Caribbean
Markets
Caribbean
• A United Nations report indicates
that the Latin America and the Caribbean region
is consolidating its recovery from the global
economic slowdown, posting higher-than-expected
growth in recent months, although some countries
in the region face serious pitfalls, according
to a new United Nations report.
o The 2009-2010 regional economic survey,
conducted by the UN Economic Commission for
Latin America and the Caribbean (ECLAC) forecasts
that the region will expand by 5.2 per cent
this year after the recovery began in the
second half of last year. Overall unemployment
rates are likely to ease from 8.2 per cent
to 7.8 per cent
o The report also noted that many Caribbean
nations also have high debt burdens which
leave them vulnerable to economic problems
in the months ahead. The debt owed by Barbados
is equivalent to 93 per cent of its GDP last
year and for Grenada the figure is 83 per
cent.
• A.M. Best Co. has downgraded the financial
strength rating to A- (Excellent) from A (Excellent)
and issuer credit ratings (ICR) to “a-”
from “a” of Sagicor Life Inc.
(Barbados) and its operating life insurance
subsidiary, Sagicor Capital Life Insurance
Company Limited (Bahamas).
o A.M. Best also has affirmed the FSRs of
A- (Excellent) and ICRs of “a-”
of Sagicor General Insurance Inc. (Barbados)
and Sagicor Life Insurance Company (Sagicor
Life USA).
o A.M. Best also has downgraded the FSR to
B++ (Good) from A (Excellent) and ICR to “bbb”
from “a” of Sagicor Life Jamaica
Limited (Kingston, Jamaica). The outlook for
these ratings has been revised to stable from
negative.
o The ratings reflect SFC’s continued
significant revenue, asset and earnings exposure
to the Jamaican economy, which continues to
pose ongoing uncertainty for SFC and its lead
operating life insurance subsidiaries. Despite
the recently implemented debt exchange program
by the Jamaican government to defuse the potential
default risk underlying the government bonds,
A.M. Best believes that the risk of Jamaican
exposure will continue to linger going forward
and may stress SFC’s financial results
and risk-adjusted capitalization.
Anguilla
• Anguilla’s Wallblake Airport
has been awarded international airport designation
by the International Civil Aviation Organization,
and has been renamed the Clayton J. Lloyd
International Airport.
St. Kitts & Nevis
• St. Kitts and Nevis is planning a
new 17% sales tax and a 10% hotel levy to
boost revenue. Prime Minister Denzil Douglas
said that the tourism-dependent islands of
50,000 people will roll out the new tax scheme
in November.
Jamaica
• Local press reports that the Government
has recommended the privatization of 16 public
bodies, the amalgamation of 26, and the abolition
of another 10 entities whose services will
be contracted out under the proposed public
sector rationalization plan
• Dr Gene Leon, the International Monetary
Fund’s (IMF) senior resident representative
in Jamaica commented that Jamaica is positioned
to pass the upcoming quarterly IMF test, save
for hurricanes and other external shocks.
DISCLAIMER- This document
is for informational purposes only. This information
is based on the close of the previous business
day activity. The information presented is
from usually reliable sources. FirstCaribbean
has not independently verified the facts,
assumptions, and estimates contained in this
report. No representation or warranty, express
or implied, is made as to, and no reliance
should be placed on the fairness, accuracy,
or completeness of the information and opinions
contained in this report. FirstCaribbean International
Bank accepts no liability for any loss occasioned
by reliance on any information contained herein
which may prove to be incorrect
