Tobago: The Inter-American Development Bank (IADB) approves a hybrid loan of US$50 million for Social Safety Net Reform Programme in Trinidad and Tobago. The project will help improve the country's social safety net programme through institutional reforms, capacity building and improved monitoring and evaluation. The IADB operation comprises a combination of a US$45 million Policy-Based Loan (PBL) and a US$5 million component.
• Trinidad and Tobago: The Board of Directors of the Caribbean Development Bank (CDB) approves a country strategy paper which outlines the Bank's assistance strategy for Trinidad and Tobago over the period 2011-2014. The support programme rests on three broad pillars that are in concert with the CDB's own priorities. These are: promoting broad-based economic growth and inclusive social development; promoting good governance; and supporting environmental sustainability and disaster risk management.

Week ending October 7, 2011

• Grenada:The Government of Grenada's EC$12 million, 365-day Treasury bill issue, auctioned on the Regional Government Securities Market (RGSM) using the ECSE was over-subscribed by $1.44 million. A competitive uniform price auction method was used and the resulting discount rate was 5.99 percent.
• Grenada: A 91-day Treasury bill was successfully auctioned by the Government of Grenada in the Regional Government Securities Market (RGSM) using the Eastern Caribbean Stock Exchange. The bill was offered for an initial EC$15 million, with the option to accept an additional EC$5.0 million in the event of over-subscription. The option was exercised and a total of EC$20.0 million was issued.
• St: Lucia: The Government of St. Lucia's 91-day EC$16 million Treasury bill issue, auctioned on the ECCU Regional Government Securities Market using the primary platform of the Eastern Caribbean Securities Exchange (ECSE) was oversubscribed by EC$4.29 million.

September 2011

Week ending September 30, 2011

• Jamaica: The Government of Jamaica's reform programme gets a boost with US$100 million loan from the World Bank. The loan, which is the second programmatic fiscal and sustainability development policy loan package, will support a series of measures to enhance fiscal and debt sustainability, increase the efficiency of financial management and improve the effectiveness of the tax system.

Week ending September 23, 2011

• Bahamas,The: The Government of The Bahamas and the Inter-American Development Bank sign a grant for emergency humanitarian assistance to mitigate the impact of Hurricane Irene. The US$200,000 grant will support the Government of The Bahamas' effort to provide humanitarian assistance to the population most affected by the natural disaster that hit The Bahamas in late August.
• Grenada: Grenada and the World Bank sign agreements for US$34 million in the form of grants and zero-interest credits to help support social programmes, improve climate-safe infrastructure and contribute to better electricity service delivery.
• Jamaica: The government of Jamaica and the People's Republic of China sign two grant agreements for RMB 21 million (US$3.288 million) and a memorandum of understanding on agricultural cooperation. Another agreement for RMB 30 million (US$5.617 million) was signed a week earlier at the 3rd China/Caribbean Trade and Economic Forum held in Trinidad and Tobago.
• Regional: In partnership with the Caribbean Development Bank, the Inter-American Development Bank hosts a high-level consultation meeting with heads of state and ministers of the English-speaking Caribbean and Suriname at its headquarters in Washington, D.C. The meeting offered a platform to discuss the debt problem and the obstacles to strengthening growth in the Caribbean.

Week ending September 16, 2011

• Jamaica: The World Bank Board of Directors approves a US$100 million loan for Jamaica to support the government's reform programme to enhance debt and fiscal sustainability. The initiative is part of a coordinated effort by the international financial institutions and development partners to help the government of Jamaica sustain its long-term development agenda.

Week ending September 9, 2011

• Antigua and Barbuda: The Government of Antigua and Barbuda successfully reschedules three interest-free loans from the People's Republic of China, which were used to pay for the construction of a number of projects, including the construction of the Big Creek bridge, the multi-purpose cultural centre and the Gray's Green gutter.
• Barbados: Barbados to benefit from the signing of four loan agreements amounting to RMB Yuan 50 million (approximately BDS $16 million) with China. The agreements facilitate the implementation of economic and technical cooperation between the two governments. They also provide funds that will be used for projects to be agreed upon between the two governments.
• Belize: The Inter-American Development Bank (IADB) approves a US$10 million loan to rehabilitate and improve drainage and road infrastructure in Belize City. Additional funding is to be provided by the Government of Belize. The five-year programme will help rehabilitate and maintain 3,300 meters of canals, increasing their drainage capacity and reducing the frequency and duration of floods. The total cost of the programme will be US$10.75 million, including US$750,000 in counterpart funds provided by the Government of Belize.
• Guyana: The Inter-American Development Bank (IADB) approves a US$5 million loan to help boost the efficiency of Guyana's power system through electricity loss reduction measures and improvements in the operation and maintenance of the distribution network. The loan consists of a US$2.5 million credit from the Bank's concessional Fund for Special Operations for a 40-year term, with a 40-year grace period, and at 0.25 percent interest rate as well as a US$2.5 million credit from the IADB's ordinary capital. The second credit will have a 30-year term, a 6-year grace period and a variable interest rate based on LIBOR. The Government of Guyana will provide an additional US$500,000 in local counterpart funds.

Week ending September 2, 2011

• Bahamas (The): Moody's, the international credit rating agency, downgrades its outlook for the Bahamian economy from stable to negative, pointing to the significant run up in government debt levels in recent years and the country's limited growth prospects. However, Moody's affirmed The Bahamas' A3 bond rating. In revising the outlook from stable to negative, Moody's also cited the challenges the government is likely to face in raising revenues.

August 2011

Week ending August 26, 2011

• Belize: An International Monetary Fund (IMF) mission concludes its annual Article IV mission to Belize stating that the country continues to face challenges due to a high level of non-performing loans - which require close and continuing monitoring by the central bank; high public debt; and concerns about the business environment. The IMF stated that the government needs to adopt a stronger fiscal stance to reduce its dependence on grant and oil revenues, and rebuild macroeconomic buffers to deal with future shocks. They also said that the primary surplus would need to rise significantly over the medium term to lower gross financing needs and public debt.
• St. Vincent and the Grenadines: After concluding its annual Article IV consultation with the government of St. Vincent and the Grenadines, the International Monetary Fund (IMF) notes that a number of developments including,natural disasters high world commodity prices and weak domestic economic activity has put pressure on the government's fiscal position. The IMF noted that revenues have not kept up with the increased demand for spending. The ensuing deficits have been financed by borrowing, mainly external, leading to an increase in the public sector debt to GDP ratio. The authorities indicated that they recognised the need to ensure medium-term fiscal and debt sustainability, and the need to build financial buffers given the vulnerability to shocks. They committed to generate primary surpluses in the range of 2 percent of GDP over the medium-term.

Week ending August 5, 2011

• Bahamas (The): The International Monetary Fund (IMF) concludes its mission to The Bahamas which it visited to conduct an 2011 Article IV Consultation and assess the medium-term outlook for the economy. The IMF noted that economic recovery in the Bahamas is gaining strength. However, the fiscal deficit in FY2010/11 widened to about 4 3/4 percent of Gross Domestic Product (GDP) and central government debt rose to almost 49 percent of GDP despite the sale of 51 percent of the shares of the Bahamas Telecommunications Company.
• Haiti: The Inter-American Development Bank (IADB) approves a US$11 million grant to Haiti to support a programme to provide business development and training services to micro, small and medium-size enterprises (MSMEs) to expand their access to credit, strengthen their management, and boost their productivity. The project will be carried out by the Haitian Central Bank's Industrial Development Fund, which is also running a US$35 million partial credit guarantee programme for restructuring loans to companies hit by last year's earthquake.

July 2011

Week ending July 29, 2011

• Antigua and Barbuda: The Government of Antigua and Barbuda raises EC$20 million on the Eastern Caribbean's Regional Government Securities market (RGSM), using the primary market platform of the Eastern Caribbean Securities Exchange (ECSE). The Notes were offered for an initial EC$10 million with the option to accept an additional EC$10 million in the event of oversubscription. This option was exercised, resulting in an issue amount of EC$20 million.
• St. Kitts and Nevis: The International Monetary Fund (IMF) approves a three-year Stand-By Arrangement (SBA) for an amount equivalent to SDR 52.51 million (US$84.5 million) with St. Kitts and Nevis. The arrangement will support the authorities economic programme, coupled with a comprehensive debt restructuring, to restore debt and external sustainability and set the stage for sustained growth.
• St. Vincent and the Grenadines: The International Monetary Funds approves a disbursement of an amount equivalent to SDR 1.245 million (approx. US$2.0 million) under the Rapid Credit Facility (RCF) for St. Vincent and the Grenadines to hep the country meet the urgent balance of payments need caused by torrential rains, flooding and landslides in April 2011 that caused extensive damage to infrastructure, agriculture and housing. This was the second natural disaster to hit the island in less than six months. In October 2010, Hurricane Tomas has a similar impact.
• Suriname: The Government of Suriname reactivates the country's membership of the Organisation of Islamic Cooperation (OIC) in a bid to enhance development cooperation and economic ties with the Middle East. The administration is currently diversifying Suriname's development aid policies, targeting several potential donors to help finance its programmes. The Islamic Development (IsDB), the OIC's financing branch, is one of many institutions that could provide financing for several government programmes according to the Minter of Foreign Affairs, Winston Lackin.

Week ending July 22, 2011

• Barbados: The Government of Barbados is to receive a loan equivalent to USD 250,000 from the Caribbean Development Bank (CDB) to undertake a feasibility and design study for an irrigation and drainage system. The project is to be undertaken on approximately 525 acres of agricultural lands owned by the government at River Plantation in the parish of St. Phillip.
• Belize: The Caribbean Development Bank (CDB) approves a country strategy for Belize which outlines the proposed CDB assistance to that country over the period 2011-15. The strategy was arrived at after discussions with various stakeholders, including officials of the Government of Belize, selected private sector bodies, non-governmental organisations and the country's other development partners.
• Grenada: The Government of Grenada's EC$35 million, 365-day Treasury bill issue,is over subscribed. The Treasury bill was auctioned on the Eastern Caribbean's Regional Government Securities Market (RGSM) using the primary market platform of the Eastern Caribbean Securities Exchange (ECSE).
• Haiti: The Government of Haiti is to receive assistance from the Caribbean Development Bank (CDB) to meet part of its premium payments to the Caribbean Catastrophe Risk Insurance Fund (CCRIF) for the period June 1, 2011 to May 31, 2012. A grant equivalent to US$550,000 was approved by the Bank's Board of Directors.
• St. Vincent and the Grenadines: The Caribbean Development Bank (CDB) will provide a loan equivalent to US$12.62 million to the Government of St. Vincent and the Grenadines for a project to reduce the risks associated with landslide and flood hazards. The latest financing will enable the government to rehabilitate and reconstruct critical infrastructure to better than pre-Hurricane Tomas conditions and upgrade and improve the affected emergency shelters to internationally accepted standards.
• Trinidad and Tobago: The international credit ratings agency, Moody's Investor Services, rates Trinidad and Tobago with a Stable outlook. The ratings include a Government Bond rating of Baa1-Stable for foreign currency and Baa1 for local currency. The ratings are supported by relatively high levels of economic development, a very strong external position, still low government debt levels and a solid institutional framework.

Week ending July 15, 2011

• Saint Lucia: The Government of St. Lucia is to issue an EC$11 million 91-day Treasury bill on the Eastern Caribbean Regional Government Securities market, throught the Eastern Caribbean Stock Exchange (ECSE).

Week ending July 8, 2011

• Grenada: The World Bank Board of Directors approves a US$5 million zero-interest credit to help Grenada strengthen its conditional cash transfer programme. As a result, the project will improve coverage of poor households receiving cash transfers provided children go to school and to health check-ups. Grenada's safety net includes three targeted cash transfer initiatives which will be consolidated into a comprehensive conditional cash transfer (CCT) programme - the Grenada Safety Net Advancement Project (SNAP). The credit is from the World Bank's International Development Association (IDA) is repayable in 40 years, including a 10-year grace period.

Week ending July 1, 2011

• International: The Executive Board of the International Monetary Fund (IMF) selects Christine Lagarde to serve as the IMF Managing Director and Madame Chairman of the Executive Board for a five-year term starting on July 5, 2011. Ms. Lagarde, who succeeds Mr. Dominique Strauss-Khan, is the first woman named to the top IMF post since the institution's inception in 1944.

June 2011

Week ending June 24, 2011

• Regional: Caribbean leaders struggling with high national debt burdens are asking the Commonwealth to strengthen its assistance as a top priority. The Commonwealth Secretary General, Kamalesh Sharma, stated that the the Secretariat is being asked to step up the Commonwealth's work to raise international understanding for the unique challenges of high indebtedness being experienced by small states, and to develop proposals to provide tangible relief to those debt challenges. The Secretary General made these statements following meetings with the prime ministers of Dominica, Jamaica, and St. Vincent and the Grenadines, during visits to their countries from June 12-17.
• Grenada/St. Vincent and the Grenadines: The World Bank approves a total of US$47.12 million to help the Caribbean states of Grenada and Saint Vincent and the Grenadines to improve the safety of their buildings from the impact of climate change and to increase their public institutions' capacity to assess natural risks. Grenada will receive a total of US$26.2 million, including a US$10 million zero-interest credit from the World Bank's International Development Association (IDA) repayable in 35 years with a 10 year grace period. It will also receive a US$8 million grant from the Caribbean Regional Pilot Programme for Climate Resilience (PPCR); and and US$8.2 million zero-interest PPCR loan repayable in 40 years with a 10-year grace period. Saint Vincent and the Grenadines will receive a total of US$20.92 million, including a US$10.92 million zero-interest credit from IDA repayable in 35 years with a 10-year grace period; a US$7 million grant from PPCR; and a US$3 million zero-interest loan from PPCR repayable in 40 years with a 10-year grace-period.
• Guyana: The World Bank's Executive Board approves a credit of US$10 million to finance the University of Guyana Science and Technology Support Project. An estimated 6,300 students and faculty will benefit from this project, which will strengthen science and technology tertiary education in order to advance Guyana's Low Carbon Development Strategy (LCDS). The US$10 million credit will be carried out over a period of five years and is provided by the World Bank's fund for the poorest, the International Development Association (IDA). IDA has a 10 year grace period and a final maturity of 20 years.
• Guyana: Guyana begins participation in the International Monetary Fund's (IMF's) General Data Dissemination System (GDDS) on June 22, making a major step forward in the development of the country's statistical system. Comprehensive information of Guyana's statistical production and dissemination practices now appears on the IMF's Dissemination Standard's Bulletin Board. The GDDS was established by the IMF in 1997. It provides a framework to help countries to develop their statistical systems to produce comprehensive and accurate statistics for policy making and analysis. Guyana is the 100th GDDS participant.
• Guyana: The Inter-American Development Bank approves a US$12 million loan to improve efficiency, quality and sustainability of the drinking water service in Linden, Guyana's second largest city. The Bank's financing consists of a US$6 million loan from its Ordinary Capital for a 30-year term with a 6-year grace period and variable rate based on LIBOR; and another credit also of US$6 million from the IADB's concessional Fund for Special Operations for a 40-year term, with 40 years grace and 0.25 percent interest.
• Trinidad and Tobago: Trinidad and Tobago's finance minister, Winston Dookeran, urges the International Monetary Fund (IMF)to pay more attention to the economic situation facing small developing countries though welcoming the concessional lending facilities to low-income countries. Dookeran asked the new leadership of the IMF to give a credible attention and voice to the economic, monetary, and political challenges of small states and their economies. He said that recent development in the Caribbean and other regions have shown the additional fragilities and vulnerabilities of small states to natural disasters, the collapse of financial institutions and the concentration of economic activity.He noted that criteria used for long- term and short-term support pays too much attention to the level of GDP per capita, and not sufficiently to the much higher levels of fragility and vulnerability to natural and economic shocks. Dookeran suggested that the new IMF leadership should seriously confront those challenges facing small nations.

Week ending June 17, 2011

• Barbados: Moody's Investor Service, the international rating agency,downgrades the government of Barbados' domestic currency ratio to Baa3 from Baa2, the lowest investment-grade level. The Baa3 foreign currency bond rating has been affirmed. The outlook on both ratings has been revised to negative. Moody's cited concerns about the capacity of the domestic market to continue to absorb the elevated levels of government debt issuance at the same time that the country's already large current account deficit is expected to increase further due to the recent rise in oil prices. They also voiced concerns that the government's debt ratios are likely to deteriorate further over the next 12 to 18 months to levels that are no longer consistent with an investment grade rating given the small size and limited diversification of Barbados' economy.
• Grenada/St. Lucia: The World Bank Board of Directors approves two zero-interest credits for a total of US$5.6 million to help Grenada and St. Lucia establish the Eastern Caribbean Energy Regulatory Authority (ECERA). As a regional entity, ECERA, will improve electricity service delivery and diversify sources of energy generation, including renewables, benefiting electricity consumers across the Organisation of Eastern Caribbean States (OECS) countries. The two US$ 2.8 million zero-interest credits from the World Bank's International Development Association (IDA) are repayable in 35 years, including a 10-year grace period.
• Jamaica: Jamaica's Prime Minister, Bruce Golding, calls for multilateral financial institutions to create a special regime for indebted middle-income countries. Speaking to United States senators at a special meeting called in his honour on Capitol Hill, the prime minister said it is a long-standing concern of the government that Jamaica be accorded more space by the multilateral institutions, given its inherent vulnerabilities as a small, heavily-indebted country. He said that although being one of the most highly-indebted countries in the world, Jamaica is classified as a middle-income country, which meant that it is not eligible to receive many of the concessions or considerations available to countries which are classified as poor, even though the combined effect of the high indebtedness and the vulnerabilities, create many of the same effects as those experienced by "poor" countries.
• Suriname: Suriname's minister of finance, Wonnie Boedhoe, resigns citing personal circumstances.

Week ending June 10, 2011

• Antigua and Barbuda: The government of Antigua and Barbuda has concluded negotiations with the last of the Paris Club creditors, with an agreement reached with Japan. The government will repay US$32.5 million owed to Japan over 15 years with a 3-year grace period. Japan has agreed to an interest rate of 3.1 percent. The original loan of US$29.75 millionwas contracted in 1987 at an interest rate of 8 percent.

Week ending June 3, 2011

• Dominica: At the end of a recent Article IV Consultation, an International Monetary Fund (IMF) staff mission concludes that Dominica is emerging from crisis, building on the timely and strong counter-cyclical response over the past few years. The IMF finds that prudent fiscal management has brought public debt down and provided room for manouevre during the crisis. Going forward, the IMF says that ensuring debt sustainability will require a gradual withdrawal of the fiscal stimulus and a return to a 2.4 percent primary surplus target.
• St. Kitts and Nevis: The government of St. Kitts and Nevis is to seek the cooperation of its creditors in the restructuring of its public debt, which amounts to approximately US$1 billion. The exercise will address the sever payment challenges associated with servicing this debt and will seek to place the country's high debt burden firmly on a sustainable footing along with a series of economic measures being introduced by the authorities. At almost 200% of GDP, the public debt burden of St. Kitts and Nevis is amongst the highest debt-to GDP ratios among middle income countries in the world. It is expected that the majority of this debt will be affected by the restructuring.
• St. Kitts and Nevis: The St. Kitts and Nevis authorities and an International Monetary Fund (IMF) staff mission reach broad agreement, in principle, on the key elements of a US$84 million Stand-By Arrangement (SBA) over 36 months.The IMF's Executive Board could consider St. Kitts and Nevis SBA at the end of July, following review by IMF management. The main goal of the government's economic strategy is to foster macroeconomic stability and put the public debt on a firmly declining path.

May 2011

Week ending May 27, 2011

• British Virgin Islands: The Caribbean Development Bank (CDB) approves a US$15.67 million loan to the government of the British Virgin Islands for a natural disaster management project. The project is designed to assist the BVI in rehabilitating infrastructure damaged by Tropical Storm Otto, while reducing risks associated with heavy rainfall.
• Montserrat: The Caribbean Development Bank (CDB) is to provide the equivalent of US$2.5 million to the government of Montserrat to build a permanent power station in the island. The project will enable the Montserrat Utilities Limited to provide an efficient, secure and reliable electricity service and will facilitate increased activity in the productive sectors that could stimulate economic growth in the medium-term. The CDB will also provide the government of Montserrat with a grant equivalent to US$364,170 for use in financing specified technical assistance components. The rebuilding of the power station comes in the aftermath of volcanic activity in the mid to late 1990s which destroyed the existing power plant.

Week ending May 20, 2011

• Regional: The Inter-American Development Bank (IADB) launches a US$100 million facility to support lending to small and medium enterprises (SMEs) in Caribbean and Latin American countries. The first of its kind, the SME financing facility approved by the Bank's Board on May 18, will provide targeted resources to financial institutions in IADB borrowing member countries to on-lend to SMEs or to guarantee their SME portfolios. The new facility is part of the IADB's strategy to improve access to finance for SME's in Caribbean and Latin American countries, boost job creation, enhance productivity and strengthen economic growth.

Week ending May 13, 2011

• Haiti: The International Monetary Fund (IMF) completes the first review of Haiti's performance under the Extended Credit Facility (ECF) arrangement. Completion of the review enables an immediate disbursement of SDR 8.2 million (approx. US$13.1 million), bringing total disbursements under the programme to date to SDR 16.38 million (approx. US$26.2 million).
• St Lucia: CariCRIS, the regional ratings agency, reaffirms its credit ratings of CariBBB+ (foreign currency rating) and CariBBB+ (local currency rating) on its regional rating scale of the US$38 million debt issue of the government of St. Lucia. The ratings in St. Lucia reflects is monetary and exchange rate stability underpinned by its membership in a quasi currency board arrangement and its relatively diversified economic base. Also supporting the ratings are an external sector characterised by moderate balance of payments performances, relatively low external debt and adequate import cover. Tempering the credit strength are limited fiscal flexibility and continued fiscal pressures arising from slow revenue growth and rising expenditure.

Week ending May 6, 2011

• Caribbean: The Inter-American Development Bank (IADB) announces the approval of a Flexible Financing Facility (FFF) that will enable Caribbean and Latin American countries to tailor loan terms and conditions to meet their individual needs, as well as to use hedges to manage their interest rate and currency risk associated with their IADB debt. The FFF will become fully operational on January 1, 2012 and will replace the current platform for approval of sovereign guaranteed loans from the Ordinary Capital, the IADB's principal source of lending. More..
  

April 2011

Week ending April 29, 2011

• Antigua and Barbuda: The government of Antigua and Barbuda reaches agreement with the government of France to reschedule a 25-year old debt. France has agreed to a fixed interest rate of 3.1 percent on the US$34 million debt, payable over 15 years.
• Caribbean: Dr. William Warren Smith officially assumes office as the fifth President of the Caribbean Development Bank (CDB), the regional development finance institution based in Barbados. Dr. Warren Smith was elected at a special meeting of the CDB Board of Governors held on October 29, 2010, to succeed Dr. Compton Bourne, who officially demits office on April 30.

Week ending April 22, 2011

• Belize: The government of Belize and the Inter-American Development Bank (IADB) sign two loan agreements, each in the amount of US$5 million, for the financing of the Community Action for Public Safety Programme (CAPS) which is aimed at effort to reduce youth involvement in major violent crimes in Belize City, and the Integrated Water and Sanitation Programme for the Placencia Peninsula.

Week ending April 15, 2011

• Caribbean: The International Monetary Fund (IMF) projects real GDP growth in the Caribbean at 4.2 percent in 2011, up from 3.4 percent in 2010. Much of the predicted growth is attributed to the strong performance of the Dominican Republic economy and post-earthquake rebuilding in Haiti. Excluding these two countries, growth is projected at a lower 2.25 percent. High debt levels will closely relate the region's economic outlook to external developments.

Week ending April 8, 2011

• Jamaica: The United Kingdom's Department for International Development (DFID) grants Jamaica a total of GBP 2.4 million in debt relief. The money was owed on past official development assistance (ODA) loans provided through DFID.
• Jamaica: The Inter-American Development Bank (IADB) announces the approval of a US$60 million loan, the third tranche of financing for a public financial and performance management programme in Jamaica. Total resources for this programme now amount to US$180 million. The loan is for 20-years, with a five-year grace period, at a LIBOR interest rate.
• St. Kitts and Nevis: The St. Kitts and Nevis government adds two tenors to its Treasury bill issues, citing investor demand. Starting May 17, 2011, the Ministry of Finance will auction 182-day and 365-day Treasuries, in addition to the current 91-day issue.

Week ending April 1, 2011

• Antigua and Barbuda: The Executive Board of the International Monetary Fund (IMF) approves the disbursement of US$10.7 million to Antigua and Barbuda following the completion of the second and third reviews of the country's economic performance under the 36-month Stand-By Arrangement (SBA). With this disbursement, total disbursements under the SBA amount to approximately US$42.7 million or SDR 27 million.

March 2011

Week ending March 25, 2011

• Jamaica: The Inter-American Development Bank (IADB) approves a US$50 million Policy-Based Loan to protect basic health, nutrition, early childhood development and education spending so as to help shield Jamaica's poor and vulnerable from the effects of the economic downturn.

Week ending March 18, 2011

• Belize: The Caribbean Development Bank (CDB)is to provide a technical assistance loan equivalent to US$350,000 to the government of Belize, to assist in financing the services of consultants to prepare a feasibility study and detailed designs for a section of the Northern Highway.
• Guyana: The Board of Directors of the Caribbean Development Bank (CDB) approves a technical assistance grant equivalent to US$250,000 for the University of Guyana (UG). The overall objective of the technical assistance project is to enhance UG's capacity to carry out its day-to-day operations and to enhance its capacity to effectively undertake its role as a national tertiary institution in the 21st century.
• Jamaica: The World Bank announces the appointment of a new representative, Giorgio Valentini, for Jamaica and Guyana. The position will be based in Kingston, Jamaica, and will also include programme responsibilities for Guyana, Suriname, and Trinidad and Tobago.
• St. Lucia: The government of St. Lucia is to receive a loan equivalent to US$17.96 million from the Caribbean Development Bank (CDB). This financing is to assist the Government in recovering from the impact of Hurricane Tomas.

Week ending March 11, 2011

• Antigua and Barbuda: Antigua and Barbuda passes its third review under its Stand-by Arrangement (SBA) with the International Monetary Fund (IMF) but the lending institution is not completely satisfied with the government's revenue intake. The IMF noted that although enhanced administrative measures began to yield increased tax receipts towards the end of the year, government revenues continued to be lower than expected at the time of the SBA approval. The IMF noted, however, that the authorities have continued to restrain expenditure growth and significant reduction in interest payments was achieved through the restructuring of debts to both domestic and external creditors.
• Jamaica: The World Bank approves a US$15 million loan to increase energy efficiency and security on the island. The loan will benefit virtually the entire population through the development of detailed policies and plans on renewable energy to reduce the country's high dependence on imported petroleum products while moving to cleaner fuels.
• Guyana: The International Monetary Fund (IMF), in its Article IV Consultation with Guyana, says despite external and domestic shocks, the Guyanese economy demonstrated resilience and registered a fifth consecutive year of robust growth in 2010, with the economy expanding by around 3.4 percent.
• St. Lucia: The World Bank Board of Directors approves a US$15 million zero-credit to help St. Lucia rehabilitate key infrastructure damaged by the passage of Hurricane Tomas and improve the island's capacity to manage disaster risk. An estimated 20,000 people will directly benefit from the rehabilitation of damaged public infrastructure, while the entire population will be better prepared to confront future natural disasters. The US$15 million zero-interest credit from the World Bank's International Development Association (IDA) is repayable in 35 years including a 10-year grace period.

Week ending March 4, 2011

• Haiti: The Steering Committee of the Haiti Reconstruction Fund (HRF) approves US$52 million in new projects and announces $60 million in new contributions for rebuilding the country. The projects include a programme to support housing and community reconstruction (for nearly US$25 million) and an earthquake prevention project for the north of Haiti (US$10 million).
• St. Vincent and the Grenadines: The Executive Board of the International Monetary Fund (IMF) approves a disbursement of an amount equivalent to SDR 2.075 million (about US$3.26 million) under the Rapid Credit Facility (RCF) for St. Vincent and the Grenadines to help the country manage the impact of Hurricane Tomas. The late October 2010 hurricane inflicted significant damage to agriculture, housing and infrastructure. Financing under the RCF carries zero interest (until end 2011) has a grace period of 5 1/2 years, and a final maturity of 10 years.

February 2011

Week ending February 25,2011

• Turks and Caicos Islands: A US$260 million loan to the Turks and Caicos Islands (TCI), guaranteed by Britain, reaches final approval. Funds can be drawn down by the TCI government against the loan. A key condition of the loan is the recruitment of a chief financial officer, to be appointed by the governor. The loan is needed to reschedule debt and provide financial breathing space for the interim government to work towards a balanced budget.

Week ending February 18, 2011

• Jamaica: The government of Jamaica successfully places a US$400 million Eurobond at 7.95 percent - the lowest rate at which Jamaica has ever raised funds on the international capital market. The offer replaces a US$400 million Eurobond that was issued in 2001 at 11.75 percent and which matures in May. The lead managers for the transaction - Deutsche Bank Securities Inc. and BNP Paribas Securities Inc. - reported that the issue was three times oversubscribed, with more than US$1 billion in orders from several institutional accounts in the US and Europe, as well as some investors from the Latin America and Caribbean region. The offer meets specific liquidity and structural requirements that now places it in the Emerging Market Bond Index (EMBI) making it more attractive to investors.
• Montserrat: Montserrat invites the International Monetary Fund (IMF) to conduct an Article IV Consultation to evaluate the island's economic health. Montserrat is not a member of the IMF but as an Overseas Territory of the United Kingdom (UK) is able to access its services through the UK's membership. The ability to access this service and the information provided from the assessments will help the Government make better policy decisions and deliver more targeted programmes. It will also help the Government make the case to donor countries for support especially where evidence based justification is essential.

Week ending February 11, 2011

• Barbados:Inter-American Development President (IADB), Luis Alberto Moreno, signs two loan agreements totalling US$40 million during an official visit to Barbados. The loans will support initiatives that will bring significant economic benefits to the Caribbean island through sustainable energy and more effective coastal management. Both loans are for a 25-year term, with a five-year grace period from the date of signature and carry a variable interest rate. The IADB President also reaffirmed the institution's firm commitment to a partnership with Barbados.
• Eastern Caribbean: Newly appointed World Bank Country Director for the Caribbean, Francoise Clottes,joins Prime Minsters and Minsters of Finance of the Eastern Caribbean Currency Union (ECCU) for an introductory meeting. The Ministers will convene for the 69th gathering of the Monetary Council of the Eastern Caribbean Central Bank (ECCB). The meeting is part of Ms Clottes first official trio to the region during which she also visited Jamaica and the Dominican Republic.

Week ending February 4, 2011

• Turks and Caicos Islands: The United Kingdom is to provide the Turks and Caicos Islands (TCI) with a financial package totalling US$260 million through the provision of a loan guarantee. This will help the TCI secure new commercial bank lending that will refinance existing debt and cover further projected deficits until the TCI achieves an expected fiscal surplus in the financial year ending March 2013.

January 2011

Week ending January 28, 2011

• Jamaica: The European Union extends grants amounting to Euro 28.9 million (JS3.4 billion) for budget support programmes. The funds have been channelled through the Budget Support for the Security Sector Reform Programme (SSRP) through which over Euro 7.3 million (J$850 million) was disbursed, and the Debt Reduction and Growth Enhancement Programme (DRGEP) through which Euro 21.5 million (J$2.5 billion) has been disbursed.

Week ending January 21, 2011

• Jamaica: The Executive Board of the International Monetary Fund (IMF) completes the third review of Jamaica's economic performance under the Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of US$49 million (about SDR 31.9 million). This will bring total disbursements under the arrangement to US$838.2 million (SDR 541 .8 million).

Week ending January 14, 2011

• St. Lucia: The International Monetary Fund (IMF) approves a combined SDR 5.36 million (about US$8.19 million) in emergency assistance for St. Lucia to cope with the economic consequences of Hurricane Thomas. The financial assistance consists of an SDR 3.83 million(about US$5.85 million) disbursement under the IMF's Rapid Credit Facility (RCF) and SDR 1.53 million (about US$2.34 million) under the Fund's Emergency Natural Disaster Assistance (ENDA).
• St. Vincent and the Grenadines: The World Bank approves a US5 million zero-interest credit to help St. Vincent and the Grenadines rehabilitate key infrastructure damaged by the passage of Hurricane Tomas. The US$5 million credit from the International Development Association (IDA) is repayable in 35 years, including a 10-year grace period.

Week ending January 7, 2011

• Belize: The government of Belize receives US$6 million in grants from the Japanese Social Development Fund (JSDF) through the World Bank. The funds will be used to support the provision of greater access to quality health services for Belize's children and to encourage healthy lifestyle practices and behaviours.

December 2010

Week ending December 31, 2010

• International: The International Monetary Fund announces revised amounts for the four currencies that determine the value of the Special Drawing Right (SDR). Effective January 1, 2011, the value of the SDR will be the sum of the values of the following amounts of each currency: US dollar = 0.660; Euro = 0.423; Pound sterling = 0.111; and the Japanese yen = 12.1. The decision on the amount of each currency in the SDR valuation basket is the final step in implementing the results of the latest review of the method of valuation of the SDR.

Week ending December 24, 2010

• Belize: The government of Belize to benefit from grants valued at close to 24.9 million Euros (BZ$62.3 million) to assist with projects geared towards rural development, poverty reduction and the sugar sector. Three financing agreements were signed between Belize and the European Union including the 10th European Development Fund (EDF) for 11.8 million Euros (BZ$29.5 million) for the period 2010-2015, which has been earmarked for the Belize Rural Development Programme Phase II (BRDP II).

Week ending December 17, 2010

• Belize: Belize obtains US$50 million from the Inter-American Development Bank (IADB) to build a new waste-water collection and treatment system in the Placencia Peninsula, its second most important tourist destination. Another US$5 million loan will be provided to Belize from the Global Environment Facility (GEF) resources under the "Testing a Prototype Caribbean Regional Fund for Wastewater" (CReW) project.
• Guyana: Guyana and China sign an agreement for a grant of some US$8 million for still-to-be determined projects in the social sector, which has seen a sustained and rapid developmental and infrastructural transformation in recent years.
• Haiti: The World Bank Board of Directors approves a US$3 million grant to Haiti to support a partial guarantee programme to help local banks and cooperatives restructure the loans of borrowers affected by the earthquake. The grant will also help restart lending in anticipation of a stronger demand for credit in the context of the country's reconstruction.
• Haiti: The Inter-American Development Bank (IADB) and the government of Spain will provide US$20 million in emergency grants to help Haiti fight cholera, which claimed more than 2,300 lives since late October. The IADB approved a US$15 million grant while the Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean will provide a US$5 million grant for the programme. The grants will enable the Haitian Ministry of Public Health (MSPP) and its partners to establish and operate a network of 2000 oral rehydration posts, 190 cholera treatment units and 10 cholera treatment centres in priority areas.
• Jamaica: Jamaica and the Inter-American Development Bank (IADB) sign a US$200 million loan consisting of the second IADB financing for the fiscal consolidation programme. This operation brings IADB total loan approvals to US$600 million in 2010 in support of the Government's fiscal reform programme. A first operation also of US$200 million was approved in August to strengthen the country's fiscal policy. Both unprecedented financings were based on fiscal measures taken by the Jamaican government this year to improve public debt sustainability, increase public revenue, control spending and modernise customs.
• Jamaica: Jamaica receives a US$71.2 million loan from China to provide for the development of 2000 houses and service lots in the parishes of St. Ann and St. Elizabeth. The loan will be repaid over 20 years with a moratorium of five years.

Week ending December 10, 2010

• Barbados: The Inter-American Development Bank (IADB) approves a US$30 million loan to help Barbados preserve and manage its coastline, a critical asset for the country's economy, from damage caused by natural disasters and risks associated with climate change. The loan is for a 25 year term, with a five-year grace period, and carries a variable interest rate based on LIBOR.
• Belize: The Inter-American Development Bank (IADB) approves a US$5 million loan to help reduce juvenile crime in Belize by tackling violent behaviours at school, encouraging positive behaviours in youth from broken homes, improving the effectiveness of rehabilitation for juveniles, and enhancing the government's ability to devise and implement public safety policies.
• Guyana: The government of Guyana and the Inter-American Development Bank (IDB) sign more than US$30 million in loan contracts to enhance the country's public financial management system and for commencement of works to transform the country's infrastructure and sanitation in the city.
• Trinidad and Tobago: The government of Trinidad and Tobago signs a US$100 million (TT$639 million) loan from the Inter-American Development Bank (IADB). The loan will be used to fund the Government's Public Capital Expenditure Management Programme, aimed at ensuring sustained public capital investment.

Week ending December 3, 2010

• Trinidad and Tobago: Trinidad and Tobago will improve the living conditions of more than 50,000 people with a housing neighbourhood upgrading project financed with a US$40 million loan from the Inter-American Development Bank (IDB). The programme will regularise the tenure of property for families living in squatter settlements; and provide subsidies for home improvements and construction of new housing. The IDB loan is for a 25-year term, with a 6-year grace period and an interest rate based on LIBOR. Local counterpart financing will total US$10 million.

November 2010

Week ending November 26, 2010

• Antigua and Barbuda: The European Union approves 9 million Euros (EC$33.6 million) for Antigua and Barbuda under the EU's vulnerability assistance scheme to help African, Caribbean and Pacific (ACP) countries deal with the effects of the global financial crisis. Antigua and Barbuda is the third Eastern Caribbean country to benefit from financial assistance under the mechanism - the other two being Grenada and Dominica. The vulnerability assistance package will enable the government to reduce the fiscal financing gap by 52% in 2010 in order to maintain priority expenditures, especially social spending.

Week ending November 19, 2010

• Suriname: Suriname will benefit from a US$12 million loan from the Inter-American Development Bank (IADB) to improve potable water service for up to 50,000 people and improve the efficiency of water service operators. The loan is from the IADB's Ordinary Capital, with a 25-year term, a five-year grace period and an interest rate based on LIBOR.

Week ending November 12, 2010

• Jamaica: Jamaica ranks first as the largest recipient of European Union (EU) development in the entire Americas in 2009. Disbursements to Jamaica totalled GBP 76 million or J$9.2 billion.

Week ending November 5, 2010

• Antigua and Barbuda: The International Monetary Fund (IMF) completes the first review of Antigua and Barbuda's economic performance under a programme supported by a 36-month Stand-By Arrangement.The completion enables the immediate disbursement of an amount equivalent to SDR3.375 million (US$5.3 million).
• Jamaica: Jamaica will improve the competitiveness of the agricultural sector with measures to improve the quality of food production, foster the development of agricultural and agro-processing value chains, and increase farmers access to national and international markets with a US$15 million Inter-American Development Bank (IADB) loan.

October 2010

Week ending October 29, 2010

• Barbados: The international ratings agency, Standard and Poor's, lowers Barbados credit ratings from BBB to BBB- with a stable outlook. Standard and Poor's cited the continued weakening of the government's fiscal profile and increasing risks that delays in fiscal consolidation may lead to debt surpassing the currently projected peak in 2012.
• Caribbean: The International Monetary Fund's recently released Regional Outlook for the Western Hemisphere indicates that Caribbean economies continue to falter posting only marginal gains in 2010. Economic growth is expected to improve by 2% in 2011. The region's lacklustre performance is attributed to weak import demand from more advanced economies, slow recovery in remittances, and subdued remittance flows.
• Guyana: The Inter-American Development Bank approves a US$9.5 million loan to Guyana to improve sewage service to 52,000 people in the capital city of Georgetown and help to eradicate neglectedtropical diseases.

Week ending October 22, 2010

• Barbados: The Barbados government introduces legislation to increase its local borrowing limit from Bds$4 billion (US$2 billion) to Bds$5 billion (US$2.5 billion). The government announced its intention to concentrate on borrowing from local institutions rather than from international agencies.
• Grenada: Grenada and the OPEC Fund for International Development sign a US$8.5 million loan agreement for the second phase of the Agricultural Feeder Roads project. The loan is signed in Washington, DC.

Week ending October 15, 2010

• Antigua and Barbuda: The government of Antigua and Barbuda reaches agreement with the OPEC Fund for International Development (OFID) to reschedule its debt. The authorities reach an interest free rescheduling agreement with OFID for its US$850,000 debt to that organisation. OFID representativesindicate that having normalised the debt, Antigua and Barbuda can begin to explore avenues for reengagement that would make new resources available for private and public sector projects.
• Bahamas: Prime minister Hubert Ingraham has been selected to chair the Boards of Governos of the International Monetary Fund (IMF) and the World Bank Group (WBG). As the chair of the 2011 meetings, Ingraham will be a primary channel of communications between the executives of the institutions and the shareholder countries.
• Barbados: The government of Barbados and the Inter-American Development Bank (IADB) sign financing for US$46 million to support a sustainable energy framework. The financing costs of US$45 million from the IADB's Ordinary Capital Resources and a US$1 million grant from the Globla Environment Facility.
• Caribbean: The prime minister of St. Kitts and Nevis, Denzil Douglas, makes a case for debt relief for Caribbean countries while visiting Washington. He urges that special consideration be given to those highly indebted middle-income countries that no longer have access to concessionary support but are still in need of financial help.
• Guyana: The World Bank announces that the newly established Guyana REDD Investment Fund (GRIF) will soon receive approximately US$30 million as first payment from Norway. Guyana will be the first country to be compensated under the Reducing Emissions from Deforestation and Forest Degradation (REDD) scheme. GRIF is the financial mechanism for the on-going coperation on climate change between Guyana and Norway.The partnership is based on the concept of payment for ecosystem service and aims to contribute to the creation of a global regime to assign economic value to standing forests.

Week ending October 8, 2010

• Haiti: The Inter-American Development Bank (IADB) makes a US$20 million grant available to Haiti to hep the country establish a partial credit guarantee fund to facilitate the restructuring of loans to businesses affected by the January 12 earthquake. The programme, which will be run by the Banque de la Republique d'Haiti's Industrial Development Fund, will enable banks and credit unions to restructure loans and provide additional financing to viable companies that suffered damages or losses due to the earthquake and face difficulties in servicing their current loans.
• Haiti: The United States is to releaseUS$120 million for projects in Haiti, including projectsfor education, rubble removal and housing, as well as to help rebuild the state university in Port-au-Prince. The US has been among thedonor nations that have been criticised for their slow responseto provide more than US$5.3 billion in pormised aid tohelp Haiti rebuild following the devastating January 12 earthquake. The projects should aid more than a million Haitians.

Week ending October 1, 2010

• Grenada: The International Monetary Fund (IMF) states, at the end of its staff mission to Grenada, that the authorities have made significant progress in their economic programme and that all quantitative targets at end-June 2010 appear to have been met. They noted that, as agreed under the programme,no new external loans were contracted to ensure that the debt burden does not increase. Quarterly budget reveiws with line ministries also helped to ensure that spending plans matched available resources. Domestic arrears have also declined.
• Haiti: The Inter-American Development Bank (IADB) announces the cancellation of Haiti's outstanding debt of US$484 million with the IADB, after receiving a US$204 million advance contribution from the United States to the Bank's soft loan window, the Fund for Special Operations (FSO).

September 2010

Week ending September 24, 2010

• Antigua and Barbuda: The Paris Club group of creditor countries meet with representatives of the Government of Antigua and Barbuda and agree on a restructuring of its public external debt. The agreement reduces by over 86% the debt service due to the Paris Club creditors during the IMF supported programme under a Stand-By Arrangement. Some US$117 million has been rescehduled.
• Grenada: The Grenadian prime minister, Tillman Thomas, reiterates an appeal for special support for small vulnerable economies like Grenada, while meeting with Norway's prime minister, Jens Soltenberg. He noted the vulnerabilities of small island states, citing recent catastrophes affecting Caribbean nations, including Grenada and Haiti. He observed that the social, economic and natural systems of Small Island Developing States (SIDS) are among the most vulnerable in the world and warranted special treatment. Stoltenberg and the Ethiopian prime minister, Meles Zenawi, are the co-chairs of the UN High-Level Advisory Group on Climate Change Financing in developing countries.

Week ending September 17, 2010

• Jamaica: The government of Jamaica announces that it will re-enter the international capital markets next year in a bid to raise at least US$400 million to repay debt maturing in May 2011. Jamaica isseeking to pay a seven percent to eight percent yield on any new debt issues in the markets.

Week ending September 10, 2010

• Antigua and Barbuda: The International Monetary Fund (IMF) states at the end of its staff mission to Antigua and Barbuda that all the end-June targets under the country's Stand-By Arrangement were met. They note that a key pillar of the authorities macroeconomic programme is a comprehensive restructuring of the public debt with both external and domestic creditors.

Week ending September 3, 2010

• Caribbean: The European Commission approves the first financing decisions under the EUR 264 million 2010 allocation for the Vulnerability FLEX mechanism to help the most vulnerable African, Caribbeanand Pacific (ACP) countries cope with the impact of the global financial crisis and economic downturn. The V-FLEX mechanism is a short-term instrument which provides for EUR 500 million over two years (2009-2010). In 2010, the mechanism will provide, upon their request, support to Antigua and Barbuda, Grenada, and Haiti.

August2010

Week ending August 27, 2010

• Anguilla: The government of Anguilla borrows Eastern Caribbean 10 million dollars from the Eastern Caribbean Central Bank (ECCB) to pay the salaries of its public servants for the month of August.
• Caribbean: The international credit rating agency, Standard and Poor's (S&P) rates the Caribbean Development Bank (CDB) as "AAA" in its recent assessment of the Bank's operations. The S&P listed the CDB's strong capitalisation, its diversifed and well-performing loan portfolio, its prominent position as lender in its borrowing member countries, the recent demonstration of strong shareholder support in the form of a large paid in capital increase, and adequate liquidity.
• Jamaica: The European Union is providing US$46.9 million in budgetary support to Jamaica to assist in the government's debt reduction programme and the sugar industry. The government will recives US$23.4 million for the Debt Reduction and Growth Enhancement Programme (DRGEP) while US$11.7 million will go towards support for the sugar sector.
• Jamaica: A statement by an IMF mission to Jamaica announces that all end-June quantitative targets have been met in a second review of the economic programme under the Stand-By Arrangement approved the the IMF in February 2010.The IMFnotes, however, that risks to the programme remain high, including from the external environment,Jamaica's very high debt levels, and the economy's vulnerability to shocks.

Week ending August 20, 2010

• Antigua and Barbuda: Antigua and Barbados are to receive funds from the Caribbean Development Bank (CDB) as it has met the institution's loan conditions tied to the disbursemet of the first tranche of a US$30 million policy-based loan (PBL) that has approved in 2009. The conditions of the PBL mirror the emasures et out by the government's Fiscal Consolidation Programme which is aimed at curbing expenditure and enhancing revenue collection.
• Haiti: The World Bank is to disburse US$55 million to Haiti to help the Caribbean nation address some of its most urgent financing needs as it strives to recover in the wake of the January 12th earthquake. The funds will help Haiti meet urgent financing needs for reconstruction which have been exacerbated by revenue shortfalls following the earthquake. Damages and losses caused by the earthquake are estimated at nearly US$8 billion by the Post Disaster Needs Assessment (PDNA) carried out in February 2010.

Week ending August 12, 2010

• Grenada: Grenada is to receive about Eastern Caribbean (EC) 5 million dollars as part of a grant package from Libya to Eastern Caribbean countries. The package, an ongoing effort to strengthen and develop relations between Libya and the Organisations of Eastern Caribbean States (OECS), was finalised during a recent visit to the North African country by reperesentatives of OECS nations.

Week ending August 6, 2010

• Jamaica: Jamaica and the Inter-American Development Bank (IADB) sign a US$200 million loan for a fiscal consolidation programme. The programme will strengthen the country's efforts to achieve stable, sustained growth in the context of sound macroeconomic policy and a consolidated fiscal balance, focusing on increasing tax revenue, streamlining expenditure and reforming the public sector.
• Haiti: The World Bank Board of Directors approves a US$30 million grant that will provide Haiti with urgently needed funds to close its budget gap and support the government's efforts to increase public sector transparency and accountability. The US$30 million grant will leverage an additional US$25 million from the donor-supported Haiti Reconstruction Fund (HRF) which is managed by the Bank.

July 2010

Week ending July 30, 2010

• Caribbean: The Caribbean Development Bank (CDB) disburses the equivalent of US$124.5 million to its Borrowing Member Countries (BMCs) in the first half of 2010. This is up from US$105.2 million disbursed for the same period in 2009.

Week ending July 23, 2010

• Antigua and Barbuda: The International Monetary Fund (MF) concludes its Article IV consultation with Antigua and Barbuda and states that the economy is experiencing its worst recession in decades. It indicates that the government has accumulated arrears amounting to about 9 percent of GDP to domestic and external creditors, bringing the total stock of arrears to about 53 percent of GDP, or 45 percent of the outstanding public debt, which totalled 115 percent of GDP. The IMF emphasised that comprehensive domestic and external debt restructuring is paramount for achieving debt sustainability, given that the public debt is unsustainable even with significant fiscal adjustment.
• Haiti: The Inter-American Development Bank approves two grants totalling US$54 million Haiti to repair highways and improve secondary roads. A US$29 million grant will help complete rehabilitation work on RN1, one of the busiest stretches of the country's principal highway. A US$25 million grant will finance work to improve the secondary road network in Haiti's southern peninsula.
• Haiti: The Inter-American Development Bank makes a US$14 million grant available to Haiti to help speed up the recovery of electricity services in Port-au-Prince, which were severely damaged by the January 12 earthquake.
• Haiti: The International Monetary Fund (IMF) cancels Haiti's debt and approves a new programme to support reconstruction and economic growth in the quake-hit country. The IMF approved the full cancellation of Haiti's outstanding liabilities of US$268 million.

Week ending July 16, 2010

• Caribbean: Director General of the Organisation of Eastern Caribbean States (OECS), Dr. Len Ishmael, says heavily indebted Caribbean states are in need of help from the internationalcommunity to ease their threatening debt burden. She says that with foreign exchange not coming in, along with much less available foreign development assistance, the sub-region is finding it hard to pay its way.

Week ending July 9, 2010

• Trinidad and Tobago: The Caribbean regional rating agency, CariCRIS, reaffirms highest creditworthiness ratings for Trinidad and Tobago. The twin-island republic has been assigned a CariAAA rating on both its foreign and local currency debt. The ratings of Trinidad and Tobago continue to reflect its strong, resilient, and well-diversified economy, a key rating strength. Another is the strong external liquidity, evidenced by a healthy net foreign reserves position and low financing requirements. Sound fiscal flexibility and low public debt also support the ratings.

Week ending July 2, 2010

• Grenada: The OPEC Fund for International Development approves Grenada's application for a US$8.5 million loan to finance the second phase of an agricultural feeder roads project. The approval of this loan is likely to have a positive impact on related loan applications pending with other institutions, such as the Kuwaiti Fund.
• Jamaica: The Heads of the International Monetary Fund (IMF), the Organisation of American States (OAS) and the United Nations (UN) are to attend the 31st Meeting of the CARICOM Heads of Government in Montego Bay, Jamaica. Among other things, the IMF, OAS UN Heads will discuss with CARCICOM leaders, the international financial system and its effect on CARICOM states, the Millenniun Development Goals, climate change,crime and security.

June2010

Week ending June 25, 2010

• Jamaica:Jamaica to receive 63.7 million Special Drawing Rights (SDRs), equivalent to just under US$94 million, having successfully met the first quarterly economic performance test of the International Monetary Fund (IMF) under its US$1.2 billion 27-month Stand-By Arrangement.

• Grenada: Grenada intensifies efforts in Europe to mobilise financial assistance by holding a series of meetings with key banking and development institutions in Belgium and Luxembourg. Grenada's Ambassador to the European Union, Stephen Fletcher, has held a series of meetings with ING Bank of Belgium, Belgium Investment Company for Developing Countries(BIO) and the European Investment Bank in Luxembourg.
• Suriname: Suriname is among the 19 member countries that signed a loan agreement with the Islamic Develoment Bank at the 35th Annual IsDB Governors meeting in Azerbaijan. Suriname joined the IsDB in 1997 with the objective of finding new sources of funding for development projects and lessening its dependence on Dutch aid.
• Regional: The Inter-American Development Bank (IDB) and Daiwa Securities Group are to issue a Poverty Reduction Bond to support poverty reduction and improve living conditions of new generations in the Caribbean and Latin America. The Poverty Reduction Bonds, the first theme bond of the IDB, will be issued under the IDB's Global Debt Programme. The bonds will be denominated in Brazilian real (payable in US dollars) and the offering period is expected to be in July 2010.

Week ending June 11, 2010

• Antigua and Barbuda: The International Monetary Fund approves a US$117.8 million loan to support Antigua and Barbuda's plan to recover from mounting government debt, weak economic growth and the effects of the economic crisis.
• Caribbean: CARICOM is hopeful that the Canada's presidency of the G8 and G20 Summits will augur well for the region's call for a restructuring of the international financial architecture and for special treatment to be accorded to small-island developing states.

Week ending June 4, 2010

• Haiti: The Inter-American Development Bank (IADB) will make US$200 million in grants over five years to strengthen land tenure rights, boost agricultural production, increase market access for farmers and reinforce food security in Haiti. The grants will cover a quarter of the total cost of a Haitian government plan to revamp farming after the January 12 earthquake.

May 2010

Week ending May 28, 2010

• Haiti: The World Bank announces that the remaining US$36 million of debt owed by Haiti to the International Development Association (IDA), the Bank's fund for the poorest countries, has been cancelled. Haiti now has no further amounts payable to the World Bank. The cancellation by the World Bank of Haiti's debt to IDA was made possible by contributions from Belgium, Canada, Finland, France, Germany, Ireland, Italy, Japan, The Netherlands, Norway, Spain, Sweden, and Switzerland.

Week ending May 21, 2010

• Caribbean: The Board of Governors of the Caribbean Development Bank (CDB) approves an increase in the Bank's ordinary capital by US$1 billion, the largest expansion in the Bank's history. The increase will include a 22% paid-up component equivalent to approximately US$216 million to be paid over the next six years.
• Jamaica: The Caribbean Development Bank (CDB) approves a loan equivalent of US$20 million for the Student's Loan Bureau (SLB) of Jamaica to enable the SLB to provide loans to eligible students under CDB's Student Loan Scheme.
• St. Lucia: The Caribbean Development Bank (CDB) approves a loan equivalent to US$15 million for the government of St. Lucia which will constitute the third tranche of a loan already approved for the country. In July 2008, the CDB's Board of Directors approved a Policy-Based Loan to the government of St. Lucia in an amount not exceeding the equivalent of US$30 million which was to have been paid in two tranches of US$18 million and US$12 million.
• St. Vincent and the Grenadines: At the conclusion of its Article IV consultations with the government of St. Vincent and the Grenadines, the International Monetary Fund notes that the country has been severly affected by the spillovers of the global crisis on tourism, remittances, and foreign direct investments. The IMF observed that total public sector debt amounted to 75% of GDP, a jump of 7 percentage points from 2008, a result of the financing of the deficit largely through issuance of Treasury Bonds.

Week ending May 14, 2010

• Antigua and Barbuda: The European Commission approves a grant of 10 million Euros for Antigua and Barbuda. The financing will be provided under the European Union's Vulnerability Flex (V-Flex) mechanism, which was introduced in August 2009 in the wake of the global financial crisis. The V-Flex provides budget support toAfrican Caribbean and Pacific (ACP) countries most affected by the world economic downturn.

Week ending May 7, 2010

• Turks and Caicos: The government of the Turks and Caicos Islands secures $79 million of the $85 million approved by the UK in order to offset the public debt. The loan is the consolidated amount of $74 million from First Caribbean International Bank with the remaining $5 million secured from Scotia Bank.

April 2010

Week ending April 30, 2010

• Antigua and Barbuda: The World Bank to visit Antigua and Barbuda in coming months to discuss ways in which the Bank can provide financial assistance to the country. The Antigua and Barbuda government is seeking to reengage with the World Bank and to access resources from the institution.
• Caribbean: TheInternational Monetary Fund(IMF) to open new resident representativeoffices in Jamaica and Antigua and Barbuda, the latter to cover IMF member countries in the Eastern Caribbean Currency Union. The establishment of these offices will further deepen the IMF's dialogue with the country's authorities and other important regional stakeholders, including trade unions, the private sector, academics and non-governmental organisations.
• Haiti: Haiti benefits from a US$10 million grant provided by the Spanish Cooperation Fund for Water and Sanitation in Latin America and the Caribbean (Spanish Fund) to finance the construction of drinking water infrastructure latrines in small rural communities in the Artibonite Department.
• Haiti: The International Fund for Agricultural Development (IFAD)approves a debt relief programme that covers US$50.7 million of earthquake-ravagedHaiti's debt. The agreement provides the basis for permanent debt forgiveness of Haiti's debt burden to IFAD.
• Haiti: The Inter-American Development Bank (IADB) makes a US$30 million grant available to Haiti for housing. The programme will benefit some 5,000 families to be relocated from tent camps in Port-au-Prince.
• Haiti: The Inter-American Development Bank approves a US$50 million grant for budget support to assist the Haitian government's efforts to restore key fiscal institutions hit by the earthquake. Haiti expects its fiscal revenues to drop by as much as half this year due to the impact of the January 12 earthquake.

Week ending April 23, 2010

• World Bank: For the first time, the World Bank opens access to all the information on its database, providing information on health, education, poverty and debt for economies worldwide.
• Barbados: The First Caribbean International Bank is to lend the government of Barbados $40 million to construct residential houses for sale over a five-year period. The loan is to assist the Barbados National Housing Corporation meet the demand for residential houses by the entity's clients. The loan will be repayable in 28 equal quarterly installments, beginning 15 months after the first drawdown.
• St. Vincent and the Grenadines: The government of St. Vincent and the Grenadines raises EC$20 million (US$7.4 million) in a 91-day Treasury bill auctioned on the Eastern Caribbean's Regional Government Securities Market (RGSM) on April 19, 2010.

Week ending April 16, 2010

• St. Lucia: CariCRIS, the Caribbean regional credit rating agency, assigns a CariBBB+ rating to a US$38 milliondebt issue by the government of St. Lucia. CariCRIS also reaffirmed its ratings of CariBBB+ on St. Lucia's foreign currency and local currency debt, indicating that the level of creditworthiness of St. Lucia's debt obligations was adequate. The regional agency indicated, however, that the ratings depended critically on the St. Lucian government's containment of its fiscal deficit and a stalling the growth of the public debt relative to GDP.
• Haiti: The Inter-American Development Bank (IADB) has approved a financial mechanism, an Account for the Administration of Donor Resources, for Haiti, whichmay recieve contributions of up to US$100 million from the countries in the Union of South American Nations (UNASUR). The account, which will be administered by the IADB, will provided budgetary support upon the request of the Haitian government.UNASUR includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela.

Week ending April 9, 2010

• St. Lucia: The government of St. Lucia raises EC$31.335 million (US$11.61 million) on the Eastern Caribbean Regional Government Securities Market (RGSM). The amount was raised through a 8 year bond issue at a fixed rate of 7.5%. The St. Lucian government also raises EC$11 million through an oversubscribed 91-day Treasury bill issue with a yield of 4.998%.

Week ending April 2, 2010

• Grenada: The International Monetary Fund (IMF)approves Grenada's request for a new three-year arrangement under the Extended Credit Facility (ECF) amounting to SDR 8.775 million (about US$13 million). The approval of the programme make an initial disbursement of SDR 1.275 million (about US$1.9 million) available immediately. The new arrangement aims at helping Grenada cushion the effects of the global crisis and support the country agenda of economic reforms aimed at boosting growth, reducing poverty, strengthening the private sector and the business climate, and reducing vulnerabilities in the financial sector.
• St. Lucia: The International Monetary Fund (IMF) concludes its Article IV Consultations with St. Lucia and notes that macroeconomic outcomes have weakend significantly. Real GDP is estimated to have contracted by 5.2% in 2009 although a nascent recovery is expected in 2010. The Fund noted that while St. Lucia's expansionary fiscal policy had helped mitigate the adverseimpact of the global crisis and protected the most vulnerable segments of the population, it had signifcantly raised fiscal defict and public debt ratios. Public sector debt-to-GDP was 74.7% at the end of 2009.

March 2010

Week ending March 26, 2010

• Caribbean: The Inter-American Developement Bank (IADB) agrees to increase its capital by US$70 billion, doubling its capacity to make loans to the Caribbean and Latin America. Reflecting the impact of the global financial crisis, the IADB approved a record US$15.5 billion in financing in 2009 - an increase of 38% over the previous year.
• Caribbean: The President of Guyana, Bharrate Jagdeo, says that the Caribbean is on the verge of bankruptcy as many countries are spending more on servicing external debt that their national revenue and has reiterated his call for urgent debt relief by the international financial institutions. The Guayanese Preseident heads a special taks force of the Caribbean Community (CARICOM) to sees the financial crisis and come up with solutions.
• Barbados: Barbados signsthree new development loans with the Inter-American Development Bank (IADB) amounting to US$80 million. The three loans includeUS$10 millionto fund the Barbados Competitive Programme which is to help rationalise incentives to the business sector; US$50 million to fund the Barbados Water and Sanitation SystemUpgrade project; and US$20 million to fund the Agricultural Health and Food Control Programme.
• Haiti: The Inter-American Development Bank (IADB) agrees to provide US$447 million in post-earthquake debt forgiveness to Haiti as well as US$32 million in other relief. The IADB stated that the debt relief would help toreduce Haiti's fiscal pressures and avoid a debt problem in coming years.
• Guyana: The government of Guyana and the Inter-American Development Bank (IADB) sign a US$24.8 million agreement for transport infrastructure. The Road Improvement and Rehabilitation Loan Agreement will support implementation by government of a project aimed at enhancing urban and suburban mobility and safety for Guyanese along with improving access to agricultural areas by upgrading specific elements of transport infrastructure.

Week ending March 19, 2010

• Antigua and Barbuda: The government of Antigua and Barbuda signs two Economic and Technical Cooperation Agreements with China totalling 50 million Yuan (US$7.5 million) allowing for the completion of a number of projects around the country. The first loan for 20 million Yuan is in the fomr of an interest-free loan and is to be used within 5 years from 2010. The second agreement is in the form of a grant. The funds are to be used to continue infrastructural projects being carried out by Chinese construction teams around the country.

Week ending March 12, 2010

• Caribbean: At a gathering of Caribbean leaders in Dominica, the World Bank President, Robert Zoellick, renews the Bank's commitment to help Caribbean countries build a sustainable and inclusive growth. Zoellick noted that as the region struggles to overcome the effects of the global economic crisis, the Bank could be a partner in a post-crisis scenario where CARICOM states, especially the smaller ones, face unique challenges in terms of economic grqoth, trade, climate change, water and natural disasters.He also explained that the World Bank is willing to look at the debt situation of each country in order to identify options for each one.
• Grenada: Grenada's Acting Prime Minister, Nazim Burke, welcomes the decision of the World Bank to study the debt profiles of countries in the region with a view to providing some relief to those states with a heavy debt burden. He said he welcomes any strategy that would allow Grenada and other countries in the region to recover more quickly from the difficulties associated with current global landscapes. These comments come against the backdrop of statements by the World Bank President, Robert Zoellick, who told regional leaders at a Caribbean Community (CARICOM) meeting, that the Bank is studying the debt profiles of Caribbean countries with a veiw to easing the debt burden of member states with high debt burdens.

Week ending March 5, 2010

• Jamaica: Moody's, the international ratings agency, upgrades Jamaica's local and foreign currency bond ratings citing the government of Jamaica's improved liquidity following the Jamaica Debt Exchange (JDX) which has led to lower interest costs and inflows of funds from multilateral institutions. Moody's increased the foreign currency ratings to 'B3' from 'Caa1'and the local currency ratings to 'B3' from 'Caa3' stating that the ratings reflected diminished credit risks following the domestic debt exchange in February.

February 2010

Week ending February 26, 2010

• Jamaica: The Inter-American Development Bank approves three loans for a total of US$170 million to help Jamaica advance social safety net reforms, boost business competitiveness, and support public sector reforms to improve the effectiveness of expenditure and performance management.
• Jamaica: The World Bank approves a US$200 million loan for Jamaica to support the Government's comprehensive reform programme to address fiscal and debt sustainability. The initiative is a coordinated effort by multilateral development banks and the International Monetary Fund (IMF) to help the government of Jamaica sustain its long-term development agenda.
• Jamaica: Standard and Poor's Rating Services (S&P) raises its ratings out of selective default, assigning a rating of 'B-' on Jamaica's long-term foreignand local-currency debt and a rating of 'C' on the country's short-term foreign and local currency debt. The ratings outlook was stated asstable. S&P said that although the recent domestic debt restructuring did not reduce the stock of government debt, it lengthened its maturity, improved the debt composition, and decreased interest payments.

Week ending February 19, 2010

• Jamaica: Fitch Ratings, the international rating agency, upgrades Jamaica's long-term local and foreign currency Issuer Default Ratings (IDR) to "B-" following a downgrade in January 2010 to "C' for long-term local currency debt and "CCC" for long-term foreign currency debt. The rating outlook was also upgraded from "Negative" to "Stable".

Week ending February 12, 2010

• Haiti: The world's seven most industrialised countries, the Group of Seven (G7), has pledged to cancel their reminaing bilateral debt with Haiti. Haiti's debt to Britain, Canada, France, Germany, Italy, Japan, and the United States is already relatively small after being reduced by past relief efforts. France had earlier agreed to gradually wipe out Haiti's debt, but after the devastating January 12 earthquake, it cancelled all of the remaining 59 million euros that Haiti owed.

Week ending February 5, 2010

• Jamaica: The IMF Executive Board approves a 27-month Stand-By Arrangement with Jamaica in the amount of SDR 820.5 million (about US$1.27 billion) to support the country's economic reforms and help it cope with the consequences of the global downturn. A disbursement of SDR 414.3 million (about US$ 640 million) becomes available to Jamaica immediately.
• Jamaica: The governments of Jamaica and China sign agreements valued at more than US$500 million for road, housing and other porjects, including the construction of a Chinese Garden at the Hope Botanic Gardens in Kingston, Jamaica's capital city.
• Jamaica: Fitch Ratings downgrades Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) to 'RD' following the succesful execution of Jamaica's domestic debt exchange. Fitch believes the recent exchange constituted a coercive debt exchange (CDE). The domestic debt exchange included foreign currency denominated instruments to which Fitch's foreign currency rating applies. In Fitch's opinon, a material share (over 10%) of the total central government foreign currency denominated debt owed to private creditors was subjected to the exchange and, as a result, Fitch placed Jamaica's foreign currency rating into 'RD'. Fitch also downgraded the short-term foreign currecny rating to 'D'.
• Jamaica: Following a ratings downgrade byFitch. the ratings agency subsequentlyupgrades Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) from 'RD'to 'CCC' and placed both ratings on Ratings Watch Positive. This action isas a result of the successful outcome of Jamaica's debt exchange where it is estimated that the participation rate was over 90% of eligible securities.

January 2010

Week ending January 29, 2010

• Haiti: Haitiseeks massive support for reconstruction from the January 12 earthquake at an aid conference held in Montreal. While the country is not yet able to determine the level of aid required, the World Bank estimates that rebuilding will costbillions of dollars over the next fiveto ten years. Donors have given US$784 million to Haiti and pledged another US$1.13 billion to date.
• Guyana: The government of Guyana is to benefit from a US$1.5 million grant from its health sector from the Islamic Republic of Iran. The grant will be used to construct an educational institution that will focus on specialised medical training.

Week ending January 22, 2010

• Haiti: The World Bank announces that it will waive payments on the debt Haiti owes it (US$38 million) for the next five years due to the crisis caused by Haiti's recent devastating earthquake. The World Bank says it is also working on a way forward to cancel the remaining debt.
• Haiti: The Inter-American Development Bank (IADB), the largest multilateral source of assistance and debt relief to Haiti, says it is considering a mechanism for the further alleviation of Haiti's US$441 million debt to the IADB in the wake of the destruction caused by the January 12 earthquake.

Week ending Janaury 15, 2010

• Haiti: The Caribbean Development Bank (CDB) announces that it will provide up to US$200,00 for immediate disaster relief and US$500,000 for restoration of critical facilities and services.
• Haiti: The International Monetary Fund (IMF) announces US$100 million in emergency assistance to Haiti to assist the country in dealing with the aftermath of the massive and devastating eathquake that has hit the country. The emergency financing will be provided as an augmentation of the existing IMF-supported arrangement with Haiti under the Extended Credit Facility (formerly the Poverty Reduction and Growth Facility).
• Grenada: The International Monetary Fund (IMF) strongly advises the government of Grenada to rethink plans to seek a US$107 million loan from China to finance the construction of a 100-room luxury hotel in the island. The IMF tells Grenada that a loan of that magnitude, which translates into 17% of the country's GDP, could jeopardise debt sustainability.
• Jamaica: The government of Jamaica offers a debt exchange(JDX) to domestic bond holders. The offer is structured at par as Jamaica continues to honour its commtiment to fully repay all amounts borrowed. However, in order achieve a sustainable debt structure, secure IMF and other multilateral support and to be fair to participating investors, the Government says it will not accept the transaction unless it receives, substantially, 100% participation.
• Jamaica: Fitch Ratings downgrades Jamaica's long-term local currency rating to 'C' from 'CCC'. Fitchalso affirms Jamaica's long-term and short-term currency ratings at 'CCC' and 'C' respectively and affirms the Country Ceiling at 'B-'. Jamaica's sovereign ratings outlook remains Negative. The downgrade arises from the announcement of a domestic debt exchange by the government. Fitch believes that the exchange constitutes a coercive debt exchange (CDE).
• Jamaica: Standard and Poor's(S&P) revises Jamaica's credit ratingsfrom 'CCC' to 'SD' (Selective Default) in response to the government of Jamaica's official launch of its domestic debt exchange programme (JDX). The 'SD" rating is assigned when S&P believes that the obligor has defaulted on a specific class of obligations but continues to honour others. This change in the rating is temporary.
• Jamaica: The International Monetary Fund (IMF) announces agreement in principle to lend Jamaica US$1.25 billion subject to final approval by the IMF Executive Board. The US$1.25 billion loan is to be provided under a 27-month Stand-By Arrangement.