Michele Robinson |Debt Management Consultant

Photo credit📷 : M. Robinson

News

This provides news about or relevant to public debt management in the Caribbean.

2022

September 2022

Week ending September 16, 2022

• International:  World Bank Group President David Malpass meets with Prime Minister Mia Mottley of Barbados. President Malpass commended Prime Minister Mottley for her comprehensive economic reform program in Barbados and for her strong leadership on broader reform efforts in the Caribbean. President Malpass and Prime Minister Mottley discussed the severe and disproportionate impacts of external shocks on Small Island Developing States, and the need for focused recovery efforts that address economic and social impacts.

• International: The Government of Japan and the World Bank host the in-person launch of the twentieth cycle of the International Development Association (IDA20) at a gathering of donor and recipient countries. The US$93 billion IDA20 package will help low-income countries rebuild their economies in the face of overlapping crises—climate change, COVID-19, conflict, inflation, rising debt, and food insecurity—which are hitting the poorest people disproportionately harder.

Week ending September 9, 2022

• International: The World Bank Group delivers a record US$31.7 billion in fiscal year 2022 (ended June 30) to help countries fight climate change. This is a 19% increase from the $26.6 billion all-time high in financing reached in the previous fiscal year. The Bank Group continues to be the largest multilateral financier of climate action in developing countries.

August 2022

Week ending August 12, 2022

• Saint Vincent and the Grenadines: The World Bank approved a $ 51 million credit to Saint Vincent and the Grenadines to modernize hospital services and build a more resilient and sustainable health infrastructure and system, including the construction of a new acute care hospital and health sector reform. The project will benefit over 110,900 residents and about 350,000 tourists that visit the island each year.

Week ending August 5, 2022

• International: The World Bank Group (WBG) announces details of its global crisis response package to help developing countries navigate multiple, compounding crises that are hitting the poor and most vulnerable the hardest.According to World Bank Group President, David Malpass, "Multiple crises – including rising inflation, Russia’s invasion of Ukraine, large macroeconomic imbalances, and the shortages of energy, fertilizer and food – are hammering developing countries. The World Bank Group is responding with speed, scale and impact with financing to respond to food insecurity, protect people, preserve jobs, strengthen resilience, and restore growth.”

• Barbados: Barbados will promote environmental sustainability and economic development with a US$100 million guarantee approved by the Inter-American Development Bank (IDB) that will allow the country to create a long-term instrument to finance measures related to sustainability and marine conservation. The IDB guarantee will help reduce borrowing costs for the country as it seeks to raise funds for conservation activities, which includes the creation of a conservation trust fund, known as the Barbados Environmental Sustainability Fund. The operation, which is structured as a policy-based guarantee, will also support reforms to improve environmental governance and sustainable debt management in Barbados.  

July 2022

Week ending July 29, 2022

• Belize: Belize's Stаtіѕtісаl Іnѕtіtutе reports that the country’s dеbt-tо-gross domestic product (GDР) rаtіо has fallen by 45 percent in two years. onsiderably over the past two years. The debt-to-GDP ratio ѕtаndѕ аt 88 per cent, dоwn frоm 133 per cent rесоrdеd іn 2020. А mајоr соntrіbutоr tо the rеduсtіоn іn dеbt-tо-GDР wаѕ thе rеѕtruсturіng оf thе UЅ$553 mіllіоn “ѕuреrbоnd” fоr а “bluе bоnd”.

Week ending July 15, 2022

• The Bahamas: The government of The Bahamas, in its most recent medium-term debt strategy, projects that it will source nearly 60 percent of its $1.7 billion gross financing requirement for the fiscal year 2022/2023 in Bahamian dollars. The Ministry of Finance has noted that under the fiscal year 2022/23 Annual Borrowing Plan approximately 57 percent of the $1,760.8 million in funding will be sourced in local currency and the remaining $764.7 million (43.4 percent) in foreign currency. 

• Guyana: Guyana is to improve the efficiency and effectiveness of its public policy and fiscal management response to the Covid-19 pandemic with a US$130 million loan from the Inter-American Development Bank (IDB). The operation, the second of a two programmatic-based loan series, will support Guyana’s government efforts to promote macroeconomic stability and withdraw emergency tax measures as part of a strategy to adapt its public policy and fiscal response to the new phase of the COVID-19 pandemic.  The first phase of this operation previously approved in December 2020 was disbursed in January 2021

Week ending July 8, 2022

• Suriname: Suriname's Government reaches an agreement with its Paris Club creditors on restructuring its external public debt. According to an International Monetary Fund (IMF) report in 2021, Suriname's external debt is projected to balloon to US$4 billion by the end of 2022. Under the terms of the agreed debt treatment, Paris Club creditors will reschedule all amounts of principal and interest due in 2022 to 2024 as follows: Official Development Assistance (ODA) claims will be repaid over 20 years, including a seven-year grace period, and non-ODA claims over 15 years, including an eight-year grace period. 

June 2022

Week ending June 17, 2022

• Regional: The African Development Bank Group and the Caribbean Development Bank strengthened their collaboration this week with the signing today of a memorandum of understanding (MoU) in Providenciales, Turks and Caicos Islands. Under the MoU, the two institutions will work closely across various areas. They will collaborate on economic diversification initiatives in their respective regions, with an emphasis on deploying technological and digital transformation solutions in commerce, trade, public services, and financial intermediation and inclusion.

• The Bahamas: The Government of The Bahamas says a US$385 million dual-tranche debt offering in the international capital markets has been oversubscribed. Economic Affairs Minister Michael Halkitis said the successful placing demonstrates the country's continued access to the international debt markets, despite the challenging backdrop observed in the global capital markets. 

May 2022

Week ending May 26, 2022

• International: JP Morgan, the US investment bank, warns that up tp 10 percent of riskier junk-rated emerging market countries could face a debt crisis. JP Morgan attributes this to rising borrowing costs as well as the fallout from the Russian-Ukranian war. Acute balance of paymentspressures and larger fiscal deficits are compounding problems for the heavily-indebted among them. Notably in the Caribbean, Suriname has already defaulted, and The Bahamas, Belize, and Grenada are seen at high risk.

• Grenada: The World Bank's Board of Executive Directors approves the financing of US$25 million for Grenada’s first Recovery and Resilience Programmatic Development Policy Credit. Before the pandemic, Grenada’s steadfast reform path to building economic resilience had attained solid growth, debt sustainability and poverty reduction. However, the COVID-19 pandemic caused massive socio-economic impacts, which are expected to exacerbate the pre-existing vulnerabilities of Grenada as a small island developing state. The financing will help support the country’s recovery by promoting a greener and more climate-resilient economy, improving sustainability, and greater accountability of fiscal management.

Week ending May 19, 2022

• Grenada: The International Monetary Fund (IMF) in its latest Article IV consultation with the government of Grenada reveals that Grenada’s central government debt rose to 94.8 per cent of GDP in 2021 with the country’s current account deficit widening to minus 24.5 per cent of gross domestic product (GDP). The IMF has assessed that there will be a return to the fiscal rules in 2023, after the triggering of the escape clause in its 2020–22 agreement with the government to allow for counter-cyclical fiscal policy. The administration is also weighing the options of amending its fiscal responsibility law to best support the country’s sustainable development.

Week ending May 5, 2022

• International: The Bank of England this week is expected to raise interest rates to their highest level in 13 years and clarify how it plans sell off some of its 847 billion pounds ($1.1 trillion) in government bond holdings.

• Regional: The World Bank’s Board of Executive Directors approves IDA financing of US$56 million for the Unleashing the Blue Economy of the Caribbean (UBEC) project, to support several Eastern Caribbean countries in catalyzing the sustainable economic potential of their living marine and coastal assets. Of that sum, $15 million will be provided to Grenada, US$18 million to Saint Lucia and US$15 million to Saint Vincent and the Grenadines along with a US$8 million IDA grant provided to the OECS Commission for integrated regional interventions.

• Saint Vincent and the Grenadines: Prime Minister Dr Ralph Gonsalves says St Vincent and the Grenadines has obtained permission from Venezuela to “borrow back” US$9 million that Kingstown paid on loans owed to Alba Bank. The money had been held in an escrow account at the Eastern Caribbean Central Bank, ECCB, as sanctions imposed on Venezuela by the United States prevented its transfer to Caracas.

 April 2022

Week ending April 29, 2022

• St. Vincent and the Grenadines: Prime Minister of Saint Vincent and the Grenadines, Dr. Ralph Gonsalves, announces that Venezuela has agreed to cancel his country's debt, which was incurred under PetroCaribe, the Venezuelan oil initiative with Latin American and Caribbean countries. He said that as a result, the national debt will decline by nine per cent.

Week ending April 22, 2022

• Jamaica: The International Finance Corporation (IFC)—a member of the World Bank Group (WBG)—agrees to support the Government of Jamaica (GoJ) in the development of three key brownfield road segments on the North Coast Corridor of the Caribbean country. The initiative aims to improve the mobility of people and goods as well as strengthen the Jamaican tourism and hospitality sector. The parties signed a memorandum of understanding (MoU) as a first step towards the final advisory services agreement. Under the MoU, IFC is poised to help the Jamaican government design and implement a public-private partnership (PPP) transaction—including due diligence, structuring and implementation—to identify and select a private sector participant to undertake the project. 

Week ending April 15, 2022

Week ending April 8, 2022

• Regional: The Caribbean Development Bank (CDB) is urging regional countries to adopt an integrated approach to risk mitigation to improve risk profiles, as a means of creating more fiscal space to pursue Sustainable Development Goals (SDGs). CDB President, Dr. Gene Leon posited that currently Caribbean countries mainly identify and mitigate risks in an isolated manner, missing critical linkages, which perpetuates the region’s vulnerability to the impact of shocks resulting in high-risk profiles.

• Regional: In 2021, the Inter-American Development Bank (IDB) financed a record $4.5 billion in activities related to climate change, according to its 2021 Sustainability Report. These resources, which account for 30% of the Bank’s total annual approvals, are benefiting the region through loans, grants, technical cooperation, guarantees, and equity investments. In 2021, the IDB achieved important milestones under its sustainability framework. At COP26 (United Nations Climate Change Conference) in Glasgow, the Bank announced its commitment to aligh all operations with the Paris Agreement starting in 2023, and to provide $24 billion in climate and green financing during the 2022–2025 timeframe.

 March 2022

Week ending March 25, 2022

• Belize: Prime Minister John Briceño announces that there will be no new taxes for Belize in the 2022/2023 financial year. The Prime Minister presented a BDZ$1.2 Billion budget to the Belize Parliament for FY 2022/23, disclosing that his Government intends to retire a further BDZ$86.4 million in public debt and borrow BDZ$211 million less for fiscal support.  This is mostly due to the retirement of the super bond and embrace of the Blue Bond.

Week ending March 18, 2022

• Jamaica: Jamaica will strengthen the public policy and the efficiency and effectiveness of fiscal management to address the health and economic crisis caused by COVID-19, with a $100 million loan approved by the Inter-American Development Bank (IDB). This is the second operation under the Programmatic Policy-Based Loan (PBP) modality, which consists of two technically related, but financially and contractually independent operations. The first one was approved by the IDB in March 2021.

• Suriname: Suriname will implement a program to restore its macroeconomic and fiscal sustainability with a $50 million loan approved by the Inter-American Development Bank (IDB). The loan will help Suriname to implement their economic reform programmes in which they address the country’s macroeconomic and fiscal challenges while allowing the country to continue servicing its debt.

Week ending March 11, 2022

• Jamaica: Fitch Ratings Agency affirmss the Government of Jamaica’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B+’ and maintained the outlook at “Stable”. In explaining the affirmation of the “B+” ratings, Fitch highlighted factors driving the ratings action including Jamaica’s favourable business climate, consistent fiscal policy efforts to lower the debt burden, and continued deficit reduction bolstered by a 15.4 percent growth in revenues between April and December 2021. Fitch also noted that measured refinancing of debt will continue to lower debt service costs.

Week ending March 4, 2022

• Belize: The World Bank approves financing of US$6.2 million for the Belize COVID-19 Response Project, which will support the country in the acquisition and deployment of COVID-19 vaccines.The project will focus on accelerating vaccination efforts, including the procurement of vaccines suitable for children. The funds will also support a communications campaign to increase vaccine uptake, improve the deployment of vaccines to remote areas and indigenous populations, and accelerate the modernization of Belize’s health care system, including scaling up the digitization of vaccination data. 

 February 2022

Week ending February 25, 2022

• The Bahamas: The Bahamas will advance in creating a social and inclusive blue economy with a $200 million Policy-Based Guarantee (PBG) approved by the Inter-American Development Bank (IDB). This operation will finance a project to promote a healthier and more productive ocean in The Bahamas. It includes reforms and actions to foster business recovery for micro, small, and medium-sized enterprises (MSMEs) in the Blue Economy and prospecting investment projects suitable for Blue Bond financing.

• Grenada: At the end of 2021, Grenada’s public debt increased by EC$113.2 million. This 5.7% increase moved the debt from EC$1,988.5 million to EC$2,101.6 million. This is according to the latest Public Debt Bulleting which is published on the Ministry of Finance website. The increase in debt is attributable to new borrowing as a result of the Covid-19 pandemic, oversubscriptions allowed on the Regional Governments’ Securities Market (RGSM), disbursements on new and existing loans and a new Government-guaranteed loan contracted by a State-owned enterprise.”

• Jamaica: Financial regulators block dealers from issuing new US dollar loan facilities or bonds for clients for six months, amid a near-US$500-million drop in net foreign reserves in a month – the largest fall in at least a decade.

• Suriname: The Inter-American Development Bank (IDB) approves an $85 million package of investment loans to support Suriname's efforts to address pandemic-era macroeconomic challenges. The package is aligned with Suriname’s economic recovery plan, as well as its multiannual development plan and its IMF program.This package will improve education, water and sanitation and the social safety net for vulnerable citizens. The education program seeks to improve the quality of education in by enhancing teaching practices and by expanding access to schools for children in remote areas. 

week ending February 11, 2022

• Trinidad and Tobago: The Caribbean credit rating agency, CariCRIS, announces its 2021 rating for Caribbean sovereigns with Trinidad and Tobago topping at CariAA, the second highest rating on its scale. At CariAA, Trinidad and Tobago remains at the top of CariCRIS’ published sovereign ratings in the Caribbean. CariCRIS noted that the ‘level of creditworthiness of the GORTT, adjudged in relation to other rated sovereigns in the Caribbean, is “High” and that the ratings convey investment grade quality for the Government of Trinidad and Tobago as an issuer, both on the CariCRIS regional rating scale and on the global rating scale."

Week ending February 4, 2022

• Regional: The Inter-American Development Bank (IDB) and its private-sector arm, IDB Invest, achieve a record of nearly $23.4 billion in new financing approvals, commitments and private-sector mobilizations, beating previously reported initial estimates for financial assistance to Latin America and the Caribbean in 2021. Service-exporting BMCs are forecasted to gain momentum, growing at an average rate of 4.8%, reflecting the continued inflow of international visitors.

• Regional: The Caribbean Development Bank (CDB) projects gross domestic product (GDP) growth of 9.1% across its 19 Borrowing Member Countries (BMCs) in 2022, accelerating the region’s economic recovery which started in 2021. The favourable outlook is anchored by an expected surge in the GDP of commodity-exporting economies by an estimated 17.5% on account of strong growth in Guyana (47.5%), emanating from increased oil and gas production, and a resurgence in energy production in Trinidad and Tobago as supply-side constraints are alleviated. Higher international prices for crude oil should translate into revenue windfall.

• Regional: The Caribbean Development Bank (CDB) is moving to create a “financing ecosystem” to support the rescue, recovery and repositioning of its Borrowing Member Countries’ (BMCs) economies to meet immediate needs and propel long-term growth and development. CDB President, Dr Gene Leon, said the institution will marshal financing for a range of innovative instruments that will enable its BMCs to reorder their economies for future growth and prosperity even while continuing to navigate recovery amidst current challenges.

• The Bahamas: The Bahamas Debt Management Office publishes its second quarterly Debt Statistical Bulletin. The DMO is mandated under Section 61 of the  Public Debt Management Act, 2021 to prepare and publish public debt statistical bulletins, no later than thirty calendar days after the end of each quarter of the fiscal year. 

January 2022

Week ending  January 28, 2022

• The Bahamas: In keeping with the requirements of the Public Debt Management Act, 2021, the Ministry of Finance releases the 2021 Medium-Term Debt Management Strategy to the public on the Ministry of Finance’s Budget website.

• Suriname: Fitch Ratings has affirmed Suriname's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'RD', Short-Term Foreign Currency IDR at 'C', and Country Ceiling at 'CCC'. After issuing the rating, the internationa rating agency confirmed that it has subsequently withdrawn Suriname's Long-Term and Short-Term-FC IDRs and Country Ceiling ratings.

2021

December 2021

Week ending December 24, 2021

• Regional: The Caribbean Development Bank’s (CDB) Basic Needs Trust Fund (BNTF) launches its tenth cycle with over US$47 million committed to supporting projects in nine countries across the Region. It is one of the Caribbean’s longest-running poverty reduction programmes. Already, 123 sub-projects are in the pipeline for this cycle of the BNTF which will run until December 31, 2024. Contributors to CDB’s Special Development Fund which funds the BNTF, approved US$40 million with the remainder coming from the participating countries:  Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, Saint Lucia, St. Vincent and the Grenadines and Suriname.

• Jamaica: Jamaica will boost sustainable and robust growth of micro, small, and medium-sized enterprises (MSMEs) with €7.4 million ($8.7 million) non-reimbursable investment financing approved by the Inter-American Development Bank (IDB), with funds from the European Union's Caribbean Investment Facility (CIF).

• Suriname: The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a new Country Strategy with Suriname for the period 2021-2025, which aims to support the country’s efforts to restore macroeconomic sustainability, promote private sector competitiveness and improve basic services and social protection. The new Country Strategy will focus on improving the country’s macro-fiscal performance through a combination of expenditure, revenue, and institutional strengthening reforms. The strategy will also support the country’s digital transformation efforts.

Week ending December 17, 2021

• Antigua and Barbuda: Antigua and Barbuda will benefit from a new debt-for-climate swap programme offered by the Alliance of Small Island States (AOSIS) in partnership with the Open Society Foundations. In the pilot project, Antigua and Barbuda will receive a US$500,000 grant from the Open Society for the Financing for Acting on Climate in the Eastern Caribbean (FACE). The project aims to alleviate the Small Island's debt crisis ecsalated by climate change impacts and the COVID-19 pandemic.

Week ending December 10, 2021

• Barbados: The Inter-American Development Bank (IDB) approves a US$100 million loan to support sustainable development in Barbados. The program is the second in a series of three policy-based loans. The program will support maintaining a stable macroeconomic environment and deepen the reforms initiated under the first operation, an US$80 million loan approved in March, 2020. It provides budget support tied to the strengthening and consolidation of public policies focused on improving sustainability in three thematic areas.

Week ending December 03, 3021

• Dominica: IMF staff in their 2021 Concluding statement note that the COVID-19 pandemic has hit Dominica hard, impacting tourism and related sectors. They noted further that recovery in the medium term is promising, underpinned by a large public investment program to build resilience to natural disasters, largely financed by buoyant Citizenship by Investment (CBI) revenue. However they cautioned that on the fiscal front, near term policies should prioritize expenditure efficiency, while avoiding additional taxes and fees that hamper the recovery of the private sector and the business climate. With public debt approaching 106 percent of GDP after the pandemic, passing the Fiscal Responsibility Bill will support public debt reduction and the sustainability of the government development plan. The authorities should also reconsider the allocation of a portion of CBI revenue to build an insurance framework against natural disasters and debt reduction. 

• St. Vincent and the Grenadines: The World Bank Board of Executive Directors approves US$40 million for the Volvanic Eruption Emergency Project in Saint Vincent and the Grenadines. The project is also financed by a US$2 million grant from the European Union’s Caribbean Regional Resilience Building Facility, managed by the World Bank’s Global Facility for Disaster Reduction and Recovery.

• Suriname: The Inter-American Development Bank (DB) approves a US$30 million loan to support vulnerable poulations in Suriname. Suriname’s difficult macroeconomic conditions, along with the pandemic, has a severe impact on the country’s population, especially the most vulnerable, An IDB survey in April 2020 indicated that 47,6% of families in Suriname have lost income due to business closures and job losses. The proportion of families whose income was below the minimum wage increased from 23.2% in January 2020 to 31.7% in April. The IDB loan of $30 million has a disbursement period of 4 years, a grace period of 5 and a half years, and an interest rate based in LIBOR.

November 2021

Week ending November 26, 2021

• Regional: The Inter-American Development Bank (IDB) has approved a $50 million Global Credit Loan (GCL) to the Caribbean Development Bank (CDB) for a programme to enhance the resilience of its eligible Organization of Eastern Caribbean States (OECS) member countries to disasters and climate change. The programme will enhance the disaster resilience of infrastructure and foster disaster-resilient growth for micro, small, and medium-sized enterprises (MSMEs). CDB will re-lend the resources to finance eligible OECS member countries: Antigua and Barbuda, Commonwealth of Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia and Saint Vincent, and the Grenadines.

• Jamaica: International credit ratings' agency, Moody's Investors Service, affirms Jamaica's long-term issuer and senior unsecured ratings at 'B2' with the outlook remaining stable. The decision to affirm the rating reflects expectations that the deterioration in Jamaica's debt metrics, caused by the effects of the COVID-19 pandemic, is temporary given the country's strong commitment to fiscal consolidation. Moody's expects Jamaica debt burden to begin declining in 2021/22 with the programmed primary balance of 6.0% of Gross Domestic Product (GDP)  this fiscal year.

Week ending November 12, 2021

• International: At a time when sovereign debt in the poorest countries has surged to dangerously high levels, global and country-by-country systems for tracking it are proving to be inadequate. These gaps make it harder to assess debt sustainability and for overindebted countries to restructure debt promptly and generate a durable economic recovery, according to a new World Bank report. The report, Debt Transparency in Developing Economies, marks the first comprehensive assessment of the global and national systems for monitoring sovereign debt. It finds that debt surveillance today depends on a patchwork of databases with different standards and definitions and different degrees of reliability, cobbled together by various organizations.

• Regional: Strengthening government efficiency, empowering households and businesses, and reducing future risks by improving spatial planning and natural coastal protection are some of the key recommendations to boost the Caribbean’s ability to bounce back from shocks according to a new World Bank flagship report. The report, 360 Resilience: A Guide to Prepare the Caribbean for a New Generation of Shocks, also concluded that the genuine progress of one of the world’s most natural hazard-prone regions in improving its resilience has so far often failed to produce inclusive economic growth.

• The Bahamas: Standard and Poor’s (S&P) downgrades The Bahamas’ sovereign creditworthiness citing “the failure of successive governments to implement timely and effective” fiscal reforms even prior to COVID-19. The credit rating agency joined its rival, Moody’s, in assigning below investment grade status to The Bahamas by downgrading its long-term and local currency rating to ‘B+’ from ‘BB-‘ after the national debt increased by $2.4bn in just two years.

• Belize: Standard and Poor's Global Ratings, the international ratings agency, upgrades Belize's Local Currency LT credit rating from "CC" to "B-". The outlook remains stable. 

Week ending November 5, 2021

• Regional: The Caribbean Development Bank (CDB) proposes a resilience-adjusted Gross National Income (GNI) measure for Small Island Developing States (SIDS) to access concessional finance. Termed the Recovery Duration Adjuster (RDA), this measurement framework better reflects the economic, social, and environmental realities of SIDS, including those in the Caribbean region.  The framework is based on two key principles. Firstly, it takes a holistic view of development needs and incorporates underlying structural weaknesses, high debt levels, and insufficient investment in resilient infrastructure as important inputs in determining the extent of a country’s vulnerability to exogenous shocks. econdly, it captures the duration of recovery from a shock, which provides stronger justification for accessing concessional finance to support rescue, recovery, and repositioning efforts that can build resilience and sustain overall economic development.

• Regional: The government of Germany and the Inter-American Development Bank (IDB) launch a $20 million (EU17.5 million) fund to strengthen green fiscal policies in Latin America and the Caribbean. The trust fund will finance country-specific technical assistance projects. It will also help create a regional knowledge-sharing platform for finance ministries to exchange best practices in the design and implementation of climate-related fiscal policies. The announcement comes as climate change exerts increased pressure on fiscal balances and public debt in Latin America and the Caribbean. The region’s countries are looking to strengthen policies addressing climate change and meet ambitious greenhouse gas emission goals under the Paris Agreement.

October 2021

Week ending October 15, 2021

• Regional: Caribbean countries facing a perilous path back to growth due to the crises of COVID-19 and climate change need the global community to fundamentally reassess how concessional financing is accessed. Prime Minister of Barbados, Hon. Mia Amor Mottley made this call  at the President’s Chat, a discussion forum hosted by President of the Caribbean Development Bank, Dr. Hyginus ‘Gene’ Leon. Prime Minister Mottley said countries needed fiscal space and better terms for financing as the region’s small economies were not able to handle the impacts of COVID-19 in the same way as advanced economies.

• Regional: President of the Caribbean Development Bank, (CDB) Dr Hyginus ‘Gene’ Leon proposes that the US$2.5 billion in Special Drawing Rights (SDRs) available to Caribbean countries from the International Monetary Fund (IMF) be pooled to unlock even more financing in the capital markets. Dr. Leon has also sounded his intention to present a proposal to Caribbean Community (CARICOM) Heads on a financial mechanism to achieve this objective. Speaking at the second edition of the Bank’s President’s Chat forum, the CDB President advised that combining the recent SDR allocations assigned by the IMF could be the practical and powerful collaboration needed to improve the economic position of the Region.

Week ending October 8, 2021

• Belize: Belize will modernize its financial management and improve its fiscal sustaiability with a US$8 million loan from the Inter-American Development Bank (IDB).The loan is part of Belize’s strategy to boost public spending efficiency by investing on digitalization and increasing transparency, two strategic areas of action the IDB is prioritizing to help its member countries accelerate their economic recovery in the post-pandemic era. The IDB loan will finance the adoption of improved methodologies, processes and information technologies that will allow the country to better manage its debt, promote more efficient allocation of financing resources, as well as enhance both internal and external oversight on government spending. The new processes include the adoption of better internal auditing practices and the creation of a transparency portal for citizens.

Week ending October 1, 2021

• Antigua and Barbuda: The Caribbean Development Bank (CDB) approves loans of US$25 million to Antigua and Barbuda and US$7.5 million to Anguilla to counter COVID-19 fallout and support economic recovery. “The two loans will buttress socially responsible policies, particularly for the benefit of vulnerable people in Anguilla and Antigua and Barbuda, while backing the reform process in both countries to achieve greater resilience,” said CDB President Dr Gene Leon. Both countries are heavily affected by the COVID-19 pandemic, which caused a recession in Anguilla where the gross domestic product contracted by 27.4% in 2020, and Antigua and Barbuda where GDP contracted by 16% last year, compared with 2019. Real income per capita decreased significantly last year in Anguilla (27%) and in Antigua and Barbuda (18.5%). In addition, Anguilla is still reeling from Hurricane Irma, which caused damage equivalent to 97% of the country’s gross domestic product in 2017.

September 2021

Week ending September 24, 2021

• Regional: The Bahamas and Trinidad and Tobago have been singled out as the next two Caribbean countries expected to default on their sovereign debt, with widespread repercussions for their economies, populations, creditors, and eventually corrective policy prescriptions that are likely to come to rescue vehicles such as like the International Monetary Fund (IMF). The chief economist of Barbados-based fintech company Bitt Inc, Marla Dukharan, warns that long periods of economic policy inaction by successive governments, and the consequences of the ongoing COVID-19 pandemic, they have combined to derail the prospects for economic stability and sustainability in those countries. For the Bahamas, it adds, the economic destruction resulting from the estimated US$3.4 billion devastation caused by Hurricane Dorian in September 2019 has cast a long shadow over the tourism-dependent country. Now, the COVID-19 pandemic has dealt the nation a double whammy.

Week ending September 17, 2021

• The Bahamas: Global ratings agency Moody's cut its sovereign ratings for the Bahamas to 'Ba3' from 'Ba2', citing significant erosion of the country's economic and fiscal strength brought on by the COVID-19 pandemic. Moody's said it expects a gradual recovery in tourism to leave a long-lasting impact on the credit profile of the Bahamas, through materially higher debt and interest burdens.  The Caribbean, a region most dependent on tourism, has seen a spike in new coronavirus cases fueled by the Delta variant, affecting tourism recovery in countries such as The Bahamas.

• Belize: The government of Belize edges closer to securing a unique environmentally friendly debt restructuring after two more of its 'superbond' holders publicly backed a plan that would see the serial defaulter commit to protecting its giant barrier reef.  The Belizean government has laid out a groundbreaking proposal offering to buy back the $526.5 million bond with help from U.S.-headquartered, non-profit organisation The Nature Conservancy. A key part of the deal is that the government will fund a $23.4 million marine conservation trust that would help protect the world's second-largest barrier reef, damaged in the past by offshore oil drilling and overdevelopment.

• Belize: The government of Belize commences an offer to purchase for cash all of its U.S. dollar bonds due 2034 and a solicitation of consents from holders of the bonds enabling Belize to redeem for cash any bonds not tendered pursuant to the offer. On Sept. 3 the government of Belize said it had reached a deal with a sizeable portion of its "superbond" holders to restructure the debt, helped by a promise to spend significant amounts of money on marine conservation. 

• Jamaica: Global ratings agency Fitch Ratings says that the World Bank’s issuance of catastrophe bond (cat bond) for USD185 million (1.3% GDP) in July that benefits the government of Jamaica significantly strengthens the country’s natural disaster risk-mitigation strategy. The cat bond insures the government against named storms and hurricanes and is the first to directly benefit a small island nation. 

Week ending September 10, 2021

• The Bahamas: The debt of the government of The Bahamas is expected to hit an estimated US$11.5 billion in the next four years. This is according to the 2021 pre-election fiscal and economic outlook data by the Ministry of Finance. Government debt for fiscal year 2021/22 is budgeted to be US$10.9 billion, the report notes. 

Week ending September 3, 2021

• Trinidad and Tobago: CCRIF SPC makes a payout of approximately US$2.4 million to the government of Trinidad and Tobago following a rainfall event that occurred during August 18-20, 2021. Caused by an Inter-Tropical Convergence Zone, the heavy rainfall resulted in flooding and landslides across southern and western Trinidad, making several roads impassable. Since Trinidad and Tobago purchased coverage for excess rainfall in 2017, the country has received payouts under its excess rainfall policy each year – five payouts totalling US$12.5 million.

August 2021

Week ending August 27, 2021

• Barbados: IMF staff conclude a virtual mission to Barbados and note that Barbados’ economy remains severely depressed by the ongoing global coronavirus pandemic. Tourism activity has picked up in recent months but remains at a fraction of normal levels. The economy is estimated to have grown 5½ percent in the second quarter of 2021 (relative to Q2 2020). A category 1 hurricane (Elsa) struck Barbados in July and caused significant damage to the island’s housing. Economic growth for the second half of 2021 and the first half of 2022 is premised on a gradual recovery of tourism. IMF staff also concluded that "in this very challenging environment, Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform program, while expanding critical investments in social protection."

Week ending August 20, 2021

• Haiti: Catastrophe Risk Financing Facility (CCRIF) SPC will make a payout of approximately US$40 million to the government of Haiti following the devastating magnitude 7.2 earthquake that struck Haiti on August 14th, 2021, significantly impacting the city of Les Cayes.

Week ending August 13, 2021

• Antigua and Barbuda:  IMF Executive Board of Directors concludes Article IV Consultations with Antigua and Barbuda noting that the country has been hit hard by the global pandemic. The domestic lockdown and border closure in early 2020 prompted a collapse of tourism-related activities. The economy contracted by an estimated 17.3 percent in 2020. Executive Directors noted that Antigua and Barbuda was hit hard by the COVID-19 pandemic and commended the authorities for their swift containment measures and support for the vulnerable. A gradual recovery is envisaged, but downside risks are significant, including a prolonged pandemic, delays in fiscal reforms, and natural disasters. Directors stressed the need to continue supporting economic recovery, while stabilizing public finances and promoting competitiveness and sustainable growth. Directors underscored the urgency of restoring debt sustainability.

• Jamaica: President of the Caribbean Development Bank (CDB), Dr Gene Leon, has reaffirmed the Bank’s commitment to Jamaica and his intention to collaborate more closely with stakeholders to support the country’s development agenda. Dr Leon, who took office in May, had his first official meeting with the Prime Minister of Jamaica, Andrew Holness. “Jamaica is one of the Bank’s largest shareholders and we are committed to working with the Government and the people in a way that makes a difference for the country and strengthens the region as a whole,” the CDB President said at the virtual meeting.CDB’s work programme for Jamaica is focused on strengthening project implementation capacity; improving productivity and competitiveness; increasing access to tertiary education and vocational training; and enhancing social development. The Bank is currently financing major projects in several parishes which will improve agricultural production.

Week ending August 6, 2021

• Belize: The Inter-American Development Bank (IDB) approves a US$15 million operation to support the sustainability of the micro, small and medium enterprises (MSMEs) in Belize. The project will help to prtoect employment and promote the economic recovery of MSMEs through access to production-oriented finance.

• Guyana: World Bank Vice President for Latin America and the Caribbean, Carlos Felipe Jaramillo, and Country Director for the Caribbean, Lilia Burunciuc, complete their first official visit to Guyana.  They commended the progress made by the government of Guyana towards COVID-19 recovery, noting that over 51 per cent of Guyana's adult population has received the first dose of a coronavirus vaccine. Mr. Jaramillo and Ms. Burunciuc also discussed how the World Bank could support the Government’s plan to create a more enabling environment for private sector and improved living standards for the citizens of Guyana.

• Saint Lucia: St. Lucia's new prime minister, Philip J. Pierre, urges the United States and other rich nations to ramp up climate finance and disburse funds more quickly to vulnerable Caribbean nation states, as "fast and furious" hurricanes become the new normal. The tiny eastern Caribbean nation of St. Lucia and other island states in the region say they face more frequent, powerful hurricanes fuelled by global warming. But most Caribbean countries have limited funds available to respond to climate change as many were already weighed down by high debt levels before the COVID-19 crisis and their tourism-dependent economies have been hit hard by pandemic lockdowns.  

July 2021

Week ending July 30, 2021

• International: The International Monetary Fund (IMF) maintains its 6% global growth forecast for 2021, upgrading its outlook for the United States and other wealthy economies but cutting estimates for developing countries struggling with surging COVID-19 infections.  The divergence is based largely on better access to COVID-19 vaccines and continued fiscal support in advanced economies, while emerging markets face difficulties on both fronts, the IMF said in an update to its World Economic Outlook.

• Barbados: Following Tropical Cyclone Elsa, CCRIF makes two payouts to the government of Barbados under the country’s tropical cyclone and excess rainfall parametric insurance policies, totalling US$2.5 million. CCRIF also made payments totalling US$528,512 to three other member governments – Haiti, Saint Lucia, and St. Vincent and the Grenadines – under the Aggregate Deductible Cover (ADC) feature of CCRIF’s tropical cyclone policies. Hurricane Elsa was the fifth tropical cyclone in the 2021 Atlantic Hurricane Season.

• Saint Lucia: The World Bank Board of Executive Directors approve US$21.9 million for the Renewable Energy Sector Development Project for Saint Lucia. This grant financing will help the government of Saint Lucia assess the viability of its geothermal resources for power generation and strengthen the business environment for the private sector to pursue clean energy projects.

• Saint Vincent and the Grenadines: The Eastern Caribbean Central Bank (ECCB) announces that DCash, the digital version of the EC Dollar, is now available for public use in Saint Vincent and the Grenadines. This comes following the Eastern Caribbean Central Bank’s (ECCB) issuance of DCash to the RBTT Caribbean Bank, Saint Vincent and the Grenadines (RBTT SVG). The ECCB sees the roll-out of DCash in Saint Vincent and the Grenadines as key to assisting with the rebuilding efforts in that country, following the recent eruption of the La Soufriere volcano. The DCash platform provides a safer, faster, cheaper way for persons to send and receive funds via the use of a smart device, and seeks to increase financial inclusion in the Eastern Caribbean Currency Union (ECCU), especially to those who do not have access to traditional banking services.

Week ending July 23, 2021

• Jamaica: The World Bank priced a catastrophe bond that will provide the Government of Jamaica with financial protection of up to US$185 million against losses from named storms for three Atlantic tropical cyclone seasons ending in December 2023. The government of Jamaica is the first government in the Caribbean region, and the first of any small island state, to independently sponsor a catastrophe bond, also known as a cat bond. Jamaica was one of the sixteen countries in the Caribbean Catastrophe Risk Insurance Facility that benefitted from IBRD’s first ever cat bond in 2014.  

• Jamaica: The World Bank’s Regional Vice President for Latin America and the Caribbean, Carlos Felipe Jaramillo, completes a three-day visit to Jamaica. This was his first official visit within the region since being appointed to the post in May last year. Lilia Burunciuc, the recently appointed Country Director for Caribbean countries, accompanied him on the visit. Ms. Burunciuc will be based in Kingston, Jamaica.

• Saint Vincent and the Grenadines: The Caribbean Development Bank, (CDB) approves financing of US$5.3 million for St. Vincent and the Grenadines to support the response to the La Soufriere volcanic eruption which ravaged parts of the country in April 2021.

Week ending July 9

• Regional: Lilia Burunciuc is the new World Bank Country Director for Caribbean countries, effective July 1, 2021. She will be based in Kingston, Jamaica.  Ms. Burunciuc brings a wide range of development experience to her new position. A Moldovan national, she first joined the World Bank in 1996 and has held leadership positions in several countries and regions of the world, including in Europe and Central Asia and Sub-Saharan Africa. Prior to her current assignment, Ms. Burunciuc served as Country Director for Central Asia.

• The Bahamas: The government of The Bahamas publishes its first Annual Borrowing Plan (ABP) in keeping with new guidelines set by the Public Debt Management Act, 2021, passed by Parliament in March. The new legislation puts teeth behind the government’s commitment to fiscal accountability, and to increasing transparency and borrowing predictability in debt operations.“Since the new law took effect on July 1, we set up the new Debt Management Office (DMO), which now has overall responsibility for the management of the government’s debt. We also published the first ABP, which is a key component of the government’s new debt management system,” said Kwasi Thompson, Minister of State for Finance.

Week ending July 2, 2021

• The Bahamas: The Inter-American Development Bank (IDB) approves a US$40 million loan to strengthen the health system in The Bahamas, with an emphasis on improving residents’ access in the country’s smaller islands. Enhancing the capacity to provide primary healthcare by reinforcing medical facilities and providing new medical equipment, it will facilitate access and improved services to approximately 60,000 people living in nine Family Islands.

• Belize: The government of Belize is focusing on debt-for-climate swaps to tackle the dual threat of mounting public debt and climate change impacts in the country, with the support of the Commonwealth Secretariat. A webinar co-hosted by the Commonwealth Secretariat and the Government of Belize, in partnership with the NDC Partnership and UNFCCC Caribbean Regional Collaboration Centre, was held on 22 June to raise awareness on the issue among different ministries in the Government of Belize, as well as participants from the wider Caribbean region. The event feeds into a wider collaboration between Belize and the Commonwealth Secretariat on the development of a “debt-for-climate/nature swap mechanism” for the country

• Guyana: The World Bank approves US$6 million in additional financing for the Guyana COVID-19 Emergency Response Project to support affordable and equitable access to COVID-19 vaccines and ensure effective vaccine deployment in Guyana. The project will also support general preparedness, resilience, and overall health system strengthening. The original project was approved in November 2020 to support Guyana’s pandemic response and strengthen the country’s health system. US$5 million of the additional financing approved comes from the International Development Association (IDA). Guyana receives interest-free financing from IDA, with a maturity of 40 years, including a grace period of 10 years. An additional US$1 million is a grant from the Health Emergency Preparedness and Response Multi-Donor Trust Fund.

June 2021

Week ending June 25, 2021

• Barbados: The World Bank Board of Executive Directors approved today a US$100 million COVID-19 Response and Recovery Development Policy Loan for Barbados. The operation will support the country’s COVID-19 relief efforts and promote a resilient economic recovery from the crisis.

• Guyana: The World Bank approves a US$6.7 million grant from the Global Partnership for Education (GPE) for the Guyana Education Sector Program Project. The project aims to improve learning in nursery schools, increase technology use in primary schools, and improve functionality of the national education management information system.

• Saint Vincent and the Grenadines: The World Bank Board of Executive Directors approves US$50 million in Supplemental Financing for the Second Fiscal Reform and Resilience Development Policy Credit (DPC) for Saint Vincent and the Grenadines. This quick-disbursing operation aims to help the country cover a large unexpected financing gap and address emergency needs caused by the La Soufrière volcano eruption, which began in March 2021. The original DPC was approved in June 2020.

Week ending June 18, 2021

• Suriname: A majority of Suriname bondholders has triggered a termination clause on the South American country’s 2023 and 2026 notes, a creditor committee said in a statement this week. The action reinstates payment obligations that had been deferred under a proposal launched by Suriname in March, the committee said. They said a recent presentation made by Suriname authorities to investors “is neither reflective of Suriname’s economic prospects and evolving payment capacity, nor consistent with the highly positive presentations made in recent weeks to other audiences in respect of Suriname’s bright economic future.” Suriname’s government on June 2 proposed a $236 million instrument maturing in 2029 to replace amounts outstanding, interest and arrears totaling some $786 million in marketable debt, or around a 70% haircut.

Week ending June 11, 2021

• International: Emerging Markets’ gross financing needs remain high amid the ongoing pandemic, estimated at 14 percent of GDP, with growing sovereign-banks risks in such markets, according to Geoffrey Okamato, the first deputy managing director of the International Monetary Fund (IMF). Okamato said that 60 percent of debt issued in emerging markets after January 2020 has ended up on domestic banks’ balance sheets, which is a concerning matter. He expounded that emerging market debt is projected to record an average level of 73 percent of GDP by 2026, adding that debt managers must keep the confidence of the market as they manage large volumes of new issuances and rollovers.

• Regional: CAF—Development Bank of Latin America—becomes the first Latin American issuer to place bonds under the SOFR (Secured Overnight Funding Rate), which has consolidated as an alternative replacement rate to the traditional LIBOR rate, which for the last few decades has been a market reference and is in the process of being phased out. The three-year issue totaled USD 400 million, with a SOFR+62 basis points coupon, and was structured by JP Morgan.

• Belize: Belize is seeking to reduce its level of indebtedness, by renegotiating a US$500 million sovereign bond debt. Belize's prime minister, John Briceno, has called on bondholders to conduct "reasonable" talks in good faith to reach an agreement since the amount represents 97 percent of the country's commercial external debt. On June 11, bondholders must decide whether or not to extend the grace period for the collection of the most recent debt service.

• Belize: The Executive Board of the International Monetary Fund concludes its 2021 Article IV Consultation with Belize and states that, "The COVID-19 pandemic has hit Belize hard. Following a successful containment of the first wave of the pandemic, the country experienced a second wave starting in June 2020. This wave has been controlled, but it left Belize with one of the highest numbers of cases and deaths per capita in the Caribbean. The pandemic also led to a 72 percent fall in tourist arrivals in 2020 and a decline in activity in contact-intensive sectors, resulting in a contraction of real GDP of 14.1 percent in 2020. The fiscal position deteriorated markedly, with the primary deficit widening from 1.3 percent of GDP in FY2019/20 to 8.4 percent in FY2020/21, and public debt increasing from 97.5 percent of GDP in 2019 to 127.4 percent in 2020."

Week ending June 4, 2021

• Suriname: Suriname requests a 70% nominal haircut on its debt to external commercial creditors and a 30% cut on its debt to official creditors, according to the government. The government proposed a $236 million instrument maturing in 2029 to replace amounts outstanding, interest and arrears totaling some $786 million in marketable debt. It also requested a 30% average nominal haircut on about $708 million currently owed to bilateral creditors and export credit agency-backed commercial lenders. Commercial holders had in April agreed to defer payments on $675 million in bonds but last month said Suriname had not allowed them sufficient participation in a $690 million financing deal with the International Monetary Fund and threatened to reinstate the deferred payments.

May 2021

Week ending May 28, 2021

• The Bahamas: The Inter-American Development Bank (IDB) approves a US$140 million loan to The Bahamas to promote business continutiy and competitivemess of Micro, Small, and Medium Enterprises (MSMEs) as well as their Blue Economy environmental resiliency. This is the second operation under the modality of Programmatic Policy-Based Loan (PBP). The first operation was approved in August 2000.  The IDB loan of US$140 million has a repayment term of 20 years, a grace period of five and a half years and an interest rate based on LIBOR.

• The Bahamas: The World Bank Board of Executive Directors approves a US$100 million COVID-19 Response and Recovery Development Policy Loan for The Bahamas. The operation will support the country’s efforts to provide COVID-19 relief and lay the foundation for a resilient economic recovery. The Bahamas has faced severe socioeconomic impacts due to the pandemic, which led to a sudden stop in tourism and an estimated economic contraction of 16.2 percent over the past year. Unemployment, already on the rise after Hurricane Dorian, increased further, and poverty is estimated to have increased in 2020. This operation aims to help The Bahamas enhance COVID-19 relief and resilience, strengthen financial stability and the business environment, and improve fiscal sustainability and resilience. 

• Belize: Belize is on course for its second default in less than a year after missing an interest payment This has triggered a downgrade by Standard and Poors (S&P) Global Ratings, the international ratings agency. The Caribbean nation was cut to SD, or “selective default”, from CC by S&P after failing to make a $6.5 million interest payment on its $526.5 million so-called superbond due in 2034. It marks the country’s fifth restructuring or default event in the past 14 years

Week ending May 14, 2021

• Jamaica: Work continues on the first catastrophe bond for Jamaica and the World Bank has highlighted how the soon-to-be launched transaction will help to narrow the Caribbean nations natural disaster financing gap. As yet, the World Bank’s catastrophe bond for Jamaica has not come to market, but it is expected within the coming two months or so, in advance of the peak of the 2021 hurricane season. Jamaica’s catastrophe bond has been a work-in-progress for some years but has been delayed due to the Covid-19 pandemic in 2020, as financial market volatility from the coronavirus outbreak put the Caribbean island nations’ first cat bond issuance on-hold.   

Week ending May 7, 2021

• Regional: Dr Hyginus ‘Gene’ Leon takes office as President of the Caribbean Development Bank (CDB), becoming the sixth chief executive of the regional multilateral institution. Dr. Leon will lead a team of more than 200 employees headquartered in Bridgetown, Barbados. He assumes the Presidency with 35 years of experience in economics, financial policy development and executive management, more than 20 years of which were spent working with the International Monetary fgund. He succeeds Dr. Warren Smith who retired on April 30 after serving as President for 10 years. 

• Regional: The Executive Board of the International Monetary Fund (IMF) concludes the 2021 discussion on the common policies of the Eastern Caribbean Currency Union (ECCU) in the context of the Article IV consultations with member countries. The Board noted that the fallout from the COVID-19 crisis is hitting ECCU economies hard. Tourism receipts (accounting for nearly 40 percent of GDP) have dried up, as tourist arrivals have come to a grinding halt. The authorities successfully contained the spread of the virus at the onset of the pandemic by largely closing the borders, but a reopening of the economies since the summer has led to a surge in COVID cases. The ECCU economy is projected to contract by 16 percent in 2020 and by a further near ½ percent in 2021. Fiscal positions have deteriorated sharply, and public debt is projected to reach 90 percent of GDP in 2021 and remain at an elevated level for years to come. 

• The Bahamas: As the government finalizes its upcoming budget for the 2021/2022 fiscal year, Governor of The Central Bank of The Bahamas (CBOB), John Rolle, said from his point of view, the government will still have significant financing needs heading into the new fiscal period, which starts on July 1. “The government will continue to have some important financing needs, however the government will have more wiggle room to source some of that financing inside of the economy. It will still, though, have to raise some of that financing outside to retain the balance in terms of the stimulus that financing creates for foreign exchange use. 

• Barbados: The IMF reaches staff level agreement on the fifth review of Barbados' economic programme under the Extended Fund Facility. The agreement is subject to approval by the IMF Executive Board, which is expected to consider the review in June. Upon completion of the review, SDR 17 million (or about US$24 million) will be made available to Barbados.

• Belize: Belize’s bid for its fifth debt restructuring in 15 years is threatening to turn sour as holders of its so-called ‘Superbond’ urged it to agree to an IMF programme, while the government accused the creditors of cancelling a planned Zoom call. Belize is looking to restructure a $550 million Superbond that emerged from 2006-07 restructuring and now contributes to a 133% debt-to-GDP ratio that the International Monetary Fund deems unsustainable. Superbond holders, U.S.-based funds GMO and Greylock, and London-based Aberdeen Standard Investments which recently rebranded as ABRDN, have formed a creditor committee and are signalling they may not restructure without IMF help.

April 2021

Week ending April 30, 2021

• Regional: The Inter-American Development Bank (IDB) and IDB Invest announces the launch of the Green Bond Transparency Platform (GBTP), an innovative digital tool that brings greater transparency to the green bond market in Latin America and the Caribbean. GBTP supports the harmonization and standardization of green bond reporting, boosting investors’ confidence that the proceeds from bond issuances are being spent on green projects whose impact are adequately measured. Users can learn about the proceeds, impacts, and methodologies for each green bond in the region and can filter data to access environmental performance using different criteria. Blockchain (DLT) technology facilitates secure data reporting in the GBTP.

• Jamaica: The Ministry of Finance is in the process of revising the treatment of withholding tax on interest payments to bondholders. Finance Minister Nigel Clarke, who made the disclosure at the launch of the Jamaican office of regional rating agency CariCRIS, noted that the details would be released later, but that bonds listed on the newly created JSE Private Placement Market would benefit.

• Suriname: The International Monetary Fund (IMF) reaches staff-level agreement with the Republic of Suriname on a US$690 million programme under a three-year Extended Fund Facility.  The programme aims to lay the foundation for a strong, resilient, and inclusive economic recovery through protecting the poor, lowering inflation, restoring debt sustainability, and investing in the future. Debt relief from Suriname’s official bilateral partners and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps. This will need to be complemented by progress toward a restructuring of commercial debt that will result in sufficient creditor participation to restore debt sustainability and close financing gaps.

Week ending April 16, 2021

• St. Vincent and the Grenadines: The World Bank disburses US$20 million to support the Government of Saint Vincent and the Grenadines’ response to the crisis posed by the La Soufrière volcano eruption. The explosive eruption began on April 8 and has required the evacuation of 20,000 people from the high-risk zones around the volcano, both to other parts of Saint Vincent and surrounding countries. Explosions are continuing, and the falling ash is causing air quality concerns and interruptions in electricity and water supply. The funds are disbursed from a contingent credit line from the World Bank, known as the Catastrophe Deferred Drawdown Option (Cat-DDO), approved in June 2020. The Cat-DDO instrument is designed to provide immediate liquidity to support a country’s efforts to recover from disasters triggered by natural hazards or a public health emergency.

Week ending April 2, 2021

• International: The U.N. chief and the prime ministers of Canada and Jamaica urge far bolder action to prevent a debt crisis, including extending the moratorium on debt repayments and providing urgent cash liquidity to developing countries to respond to the COVID-19 pandemic and invest in economic recovery. Secretary-General Antonio Guterres said a debt crisis will have the greatest impact on the poorest people in the most vulnerable countries, but he warned that it can't be confined to any region or country and that "there have been credible forecasts of losses of global output in the trillions of dollars." "Unfortunately, not enough has been done to support those countries -- many dozens of countries -- that are at highest risk," he told reporters after a high-level virtual meeting with world leaders including prime ministers Justin Trudeau of Canada and Andrew Holness of Jamaica who joined the press conference virtually.

• International: Caribbean governments send a strong and clear message to the Group of Twenty (G20) developed countries to extend its Debt Service Suspension Initiative (DSSI) to highly indebted middle-income countries that are facing harsh economic setbacks amid the COVID-19 pandemic. While commending a move by the G20 to extend the DSSI to the end of June, Prime Minister Andrew Holness said that there was a sound basis for it to be pushed back further to 2022. Consideration should also be given to expanding its beneficiaries to include highly indebted middle-income countries,” he added. Participating in a virtual High-level Meeting on the International Debt Architecture and Liquidity, Holness said that private creditors represented an increasingly large share of the overall creditor composition of developing countries and should be actively engaged to participate in the DSSI on equal terms.

• Regional: The Eastern Caribbean Central Bank (ECCB) partners with the international fintech company, Bitt Inc, to design and develop the world’s first retail central bank digital currency (CBDC) to be publicly issued within a formal currency union. The ECCB has been working in partnership with Bitt Inc for over two years to develop "D-Cash" the digital version of the Eastern Caribbean (EC) currency in an effort to increase financial inclusion, competitiveness and resilience for the people of the Eastern Caribbean Currency Union.

• Suriname: Fitch Ratings downgrades Suriname's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'RD' from 'C'. The two issue ratings on Suriname's US$550 million notes due 2026 and USD125 million notes due 2023 on which the government has defaulted were downgraded to 'D' from 'C' and then withdrawn for the following reason: Debt restructuring or issue/tranche default. The downgrade of Suriname's IDR to 'RD' reflects the non-payment of US$49.8 million of rescheduled external debt service on Suriname's 2023 and 2026 notes due March 31. This marks an event of default under Fitch's criteria with respect to the sovereign's IDR as well as the issue ratings of the affected securities (Global 2023 and 2026 notes).

March 2021

Week ending March 26, 2021

• International: The Executive Board of the International Monetary Fund (IMF) approves further extensions of temporary adjustments made to its lending frameworks in the early months of the pandemic, allowing for adequate access to Fund financing through emergency instruments, the General Resources Account (GRA), and the Poverty Reduction and Growth Trust (PRGT). The extensions of these measures reflect the unique circumstances created by the pandemic and will ensure that member countries continue to be able to access IMF financing, through both IMF-supported programs and emergency financing in case of urgent balance of payments needs.

• Regional: The Caribbean Development Bank's (CDB) Board of Directors endorses a US$38 Million programme for the 10th cycle of the Bank's Speical Development Fund (SDF). This programme is devised to reduce poverty and inequality and transform the lives of citizens in its Borrowing Member Countries. The SDF represents the principal pool of concessional resources available to the Bank to assist BMCs in addressing poverty, sustainable development, governance, capacity development, gender inequalities, environmental sustainability, climate change, disaster risk management, and regional cooperation and integration

Week ending March 19, 2021

• International: The Executive Board of the International Monetary Fund (IMF) approves an extension of the current  Special Drawing Right valuation basket by ten months from September 30, 2021 to July 31, 2022. The IMF normally reviews the composition and valuation of the SDR basket every five years. The extension of the current basket effectively resets the five-yearly cycle of SDR valuation reviews, with the next review expected to be completed by mid-2022, and the new SDR valuation basket becoming effective on August 1, 2022. Thereafter, five-yearly revisions of the SDR basket would be taking effect on August 1.

• Jamaica: Fitch Ratings affirms Jamaica's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. Fitch said that Jamaica's 'B+' rating is supported by World Bank Governance Indicators that are substantially stronger than the 'B' and 'BB' medians, a favorable business climate according to the World Bank Doing Business Survey, moderate inflation and moderate commodity dependence. They noted that these strengths are balanced by vulnerability to external shocks, a high public debt level and a debt composition that makes the sovereign vulnerable to exchange rate fluctuations.

Week ending March 12, 2021

• Regional: The International Monetary Fund (IMF) in its IMF Country Focus notes that many Caribbean countries risk becoming COVID-19 economic long-haulers. Much the same as some patients could suffer from lingering illnesses long after the corona virus infection has passed, the pandemic’s economic fallout might be felt in the region long after the health emergency is controlled.

• Regional: The Inter-American Development Bank (IDB) announces a first-of-its kind initiative that would help Latin American and Caribbean countries better compete to obtain lifesaving COVID-19 vaccines. The instrument would help both countries and vaccine makers resolve indemnity obligations, thereby removing a key obstacle to vaccine contract negotiations. The initiative also aims to help design and implement regulatory reforms that facilitate the acquisition and distribution of vaccines. The IDB is the first multilateral development bank to offer such an instrument to its clients.

• Belize: The Inter-American Development Bank (IDB) approves the first hybrid sovereign guarantee operation, with an investment loan and a guarantee for Belize. The $2.1 million guarantee will provide support for interventions to contain the transmission of the virus by increasing and facilitating access to COVID-19 vaccines. Specifically, it will consist of the issuance of a sovereign guarantee to cover the purchase of the committed doses of COVID-19 vaccines (channeled through ‘Gavi’ Alliance’s COVAX Facility). In addition, the investment portion which consists of a $2.8 million will facilitate vaccine accessibility.  The IDB’s $2.8 million loan and the $2.1 million guarantee are for up to 25-year term, and in the case of the investment loan with up to 5.5-year grace period and an interest rate based on LIBOR.

• Jamaica: Jamaica will get a US$75 million loan from the Inter-American Development Bank (IDB) to strengthen the efficiency and effectiveness of public policy and fiscal management in response to the health and economic crisis caused by COVID-19. The loan, the first of two policy-based loans, will promote the availability and timely execution of public resources to respond to the health crisis caused by COVID-19. It will strengthen the countercyclical effect of fiscal policy through the introduction of temporary measures to protect the income of vulnerable households and increase liquidity for businesses during the crisis. The IDB loan has a 20-year maturity and 5.5-year grace period and its interest rate is LIBOR-based.

Week ending March 5, 2021

• Regional:The Caribbean Development Bank (CDB) approves US$536.6 million in loans and grants for its Borrowing Member Countries (BMCs) in 2020 to finance improvements in economic infrastructure, social resilience, policy-based initiatives and COVID-19 mitigation. This total marked a 77 percent increase over the US$303 million approved in 2019. Loan financing accounted for US$380 million, up from US$253.7 million in 2019, while grant funding was US$156.6 million, more than double the US$49.3 million approved the previous year. The bulk of the financing approved in 2020 was for large-scale economic infrastructure projects. 

• Belize: Debt-strained Belize has not requested an International Monetary Fund (IMF) bailout programme, the Fund’s top official in the country said. Belize’s government and the IMF are holding online talks as part of what would normally be a regular review of the Central American country by the IMF. The discussions have taken on greater significance, however, following recent rating agency warnings that the country, which has a debt-to-GDP ratio of more than 120 percent and has already postponed some debt payments last year, is heading for default in May.

February 2021

Week ending February 26, 2021

• Regional: High level Government officials from the Caribbean region meet virtually with Senior Management of the Inter-American Development Bank Group (IDBG) for a frank conversation about the challenges facing Caribbean member countries. The discussion, which took place during the Caucus Meeting of Caribbean Governors of the IDBG, provided a preview of the range of topics that could be on the table when the Caribbean Country Department of the IDBG convenes its X Annual Meeting of Caribbean Governors on February 25th and 26th.  Among the topics discussed were the critical need for vaccine access in small economies, climate change vulnerability, debt sustainability, the digital agenda, building a resilient tourism industry, and access to finance for the regional private sector. Members of the IDB Board of Governors from The Bahamas, Barbados, Guyana, Suriname, and Trinidad and Tobago were present.  The meeting was Chaired by the Governor from Jamaica, Minister Nigel Clarke.

• Regional: The Caribbean Development Bank (CDB) provided more than $140.2 million in financing in 2020 and secured an additional $50 million for 2021 to support its Borrowing Member Countries (BMCs) in mitigating the macroeconomic fallout and adverse social effects of the COVID-19 pandemic.

• Trinidad and Tobago: The Government of Trinidad and Tobago signs a loan agreement with the Inter-American Development Bank (IDB) to fund a programme for people most affected by the Covid-19 crisis in Trinidad and Tobago. The US$24.5 million dollar will help ensure basic quality of life standards for vulnerable persons are maintained in the immediate period and during the economic recovery of Trinidad and Tobago.

Week ending February 19, 2021

• International: Global debt soars to a record US$281 trillion in 2020, and is expected to rise further in 2021 as countries grappling with widening fiscal deficits and the impact of Covid-19 on their economies continue to borrow amid low interest rates.The overall rise in global debt levels in 2021, however, will be "modest" as some economies bounce back, and borrowing trajectories of governments will likely vary significantly, the Institute of International Finance said in its latest Global Debt Monitor. While some pandemic-related fiscal measures will expire in 2021, budget deficits are set to remain well above pre-pandemic levels, and global government debt is expected to rise by another $10 trillion this year, surpassing $92 trillion by the end of 2021.

• Jamaica: The World Bank approves additional financing of US$10 million for the ongoing Jamaica Foundations for Competitiveness and Growth Project. The additional financing will be used to scale-up support for the Government of Jamaica’s business climate reform agenda and contribute to Jamaica’s economic recovery by improving the business environment.  

• Jamaica: The Bank of Jamaica (BOJ), announces that it is holding its policy interest rate at 0.50 per cent per annum. The decision to hold the policy rate unchanged reflects Bank of Jamaica's assessment that inflation will average 5.0 per cent over the next two years and remain within the target range. This forecast is broadly similar to the previous projections.

Week ending February 12, 2021

• Regional: The International Monetary Fund (IMF) in its concluding  statement of the 2021 Discussion on the common policies of member countries of Eastern Caribbean Currency Union (ECCU) member states stated that the COVID-19 pandemic has hit the ECCU economy hard. It noted that until it is brought under control, tourism activity will remain subdued and will, in turn, limit the strength of economic recovery. The Fund stated that the near-term policy imperative is to protect lives and livelihoods and limit potential scarring, while ensuring medium-term debt sustainability with strengthened fiscal frameworks and maintaining financial system stability, with a view to safeguarding the quasi-currency board system. Once the post-pandemic recovery takes hold, policies should focus on resuming fiscal consolidation, further strengthening the financial system, and accelerating other structural reforms to make the economy more competitive and resilient.

• Regional: The International Monetary Fund (IMF) says that while Latin America and Caribbean economies managed to bounce back from COVID-19’s initial economic devastation in early 2020, the pandemic’s resurgence towards the end of the year threatens to thwart an uneven recovery and add to steep social and human costs.

Week ending February 5, 2021

• International: The International Monetary Fund (IMF) says it is launching a new method of assessing debt sustainability for countries with access to financial markets to more accurately predict risks of financial crises and improve transparency. The update of the debt assessment methodology, the first since 2013 in the wake of a European sovereign debt crisis, is expected to be operational by the fourth quarter of 2021 or the first quarter of 2022, IMF officials said.

• Regional: The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new US$1 billion 5-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index. The bond pays a quarterly floating coupon of compounded SOFR + 20 basis points and matures on February 10, 2026, with a settlement date of February 10, 2021. The transaction marks IDB’s first SOFR benchmark in 2021, and the issuer’s second FRN linked to the index, following the US$500 million long 4-year SOFR-linked benchmark priced in October 2020. This transaction also represents the joint tightest ever spread to SOFR in the 5-year tenor. 

January 2021

Week ending January 29, 2021

• International: The International Monetary Funds announces that the Covid pandemic has pushed up the world public debt to a historic level in 2020, now representing 98 percent global Gross Domestic Product (GDP). 

• Bahamas, The: The Executive Board of the International Monetary Fund (IMF) concludes an Article IV consultation with The Bahamas. Executive Directors expressed sympathy for the loss of life and economic hardship caused by the COVID-19 pandemic. Directors commended the authorities for the timely measures to sustain public health, protect the vulnerable and cushion the impact of the pandemic on employment. They noted that the recovery to pre-pandemic levels will likely take years and downside risks loom large, reflecting the uncertain evolution of the pandemic and The Bahamas’ vulnerability to natural disasters. Directors agreed that the near-term priority is to save lives and livelihoods and postponing the achievement of the public debt target by another two years in response to the pandemic is appropriate. 

• Bahamas, The: Moody’s Investor Services ("Moody's") revises its previous position that The Bahamas will begin to see tourism growth in the first half of 2021, the global ratings agency stated in an updated credit opinion on The Bahamas.“Tourism did not recover in the last quarter of 2020,” Moody’s stated. “The significant decline in tourist arrivals, coupled with the high number of COVID-19 cases in the US – The Bahamas’ main source of tourists – has led us to revise our previous expectation that tourist flows would recover in the first half of 2021.

• Jamaica: Jamaica continues to work with the World Bank on a first catastrophe bond for the country the Finance Ministry has said. In addition, reflecting the importance of disaster risk financing, in recent weeks the Finance Ministry has received a roughly US$3.5 million payout under its parametric CCRIF insurance coverage.

Week ending January 22, 2021

• Suriname: The Government of Surinames takes the unusual step to include a group of its private sector creditors in its bailout talks with the International Monetary Fund. Discussions will cover the IMF's financial and technical support for the South American country's economic reform plans "to stabilize the macroeconomic position of the Republic," a statement from the finance ministry said.

2020

December 2020

Week ending December 25

• Regional: The Inter-American Development Bank (IDB) Group approves a record US$21.6 million in new financing in 2020 to assist its 26 member countries in Latin America and the Caribbean. The financing was provided to manage the economic and social impacts of the coronavirus pandemic and lay the groundwork for recovery and sustainable growth. 

Week ending December 18, 2020

• Regional: The Inter-American Development Bank (IDB) announces that it will mobilize US$1 billion to help Latin American and Caribbean countries acquire and distribute COVID-19 vaccines. The funds will complement $1.2 billion in resources that the IDB has committed in 2020, as well as other funds already programmed for 2021, to help countries save lives through public-health measures, such as more effective testing and tracing, and better clinical management of COVID-19 patients.  

• Bahamas, The: The Ministry of Finance's top official says that he "foresees no challenge" in the Government meeting almost $1.5 billion in debt principal repayments coming due within the next 12 months.  As reported in the recently released Fiscal Strategy Report, almost 18 percent of the Government of The Bahama's outstanding debt principal is to be redeemed over the next year.  In addition, $3.318bn or some 40.5 percent of the total $8.191bn - is due for repayment over the next five years.

• Bahamas, The: In its recently released Fiscal Strategy Report (FSR) the government of The Bahamas expects debt to reach US$10.4 billion by fiscal year 2021/2022, growing to US$10.8 billion in fiscal year 2024/2025. Though the report also projects growth of more than $2 billion in gross domestic product (GDP) to more than $14 billion over that period, the government predicts it will not achieve its 50 percent debt target by the 2028/2029 fiscal year, as it projected in its 2019 Fiscal Adjustment Plan.

• Bahamas, The: The Inter-American Development Bank (IDB) approves a US$20 million loan to  The Bahamas to help reduce the morbidity and mortality caused by the COVID-19 and to mitigate its impacts. The project will strengthen response leadership at the country level, improve case detection and monitoring, support initiatives to break the illness’s transmission chain, and improve service delivery capacity. The US$20 million loan will be executed during a two-year period, with an amortization period of 25 years and an interest rate based on LIBOR.

• Barbados: The Inter-American Development Bank (IDB) approves a US$30 million loan to support the short-term  financial sustainability of micro, small and medium enterprises (MSMEs) in Barbados to maintain employment in the face of the COVID-19 crisis and its effect on the productive sector. The purpose of the loan is to help the MSMEs affected by the pandemic overcome temporary liquidity problems, protect jobs and, at the same time, allow business continuity and operations. The US$30 million IDB loan has a repayment period of 25 years, a grace period of five and a half years and an interest rate based on LIBOR.

• Belize: The Board of Directors of the Caribbean Development Bank (CDB) approveds funding for the upgrading of 125 kilometres of road, comprising the northern portion of the Philip S. W. Goldson Highway and the Remate Bypass. The highway links the capital Belize City with the Mexican border. The almost US$60-million project is being funded by a US$34-million loan from the CDB, a grant of £14 million (some US$18 million) from the Government of the United Kingdom through the CDB-administered United Kingdom Caribbean Infrastructure Fund, and a contribution of almost US$7 million from the Government of Belize.

• Grenada: The World Bank Board of Executive Directors approves a US$25 million COVID-19 Crisis Response and Fiscal Management Development Policy Credit to the government of Grenada. This quick-disbursing financing will support the country’s efforts to respond to the COVID-19 crisis in the short-term and enhance long-term sustainability and resilience.  The financing, which is from the International Development Association (IDA), is interest-free with a maturity of 40 years, including a grace period of 10 years.

• Guyana: Guyana receives a US$34 million loan from the Inter-American Development Bank (IDB) to help strengthen its public policy and fiscal management response to the COVID-19 health and economic crisis. The operation, the first of a two programmatic-based loan series, will support Guyana’s government efforts to counteract the negative social and economic impacts caused by the COVID-19 pandemic.  Of the total loan, US$10.2 million will come from the IDB’s concessional lending window and it will carry a maturity and a grace period of 40 years, and an interest rate of 0.25 percent. The remaining US$23.8 million will come from the Bank’s Flexible Lending Facility, with a 20-year maturity period, a grace period of 5.5 years and an interest rate based on LIBOR.

• Jamaica: The Caribbean Development Bank (CDBP approves a US$30 million loan to the government of Jamaica from the Bank’s Special Funds Resources. The loan is to fund a programme which seeks to upgrade seven water systems in a number of rural communities in the parishes of St. Mary, Trelawny, St. Ann, Clarendon, St. Thomas and St. Elizabeth. The programme will also fund the installation of catchment and wayside tanks in various communities and rainwater harvesting systems at schools and institutions in other locations.The programme, which will be executed by Jamaica’s Rural Water Supply Limited, will cost an estimated US$36.2 million in total.

• Saint Vincent and the Grenadines: The Caribbean Development Bank (CDB) Board of Directors approves financing of US$8.6 million to St. Vincent Electricity Services Ltd (VINLEC) for the supply and installation of solar photovoltaic (PV) systems at buildings owned by VINLEC in the vicinity of the Argyle International Airport. The funding will also cover the establishment of a battery energy storage system (BESS) to be installed at the Cane Hall sub-station. The solar PV systems will displace some of the  diesel fuel used for electricity generation. US$5.45 million of the financing will be a loan, of which US$2.03 million will be drawn from resources provided by the European Investment Bank (EIB) under the Second Climate Action Line of Credit (EIB-CALC II). US$3.16 million will be grant funding under the Sustainable Energy for the Eastern Caribbean (SEEC) Programme. The total cost of the project is estimated at US$10.2 million with the government of St. Vincent and the Grenadines contributing the remaining US$ 1.5 million.

Week ending December 11, 2020

• Bahamas, The: Governor of The Central Bank of The Bahamas (CBB), John Rolle, stresses that The Bahamas has not reached a level of debt distress, in response to a prediction by a respected Caribbean economist that the nation will default on its sovereign debt.  The economist, Marla Dukharan, suggested that the Bahamas fiscal deficit could be more acute than estimated. This would increase the possibility of a likely default on its debt obligations requiring the county to have to enter into an economic programme with the International Monetary Fund (IMF).

• Dominica: The Board of Directors of the Caribbean Development Bank (CDB) approves a US$20-million loan for Dominica to help close financing gaps, which have widened due to the Covid-19 pandemic. The country, still reeling from the devastation of Tropical Storm Erika in 2015 and Hurricane Maria in 2017, which caused an estimated loss of 90% and 226% of gross domestic product (GDP), respectively, was hit hard by the outbreak of the global pandemic. Tourism, which in 2019 accounted for 36.9% of GDP, came to an abrupt halt. The closure of the country’s borders and the imposition of a lockdown for non-essential workers from mid-March to June 2020 to contain the spread of the virus, caused a sudden stop to commercial flights, cruise ships calls, and the closure of hotels.

• Guyana: The Board of Directors of the Caribbean Development Bank (CDB) approves funding for the upgrading of 121 kilometres of road from the town of Linden to Mabura Hill, improving connectivity between Guyana’s hinterland and the coastal cities. The project is the first phase of a wider plan to develop a transportation corridor from Georgetown, the capital city, to Lethem on the southwest border; connecting the Port in Georgetown with northern Brazil. The US$190-million project is being funded by a US$112-million loan from CDB, a grant of £50 million (US$66 million) from the Government of the United Kingdom through the CDB-administered United Kingdom Caribbean Infrastructure Fund, and a contribution of US$12 million from the Government of Guyana. It represents the largest project that CDB has financed in its 50 years of existence.

• Guyana: The Inter-American Development Bank (IDB) approves a US$30.4 million loan to contribute to ensuring minimum levels of quality of life for vulnerable persons amid the crisis caused by COVID-19 in Guyana. To do so, the programme will contribute to support minimum income levels, and preserve the human capital of those affected by the pandemic.  The US$30.4 million loan will be executed during a two-year period. The US$21.8 million corresponding to Flexible Financing Facility will have an amortization period of 25 years and an interest rate based on LIBOR, while the concessional Ordinary Capital (OC) will have an amortization period of 40 years and 0.25% interest rate. 

• Saint Vincent and the Grenadines: The Caribbean Development Bank (CDB) approves a project which will see two schools – Kingstown Anglican Primary and Sandy Bay Secondary, completely reconstructed and seven others significantly upgraded or rehabilitated. The schools’ improvement project will be supported with US$13.7 million in funding from the CDB.

Week ending December 4, 2020

• Bahamas, The:  Staff of the International Monetary Fund (IMF) in their concluding statement at the end of an Article IV Consultation with The Bahamas, state that given the significant increase in public debt, postponing the achievement of the debt target by another two years in response to the COVID-19 pandemic would be appropriate. However, the  statement also noted that achieving the debt target of 50 percent of GDP by the beginning of the next decade will require significant additional fiscal effort compared to what is planned in the medium-term budget framework. The Bahamas government was urged to start preparing measures now and communicate a timetable to implement these measures as soon as the pandemic-related uncertainty subsides.

• Barbados: Barbados receives a US$120 million loan from the Inter-American Development Bank (IDB) to strengthen its health and economic response to the COVID-19 crisis, support household income and business liquidity, and to define a social, economic and fiscal plan to reactivate its economy. The $120 million IDB loan is the first of a two-step program with Barbados to improve the efficiency and effectiveness of the country´s public policy and fiscal management in response to COVID-19 crisis, through the design and implementation of effective and fiscally responsible policy measures. The IDB loan is for a 20-year term, with a 5.5-year grace period and an interest rate based on LIBOR.

• Jamaica: Jamaica's Minister of Finance and the Public Service, Nigel Clarke, tables legislation in the House of Representatives that will establish an Independent Fiscal Commission.  The Minister noted that the tabling of the Independent Fiscal Commission Act, 2020, is consistent with the Government's commitment to institutionalise fiscal transparency and strengthen Jamaica’s fiscal responsibility framework.

• Jamaica: Jamaica's Minster of Finance and the Public Service, Nigel Clarke, tables the Financial Administration and Audit (Amendment) Act, 2020, which seeks to amend the Government’s fiscal savings target to make it more manageable in the short to medium term.  The Minister stated that he is seeking to amend the Financial Administration Audit Act in a manner that results in a moderation of a correction mechanism in the fiscal rules. This, he said, would allow for a gentler correction of the significant fiscal deviation in 2020 as a result of the economic impact of the COVID-19 pandemic.

November 2020

Week ending November 27, 2020

• Regional: The Inter-American Development Bank (IDB) approves a US$50 million loan to support member countries of the Organisation of Eastern Caribbean States (OECS) and their response to the health, social and economic consequences caused by the COVID-19 crisis. The loan will be made to the Caribbean Development Bank which will in turn provide economic resources to the OECS member states. The OECS comprises Antigua and Barbuda, Commonwealth of Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines.

• Guyana: The World Bank approves a US$7.5 million to Guyana to finance a COVID-19 Emergency Response  Project. The project is intended to support the country in tackling the current pandemic and strengthening the country's health system. Guyana receives interest-free financing from the International Development Association (IDA), with a maturity of 40 years, including a grace period of 10 years.

Week ending November 20, 2020

• Belize: The new administration recently elected into office in Belize says that the debt has ballooned to record levels. Prime Minister John Briceño has said that public debt has moved from 97.7 per cent of gross domestic product (GDP) to 132.9 per cent as the previous government has borrowed to pay the monthly wage bill.

• Suriname:  Suriname’s government is seeking a payment deferral from its creditors on its two bonds, which total $675 million in what analysts believe could be a prelude to a broader debt restructuring.  In a recent statement, the Suriname government announced the launch of a consent solicitation for its two bonds, due in 2023 and 2026. The consent solicitation expires on November 23. 

Week ending November 13, 2020

• International: The Group of Twenty (G20) finance officials expect to complete work on a common framework for dealing with the debt problems of the world’s poorest countries when they meet on November 13, with G20 leaders due to give their stamp of approval a week later. Agreed in principle by G20 officials lin october and endorsed by the Paris Club of official creditors, the framework will extend the rules of the informal creditor group to include China, which accounts for 63% of overall debt owed to G20 countries in 2019. The extraordinary meeting comes amid signs the pandemic has exacerbated problems for the poorest countries, 50% of which are now in or at risk of debt distress.

• International: The Executive Board of the International Monetary Fund (IMF) has discussed a staff paper on “Reform of the Policy on Public Debt Limits in Fund-Supported Programs,” which reviews the IMF’s policy on the use of quantitative conditionality on public debt in Fund supported programs (the “debt limits policy”) and proposes some modifications. The staff paper outlines a set of reform proposals that would provide countries with more flexibility while still adequately containing debt vulnerabilities. 

• Guyana: Guyana is to strengthen the country’s public health response to the COVID-19 health emergency through a US$22 million loan approved by the Inter-American Development Bank (IDB). This loan is under the Contingent Credit Facility for Natural Disaster and Public Health Emergencies to finance public expenditures necessary to contain transmission of the disease and mitigate further health and economic consequences.

• Suriname: Suriname asks it bondholders to postpone interest payments on its 2026 bonds as it seeks to restructure is debt amid the Covid-19 pandemic. This follows a stay of payments during the 30-day grace period for interest payments on these bonds. 

Week ending November 6, 2020

• International: The World Bank Group and the International Monetary Fund (IMF) announce that the planned annual meetings scheduled to take place in Morocco in October 2021 will be postponed by 12 months due to the COVID-19 pandemic. The World Bank Group-IMF Annual Meetings are usually held for two consecutive years at the headquarters of the two multilateral institutions in Washington, D.C. and every third year in another member country, according to a joint statement by the twin-institutions.

• International: Finance ministers from the Group of Twenty (G20) group of leading economies extend debt standstills for low-income countries under the Debt Service Suspension Initiative (DSSI) by six months until 31 June 2021. In addition, the United States Treasury urged G20 members to agree on adopting a 'Common Framework' for debt resolutions which would likely tailor DSSI eligibility to only those countries experiencing high levels of debt distress. The International Monetary Fund (IMF) would likely move such countries from emergency financing, with limited conditionality, to official programmes entailing more traditional fiscal and structural reforms.

• Regional: Caribbean countries, especially small island states, need support from the international community to confront the “perfect storm” that is looming over them: heavy indebtedness and a liquidity crisis, vulnerability to climate change, and high expenditures due to the COVID-19 pandemic, Alicia Bárcena, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), said during a panel discussion on “Challenges for the Caribbean to build back better.” “The Caribbean has made enormous fiscal efforts to cope with COVID-19 (between 0.5 percent and five percent of GDP in the 12 countries analyzed, with the exception of Barbados). However, these resources are insufficient in the current context,” said Bárcena, who recalled that the subregion’s countries – like the rest of the Latin American nations – are considered to be middle income, which hinders their access to international financing under favorable conditions.

• Belize: The Inter-American Development Bank (IDB) approves a modification to the Education Quality Improvement Program II loan to assist school communities in Belize to address  the challenges of the COVID-19 pandemic. The modification broadens the existing scope of the operation, and will support primary and secondary schools in the shift to a hybrid education model with a mix of remote and face-to-face learning, and with the grant source of financing the integration of migrant students through multicultural education. The $10 million loan and $2.5 million grant will be executed over a period of five years.

• Suriname: Holders of Suriname’s dollar-denominated bonds say that they have formed a creditor committee and have welcomed talks with the government on its debt situation. In October, Suriname announced that it wanted to make use of a 30-day grace period on its dollar-bond coupon payments due on October 26 to talk to creditors about its debt sustainability issues.

October 2020

Week ending October 30, 2020

• International: The International Monetary Fund (IMF), as Trustee of the Poverty Reduction and Growth Trust (PRGT), and the Banco de España have entered into an amendment of their 2017 borrowing agreement, through which the Banco de España will provide an additional amount of up to SDR 750 million (about US$1.06 billion ) in new loan resources. Accordingly, the total loan amount under the borrowing agreement with the Banco de España was amended to provide up to SDR 1.2 billion (US$ 1.7 billion) for the PRGT benefitting the IMF’s low‑income member countries.

• Barbados: The staff of the International Monetary Fund (IMF) and the Barbadian authorities reach staff-level agreement on the completion of the fourth review under the Extended Fund Facility (EFF) arrangement. The agreement is subject to approval by the IMF Executive Board, which is expected to consider the review in December. Upon completion of the review, SDR 65 million (69 percent of quota, or about US$90 million) will be made available to Barbados.

Week ending October 23, 2020

• Suriname: The government of Suriname announces that it wants to make use of a 30-day grace period on its dollar-bond coupon payments coming due on October 26 to engage with creditors to tackle its debt sustainability issues. Indicating that it might not pay the coupon due on October 26, the Suriname government said in a statement it had invited all its commercial creditors to an investor presentation on October 30.  It noted that public debt had risen to historical levels and borrowing continued even as severe macroeconomic and financial imbalances were building up.

Week ending October 16, 2020

• International: The debt of the world’s poorest countries hit a record $744 billion in 2019 prior to the coronavirus pandemic but debt relief is lagging, the World Bank has said. The Washington-based development lender’s data show debt for the 73 poorest nations grew 9.5 percent year-on-year, which shows “an urgent need for creditors and borrowers alike to collaborate to stave off the growing risk of sovereign-debt crises triggered by the COVID-19 pandemic.”

• Barbados: The World Bank forecasts that the Barbadian economy will shrink by about 11.6 per cent in 2020 due to the Covid-19 pandemic. The World Bank said that the fallout in the tourism sector and disruptions to local production were expected to depress growth, resulting in a third consecutive year of recession. It further said that "High levels of public debt limit space for counter-cyclical fiscal policy to lift growth and reduce poverty."

Week ending October 9, 2020

• International:The International Monetary Fund (IMF) approves new emergency aid for 28 of the world's poorest countries to help them alleviate their debt and better cope with the impact of the coronavirus pandemic.  The announcement, which follows a similar measure passed in mid-April for 25 countries, is intended to help these countries cover their debt repayments to the IMF for the next six months and "free up scarce financial resources for vital emergency medical and other relief efforts" during the pandemic.

• International: The IMF Executive Board approved a six-month extension of the temporary increase in access limits under its emergency financing instruments - the Rapid Credit Facility (RCF) and Rapid Financing Instruments (RFI) - through April 6, 2021. The limits on annual access were raised from 50 to 100 percent of quota, and the limits on cumulative access were increased from 100 to 150 percent of quota. The RFI is available to all memebers while the RCF is only available to low-income countries eligible for concessional financing.

• Barbados: Barbados is to strengthen its risk management of natural disasters and climate emergencies with a US$80 million contingent loan approved by the Inter-American Development Bank (IDB). The loan provides a stable, cost-effective, and quick access instrument to cover immediate extraordinary public expenditures during emergencies caused by severe or catastrophic natural disasters.  The US$80 million loan has an amortization period of 25 years, a five and half grace period and an interest based on LIBOR.

• Suriname: Suriname has tapped French investment bank Lazard Ltd to help the South American nation refinance its foreign debt, the Suriname President, Chan Santokhi, has said. Lazard will provide support for negotiations with international lenders including the International Monetary Fund and the World Bank, and will be tasked with helping find new capital for investment in Suriname.

Week ending October 2, 2020

• International: International Monetary Fund (IMF) officials warn that risks of a sovereign debt crisis sparked by the coronavirus pandemic will rise without changes to the international debt architecture, including more transparency for government borrowing. IMF officials also called for the G20 debt service suspension initiative to be extended for another 12 months until the end of 2021, and a common restructuring approach across all official bilateral creditors, including China. 

• International: United Nations Secretary-General Antonio Guterres says that debt relief, which is crucial for recovery in the era of COVID-19 and beyond, should be expanded to all developing and middle-income countries. "Debt relief cannot be limited to least developed countries; it must be expanded to all developing and middle-income countries that really need it; and these countries must have more time to make payments," the UN chief said in his opening remarks at the High-Level Meeting on Financing for Development in the Era of COVID-19 and Beyond.

 September 2020

Week ending September 25, 2020

• International: Representatives of Commonwealth member countries met in the margins of the United Nations General Assembly to discuss the urgent need for improved access to financial resources and debt relief.   Ministers and senior officials called on the international community to reform the financial system and the ways it offers support to small states in the wake of the COVID-19 pandemic. The virtual eventwas co-hosted by the Commonwealth Secretariat and the Alliance of Small Island States (AOSIS).

• International: The Commonwealth Secretariat and the United Nations Conference on Trade and Development (UNCTAD) join forces to create a pioneering resource to support countries facing tough decisions on public debt. The new Debt Data Quality Assessment Framework (Debt-DQA) will help countries generate more reliable data for critical decision making on public borrowing. Debt managers will be able to perform a six-point data quality self-assessment of their databases, identify risks and weaknesses, and formulate short- and long-term plans to remedy them.

• The Bahamas: The Board of Directors of the Caribbean Development Bank (CDB) approves loans of US$40 million to The Bahamas and US$30 million to Saint Lucia to support economic recovery and resilience in both countries, hit hard by the COVID-19 pandemic. Prior to COVID-19 being declared a pandemic by WHO in March 2020, the economic outlook for The Bahamas and Saint Lucia was encouraging with most of the key performance indicators pointing to ongoing improvements. Both countries were pursuing reform agendas to promote economic growth alongside fiscal and debt sustainability. At the same time, The Bahamas was implementing a comprehensive set of measures to enhance resilience against natural disasters, as it tried to come with the effects of four hurricanes in the last five years, including the devastating Hurricane Dorian of 2019.

• Jamaica: The Inter-American Development Bank (IDB) approves a programmatic policy-based loan of $100 million to support the strengthening of Jamaica’s health systems to better prevent and manage the care of non-communicable diseases. The main objective of this programme is to contribute to the improvement of the health of Jamaica’s population by bolstering comprehensive policies for the reduction of Non-Communicable (Chronic) Diseases (NCDs) risk factors.  It also aims to improve access to an upgraded and integrated primary and secondary health network in prioritized areas, with an emphasis on chronic disease management

Week ending September 18, 2020

• Regional: Mauricio J. Claver-Carone is elected President of the Inter-American Development Bank (IDB) during an electronic meeting of the Bank’s Board of Governors. He will take office on October 1, 2020, for a five-year term. As President, he will oversee the operations of the IDB Group, which comprises the IDB, IDB Invest and IDB Lab.

Week ending September 11, 2020

• International: The Head of the International Monetary Fund (IMF), Kristalina Georgieva, while acknowledging that the Debt Service Suspension Initiative was a great achievement argues that it has to be extended She added that both the World Bank and the IMF are calling for a one-year extension. In addition, the twin institutions are calling for greater private sector participation. She was speaking at the Finance Ministers Meeting on Financing Development in the Era of Covid-19 and Beyond.

• Regional: Belize Міnіѕtеr оf Ѕtаtе with responsibility for Labour, Local Government and Rural Development, Ѕеnаtоr Саrlа Ваrnеtt, calls for international financial institutions to step into the shoes of small island developing states such as Belize and other Caribbean states. Dr. Barnett was speaking at a meeting of United Nations Міnіѕtеrѕ оf Fіnаnсе and representatives of international institutions tіtlеd ‘Fіnаnсіng thе 2030 Аgеndа fоr Ѕuѕtаіnаblе Dеvеlорmеnt іn thе Еrа оf СОVІD-19 аnd Веуоnd’.  

• Regional: Barbados Prime Minister, Mia Mottley, calls for the formation of a Caribbean Liquidity and Resilience Facility for small to medium size countries in the wake of the COVID-19 economic fallout.  She porposed it a facility that would be limited to high-quality asset managers to repo bonds that finance resilience and infrastructure. It would then allow the issuers of these bonds to benefit from significantly lower cost per capital. Prime Minister Mottley estimated that such a facility could lower the cost of funding and infrastructure projects by up to two percentage points.

August 2020

Week ending August 28, 2020

• Barbados: The International Monetary Fund (IMF) conclude a virtual staff visit to Barbados. The visit was to discuss implementation of Barbados’ Economic Recovery and Transformation (BERT) plan, supported by the IMF under the Extended Fund Facility (EFF). The mission head summarised the meeting by noting that against the background of a very challenging environment, Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform programme, while expanding critical investments in social protection. International reserves, which reached a low of US$220 million (5-6 weeks of import coverage) at end-May 2018, now exceed US$1 billion. It was noted further that alll indicative targets for end-June under the EFF were met. 

Week ending August 21, 2020

• International: The head of the World Bank, David Malpass,calls for a more ambitious debt relief plan for poor countries after warning that the Covid-19 recession is turning into a depression in the most challenged parts of the globe. Malpass also said that poor countries had been worse hit by the economic fallout from Covid-19 and a growing debt crisis meant it was necessary to go beyond the repayment holidays offered by rich countries earlier this year.

• International: The Jubilee Debt Campaign, which has launched a portal collating debt data concerning 194 countries, says 52 countries are now in debt crisis, meaning debt payments are significantly undermining their governments’ abilities to protect the basic economic and social rights of their citizens. The 52 countries in debt crisis, more than half of which are in Africa and Latin America, represents an increase of 22 from when Jubilee last conducted this analysis in 2018.

• Trinidad and Tobago: The Government of Trinidad and Tobago signs two loan agreements totalling US$150 million with the Inter-American Development Bank (IDB) to improve housing conditions, invest in urban transformation and respond to the impact of COVID-19. The first loan for US$50 million will support the enhancement of living conditions for low-income households and invest in urban spaces as part of a strategy to foster more sustainable development. The second loan - a policy-based loan - valued at US$100 million will aid the Government’s ongoing efforts by supporting their health response to the pandemic through additional hiring of health personnel and purchasing of medical equipment; strengthening fiscal policy measures to protect vulnerable households and increase liquidity for businesses; and promoting economic and fiscal recovery in the post-pandemic period.

Week ending August 14, 2020

• Belize: Standard and Poor's (S&P), the international ratings agency, downgrades Belize's sovereign foreign-currency rating to Selective Default (SD) and the rating on its 2034 sovereing bond to "D" following a debt amendment agreement between the Government of Belize and its bondholders.  The agreement allows for the deferral and capitalization of quarterly interest payments due  between August 2020 and February 2021 without altering the final maturity.

Week ending August 7, 2020

• The Bahamas:  The Inter-American Development Bank (IDB) approves a US$200 million loan to promote competitiveness and environmental resiliency in The Bahamas.  The loan is aimed at improving the business climate, supporting  the Micro, Small and Medium Enterprises (MSMEs) continuity, modernizing the institutional and legal framework to protect the natural resources, and economic diversification by promoting scientific and institutional developments in the Blue Economy.

July 2020

Week ending July 17, 2020

• Caribbean: The Presidents of the Caribbean Development Bank (CDB) and the Inter-American Development Bank (IDB), and the Chief Executive Officer of IDB Invest, sign a mutual cooperation agreement to support economic development and integration of the Caribbean community and common market. The new agreement sets out how CDB, IDB, and IDB Invest will cooperate in the financing or co-financing of projects, in order to build social, economic and environment reliance in the Caribbean, to further inclusion and equality, and to enhance good governance and innovation.

• The Bahamas: The Inter-American Development Bank partners with The Bahamas for a new oil hedging instrument to protect the government budget and to better manage financial risks in uncertain times.The agreement will secure an affordable crude oil coverage solution during times of low prices for the government’s Bahamas Power and Light electricity company. This is the first time the IDB and Bahamas are using such an instrument. It will better position the country against abrupt oil price movements and offers protection against increases in electricity costs over the next 18 months.

• Belize: The Government of Belize announces the commencement of a consent solicitation. Belize is seeking the consent of eligible bondholders in its US dollar bond due 2034 to capitalize interest payments due in February and August 2021. The consent solicitation expires on August 10, 2020.

• Belize: Belize receives US$12.4 million in loan funds from the World Bak to strengthen its response to the economic hardship caused by the COVID-19 pandemic. The funds will be used to provide social assistance to poor and vulnerable households impacted by the crisis

• Suriname: Fitch downgrades Suriname's long-term, foreign-currency, Issuer Default Rating to "RD" from "C". This follows the agreement by commercial bondholders to the Government of Surinames "consent solicitation" to amend the amortisation schedule of the 2023 sovereign notes and the related accounts agreement. The material changes to the terms of the agreement to avoid a default are considered by Fitch to be a distressed debt restructuring.

Week ending July 10, 2020

• Barbados: The Development Bank of Latin America (CAF) approves a US$100 million loan to the Government of Barbados to support the country's fiscal management, especially the effort to mitigate the effects of COVID-19 on the economic, financial and social sectors. 

• Dominica: The World Bank Board of Executive Directors approves US$16.4 million in additional financing for Dominica to support ongoing projects in the areas of agriculture and infrastructure for climate resilience and economic recovery from the COVID-19 impact. The additional financing approved includes US$12.8 million for the  Disaster Vulnerability Reduction Project, which aims to reduce Dominica’s vulnerability to natural hazards and climate change impacts. The funding will be used to rehabilitate and upgrade an important section of the East Coast Road to resilient standards.

• Suriname: The international ratings agency, Moody's Investor Services, downgrades Suriname's sovereign foreign currency rating to Caa3 from B3 due to the higher probability of a distressed debt exchange or default. Moody's cited increased spending pressures in Suriname as the reason for the downgrade.  This is due to the Covid-19 pandemic which has raised financing needs and led to a severe tightening of financial conditions in the country.

• Trinidad and Tobago: The World Bank approves US$20 million for the Trinidad and Tobago COVID-19 Emergency Response Project to respond to the COVID-19 pandemic and strengthen national systems for public health preparedness. The project will support the Trinidad and Tobago government’s National COVID-19 Preparedness and Response Plan. 

Week ending July 3, 2020

• Regional: The Government of Canada partners with the Caribbean Development Bank (CDB) to offer assistance through a new C$20 million fund – Canada – CARICOM Climate Adaptation Fund (CCAF). Governments in nine Caribbean countries will still be able to maintain their disaster risk management efforts even with national finances stretched by the demands of responding to the COVID-19 pandemic. CCAF will be financed through Global Affairs Canada, while CDB will provide in-kind contribution valued at CAD$ 1.2 million. The projects to be financed will run from July 2020 to March 2022.

• Belize: Standard and Poor's (S&P), the international ratings agency, downgrades Belize's long-term foreign currency credit ratings to CC from CCC. S&P said that Belize's lowered ratings were based on the increased likelihood that the country would have a distressed debt exchange in the near term. 

• Trinidad and Tobago: The Development Bank of Latin America (CAF) signs two loans with Trinidad and Tobago to respond to the health emergency caused by COVID-19 and to mitigate the economic, financial and social effects of the pandemic in the country. The first loan, of US$100 million, will provide financial support to the Government’s economic programmes, implemented to contain the social, economic and financial emergencies generated by COVID-19, and aims to have a counter-cyclical impact on the country’s economy.  The second loan, of US$50 million, will contribute to strengthening Trinidad and Tobago's health system capacity to respond to the COVID-19 crisis. 

• Trinidad and Tobago: The Inter-American Development Bank approves a US$100 million loan to help Trinidad and Tobago (TT). The loan is to be used to finance the Government of Trinidad and Tobago's public health response against the COVID-19 crisies and implement fiscal and financial measures to offset the negative impact of the pandemic on the TT economy and the lives of TT citizens. The operation is part of a two-tranche programmatic Policy Based Loan program approved by the Bank to help Trinidad and Tobago fight the health and fiscal crisis and prepare the country’s recovery after the pandemic.

June 2020

Week ending June 26, 2020

• Regional: The World Bank Board of Executive Directors approves a regional Caribbean Digital Transformation Project for a total of US$94 million for four Eastern Caribbean countries: Dominica (US$28 million), Grenada (US$8 million), Saint Lucia (US$20 million), Saint Vincent and the Grenadines (US$30 million)to build an inclusive digital economy. The Organisation of Eastern Caribbean States (OECS) Commission will also receive US$8 million. This is the first World Bank-financed project to support the development of digital economy in the Caribbean. It aims to increase access to digital services, technologies, and skills by governments, businesses, and individuals.

• The Bahamas: Moody's Investor Services (Moody's) downgrades The Bahamas' long-term issuer and senior unsecured ratings by two notches to Ba2 from Baa3. Moody's also changed the outlook to negative. Moody's said that given the severity of the coronavirus shock, they expect that the government's credit profile will continue to be exposed to downside risks related to the recovery of the tourism sector. Additionally, they believe that the government could face more pronounced liquidity challenges over the next fiscal year due to increased borrowing requirements .

• Belize: The Inter-American Development Bank (IDB) approves a US$12 million loan for Belize to support the implementation of a COVID-19 Unemployment Relief Program. The loan programme will provide protection for the vulnerable population affected by the COVID-19 crisis. Specifically, it will provide cash transfers for a period of 12 weeks to currently unemployed individuals, formerly working in the informal or formal sectors, particularly but not solely in tourism, and who are not on the rosters of other cash transfer programs. The US$12 million IDB loan is for a 12-month term, with an amortization period of 25 years and an interest rate based on LIBOR.

• Trinidad and Tobago: The Government of Trinidad and Tobago successfully re-enters the international capital markets with the issue of a 10-year US$500 million bond at a coupon rate of 4.5%. This was Trinidad and Tobago's first foray into the capital markets in four years. The joint lead managers were Credit Suisse International and local bank, First Citizen's bank.  The issue was oversubscribed by 219%.

Week ending June 19, 2020

• Belize: Investors holding Government of Belize US dollar-denominated 2034 sovereign bonds form a creditor committee to consider the Govvernment's request for a six-month interest payment deferral due to the adverse financial impact of the corona virus pandemic. Belize's economy is forecast to contract by as much as 18% in 2020. An interest payment is due on 20 August 2020. 

• Trinidad and Tobago: The Inter-American Development Bank (IDB) approves a US$50 million loan to support Trinidad and Tobago’s effort towards improving the living conditions of low-income households and investing in urban spaces as part of a strategy to foster more sustainable development.

Week ending June 12, 2020

• Regional: The Inter-American Development Bank (IDB) expands the risks covered under the Contingent Credit Facility for Natural Disaster Emergencies (CCF) to include public health risks and COVID-19.  The expanded facility includes both a one-time temporary coverage of COVID-19 given the unprecedented magnitude of the present outbreak, and a longer-term ex ante coverage for future pandemics and epidemics. The expanded facility seeks to improve countries’ public contingent liabilities management. For the COVID-19 pandemic outbreak, countries can request up to $90 million or 0.6% of GDP, whichever is less. Beyond the present outbreak, countries can request coverage for future public health emergencies for up to $100 million or 1% of GDP, whichever is less. 

Week ending June 5, 2020

• The Bahamas: The Executive Board of the International Monetary Fund (IMF) approves The Bahamas’s request for emergency financial assistance of about US$250 million to help meet the urgent balance-of-payments needs stemming from the COVID-19 pandemic.  The COVID-19 pandemic comes on the heels of the widespread destruction caused by Hurricane Dorian in September 2019. Coupled with domestic containment measures, the collapse in tourism will cause a deep recession.

• Belize: The Inter-American Development Bank (IDB) approves a US$6.2 million loan for Belize  to assist the government with its response to the impact of the crisis resulting from the COVID-19 pandemic. The loan will support actions to speed-up timely case detection and monitoring; and interventions to contain the transmission, including communicating with the public, encouraging social distancing and case surveillance at points of entry. The IDB loan is for a 24-month term and carries an interest rate based on LIBOR.

 May 2020

Week ending May 29, 2020

• Trinidad and Tobago: The international ratings agency, Moody's Investors Service, ("Moody's") changes the outlook on the Government of Trinidad and Tobago's ratings to negative from stable. Moody's negative outlook stems primarily from the growing downside risks to the already challenged economy stemming from the coronavirus and the negative impact it has had on oil and gas demand and prices.  

Week ending May 22, 2020

• Regional: The Caribbean Development Bank (CDB) will make available emergency loans to seven Caribbean countries, in the first instance, to finance the response to the COVID-19 coronavirus pandemic. Of the total of US$66.7 million approved by the Board of Directors, Antigua and Barbuda will receive US$13 million, Belize US$15 million, Dominica US$2.5 million, Grenada US$5.9 million, Saint Lucia US$10.8 million, St. Vincent and the Grenadines US$11.3 million, and Suriname  will receive US$8.2 million. The emergency loans, made under CDB’s most concessional terms, will provide vital liquidity and increase governments’ fiscal space to allow these countries to promptly meet their urgent financing needs without diverting resources away from critical social expenditures or health emergency needs.

• Grenada: Grenada makes payment on its 7% 2030 international bond despite previously requesting a moratorium on payments from both public and private creditors to end December 2020. The bond originally issued at US$100 million has its outstanding principal now amounting to US$89.83 million as the payment included an amortization amount as well as interest.  

• St. Vincent and the Grenadines: The International Monetary Fund (IMF) approves a US$16 million disbursement to St Vincent and the Grenadines to assist with its financial needs amid the coronavirus (COVID-19) pandemic. Noting that St Vincent and the Grenadines is a small state, vulnerable to external shocks, the international financial institution said it has been hit hard by the coronavirus. It says tourism receipts have dried up with arrivals coming to a complete halt. The disbursement is set at the maximum available access under the Rapid Credit Facility (RCF) instrument of 100 percent of quota. 

Week ending May 15, 2020

• Belize: The price of Belize's 4.9375% 2034 bond falls sharply after the country's sovereign rating is downgraded by Moody's Investor Services. The ratings agency has raised concerns about Belize's ability to service its interest payments given the significant drop in tourism revenues as a consequence of the coronavirus pandemic. 

• Belize: The international ratings agency, Moody's Investor Services (Moody's) downgrades Belize's long-term foreign currency and senior unsecured debt ratings to Caa1 from B3. The move comes amid strong concerns that Belize wil find it difficult to honoour its debt service obligations following the sharp decline in tourism revenues as a result of the coronvirus pandemic. The ratings agency estimates that the Belizean economy could shrink by some 15% and that the already severe pressure on government finances will worsen.  

• Grenada: The government of Grenada confirms it will make payment on its 7% 2030 international bond due 12 May 2020. At the same time, the Grenadian government is seeking a moratorrium on debt owed to a private sector creditor covering the period  April to December 2020. 

• Jamaica: The International Monetary Fund (IMF) approves an SDR 382.9 million (US$520 million, 100% of quota) disbursement to Jamaica under the Rapid Financing Instrument (RFI). The resources are to help meet the urgent balance of payment needs stemming from the COVID-19 coronavirus pandemic, The financing is expected to prompt additional support from development partners.

Week ending May 1, 2020

• Eastern Caribbean: The International Monetary Fund (the Fund) Executive Board approves three requests from Dominica, Grenada, and St. Lucia for emergency financial assistance to help address the challenges posed by the coronavirus,COVID-19. TheIMF approval will make available a combined SDR 48 million (US$65.6 million) in emergency financing to help these three countries address the challenges posed by COVID-19.

• Barbados:  The IMF reaches staff level agreement with the government of Barbados  on the third review of Barbados’ Extended Fund Facility-supported economic reform programme.  The Barbados government has sought a loosening of its fiscal stance with a targeted primary surplus of 1 percent of GDP for FY2020/21 compared to 6 percent previously envisaged. The loosening is to help mitigate the severe impact on the fiscal accounts arising from the economic shock presented by the coronavirus pandemic. IMF staff are in support of the easing of the fiscal stance and, subject to approval by the IMF Executive Board, they have proposed an augmentation of the Extended  Fund Facility in the amount of SDR66 million (about US$90 million).

April 2020

Week ending April 24, 2020

• International: In the context of intensified demand for liquidity and heightened global uncertainty, the IMF Executive Board has approved a Short-term Liquidity Line (SLL). The SLL is a special facility designed as a revolving and renewable backstop for members with very strong fundamentals and policy track records. It provides liquidity support for members facing potential short-term moderate balance of payments difficulties, reflected in pressures on the capital account and reserves, and resulting from volatility in international capital markets. The SLL aims to reduce the impact of liquidity events and minimize the risk of shocks evolving into deeper crises and generating spillovers to other countries.

• Dominica: The World Bank has mobilized rapid support of US$6.6 million to provide immediate funding for Dominica’s emergency response to the COVID-19 (coronavirus) pandemic, focusing on enhancing health system capacity and strengthening food security. 

Week ending April 17, 2020

• International: The Executive Board of the International Monetary Fund approves relief on debt service for 25 member countries that are eligible for support from the Catastrophe Containment and Relief Trust (CCRT); a further 4 countries are expected to request such relief in the coming weeks. The approval enables the disbursement of grants from the CCRT for repayment of total debt service falling due to the IMF over the next six months, with potential extensions, up to a maximum of full two years from April 14, 2020, subject to availability of sufficient grant resources.

• Antigua and Barbuda: The Government of Antigua and Barbuda has announced that it will ask the Paris Club group of officila bilateral creditors to consider debt forgiveness of more than US$100 million to the country.  Antigua and Barbuda is concerned that the coronavirus (COVID-19) will have a serious impact on the socio-economic future of the Caribbean region, especially among tourism-dependent territories.

• Jamaica: Jamaica has requested access to the International Monetary Fund's (IMF's) Rapid Financing Instrument (RFI). The decision was taken by the Jamaica governement to access the instrument because of the high uncertainty of the duration of the “global lockdown” to stem the spread of COVID-19 (coronavirus). The finance minister noted that, "the open-ended nature of the pandemic and its economic spillovers therefore pose intolerable balance of payments risks to Jamaica that threaten the economic gains of our seven-year reform effort.”  

• Jamaica: Fitch Ratings, the international rating agency, has revised Jamaica's Outlook to Stable from Positive. The Long-Term Foreign-Currency Issuer Default Rating (IDR) is affirmed at B+. The ratings agency said that the Outlook change reflects the shock to Jamaica from the coronavirus pandemic, which is expected to lead to a sharp contraction in its main sources of foreign currency revenues: tourism, remittances and alumina exports. 

• Trinidad and Tobago: The Development Bank of Latin America (CAF) has approved a US$50 million loan to mitigate the Covid-19 health crisis in Trinidad and Tobago. This loan is in addition to a US$400,000 grant that the Bank made earlier in April. It will be complemented by further anti-cyclic support to mitigate the effects of the epidemic on economic activity.

• Suriname: Moody's Investors Service, ("Moody's")  downgrades the long-term issuer and senior unsecured ratings of the Government of Suriname to B3 from B2 It also changes the outlook to negative from stable.

Week ending April 10, 2020

• The Bahamas: The international ratings agency, Fitch Ratings, takes the decision to place The Bahamas' ratings on review for downgrade. Fitch said that placing the country on review "reflects significant risks to its economic and fiscal metrics as a result of the coronavirus outbreak." 

Week ending April 3, 2020

• Antigua and Barbuda: Antigua and Barbuda Prime Minister Gaston Browne urges the International Monetary Fund (IMF) and the World Bank uto consider a number of initiatives to assist Caribbean Community (Caricom) countries deal with the socio-economic impact of the coronavirus (COVID19). The Prime Minister noted the huge, sudden and unbudgeted costs which had affected his government and other Caribbean governments  in their efforts to tackle COVID-19. He noted that countries were contending with  an unexpected economic decline that had resulted in substantial economic losses with the prospect of further and prolonged deterioration.

March 2020

Week ending March 27, 2020

• International: The World Bank Group and the International Monetary Fund (IMF) issue a call for action on the debt of International Development Association (IDA) member countries - the world's poorest countries. The joint statement notes that the coronavirus outbreak is likely to have severe economic and social consequences for IDA countries, home to a quarter of the world’s population and two-thirds of the world’s population living in extreme poverty. The Statement calls, with immediate effect and consistent with national laws of the creditor countries, on all official bilateral creditors to suspend debt payments from IDA countries that request forbearance. This will help with IDA countries’ immediate liquidity needs to tackle challenges posed by the coronavirus outbreak and allow time for an assessment of the crisis impact and financing needs for each country.

• Regional: Several Caribbean Community (CARICOM) countries are among 76 named by the International Monetary Fund (IMF) and the World Bank for a suspension of debt payments as a result of COVID-19. In a joint statement, the IMF and the World Bank say that they have made representation to the G20 countries concerning debt relief for the poorest countries. Among the International Development Association (IDA) countries named by the two Washington based financial institutions are Dominica, St Vincent and the Grenadines, Grenada, Guyana, Haiti and St Lucia.

Week ending March 20, 2020

• Regional: Caribbean Information and Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, places all its ratings on "Rating Watch – Developing". Such a Rating Watch is issued when events occur that may affect the credit quality of the issuer/issue, the impact of which is either unclear or cannot be accurately assessed at the current time. The CariCRIS rating action is triggered by the widespread impact that the coronavirus (COVID-19) is having on global and regional economies and financial markets. The regional ratings agency noted that if the impact continues for a prolonged period, it could adversely affect revenue, cashflows and the overall creditworthiness of rated sovereigns and entities.

• Jamaica: The World Bank approves Jamaica's First Economic Resilience Development Policy loan (ERDPL) in the amount of US$70 million. The loan aims to support fiscal sustainability and inclusion; enhance fiscal and financial resilience against natural disaster risks; and improve the investment climate for sustainable growth.  The loan is designed around three interrelated pillars to address the most important economic challenges Jamaica faces, which are strengthening fiscal sustainability and inclusion; enhancing fiscal and financial resilience against climate and natural disaster risks; and improving the investment climate for sustainable growth.

Week ending March 13, 2020

• Barbados: Barbados is seeking to negotiate some form of relief with the International Monetary Fund (IMF) as it contemplates the possibility of not meeting its targets under the US$290 million Extended Fund Facility (EFF) should the island record cases of the coronavirus disease 2019 (COVID-19).

• Saint Lucia: The World Bank approves a US$20 million Human Capital Resilience Project for Saint Lucia to improve skills relevant to labor market demands and strengthen the social protection system through increasing resilience of the most vulnerable households to shocks. The project will offer skills training, particularly to youth and women, and provide poor households with improved social protection coverage. The US$20 million operation is financed by the International Development Association (IDA), the concessional financing arm of the World Bank. The interest free credit has a maturity of 40 years, a grace period of 10 years and no interest.

• Saint Lucia: The Government of Saint Lucia’s auctions an 8-year bond on the Regional Government Securities Market (RGSM) using the primary market platform of the Eastern Caribbean Securities Exchange (ECSE). The auction raises EC$38.4 million with a resulting interest rate of 7.0 percent.

• Suriname: Suriname to improve the efficiency and sustainability of its portable water services through a US$25 million loan approved by the Board of Directors of the Inter-American Development Bank (IDB).The project financed will be executed by the Suriname Water Company (SWM) and will benefit up to 3,700 households. The loan will be disbursed in a period of six years, with an amortization period of 24 years and an interest rate based in LIBOR. 

February 2020

Week ending February 28, 2020

• Saint Vincent and the Grenadines: The international ratings agency, Moody's Investors Service, ("Moody's")  affirms the Government of St. Vincent and the Grenadines' long-term B3 issuer ratings and short-term Not Prime rating, and maintains the stable outlook. Moody's affirmation primarily reflected Saint Vincent and the Grenadine's broadly stable macroeconomic environment, supported by public investment in infrastructure, and stable debt level and interest costs despite the debt burden remaining above its peers.

Week ending February 14, 2020

• Regional: The Caribbean Development Bank (CDB) highlights its efforts to prioritise improving its disbursements in order for its Borrowing Member Countries (BMCs) to continue to implement critical projects and programmes funded by the Bank. CDB’s disbursements rose 8% in 2019, amounting to total disbursements of US$305 million.

Week ending February 7, 2020

• Bahamas, The: he International Monetary Fund (IMF) says it is prepared to provide The Bahamas with US$200 million at “low cost and without policy conditionality” as it expressed confidence that the country would be able to rebuild a “stronger and more resilient economy”. This after the destruction caused by Hurricane Dorian last September.

January 2020

Week ending January 31, 2020

• Regional: The Board of the Inter-American Development (IDB) Group, in its 2020-2023 Corporate Results Framework has set the financing related to climate change to an annual floor of 30% for each of its windows, which includes the IDB, IDB Invest and IDB Lab, for the next four years. In particular, the IDB has set the goal that 65% of its annual project approvals include investments in adaptation and mitigation to climate change.

• Bahamas, The: The Inter-American Development Bank (IDB) approves a US$170 million Conditional Credit Line for Investment Project (CCLIP) to advance deployment of renewable energy in The Bahamas along with the first operation of the CCLIP in the amount of US$80 million. This first operation will support the Government of the Bahamas with rehabilitation of critical energy infrastructure and restoration of electricity service in the islands affected by hurricane Dorian, while facilitating the introduction of renewable energy. The first operation of CCLIP amounting US$80 million has a 25 years amortization period, 5.5 years period grace and a LIBOR-based interest rate.

• Belize: The Inter-American Development Bank and the Government of Belize (GOB) sign an agreement to implement a US$10 million loan to improve the quality and gender equity of education at the primary and secondary levels in the country. The agreement between the IDB and the Government of Belize launches the second phase of the Education Quality Improvement Program (EQIP II), with special focus on innovation in Science Technology Engineering Arts and Mathematics (STEAM) education, and that will expand the learning of scientific, digital and problem-solving skills. The IDB loan of US$10 million has a repayment term of 25 years, a grace period of five and a half years and an interest rate base on LIBOR and has a local counterpart of US$100,000.

• Jamaica: The international ratings agency, Fitch Ratings, affirms Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+' and revised the rating outlook to Positive from Stable. The outlook revision reflects Fitch's expectation that Jamaica will continue to make progress in reducing government debt, supported by large primary budget surpluses. Fitch expects government debt-to-GDP to fall to 92% at end-FY2019 (April 2019 to March 2020) from 135% at end-FY2012. Fitch projects it to decline to 85% of GDP by end-FY2021 and to 63% of GDP by end-FY2028. Nevertheless, Fitch noted that government debt-to-GDP and interest-to-revenue ratios are still about two times the 'B' range median.

Week ending January 24, 2020

• Barbados: The Government of Barbados (GOB) exchanges English-law and Barbados-law governed U.S. dollar debt instruments for new bonds due 2029, past-due interest (PDI) bonds, and cash consideration. The exchange represents a reduction of more than 26% in the total sum of the outstanding principal amount of the government’s debt obligations and past due and accrued interest. The external exchange was launched on November 5, 2019, and settlement of the new instruments commenced on December 11, 2019. Cleary Gottlieb represented the GOB in this transaction.

• Grenada: The World Bank Board of Executive Directors approves a US$20 million Disaster Risk Management Development Policy Credit for Grenada with a Deferred Drawdown Option for Catastrophe Risks (Cat DDO). The Cat DDO provides Grenada with contingent financing in case of natural disasters while supporting the country’s reform program to build multi-sectoral resilience to disaster and climate risks. It is the first Cat DDO approved for the Latin America and Caribbean Region financed by the International Development Association (IDA), the concessional financing arm of the World Bank.

Week ending January 17, 2020

• Suriname: Fitch Ratings downgrades Suriname's Long-Term Foreign Currency Issuer Default Rating (IDR) to "CCC" from "B-".  The ratings agency said that the downgrade of Suriname's rating reflects a sharp increase in government debt, reduced financing flexibility evident in the stressed terms of recent external sovereign borrowing and declining external liquidity, which increase risks to the government's capacity to service its foreign-currency (FC) liabilities. The large government deficit coupled with the widening current account deficit, in advance of May 2020 parliamentary elections, are inconsistent with the stabilized exchange rate, increasing the risk of macro instability. Fitch also stated that public debt sustainability risks have risen. Suriname's general government (GG) debt-to-GDP is now estimated by Fitch to have risen to 80.9% at the year ending 2019 (up from 72.1% in 2018) and well above the current 'B' median of 49.7%.

Week ending January 10, 2020

• International: The World Bank warns of the risk of a fresh global debt crisis, urging governments and central banks to recognise that historically low interest rates may not be enough to offset another widespread financial meltdown. In its biannual Global Economic Prospects (GEP) report, the World Bank said that there have been four waves of debt accumulation over the last 50 years. The current wave - which started in 2010 - is thought to be the largest, fastest, and most broad-based increase in global borrowing since the 1970s. The World Bank said that sound debt management and debt transparency are one of four policy options that could help reduce the likelihood of the current debt wave ending in a crisis by helping to reduce borrowing costs and contain fiscal risks. A second policy option is to implement effective public financial management and policies that promote sound corporate governance to ensure debt is used productively. 

• Easter Caribbean: The International Monetary Fund (IMF) issues a concluding statement of the 2019 discussion on common policies of member countries of the Eastern Caribbean Currency Union (ECCU). Among a number of issues, the Fund noted that a regional pooling of fiscal resources could complement national fiscal buffers to build resilience against natural disasters and other shocks at a lower cost. It noted that IMF staff calculations suggested that the size of a pooled fund would be about one-half of the sum of individual countries’ funds for the same stabilization effect.

• Barbados: Caribbean Information and Credit Rating Services Limited (CariCRIS), the region’s credit rating agency, reaffirms the credit ratings for the Government of Barbados with a regional scale ratings of CariBB for the local currency and CariBB- for the foreign currency, with a stable outlook. The ratings is based on improving fiscal performance, a rebound in net international reserves, good tourism performance, which it said was likely to help the economy return to growth, and the continued health of the financial sector, despite the negative impact of the Government’s debt restructuring.

2019

December 2019

Week ending December 27, 2019

• Barbados: The Caribbean Develpment Bank (CDB) approves a loan of US$75 million to assist the Barbadian Government’s economic reform programme. The policy-based loan will support the restoration of macroeconomic stability and place the economy on a path of strong, sustainable and inclusive growth, while safeguarding the financial and social sectors. The operation will assist the Barbadian Government in some key areas of the reform programme, such as broad-based growth, social development, enhanced revenue administration, and improved financial management.

• Suriname: The Inter-American Development Bank (IDB) approves a US$30 million investment loan to Suriname to support adequate and modern access to sustainable electricity to enhance the living conditions for rural populations while improving the rural business environment with better provision of electricity as a public service. The US$30 million investment loan has a 25 year amortization period and a LIBOR-based interest rate.

Week ending December 20, 2019

• The Bahamas:The Caribbean Development Bank (CDB) approves an Exogenous Shock Response Policy-Based Loan of US$50 million to support The Bahamas after Hurricane Dorian. In addition to providing finance for the ongoing recovery, the loan will support the implementation of the comprehensive reform programme of The Bahamas that aims to achieve fiscal sustainability and enhance economic and physical resilience to external shocks and natural disasters, while bolstering growth and job creation.

• Barbados: The Executive Board of the International Monetary Fund (IMF) completes the second review of Barbados’ economic reform program supported by an arrangement under the Extended Fund Facility (EFF). The completion of the review allows the authorities to draw the equivalent of SDR 35 million (about US$48 million), bringing total disbursements to the equivalent of SDR 105 million (about US$145 million).

• Grenada: The World Bank's Board of Executive Directors approves a US$20 million credit to support Grenada’s transition to a resilient blue economy. The Second Fiscal Resilience and Blue Growth Development Policy Credit is expected to foster reforms to support fiscal sustainability, strengthen marine and coastal management, and build climate resilience. The credit is for 40 years with a 10-year grace period.

• Guyana: Guyana implements the recommendations of the IMF’s Enhanced General Data Dissemination System (e-GDDS) by publishing essential data through the National Summary Data Page (NSDP). The e-GDDS was established by the IMF in 2015 to support improved data transparency, encourage statistical development, and help create synergies between data dissemination and surveillance. The NSDP is a national “data portal” that serves as a one-stop publication vehicle for essential macroeconomic data on the national accounts, government operations and debt, monetary and financial sector, and balance of payments.

Week ending December 13, 2019

• Barbados: Standard and Poor's (S&P), the international credit rating agency, significantly raisese is foreign currency rating for the island nation of Barbados.  The credit rating moved to "B-" for Barbados long-term credit rating from "SD" selective default. However, S&P stressed that failure to meet fiscal and debt targets over the next year could weaken investor confidence and result in a loss of official capital inflows, adding that this outcome could place renewed pressure on the country’s foreign exchange reserves and reduce funding sources. Such an outcome would result in a lowering of Barbados' credit ratings.

• Belize: The International Monetary Fund (IMF) concludes its Article IV consultation with Belize noting that the country faces a challenging medium-term outlook characterised by a large current account deficit and elevated debt levels in excess of 90 percent of GDP. The IMF encouraged the authorities to accelerate structural reforms to strengthen inclusive growth; reduce public debt; strengthen financial sector oversight; and build resilience to climate change.

• Jamaica: The international ratings agency, Moody's Investors Service ("Moody's"), upgrades the Government of Jamaica's long-term issuer and senior unsecured ratings to B2 from B3, and senior unsecured shelf rating to (P)B2 from (P)B3. The outlook was changed to stable from positive The ratings upgrade was underpinned by Jamaica's strong commitment to fiscal consolidation and structural reforms and its improving debt structure limits which has limited the risks associated with high levels of government debt. 

• St. Vincent and the Grenadines: The Caribbean Develpment Bank (CDB) approves funding for the modernisation of the Kingstown Port in St. Vicnet and the Grenadines. The project will receive US$110 million in CDB funding and further funding of GBP 25.6 million for the CDB-administered UK Infrastructure fund and US$43 million for the Government of St. Vincent and the Grenadines.

• Suriname: The International Monetary Fund (IMF) concludes its Article IV consultation with Suriname and notes Suriname’s economy is growing steadily with low inflation. However, the IMF also noted that the outlook is negative, mainly due to fiscal imbalances. The overall fiscal deficit is expected to reach 8.6 percent of GDP in 2019 while public debt remains high at around 72 percent of GDP. The Fund underscored the importance of putting public debt on a sustained downward path and welcomed the passage of the public financial management law.

November 2019

Week ending November 29, 2019

• Barbados: The Inter-American Development Bank (IDB) approves a US$40 million project loan to modernise the public sector. The modernisation project aims to achieve greater use of digital channels by individuals and companies to access public services; greater efficiency in public sector administration; and the strengthening of public sector skills to operate in a digital economy. The IDB loan has a repayment term of 25 years, a grace period of 5.5 years and an interest rate based on LIBOR.

Week ending November 8, 2019

• Barbados: The Government of Barbados launches its US dollar debt exchange. Invitations were extended to eligible holders of certain of Barbados' US dollar-denominated debt to exchange such debt for new bonds to be issued by the Barbados Government. The invitations comprised parallel invitations to: (a) holders of three series of English law-governed US dollar bonds issued by the Government in an aggregate principal amount of US$540 million, (b) holders of certain Barbados law-governed US dollar bonds issued by the Barbados Transport Board, Barbados Agricultural Management Co. Ltd and the Government and (c) lenders under a US$225 million credit agreement. The exchange offer is due to close for certain bonds on November 22, 2019, and for certain others on November 25, 2019.

• Belize: The Inter-American Development Bank (IDB) and the Government of Belize sign a US$14 million loan to strengthen tax administration in Belize. The project will strengthen tax administration governance, improve operational processes through the modernization of technological infrastructure with the aim of maximizing government revenue generating potential.

October 2019

Week ending October 25, 2019

• Barbados:  The Government of Barbados reaches an agreement ‘in principle’ with external creditors that Prime Minister Mia Mottley says will help the country “put behind us the chapter of the excessive debt creation and we can move on to rebuilding this country”.A joint statement issued noted that the “agreement in principle includes a reduction of 26.3 percent in aggregate sum of the original principal amount of the debt obligations and the past due and accrued interest as of October 1, 2019”.

• Jamaica: A new World Bank grant of nearly US$15 million puts Jamaica a step closer to issuing a catastrophe bond that could become active before the next hurricane season. The World Bank announced a US$14.85-million grant to Jamaica from its Global Risk Financing Facility, GRiF, to support the measures being taken by the Government to mitigate disaster risk and strengthen its financial protection against natural disasters.

• International: The International Monetary and Financial Committee (IMFC) of the International Monetary Fund (IMF) held its fortieth annual meeting in Washington, DC. In its concluding communique, the IMFC  stated the following, "We support the continued implementation of the IMF-World Bank multi-pronged approach to work with borrowers and creditors, including by assisting members to strengthen debt management capacity, debt transparency, and sustainable financing. We also ask the IMF to continue to work with members to strengthen fiscal institutions and frameworks, and enhance public reporting of sovereign debt. We look forward to continued implementation of the updated debt sustainability framework for low-income countries and to the reviews of the debt sustainability framework for market access countries and the IMF’s debt limits policy."

• International:  In a concluding statement at the end of the 2019 IMF/World Bank Group Annual Meetings in Washington, DC, the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development reiterated their commitment to addressing debt vulnerabilities and achieving the right balance between debt and growth objectives.  They further stated that, "We welcome the IMF/WBG multipronged approach to improve debt transparency and reporting and look forward to the adoption of an effective Sustainable Development Financing Policy and Debt Limits Policy. We call for stronger support for fiscal and debt management and the development of domestic capital markets. We urge the IMF and WBG to work with stakeholders to promote sustainable and transparent borrowing and lending practices, including timely and market-friendly sovereign debt restructuring when this is necessary. We emphasize the joint responsibilities of debtors and creditors in fostering debt sustainability."

Week ending October 18, 2019

• Regional: Caribbean Community finance ministers will join their counterparts from the Commonwealth in the United States to discuss coordinated interventions to prevent future debt crises. The meeting is being organised by the London-based Commonwealth Secretariat and will be held under the theme 'Preventing Debt Crises: The Roles of Creditors and Debtors'. It will be preceded by sessions for senior finance ministry officials and central bank governors. The meeting is part of a series of meetings taking place in Washington including the annual meetings of the World Bank and the International Monetary Fund (IMF).

• Regional: The European Investment Bank (EIB) and the Caribbean Development Bank (CDB) sign a new agreement to deliver better support for climate resilient projects across the region. The new Procurement Procedural Framework, will help the EIB and CDB to improve project implementation and monitoring, leading to more efficient financing for a range of climate focused investments in the Caribbean.

• Regional: The Eastern Caribbean Securities Regulatory Commission (ECSRC) receives approval from the Eestern Caribbean Central Bank (ECCB) Monetary Council to enact a newly redrafted Securities Bill and a new Eastern Caribbean Currency Union (ECCU) Investment Funds Bill. The newly drafted Securities Bill, which will replace the Securities Act 2001, marks a milestone for the Commission as there have not been any major updates to this Legislation since 2004.  The new Bill will remove regulatory and supervisory hindrances to the work of the Commission and facilitate access to new investment opportunities for citizens and residents of the ECCU. The Bill will also allow for foreign issuers to offer their securities to the people of the ECCU and for the listing on the Eastern Caribbean Securities Exchange.

• Regional: Downward ratings pressures continue to persist in Latin America and the Caribbean with eight sovereigns on Negative Rating Outlook versus none on Positive, says Fitch Ratings. The region's growth outlook has deteriorated over the past several months amid persistent external headwinds and domestic policy uncertainties. This in turn is increasing the challenges many countries are facing in consolidating fiscal accounts and stabilizing public debt burdens.

• International: The Commonwealth Secretary General, Patricia Scotland, issues a warning about the looming possibility of another debt crisis. She warned that trade wars, protectionism, and nationalist rhetoric are combining to weave the possibility of a nightmare debt crisis that could be worse than any previously experienced. She noted that global borrowing is now at the highest levels since the 1950s – and history suggests this should be taken this as a warning that a debt crisis could be looming. Were one to materialise, it could inflict greater dislocation on international financial systems and national economic stability than ever previously witnessed, especially in the current highly uncertain environment characterised by trade war and regional disintegration.

Week ending October 11, 2019

• Belize: The International Monetary Fund (IMF) says while Belize’s economic recovery is continuing, the pace is slowing.  In a statement, the IMF said that real gross domestic product (GDP) grew by 3.2 per cent last year and by an estimated four per cent in the first quarter of 2019. However, the IMF said recent data indicate a slowdown in economic activity, with a minor contraction in the second quarter of this year, reflecting a severe drought. The IMF also said that the government implemented significant fiscal consolidation over the past two years, but the pace of adjustment has slowed. The IMF said that the approved 2019/20 budget targeted a primary fiscal surplus of just above two per cent of GDP, but recent data indicate more spending on wages and public investment and weaker revenue than expected, putting the budget’s target at risk.

• Trinidad and Tobago: The Trinidad and Tobago government says it is near conclusion on CLICO's debt almost a decade after the collapse of the Port of Spain-based regional insurance giant, Colonial Life Insurance Company (CLICO) and its parent company, CL Financial.

• Regional: The Ninety-Fourth Meeting of the Monetary Council of the Eastern Caribbean Central Bank (ECCB) notes that the Eastern Caribbean Currency Union (ECCU) region is projected to register an overall fiscal deficit of $32.9m in the first nine months of 2019, in contrast to an overall surplus of $171.5m in the corresponding period of 2018. Despite the predicted decline in overall fiscal performance, the debt-to-GDP ratio for the ECCU is forecast to decrease to 66.2 per cent from the 68.3 per cent recorded at the end of 2018.

• International: The International Development Association (IDA) prices its inaugural Euro-denominated benchmark bond in the market, a milestone in the institution’s long-term strategy of building a diversified funding program with a focus on the SDR currencies. It is a EUR 1.25 billion benchmark bond with a maturity of 7 years.

Week ending October 4, 2019

• Barbados: Barbados will reduce its dependence on imported fossil fuels by increasing the investment in renewable energy capacity and energy efficiency with US$30 million loan approved by the Inter-American Development Bank (IDB). The US$30 million loan is for a 24-year term, with 6.5 years grace period and an interest rate based on LIBOR. The operation also contains an investment grant of US$15.4 million from the European Union-EU, Caribbean Investment Facility (CIF).

• Regional: The Inter-American Development Bank (IDB) launches its inaugural Sustainable Development Bond (SDB)  with a C$600 million issue. This transaction represents the IDB’s first SDB issuance. The proceeds will be directed to support sustainable development in IDB’s member countries. It is aligned with the Bank’s strategic priorities to reduce poverty and inequalities in Latin America and the Caribbean by promoting economic and social development in a sustainable, climate-friendly way.

• International: The World Bank’s International Debt Statistics 2020 shows that tootal external debt of low- and middle-income countries climbed 5.3 percent to $7.8 trillion last year, while net debt flows (gross disbursements minus principal payments) from external creditors tumbled 28 percent to $529 billion. 

September 2019

Week ending September 27, 2019

• Saint Lucia: The Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, meets with Prime Ministers Gaston Browne of Antigua and Barbuda, Allen Chastanet of Saint Lucia, and Ralph Gonsalves of Saint Vincent and the Grenadines to review progress on the Debt for Climate Adaptation Swap Initiative, including the creation of a resilience fund proposed by the Commission for small island Caribbean states. During the meeting – which took place in the framework of the Climate Action Summit and the 74th session of the United Nations General Assembly, which is being held in New York – the Caribbean authorities thanked ECLAC for its proposal and recognized the urgent need for rapid implementation. The initiative seeks to respond to the Caribbean’s most urgent development needs: its high level of debt, and vulnerability to climate change and natural disasters.

Week ending September 20, 2019

• Guyana: The International Monetary Fund (IMF) concludes its Article IV consultation with Guyana noting that economic growth strengthened in 2018 with broad-based expansion across all sectors. The IMF stated that real grew by 4.1 percent, led by construction and services sectors, up from 2.1 percent in 2017. They also noted that inflation remained low at 1.6 percent at end-2018. The external current account deficit rose to 17.5 percent of GDP, from 6.8 percent in 2017, due to weaker exports and higher imports related to oil production, which was largely financed by foreign direct investment (FDI) in the petroleum sector. In addition, public finances improved in 2018 as the central government deficit came in at 3.5 percent of GDP, lower than the budgeted 5.4 percent of GDP.

• Jamaica: The inter-American Development Bank (IDB) approves a US$50 million conditional credit line to Jamaica to help bolster the private sector by fostering productivity and innovation. The first individual operation for $25 million will promote sustainable and robust growth among startups and Micro, Small and Medium Enterprises (MSMEs) in Jamaica. The IDB credit line loans are for 25-year terms, with 5.5-year grace periods and an interest rate based on LIBOR. The executing agency will be the Development Bank of Jamaica )DBJ) Limited.

• Jamaica: Staff of the International Monetary Fund (IMF) complete their review mission to Jamaica and congratulate Jamaica for the successful completion of the country’s economic reform program supported by the IMF’s Stand-By Arrangement. The authorities’ exemplary program implementation has resulted in a stronger economy with significant reduction in vulnerabilities, and increased job creation.  The IMF team also noted that budget discipline combined with a reorientation of the fiscal system, including the shift from direct to indirect taxes pioneered by this government, has helped put public debt on a sustained downward path. Proactive liability management—as evidenced by the latest successful swap of existing bonds at relatively low yield—has also helped Jamaica maintain the path towards reducing debt to 60 percent of GDP by FY2025/26, in line with the provisions of the Fiscal Responsibility Law.

Week ending September 13, 2019

• Jamaica: The Government of Jamaica launches a US$805 million tap of 7.875% 2045 bonds locking in a final yield of 5.80%. The government is seeking to retire expensive debt in a low rate environment.

Week ending September 6, 2019

• Bahamas, The: The Inter-American Development Bank  (IDB) will provide $100 million to help finance humanitarian and reconstruction efforts in The Bahamas. This follows widespread loss of life and destruction caused by Hurricane Dorian.The funds are from a US$100 million contingency loan signed in April 2019, to cover unexpected public expenses arising from emergencies caused by severe or catastrophic natural disasters. The loan disbursement is subject to eligibility requirements including sustained wind speeds, accumulated precipitations and impacted populations. All the requirements were met by the devastation Hurricane Dorian caused in the Abaco and Grand Bahama regions, in the northern Bahamas.

• Bahamas, The: The Caribbean Development Bank (CDB) allocates almost US$1.0 million for immediate disaster relief. Dr Warren Smith, CDB president said, “We are devastated by the loss of life and infrastructure in Bahamas, hit by the strongest storm ever recorded in the archipelago. The Caribbean Development Bank stands ready to support the people of the Bahamas to make quick recovery." The CDB has disbursed US$200,000 as an Emergency Relief Grant to the Bahamas National Emergency Management Agency for humanitarian assistance and has allocated a US$750,000 Immediate Response loan to assist with the clean-up and short-term recovery.

• Bahamas, The: Only two days after the government announced in its Fourth Quarter Report on Budgetary Performance for Fiscal Year 2018/19 that it achieved the lowest fiscal deficit in ten years in that budget cycle, with a low 0.1 percent increase in the debt-to-GDP (gross domestic product) ratio, Hurricane Dorian hit Abaco. This has devastating consequences that will cause the government to take a serious look at its 2019/2020 budget numbers.

• Barbados: At the end of an International Monetary Fund (IMF) staff mission to Barbados, the team stated that Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform program. The IMF team also noted that "All indicative targets for end-June under the EFF have been met. The target for the government’s primary surplus was met with a wide margin, with the government running a primary surplus of 2½ percent of (annual) GDP in the first quarter of FY2019/20. This bodes well for achieving the government’s primary surplus target of 6 percent of GDP for FY2019/20. International reserves were also well over program targets at end-June."

• Jamaica: The Government of Jamaica plans to refinance US$3.0 billion worth of sovereign bonds aimed at reducing the country’s debt payments over time. The old notes are slated to be replaced with new notes at lower coupons and longer maturities.The invitation opens on September 4, and closes on September 10, unless extended or terminated. There are four sets of notes that the Government wants to buy back, including an 11.6% note due 2022, 9.25% note due 2025, a 7.6% note due 2025, and a 6.7% note due 2028. Bank of America and Citigroup are the managers for the transaction.

August 2019

Week ending August 30, 2019

• Dominica: The Caribbean Development Bank (CDB) initiates a project to make Dominica’s water supply resilient to climate change and tackle inequalities in the access to water. With support from the United Kingdom through CDB, a strategic plan, a feasibility study and detailed designs are under development to help the Government of Dominica to improve the water infrastructure. The CDB has approved £2.1 million for the project, fully funded from a £25 million grant from the United Kingdom, which will ultimately cover actual construction. 

• Grenada: The World Bank's Board of Executive Directors approves a US$15 million loan from the International Development Association (IDA) in support of a Digital Government for Resilience Project. The project aims to support Grenada’s digital government strategy. The project will build on government reform efforts to provide accessible and resilient online services to citizens and businesses. It will also help to develop necessary legal and regulatory foundations and establish reliable online systems for efficient and transparent public service delivery. The loan has a repayment term of 40 years including 10 years grace.

• Regional: The Organization of Eastern Caribbean States (OECS) will benefit from a US$21.0 million credit and US$9.6 million grant from the International Development Association (IDA) to finance a health projct in the region.  The OECS Regional Health Project aims to improve the resilience of health facilities in Dominica, Grenada, Saint Lucia and Saint Vincent and the Grenadines to climate change. It will strengthen the capacity of health systems to ensure continuity of services following an extreme weather event. At the regional level, the OECS Regional Health Project will strengthen health security and mitigate cross-border transmission of disease outbreaks and disruptions in the aftermath of an extreme weather event and climate change impacts.

Week ending August 9, 2019

• Bahamas, The: The Bahamian Ministry of Finance announces that as of August 2019, Bahamas government registered stock will be listed on the Bahamas International Securities Exchange (BISX).  This the Ministry stated will open up the market on government bonds and allow market forces to determine the daily value. The trading of government bonds will not commence until November 2019.

• Guyana: ECLAC, in its 2019 Economic Survey of Latin America and the Caribbean, says that the Caribbean country with the lowest level of public debt is Guyana, with a public debt of 41.7 per cent of the country’s Gross Domestic Product (GDP).

Week ending August 2, 2019

• Regional: The Eastern Caribbean Central Bank (ECCB) launches the Eastern Caribbean Currency Union (ECCU) Public Debt and Market Information Web Portal during a regional media conference held at the ECCB Headquarters, Basseterre, St Kitts and Nevis. In collaboration with member governments and the International Monetary Fund (IMF), the ECCB developed the Public Debt and Market Information Web Portal in order to ensure that the public has accurate and timely information available to make informed decisions. 

July 2019

Week ending July 19, 2019

• Regional: The 60th Annual Meeting of the Inter-American Bank (IDB) concludes in Guayaquil, Ecuador, with the approval of an updated institutional strategy for 2020-2023 that is intended to increase resource mobilization. The agenda of the Governors included discussion of the challenges facing Latin America and the Caribbean as the region seeks to boost growth at a complex moment for the global economy. The economic, political and social crisis in Venezuela was also discussed.

Week ending July 12, 2019

• Suriname: The World Bank approves a loan for the equivalent of US$23 million to finance a Competitiveness and Sector Diversification project. This Investment Project Financing will help to promote governance, good international practices, and sector diversification in Suriname. The investment will enable private sector growth opportunities, boost job creation, and benefit more than 200 small and medium enterprises (SMEs). The loan has a maturity of 30 years including a 6 year grace period.

Week ending July 5, 2019

• Barbados: The international ratings agency Moody's Investors Service (Moody's) upgrades Barbados' foreign and local currency issuer ratings to Caa1 from Caa3, affirms the foreign currency senior unsecured bond rating at Caa3, and maintains the stable outlook. Moody's stated that the rating actions were determined by: (a) the material improvement in Barbados' fiscal and debt metrics, and reduced susceptibility to event risk, following the restructuring of its local currency debt; and (b) the expectation that the improving policy framework and on-going fiscal and structural adjustment will place government debt on a downward trajectory.  The ratings agency also indicated that a factor in the ratings was the unresolved external debt restructuring which supports maintaining the Caa3 rating on outstanding foreign currency bonds.

• Haiti: The Inter-American Development Bank (IDB) approves a donation of US$55 million to Haiti to finance a project that will strengthen  public management and improve service delivery. The project will contribute to expand the coverage of services provided by the Ministry of Agriculture, Natural Resources and Rural Development (MARNDR) and the Ministry of Public Works, Transportation, and Communications (MTPTC), through improvements in management and labor productivity of resources human beings of the public administration.

June 2019

Week ending June 28, 2019

• Grenada: Grenada attracts record low yields on its short-term debt instruments. In its latest auction of a 91-day Treasury Bill on the Eastern Caribbean Regional Government Securities Market (RGSM), the instrument yielded an interest rate below 1.80 percent. This is the lowest in Grenada's history. 
• Trinidad and Tobago: Moody's Investors Service (Moody's) affirms the Government of Trinidad and Tobago's Ba1 long-term issuer and senior unsecured debt ratings and maintained the stable outlook. Moody's stated that the Ba1 ratings were supported by the following factors: sizeable fiscal buffers, balanced against an elevated debt ratio relative to peers; economic recovery driven by the energy sector, but limited prospects for economic diversification and institutional constraints limit shock absorption capacity of the economy; and low susceptibility to external financing risks given high reserve coverage of external debt payments.

Week ending June 21, 2019

• Regional: As of June 1, all Caribbean members of the Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) complete the selection of their CCRIF insurance portfolio for 2019/20. Nine Caribbean governments increase their level of coverage for at least one of their policies and one country purchases cover for an additional peril (tropical cyclone) that it did not have last year. CCRIF is the world’s first multi-country risk pool offering parametric insurance products for hurricanes, earthquakes and excess rainfall in the Caribbean and Central America.

• International: The International Monetary Fund (IMF) and the Japanese ministry of finance co-hosted the 17th Public Debt Management Forum in Tokyo on June 20 and 21.The event brought together senior officials from 33 advanced and emerging market economies, international financial institutions, and leading global and Japanese private sector firms.  Participants discussed the trends and associated challenges and opportunities they face in sovereign debt capital markets.

Week ending June 14, 2019

• Barbados: The Barbados Government says it is continuing to hold discussions with holders of its United States dollar-denominated commercial debt. In a  rececently released “Creditor Update” the Barbados Government said that the consultation is on the restructuring terms that will be required to place the public debt firmly on a sustainable footing. It is also in conjunction with the October 2018 restructuring of its BDS$12 billion domestic debt stock, and the far-reaching economic reforms being implemented under the current US$290 million four-year Extended Fund Facility (EFF) with the International Monetary Fund (IMF). The Barbados government said further that achieving 60% of its debt-to-GDP by 2033/34 is "a key anchor for the IMF-supported programme under the EFF, with an intermediate target of 80 per cent by financial year 2027-28”.
  

Week ending June 7, 2019

• St. Vincent and the Grenadines: The World Bank’s board of executive directors approves a US$30 million development policy credit to support St. Vincent and the Grenadines effort to strengthen climate and fiscal resilience to promote a blue economy. “St. Vincent and the Grenadines is embarked on a medium-term reform program to strengthen fiscal buffers and reinforce climate resilience,” said Tahseen Sayed, World Bank’s country director for the Caribbean. “Together with other small island economies in the Caribbean, it is also seeking to transition to a blue economy through sustainable management of its ocean and coastal resources

May 2019

Week ending May 31, 2019

• Barbados: A committee of creditors, who hold 55% of Government of Barbados' outstanding dollar debt, say that they plan to unanimously rejecta government proposal to exchange defaulted bonds for new debt unless the two sides negotiate together. “The Committee strongly believes that the launch of a unilateral exchange offer by the government of Barbados without the support of the committee will be highly detrimental to the country’s economic stability,” they said in a statement.

Week ending May 3, 2019

• Jamaica: The World Bank announces a US$140 million financing package to help Jamaica strengthen its social programmes and build fiscal resilience.This is in addition to more than US$500 million provided by the World Bank over the last five years. As part of the new financing, US$100 million will be delivered in the form of two budget support operations to create new safeguards in the face of disaster risks, and US$40 million to support strengthening social protection and building human capital.

April 2019

Week ending April 26, 2019

• Jamaica: The Executive Board of the International Monetary Fund (IMF) completes the fifth review of Jamaica’s performance under the programme supported by a Stand-By Agreement (SBA) on a lapse of time basis. The Board noted that strong implementation of jamaica's reform programme continues. After commendable performance under two successive Fund arrangements since May 2013, Jamaica’s public debt is projected to fall below 100 percent of GDP for the first time since FY2000/2001 - to 98.7 percent of GDP in FY2018/2019. 

Week ending April 19, 2019

• The Bahamas: The IMF conclude their 2019 Article IV mission to the Bahamas. While noting that The Bahamas delivered strong economic performance in 2018, supported by sound macroeconomic policies and progress on fiscal reforms, it urged broad-based reforms to strengthen institutions, improve competitiveness and external accounts, and bring public debt on a downward path. It urged giving priority to enacting the Public Financial Management, Public Debt Management, and Procurement Acts and operationalizing the Fiscal Council to ensure permanent advances in budgeting, transparency, and accountability.

• Barbados: The Inter-American Development Bank (IDB) approves a new country strategy with Barbados for the period 2019-2023. The country strategy will be supported by a financial plan of up to US$300 million for sovereign-guaranteed loans. The new country strategy sets out  development challenges identified jointly by the Government of Barbados and the IDB, as well as a coordinated response to these challenges.

Week ending April 12, 2019

• International: In a communique at the conclusion of the IMF-World Bank Spring meetings, the 39th meeting of the International Monetary and Financial Committee (IMFC) calls for greater debt sustainability and transparency. It urges the International Monetary Fund (IMF) to continue to work with members to strengthen fiscal frameworks, improve debt management capacity, and implement the updated debt sustainability framework for low-income countries. 

• Guyana: At the 44th annual meeting of the Islamic Bank (IsDB), The Guyana finance minister, Mr. Winston Jordan, announces expanded cooperation with the IsDB and that the Bank will undertake several projects in Guyana.

• Suriname: Suriname and the International Islamic Trade Finance Corporation (ITFC), an independent organization within the Islamic Development Bank (IsDB), sign two agreements The first is a  US$25 million credit facility for the import of basic goods, medicines and medical consumables as well as imports for the agricultural sector. The second agreement is a US$75 million framework agreement to finance goods, the provision of ‘Line of Finance’ to support small and medium-sized enterprises, and to provide technical or financial assistance, and promote trade and trade relations.

Week ending April 5, 2019

• Guyana: The Government of Guyana signs a bilateral debt settlement agreement with the Government of Kuwait, which agrees to cancel US$51 million of Guyana’s debt to that country. The Government stated that the debt cancellation will reduce Guyana’s external debt and allow the country to expand its development agenda, as funds saved under this agreement will be allocated to social projects within the context of the national budget.

March 2019

Week ending March 29, 2019

• St. Vincent and the Grenadines: The  Caribbean Development Bank (CDB) approves financing of US$13.4 million to the Government of St. Vincent and the Grenadines to enhance resilience of the Sandy Bay and other North Windward communities to coastal hazards and the potential impacts of climate change. The Sandy Bay Sea Defences Resilience Project aims to reduce the rate of coastal erosion, through the construction of sea defences in sections along the Sandy Bay coastline.

Week ending March 22, 2019

• Regional: The Board of Executive Directors of the Inter-American Development Bank (IDB) determines that the Annual Meetings of the Boards of Governors will not be held in Chengdu, People’s Republic of China, from March 28 to 31, 2019.
  

• Guyana: Guyana's finance minister, Winston Jordan, states that progress is being made in reducing the US$170M Guyana owes to several countries. The Finance minister indicated that the Government is close to concluding a debt reduction agreement with Kuwait. It also has established contact with Libya and is in the early stages of reconciling the outstanding debt.

Week ending March 15, 2019

• Grenada: The Caribbean Development Bank (CDB) projects a positive medium-term outlook for Grenada and for 2019 the economic growth will be at 4.5%, with similar outcomes expected over the medium term. The CDB's recent release of its 2018 economic review of Grenada indicates that the construction, tourism, agriculture and private education sectors will drive performance. The report also noted that  Grenada's fiscal performances in 2019 should continue to benefit from GOGR’s adherence to the Fiscal Responsibility Act.The report also stated that debt sustainability is expected to be restored over the medium term by means of further fiscal consolidation and Grenada's public debt is projected to be further reduced to 59.6% in 2019.

Week ending March 8, 2019

• Suriname: The international credit ratings agency, Moody's Investors Services, affirms the "B2" long-term foreign-currency credit rating of Suriname and also revises the outlook to stable from negative.

Week ending March 1, 2019

• St. Vincent and the Grenadines: The Executive Board of the International Monetary Fund (IMF) concludes the Article IV consultation with St. Vincent and the Grenadines which focused on policies to achieve stronger and sustainable growth, build fiscal buffers, bolster resilience to natural disasters, and ensure financial stability. The Executive Directors commended the authorities for successfully reinvigorating the St. Vincent and the Grenadines’ economy. Nonetheless, they noted the continuing challenges in terms of making economic growth more sustainable, reducing public debt, and increasing resilience to natural disasters. 

• Regional: The Inter-American Development Bank (IDB) formulates an ambitious "Expansion of Procurement Policies" in order to facilitate the implementation of the Bank's Institutional Strategy, which was recently updated. The Strategy reaffirms the commitment to promote initiatives that address the main challenges of Latin America and the Caribbean, such as the adoption of information and innovation technologies, and attention to cross-cutting issues such as gender diversity and equality, climate change and environmental sustainability, institutional capacity and resource mobilization.

February 2019

Week ending February 22, 2019

• The Bahamas: Moody's Investors Service ("Moody's") changes the outlook to stable from negative on the Government of The Bahamas' ratings and affirms the issuer and senior unsecured ratings at Baa3. The change in outlook to stable reflects Moody's view that The Bahamas has made important progress in strengthening its fiscal policy framework and transparency through the introduction of fiscal rules and more frequent and in-depth reporting of the fiscal accounts. Additionally, Moody's considers that continued fiscal consolidation will support the stabilization of government debt metrics.

• Regional: Standard & Poor’s, the international credit rating agency, affirms the Inter-American Development Bank’s ‘AAA’ long-term and ‘A-1+’ short-term issuer credit rating with a stable outlook. Also, following a review under the revised criteria for multilateral lending institutions, the IDB’s stand-alone credit profile was upgraded from ‘aa+’ to ‘aaa’, due to its extremely strong enterprise risk profile and very strong financial risk profile.

Week ending February 15, 2019

• Grenada: The Government of Grenada receives high praise for prudent fiscal management from the Deputy Managing Director of the International Monetary Fund (IMF), Mr. Tao Zhang,  visited the country recently. The IMF Deputy Director said that Grenada has recorded significant breakthroughs in its economic challenges especially in bringing down the public debt and leaving better public finances for future generations. The IMF official also noted that the policy of fiscal discipline instituted by the current administration, supported by the Fiscal Responsibility Law, had helped to break a pattern of high debt and low growth.

• Jamaica: The international credit ratings agency, Standard and Poors (S&P) maintains Jamaica’s “B-” long-term foreign currency rating but revises the country’s outlook from “Stable to ‘Negative”. The revision in the outlook is largely attributed to the non-completion of reforms related to Jamaica’s Medium-Term targets under the International Monetary Fund (IMF) Standby Agreement. The non-completion of reforms has led to delays in Jamaica’s last 3 quarterly reviews under the Standby-Agreement.
  

   

• Jamaica: Jamaica's Cabinet approves the development of a Policy on National Disaster Risk Financing. The Policy is set against the backdrop that Jamaica between 1993 and 2003 suffered from 26 natural disasters which resulted in total losses and damage of US$2.2 billion (J$ 285.9 billion). The Policy is expected to create greater transparency and efficiencies in the mobilisation and execution of public expenditure in disaster risk management. Critical components will include: developing fiscal resilience to natural disasters through designating the Contingency Fund as the National Catastrophic Disaster Reserve Fund and building-up a strong fiscal buffer; improving insurance of public assets and incorporating disaster risk analysis in public sector investments, and planning from a physical planning perspective.

Week ending February 1, 2019

• Jamaica: Fitch Ratings, the international ratings agency, upgrades the Government of Jamaica's long term foreing-currency issuer and local-currency issuer default rating (IDR) to "B+" from "B" and revises the outlook from "Stable" to "Positive". This is Jamaica's highest rating in over 10 years. The upgrade reflects Jamaica's macroeconomic performance, in particular,  the track record of strong fiscal discipline. This had led to high sustained primary surpluses over the last 6 years which have contributed to a significant reduction in public debt-to-GDP.

• United States: The US Federal Reserve holds interest rates steady and, in a formal policy shift, vowed to be patient in further lifting borrowing costs. Citing rising uncertainty about the US economic outlook, the Fed Chairman Jerome Powell said the case for raising rates had "weakened" and that the US central bank had dropped its earlier expectation for "some further" tightening. 

January 2019

Week ending January 18, 2019

• Barbados: The Barbados Government puts temporary freeze on borrowing. The Barbados Government announces that over the next four years the Government will not borrow any new funds. 

Week ending January 11, 2019

• Barbados. Regional rating agency, Caribbean Information and Credit Rating Services Limited (CariCRIS) upgrades Barbados local currency rating. The Trinidad-based agency assigned a rating on its regional scale local currency from CariD (Default) to CariBB, with a stable outlook.  In a statement it said, “Our decision to upgrade the rating on the local currency debt is driven by the closure of the exchange offer for domestic (Barbados dollar-denominated) debt. This marks the successful completion of the restructuring of BDS$11.9 billion in Barbados dollar-denominated claims on the government of Barbados and its public sector.” CariCRIS said the restructuring is a central plank of the government’s comprehensive debt restructuring programme and the Barbados Economic Reform and Transformation (BERT) Plan.  However, the rating agency said it will maintain the regional scale foreign currency rating of CariD (Default) on the country’s foreign currency denominated debt.

2018

December 2018

Week ending December 28, 2018

• The Bahamas.The Caribbean Development Bank (CDB) approves funding to the Government of The Bahamas for a project which will see 30,500 existing street lights replaced with energy-efficient light-emitting diode (LED) lighting. The project is expected to reduce the cost of street lighting to the Government of the The Bahamas by about 20 percent when it is implemented, saving the country approximately USD3 million a year. The CDB is providing US$14.5 million through a loan to the Government which will cover project preparation assistance, infrastructure works, engineering services, goods and project management associated with the initiative. US$8.9 million of the funding comes from resources provided to CDB by the European Investment Bank (EIB) under the Climate Action Line of Credit (CALC). The Bahamas Power and Light Company (BPL) will implement the project.

• The Bahamas. The Bahamas implements the recommendations of the IMF’s Enhanced General Data Dissemination System (e-GDDS) by publishing critical data through the National Summary Data Page (NSDP). The page aims to serve as a one-stop publication vehicle for essential macroeconomic data on national accounts, government operations and debt, monetary and financial sector, and the balance of payments. These data will be disseminated in both human and machine-readable formats. The e-GDDS was established by the IMF’s Executive Board in May 2015 to support improved data transparency, encourage statistical development, and help create synergies between data dissemination and surveillance. 

Week ending December 21, 2018

• The Bahamas: International redit ratings agency, Standard and Poor’s (S&P), affirms The Bahamas’ sovereign credit rating and ascribes a “stable” long-term outlook. The ratings and outlook reflects an expectation of further fiscal consolidation and moderate economic growth over the next one to two years. The Bahamas’ credit rating was affirmed as BB+/B, which, according to S&P, reflect its expectation of strong institutions to continue driving public sector reform and policies to tackle fiscal and growth constraints; fiscal responsibility legislation passed in Parliament; new measures enacted to spur economic growth and a forecast of moderate economic growth this year.

Week ending December 14, 2018

• The Bahamas. An International Monetary Fund (IMF) team, concludes it mission to The Bahamas during December 3-7, 2018 to review latest economic developments and prepare for the 2019 Article IV consultation (planned for April 2019). During the visit, discussions focused on the outlook and risks, fiscal developments, and the financial sector. At the conclusion of the visit, the IMF team noted that: (i) The Bahamian economy continues to recover, with real GDP growth projected to reach 2.3 percent in 2018 and 2.1 percent in 2019; and (ii) the Fiscal Responsibility Law (FRL) will support the government’s efforts to secure fiscal sustainability and put debt on a downward path.

• Belize. The Government of Belize receives funding from the Caribbean Development Bank (CDB) to support its efforts to improve road safety. The project will focus on the Philip S. W. Goldson Highway, which joins Belize City through Ladyville, Orange Walk Town and Corozal Town to the Mexican Border. It will incorporate a multi-sectoral approach, focusing on changing behaviour through increasing awareness and understanding of risks, improved traffic law enforcement and improving post-crash response. 

• Belize. The Caribbean Development Bank (CDB) approves a loan of US$36.6 million and a grant of GBP25 million to the Government of Belize, to upgrade the Coastal Highway. The funds will be used to improve climate resilience along the road, and increase connectivity between the southern and northern sections of Belize.

• St. Kitts and Nevis: The Government of St. Kitts and Nevis has announced its intention to gradually repurchase portions of the lands sold under the Land-for-Debt Swap arrangement initiated by the former political administration. 

• St. Kitts and Nevis. The Government of St. Kitts and Nevis receives US$5.8 million from the Caribbean Development Bank (CDB) to fund an energy-efficient street lighting project. It is projected to save St. Kitts and Nevis over USD2.2 million a year.Under the Street and Flood Light Retrofitting Project, 10,650 street lights throughout both St. Kitts and Nevis will be replaced with more energy efficient light-emitting diode (LED) lamps.

Week ending December 7, 2018

• Antigua and Barbuda: The Economic Commission for Latin America and the Caribbean (ECLAC) subregional headquarters for the Caribbean takes steps to advance its Debt for Climate Adaptation Swap Initiative. A mission led by Deputy Director, Dr. Dillon Alleyne, met with senior government officials and policy makers in Antigua and Barbuda, and Saint Vincent and the Grenadines, to discuss progress and to build support for the initiative. ECLAC advances its debt swap proposal as a strategy that the Caribbean can assist economies in, with financing, adaptation and mitigation projects, and in jump starting economic growth, while at once easing the burden of debt

November 2018

Week ending November 30, 2018

• The Bahamas: The Bahamian central bank governor, John Rolle, says that the central bank should reduce its holding of government debt. The Governor also said that the government should relax capital controls, but needed to put measures in place first to build investor confidence. He said that the central bank’s forward-looking strategy is to gradually reduce the outstanding lending to the government.

Week ending November 23, 2018

• Barbados. Standard & Poor’s (S&P), the international credit ratings agency, raises its long- and short-term local currency sovereign credit ratings on Barbados to ‘B-/B’ from ‘SD/SD’ (selective default). At the same time, S&P assigned its ‘B-‘ issue-level rating to Barbados’ long-term debt issued in its debt exchange.S&P also affirmed its ‘SD/SD’ long- and short-term foreign currency credit ratings on the island, and its ‘D’ (default) ratings on Barbados’ foreign-currency issues.

  Finally, S&P raised its transfer and convertibility assessment on Barbados to ‘B-‘ from ‘CC’.

  In its latest statement, S & P noted that Barbados’ new administration had completed its local currency debt exchange, initiated an economic recovery plan, and received approval from multilateral lending institutions for new sources of financing.

• Barbados. The Government of Barbados announces that the BBD Debt Exchange Offer, which was launched on 7 September 2018, is closed. The closing of the transaction marks the completion of the restructuring of B$11.9 billion (equivalent to US$5.95 billion) in Barbados dollar-denominated claims on the Government of Barbados and its public sector – a central plank of the Government’s Comprehensive Debt Restructuring Programme and the Barbados Economic Reform and Transformation (BERT) Plan, which is being supported by a four-year Extended Fund Facility (EFF) from the International Monetary Fund (IMF).

Week ending November 16, 2018

• Jamaica. The Government of Jamaica to benefit from US$100 million in loan funding from the Inter-American Development Bank (IDB) to strengthen its health sector. The hybrid loan includes two complementary elements: a US$50 million Programmatic Policy-Based (PBP) loan and a US$50 million investment loan. The PBP will fund the necessary regulations and policies to implement coherent and comprehensive health sector strategy. The investment loan will fund improvements in Jamaica’s primary care system and will improve the management, quality, and efficiency of Jamaica’s hospital and health service networks.This hybrid program is the first of a programmatic policy-based loan series for Jamaica’s health sector, which will be made up of two contractually independent and technically linked loans. The Programmatic Policy-Based (PBP) loan, funded from the IDB’s Ordinary Capital, will disburse US$50 million within one year, with a grace period of 5.5 years, and an interest rate based on LIBOR. The executing agency for the PBP will be Jamaica’s Ministry of Finance and the Public Service (MOFPS). The IDB investment loan of US$50 million will be disbursed over a five-year period, with a grace period of 5.5 years, and an interest rate based on LIBOR. The executing agency for the investment loan will be Jamaica’s Ministry of Health (MOH).
• Suriname: The Executive Board of the International Monetary Fund (IMF) concludea the Article IV consultation with Suriname which focused on the challenges ahead The Executive Directors noted that fiscal deficits are large, and public debt is expected to rise in coming years unless strong fiscal consolidation is implemented. They noted also the slow pace of reforms and a recent step-up in current public expenditures which have the potential to worsen the fiscal situation in 2019-2020. In addition, indications were that the public financial management framework remains weak, although the Suriname authorities are taking steps to strengthen it. 

Week ending November 9, 2018

• Regional. The Green Climate Fund and the Caribbean Development Bank (CDB) sign a legal agreement to provide for more climate finance projects in the Caribbean Region.The signing of the Accreditation Master Agreement (AMA) took place close to the Green Climate Fund’s Caribbean Structured Dialogue meeting held in Grenada.The meeting brought together regional stakeholders to plan climate action across the Caribbean Region.

• Barbados. The Government of Barbados bolsters its macroeconomic emergency programme with US$100 million in loan funds from the Inter-American Development Bank (IDB). The Barbadian Government seeks to regain macroeconomic stability, implement fiscal adjustment measures that foster a sustainable fiscal balance in the short and medium term, and protect social spending programs for the most vulnerable Barbadians. The structure and content of the IDB loan program are aligned to the recently approved International Monetary Fund (IMF) Extended Fund Facility (EFF) for Barbados.The Government of Barbados is seeking financial and technical assistance from the IDB and the IMF to help formulate a comprehensive economic reform program to stabilize public finances after years of increasing debt, and to address the country’s macroeconomic and fiscal crisis.

Week ending November 02, 2018

• International - Seychelles. The Republic of Seychelles launches the world’s first sovereign blue bond—a pioneering financial instrument designed to support sustainable marine and fisheries projects.  The bond, which raised US$15 million from international investors, demonstrates the potential for countries to harness capital markets for financing the sustainable use of marine resources. The World Bank assisted in developing the blue bond and reaching out to the three investors: Calvert Impact Capital, Nuveen, and U.S. Headquartered Prudential Financial, Inc. “We are honored to be the first nation to pioneer such a novel financing instrument. Proceeds from the bond will include support for the expansion of marine protected areas, improved governance of priority fisheries and the development of the Seychelles’ blue economy. Grants and loans will be provided through the Blue Grants Fund and Blue Investment Fund, managed respectively by the Seychelles’ Conservation and Climate Adaptation Trust (SeyCCAT) and the Development Bank of Seychelles (DBS).

October 2018

Week ending October 26, 2018

• Barbados. The Caribbean Development Bank (CDB) approves a policy-based loan of US$75 million to the Government of Barbados. The loan is part of wider coordinated assistance provided by international financial institutions to the Government, to support the implementation of the Barbados Economic Recovery and Transformation (BERT) Plan.

• Barbados. The Caribbean Development Bank (CDB) approves a loan of US$40.4 million to upgrade infrastructure and services at the Grantley Adams International Airport (GAIA) in Barbados.

  The Grantley Adams International Airport Pavement Rehabilitation and Expansion Project will support improved quality of infrastructure at GAIA; improve the institutional capacity of GAIA Inc.; and reduce energy consumption from pavement lighting at the airport.

• Belize. The Belize Water Services (BWS) is to receive US$8.7 million in funding from the Caribbean Development Bank (CDB) to improve the supply of potable water on Ambergris Caye.

  Ambergris Caye is the largest island of Belize, and a popular tourist destination. Water on the island is provided by a reverse osmosis plant, which desalinates sea water. The funds will also support the expansion of water and sewerage systems on the island, with consideration to the possible future effects of climate change. The funding will also support the development of a Gender Policy and Operational Strategy for Human Resource Management at BWS, which will cover areas such as recruitment, retention, and training and development, to improve gender equality in the workplace.

  

• Dominica. The Government of Dominica is to receive grant funding from the Caribbean Development Bank (CDB) to help the country recover from the impact of Hurricane Maria. This will include the rebuilding or rehabilitation of five primary schools in some of the hardest-hit areas of the island. The funding will also cover the Government’s premiums for parametric risk insurance for 2018 and 2019 under the Caribbean Catastrophe Risk Insurance Fund (CCRIF) SPC. The Government of Canada will provide C$8.8 million from the Dominica Climate Resilience and Restoration Fund, which is being administered by CDB.  The CDB and the Government of Dominica will also provide the equivalent of C$396,000 and C$694,000 to the project respectively.

• Jamaica. Jamaica will benefit from a US$285 million contingent loan from the Inter-American Development Bank (IDB) to bolster the nation’s response efforts and help protect its public purse.

  The IDB financing allows Jamaica to pay for any extraordinary public expenses that could arise from emergencies caused by natural disasters. The loan is intended to buffer the financial shock of a disaster on the Jamaica’s fiscal balance, thereby increasing the nation’s financial stability and efficiency as well as its disaster preparedness and response.

  

Week ending October 19, 2018

• Barbados. The Government of Barbados announces the near-universal participation of affected creditors in the BBD Debt Exchange Offer that was launched on 7 September 2018. Peliminary estimates by the Central Bank indicate that holders of more than 90% of eligible claims have accepted the Government’s restructuring offer. The Barbadian Government announced that its exchange offer received the unanimous support of the commercial banks, the general and life and insurers, the National Insurance Scheme (NIS), the Central Bank of Barbados (CBB), as well the support of almost an entirety of ordinary Barbadians and firms holding claims on the Government and its public sector.

Week ending October 12, 2018

• Barbados. Barbados signs its first Readiness Grant Agreement with the Green Climate Fund (GCF) which gives it access to millions to better organize climate finance. Through this readiness programme, the Barbadian Government will receive an initial US$300,000 in grant financing from the GCF that will enable access to US$1 million annually for improving Barbados’ engagement with the Fund, and therefore its access to climate finance, and a further US$3 million for the development of National Adaptation Plans.

• St. Lucia.The Caribbean Development Bank (CDB) invests USD20 million in education and youth development in Saint Lucia. On October 3, the Bank launched the Saint Lucia Education Quality Improvement Project(EQuIP) and the Youth Empowerment Project(YEP). EQuIP aims to strengthen the island’s education system, through the expansion and rehabilitation of four selected institutions, and overall improvements in educational leadership and instructional effectiveness, including training for teachers, principals and education officers.

Week ending October 05, 2018

• Barbados. The International Monetary Fund (IMF) approves an Extended Fund Facility (EFF) which will give Barbados access to about US$290 million, over the next four years.Under the agreement, which supports the home-grown Barbados Economic Recovery and Transformation (BERT) programme, the government will receive US$49 million in assistance immediately. The remainder will be available upon successful completion of seven semi-annual reviews. The IMF said that the EFF-supported programme aims to help Barbados restore debt sustainability, strengthen the external position, and improve growth prospects.

• Suriname. The Government of Suriname will enhance its agricultural sector with US$30 million in financing from the Inter-American Development Bank (IDB). The loan will fund the Sustainable Agricultural Productivity Program (SU-L1052) which aims to increase agricultural productivity in Suriname through investments in infrastructure and management of Irrigation and Drainage (I&D) systems and by improving the quality and availability of agriculture statistics. The project will directly benefit 2,200 small and medium farmers belonging to local water boards as well as numerous other farmers.

September 2018

Week ending September 28, 2018

• Dominica. The International Development Association (IDA) approves a US$31 million credit to the Government of Dominica in support of a disaster vulnerability project. The project will support the government’s efforts to reduce vulnerability to natural hazards and climate change impacts in Dominica through investment in resilient infrastructure and improved hazard data collection and monitoring systems. The loan has a 40-year maturity inclusive of a 10-year grace period.

• Jamaica. Standard and Poor's, one of the three global rating agencies, affirmsd Jamaica's rating at single B and raises its outlook to positive from stable. Standard and Poor's said that after many years of economic fiscal and monetary reforms, Jamaica has made material progress in achieving macroeconomic stability and improvement in its external debt burden.

• Saint Lucia. The International Development Association (IDA) approves a US$31 million credit to the Government of Saint Lucia in support of a health system strengthening project. The project aims to support the government’s efforts for strengthening Saint Lucia’s public health care system by improving accessibility, efficiency and responsiveness of key health services. The loan has a 40-year maturity inclusive of a 10-year grace period.

• Trinidad and Tobago: The Executive Boad of the International Monetary Fund concludes the Article IV consultationwith Trinidad and Tobago. The Executive Directors noted that Trinidad and Tobago is slowly recovering from a deep recession. They noted also that the economy continued to contract but at a slower pace, underpinned by the strong recovery in gas production, while weak activity in construction, financial services, and trade, continued foreign exchange (FX) shortages, and slow pace of public investment dampened non-energy sector growth. The IMF Executive Directors assessed that positive growth is expected to return from 2018 as the recovery takes hold in both sectors. They noted also that good progress has been made in fiscal consolidation through spending cuts, but public debt continued to rise, approaching the government’s soft target of 65 percent of GDP.

Week ending September 14, 2018

• Barbados. In order to further develop it economic reform programme, the Government of Barbados receives a US$400,000 grant from the Caribbean Development Bank (CDB). The grant is consistent with the CDB’s plan to support the country’s return to sustained economic growth.

  The technical assistance project aims to enhance the capacity of staff in the Ministry of Finance, Economic Affairs and Investment to adequately design, negotiate and support the implementation of critical macroeconomic and structural reforms. Further, it is expected to strengthen Barbados’ macroeconomic policy and planning.

Week ending September 07, 2018

• Barbados. The International Monetary Fund (IMF) reaches staff level agreement with Barbados on an economic programme under the Extended Fund Facility.

  

August 2018

Week ending August 31, 2018

• Anguilla. The Caribbean Development Bank (CDB) approves a US$9.3 million loan to the Government of Anguilla, to implement a reform programme that aims to restore fiscal sustainability and enhance resilience against natural disasters.The loan from CDB is the first of a series of three proposed policy-based loans, which will support Anguilla’s three-year reform programme to restore fiscal stability and build resilience, in order to promote and sustain economic recovery and growth. This first loan supports initial reforms under the government’s Medium-Term Economic and Fiscal Plan (MEFP).

• Guyana. The Government of Guyana is to receive a US$4.4 million loan from the Caribbean Development Bank (CDB) to help enhance the country's transportation sector, and support the development of interior communities. The funds will be used to finance feasibility studies and designs for the upgrade of the Lethem aerodrome, and the construction of a new bridge at Wismar and a new riverine transport terminal at Parika.

Week ending August 10, 2018

• Caribbean. The Caribbean Development Bank sign an agreement which will add GBP30 million to the United Kingdom Caribbean Infrastructure Partnership Fund (UKCIF). The agreement was signed on July 26, 2018. The majority of the funds will be used to establish a reconstruction window, to respond to emergencies and natural disasters, with resources earmarked for Dominica and Barbuda. A portion of the grant funding will also be used for monitoring and evaluation.

• International - World Bank. The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) mandates the Commonwealth Bank of Australia (CBA) as the sole arranger of the first bond globally to be created, allocated, transferred and managed through its life cycle using distributed ledger technology. Indicative investor interest in bond-i (blockchain operated new debt instrument) has been strong. The World Bank and CBA expect to launch the transaction following a period of consultation with a broader set of investors.Blockchain has the potential to streamline processes among numerous debt capital market intermediaries and agents. This can help simplify raising capital and trading securities; improve operational efficiencies; and enhance regulatory oversight.

Week ending August 03, 2018

• Guyana: The Caribbean Development Bank (CDB)  approves funding of US$4.4 million to help Guyana enhance its transportation sector, and support the development of interior communities. The funds will be used to finance feasibility studies and designs for the upgrade of the Lethem aerodrome, and the construction of a new bridge at Wismar and a new riverine transport terminal at Parika. 

• Saint Lucia: The Government of Saint Lucia issues an 8-year bond auctioned on the Eastern Caribbean Regional Government Securities Market (RGSM) and raises EC$50.0 million. The resulting interest rate was 6.95 percent using a competitive uniform price auction.

July 2018

Week ending July 27,2018

• Anguilla: The Caribbean Development Bank (CDB) approves a US$.3 million loan to the Government of Anguilla, to implement a reform programme that aims to restore fiscal sustainability and enhance resilience against natural disasters. Anguilla is highly vulnerable to natural disasters, and since 1995, the island has been affected by eight named hurricanes

Week ending July 06, 2018

• Eastern Caribbean States: The International Bank for Reconstruction and Development (IBRD) provides funding for the establishment of a regional partial guarantee corporation to increase access to financial services for micro, small, and medium-sized enterprises in OECS countries including Antigua and Barbuda, Grenada, Dominica, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. The IDRD will provide US$10 million in financing while the International Development Association (IDA) will provide US$2 million.

June 2018

Week ending June 29, 2018

• Bahamas, The: The Inter-American Development Bank provides a US$30 million loan to the Bahamas to boost competitiveness by reducing the time and cost of carrying out administrative procedures with the government. The goal of this project is to promote and encourage the use of IT in the public sector and thus reduce costs for people and companies dealing with the government and enhance transparency in government operations.  The IDB’s $30 million loan is payable over 24 years, with a grace period of six and a half years and an interest rate based on LIBOR.
• Bahamas, The: The Bahamas will strengthen its natural disaster risk financing plan and build resilience of its public finances against the impacts of climate change with a US$100 million contingent loan from the Inter-American Development Bank (IDB).By providing ex-ante financing, the IDB is helping The Bahamas broaden and deepen its financial strategy to address and recover from natural disasters, supporting the government’s immediate response capacity and protecting its fiscal balance.The IDB contingent financing has a maturity period of 25 years, a grace period of 5.5 years and an interest rate based on LIBOR.

Week ending June 22, 2018

• Grenada: The Government of Grenada receives US$30 million in project funding from the International Development Association (IDA) under the First Fiscal Resilience and Blue Growth Development Policy Credit. The funding will support key reforms to strengthen climate and fiscal resilience, and help the country transition to a blue economy by adopting measures such as a ban on single use plastic bags, Styrofoam containers and utensils, and establishing a marine protected area.

Week ending June 08, 2018

• Barbados: The international credit rating agency, Standard and Poor’s (S&P), lowers Barbados'  long-term foreign-currency rating to Selective Default.The credit downgrade follows a recent announcement by Prime Minister Mia Mottley that her administration was suspending foreign debt service payments and seeking to make interest payments on its domestic debt while negotiating a restructuring agreement with domestic creditors.As a result, Barbados failed to make an interest payment that was due on June 5, on its  6.625 per cent notes due by 2035.
• Barbados: At the request of the newly-elected Government of Barbados, an International Monetary Fund (IMF) team visisted Barbados to have discussions on econmic policies and possible financial support of the Government's economic plan.

Week ending June 01, 2018

• Guyana: The Caribbean Development Bank (CDB) approves a loan of US$1.3 million to assist in upgrading the water sector in Guyana. The funds, provided to the Government of Guyana, will be used to provide consultancy services to develop a national water policy, as well as to provide designs and estimates for the construction of water treatment plants and the upgrade of related infrastructure.
• Anguilla: The Caribbean Development Bank (CDB) approves a loan of US$5.6 million to assist the government of Anguilla in meeting its fiscal obligations after the destruction caused by Hurricane Irma in 2017. The funds will allow the government to focus on its recovery priorities, without having to divert resources to meet financing needs. The loan is repayable over a period of 13 years, inclusive of a grace period of three years.

May 2018

Week ending May 25, 2018

• Grenada: An International Monetary Fund (IMF) staff team visits Grenada during May 2-15 for the 2018 Article IV consultation and holds discussions with the Grenadian authorities, business community, and social partners. A concluding statement described the preliminary findings of IMF staff at the end of the official staff visit (or ‘mission’). In the Statement, the IMF staff note that, "Public debt fell to 71 percent of GDP at end-2017 (from 82 percent of GDP in 2016) reflecting the strong fiscal position, the completion of the final phase of bond restructuring, and the lowering of interest costs from restructuring some of the expensive domestic debt. Progress has also been made in addressing external and domestic arrears, but negotiations with three bilateral creditors aimed at fully regularizing arrears have yet to be concluded."

Week ending May 18, 2018

• Bahamas, The: The Government of The Bahamas announces the release of its draft Fiscal Responsibility Act (FRA). The Government states that the FRA will bring new accountability measures to the way The Bahamas conducts its financial affairs and provide insight and oversight by the wider public through a civil society council that the FRA provides for. Under, the new law, an independent five-member Fiscal Responsibility Council comprised of civil society professionals with specific areas of expertise in law, business, economics, accounting, and finance will be established. The proposed legislation will also have in law a mandate by the government to submit a fiscal adjustment plan to the FRC as well; in addition to mandating that it also submits a fiscal impact analysis; and also new spending proposals that fall outside of the proposed budget must be submitted to the council for its general advice and consideration.

April 2018

Week ending April 27, 2018

• Trinidad and Tobago: The Government of Trinidad and Tobago signs the first tranche of a Policy-Based Loan Agreement amounting to US$180million with the Corporación Andina de Fomento (CAF) Development Bank. The total loan of US$300 million will be used for the implementation of a programme to support the Government’s “Medium-Term Fiscal Consolidation Strategy–Phase II”, to boost potential growth and reduce the economy’s vulnerability to external fluctuations and volatility of external terms of trade. The programme aims to increase fiscal revenues; improve public expenditure efficiency and accountability; strengthen public debt management and promote fiscal policy sustainability.

Week ending April 20, 2018

• Antigua and Barbuda: The Government of Antigua and Barbuda issues a 10-year bond auctioned on the Eastern Caribbean Regional Government Securities Market (RGSM) and raises EC$15.0 million. The resulting interest rate was 7.5 percent using a competitive uniform price auction.

Week ending April 13, 2018

• International: The Islamic Development Bank launches a US$500 million innovation fund to fuel economic growth in developing nations. Its  Transform Fund will work in line with the UN's sustainable development goals (SDGs) on food security, healthier lives, inclusive and equitable eductation, sustainable management of waterand sanitation, access to affordable and clean energy, and sustainable industrialisation.
• International: The Organisation for Economic Cooperation and Development (OECD) reports that foreign aid from official donors totalled $146.6bn in 2017, a decrease of 0.6% from 2016 in real terms. 

Week ending April 6, 2018

• St. Lucia: The Government of Saint Lucia issues a 7-year bond auctioned on the Eastern Caribbean Regional Government Securities Market (RGSM) and raises EC$20.0 million. The resulting interest rate was 6.25 percent using a competitive uniform price auction.

March 2018

Week ending March 30, 2018

• Caribbean: The Inter-American Development Bank (IDB) and the Government of Japan expand their longstanding partnership through a joint pledge to support public-private partnerships (PPPs) in Latin America and the Caribbean. The agreement includes a commitment by the Japanese government to transfer $5 million to the Bank’s Contingent Recovery PPP Preparation Program.

Week ending  March 23, 2018

• Caribbean: The Caribbean Development Bank (CDB) announces that it will fund a programme to enhance capacity for mental health and psychosocial support in disaster management in the Caribbean.  The CDB said that “It is critical that a country’s response to any disaster includes a targeted psychosocial support and mental health component to rebuild individual and social resilience.” Five CDB Borrowing Member Countries, including some affected by Hurricanes Irma and Maria in 2017, will be selected for participation in the programme, which is scheduled to be implemented from April 2018 to October 2019.
• British Virgin Islands: The Caribbean Development Bank (CDB) approves a US$50 million loan to the Government of the British Virgin Islands. The funds will support efforts to restore economic stability and build resilience following the passage of Hurricanes Irma and Maria in 2017. Damage and loss as a result of the natural disasters were estimated at over USD3.6 billion, equivalent to more than 300 percent of the British Virgin Islands’ annual gross domestic product (GDP). 
• Dominica: The Caribbean Development Bank (CDB) announces that it will provide US$16 million in funding to Dominica Electricity Services Limited (DOMLEC), to assist with the restoration of electricity generation services. The Bank’s Board of Directors approved the provision of a loan of US$15.8 mn and a grant of US$200,000 to restore DOMLEC’s transmission and distribution system, and improve the company’s resilience to climate change.  

Week ending March 9, 2018                                                                             

• Caribbean: A decision by European Union tax experts to blacklist St. Kitts  and Nevis, The Bahamas, and US Virgin Island is set to be endorsed by EU finance ministers at a regular monthly meeting this March. The 28-member EU bloc is also expected to delisht St. Lucia as well as Bahrain and the Marshall Islands.
• Grenada: Financial news and data agencies correct their reporting of a bond issue by the government of Grenada, previously shown at EC$100 million on February 8, 2018, with a maturity date for February 9, 2020, at 5.5 percent. CBonds Financial Data and Research has stated that the amount reflected in its system was incorrect and has made the necessary adjustments to show the correct amount of EC$10 million (US$ $3,703,731).
• Jamaica: The World Bank’s Board of Executive Directors approves a new US$4.875 million grant-funded project for Jamaica, "the  Climate Resilience in the Fisheries Sector"  project. This project will help highly vulnerable fishing and fish farming communities in Jamaica to adopt climate-resilient practices. It is financed by the Pilot Program for Climate Resilience (PPCR) of the Strategic Climate Fund.
• Jamaica: The International Monetary Fund ends its Article IV missionto Jamaica with a concluding statement which noted that the economic reform program, that began in May 2013, has been a turning point for Jamaica . The statement further said, "With broad-based social and political support for reforms, the Jamaican government—over two administrations—has embarked on a path of fiscal discipline, monetary and financial sector reforms, and wide-ranging structural improvements to break a decades-long cycle of high debt and low growth." The statement further noted that considerable progress has been achieved on macroeconomic policies and outcomes. Fiscal discipline—anchored by the Fiscal Responsibility Law—has been essential to reduce public debt and secure macroeconomic stability. Employment is at historic highs, inflation and the current account deficit are modest, international reserves are at a comfortable level, and external borrowing costs are at historical lows." 

Week ending March 2, 2018

• Barbados: The Inter-American Development Bank (IDB) signs a US$20 million loan agreement with the government of Barbados to increase resilience and revenues in the country’s flagship tourism industry. This financing will go towards a five-year national tourism program focused on stimulating growth and competitiveness in this key economic sector for Barbados, which contributed 12.4 percent to the country’s gross domestic product in 2017.
• Haiti: The Barbados-based Caribbean Development Bank (CDB) will establish its first country office in the Republic of Haiti later this year. Minister of Foreign Affairs, His Excellency Antonio Rodrigue and the Bank’s Vice-President (Operations), Monica La Bennett, signed the Agreement on February 27, 2018.
• Jamaica: A two-day meeting of Caribbean governors of the Inter-American Development Bank (IDB) gets underway in Kingston, Jamaica. The seventh annual Caribbean governors’ meeting was hosted by the Bank of Jamaica under the theme: ‘Jump Caribbean’.The  meeting focused on helping the Caribbean to embrace the digital revolution as a developmental tool.

February 2018

week ending February 23, 2018

• Suriname: Moody's Investors Service ("Moody's") downgrades the long-term issuer and senior unsecured rating of the Government of Suriname to B2 from B1. The outlook was changed to negative from rating under review.  The main drivers of the downgrade were deterioration in fiscal metrics, as reflected in an increase in debt ratios and deterioration in debt affordability metrics, despite fiscal reforms adopted by the authorities. The negative outlook reflects Moody's view that without additional measures to strengthen the fiscal position, the pace of fiscal consolidation may not be sufficient to prevent increased liquidity pressures.
  

  Concurrently, Moody's lowered Suriname's long-term foreign-currency bond and deposit ceilings to Ba3 from Ba2 and to B3 from B2, respectively. Moody's has maintained the long-term local-currency bond and deposit ceilings at Ba2. All short-term foreign currency ceilings remain at Not Prime.

• Suriname: Fitch Ratings affirmed the “B-” long-term (foreign currency) credit rating of Suriname. According to Fitch, the stabilisation of Suriname’s outlook reflects the improving macroeconomic trend and more positive outlook for public finances since our last review in February 2017. Suriname’s economy recovered to positive growth in 2017 with inflation falling to single digits at year-end. The financial system is deleveraging and strengthening its capital ratios. Public finances are on a firmer path towards consolidation and debt reduction, partly reflecting an assumption that the government will pass legislation on the introduction of a new value added tax (VAT) in 2018.

  

Week ending February 9, 2018

• Caribbean:The Caribbean Development Bank (CDB) is projecting regional economic growth of 2% in 2018. This follows a return to positive figures last year, during which the Region experienced overall growth of 0.6 percent despite the devastation caused by the Atlantic Hurricane Season. The Director of Economics at the CDB, Dr. Justin Ram,has said that all of CDB’s Borrowing Member Countries (BMCs) are expected to contribute to the positive movement. He noted that this is, "mainly driven by the return to growth in Trinidad and Tobago and a 2.3% uptick in Jamaica, which accounts for about a fifth of regional GDP.   He  said the highest growth rates are anticipated for Anguilla and Dominica as they rebuild from the damage caused by the 2017 hurricanes. Antigua and Barbuda and the Turks and Caicos Islands are also expected to have strong growth.
• Caribbean: President of the Caribbean Development Bank (CDB), Dr. Warren Smith,  announces that the institution is making US$700 to 800 million available to help Borrowing Member Countries (BMCs) recover from the impact of the 2017 Atlantic Hurricane Season. The funding, which the Bank is providing over the next five years, complements its ongoing work to build resilience in the Caribbean Region.
• Grenada: The Government of Grenada issues a 2-year Note auctioned on the Eastern Caribbean Regional Government Securities Market (RGSM) and raises EC$10.0 million. The resulting interest rate was 5.50 percent using a competitive uniform price auction.
• Suriname: The Caribbean Development Bank (CDB) approves a loan of USD30 million to the Government of Suriname to replace the country’s existing high pressure sodium streetlights with high efficiency light-emitting diode (LED) systems. The replacement of the approximately 40,000 streetlights is expected to reduce energy consumption and costs as well as associated greenhouse gas emissions.

Week ending February 2, 2018

• Jamaica: The World Bank Board of Executive Directors approves a US$15 million loan to improve access to finance for micro, small, and medium enterprises in Jamaica. Access to finance is one of the main bottlenecks for firms, and small and medium businesses play a key role for growth and employment, accounting for 90 percent of the country’s jobs. The US$15 million World Bank loan has a 30-year maturity period, and a 5-year grace period.
• Jamaica: Fitch Ratings agency affirms Jamaica’s long-term foreign and local currency issuer default ratings at ‘B’ and revised the outlook from stable to positive. The rating was predicated on improvements in the macroeconomic and fiscal indicators. They were also supported by the country’s structural strengths such as relatively high income per capita and social indicators, policy consensus and relatively strong institutional capacity.

January 2018

Week ending January 26, 2018

• St. Lucia: The Government of Saint Lucia issues a 10-year bond auctioned on the Eastern Caribbean Regional Government Securities Market (RGSM) and raises EC$13.0 million. The resulting interest rate was 7.25 percent using a competitive uniform price auction.

2017

December 2017

Week ending December 22, 2017

• Grenada: The Caribbean Development Bank approves a US$5 million loan to support climate-smart agriculture and enterprise business development in Grenada. The project will assist the Government of Grenada in its efforts to increase productivity and the contribution of the agricultural sector to economic growth, rural poverty reduction and environmental sustainability. The International Fund for Agricultural Development will provide additional financing.

Week  ending December 15, 2017

• Antigua and Barbuda: The Caribbean Development Bank (CDB) announces funding to improve disaster resilience in Antigua and Barbuda’s health and education sectors.  The Bank’s Board of Directors has approved a project that will provide and install solar photovoltaic (PV) systems for up to 13 rural schools and clinics, which provide shelter and make rescue and medical care possible in the event of a disaster.
• Antigua and Barbuda: The Caribbean Development Bank (CDB) approves US$29 million in funding to the Government of Antigua and Barbuda to assist with recovery efforts after the passage of Hurricane Irma in September. The funds will be used to rehabilitate and reconstruct critical infrastructure in the transportation, education, water and sanitation, and agriculture sectors. 
• Jamaica: The Caribbean Development Bank (CDB) announces a programme of assistance of US$172 million for Jamaica over the period 2017 to 2021. These resources will be augmented by GBP17.5 mn (approximately USD22.2 mn) in grants from the United Kingdom Caribbean Infrastructure Partnership Fund (UKCIF). The programme of assistance, outlined in a new Country Strategy Paper, was approved by the Bank’s Board of Directors.
• St. Kitts and Nevis: The Caribbean Development Bank (CDB) announces a programme of assistance of US$76.2 million for St. Kitts and Nevis over the period 2017 to 2021. The CDB approved the new strategy, which will support economic and social development, environmental protection and infrastructure enhancement.

Week ending December 8, 2017

• Belize: Belize will seek to reduce its vulnerability to climate change and risk with the implementation of climate resilience measures in the tourism sector and the improvement of disaster risk management governance, through a US$10 million loan from the Inter-American Development Bank (IDB). The project is expected to directly or indirectly benefit 103,503 people living in Belize City and Caye Caulker. Based on losses as a share of GDP, Belize is one of the countries most affected by extreme meteorological events –mostly hurricanes and tropical storms– in Latin America and the Caribbean. Between 1930 and 2016, the country has been hit by 16 major tropical storms, or one every five years on average, which affected 287,670 people and caused US$635 million in losses.

Week ending December 1, 2017

• Caribbean: The Economic Commission for Latin America and the Caribbean (ECLAC) sub-regional headquarters for the Caribbean establishea a task force to advance ECLAC’s debt for climate adaptation swap initiative. The debt swap initiative, which was first presented at ECLAC’s Caribbean development roundtable in St Kitts and Nevis early in 2016, is a mechanism intended to address at once the crippling debt of the Caribbean and their need to generate the resources needed to finance resilience building measures.

November 2017

Week ending November 24, 2017

• Caribbean: The United Nations' Economic Commission for Latin America and the Caribbean (ECLAC) presents its debt for climate adaptation swaps proposal for Caribbean countries ravaged by recent hurricane during the first of a two-day high-level conference at the United Nations' headquarters here.
• Jamaica: The Inter-American Development Bank (IDB) has approved a US$20 million loan to support the Government of Jamaica’s efforts to measurably increase the conviction rate for murders and other violent crimes.This project aims to help reduce homicides through intensified crime prevention activities as well as to improve the quality and rate of criminal investigations being managed by the Jamaica Constabulary Force. The US$20 million loan is for a 25-year term, including a 5.5-year grace period, at a LIBOR-based interest rate, and is funded through the IDB’s Ordinary Capital. The executing agency will be Jamaica’s Ministry of National Security.
• Saint Lucia: The Governmentof Saint Lucia issues a 7-year bond auctioned on the Eastern Caribbean Regional Government Securities Market (RGSM) and raises EC$16.5 million. The resulting interest rate was 6.25 percent using a competitive uniform price auction.
  
<