Uruguay

Territory added to EU ‘grey list’

admin — Mon, 20 Jun 2022 17:50:01 +0000

Territory added to EU ‘grey list’

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admin Mon, 06/20/2022 - 17:50

Thursday, March 17, 2022

Original Publisher

Business - The BVI Beacon

Original Article

Territory added to EU ‘grey list’

The Virgin Islands has been added to the European Union’s “grey list” along with nine other jurisdictions in the Caribbean and elsewhere, the EU Council announced after its meeting on Feb. 24.

Besides the VI, the EU added the Bahamas, Belize, Bermuda, Israel, Montserrat, Russia, Tunisia, the Turks and Caicos Islands, and Vietnam, bringing the total list up to 25 jurisdictions.

Although the inclusion does not mean that any penalties or sanctions will be levied against the territory, according to the EU, the move represents a significant setback after the territory rushed through economic substance legislation at the end of 2019 in order to meet EU requirements on tax reform.

In a Feb. 24 press release, the EU Council said that the list reflects “ongoing EU cooperation with its international partners and the commitments of these countries to reform their legislation to adhere to agreed tax good governance standards.”

The countries on the grey list are working toward meeting the EU’s tax standards, the release stated.

According to the EU, criteria for the list cover tax transparency, fair taxation and preventing tax base erosion and profit shifting. The organisation called implementation of the list a “dynamic process,” and noted that the next revision is scheduled for October of this year.

Anguilla, Botswana, Costa Rica, Dominica, Hong Kong, Jamaica, Jordan, Malaysia, North Macedonia, Qatar, the Seychelles, Thailand, Turkey and Uruguay were previously added and remain on the grey list.

The blacklist, which remained unchanged after last month’s announcement, currently includes American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, the United States Virgin Islands, and Vanuatu.

VI response

At a press conference late last month, Premier Andrew Fahie urged onlookers not to view the move as a censure of the territory.

He said the grey-listing meant the VI has “substantially met all international tax standards set out by the EU, but that ongoing improvements are being made to implementing tax good governance.”

As a result, he said, it has been grey-listed while it implements policies and procedures in the territory’s Country-by-Country Reporting framework.

“No defensive measures flow from being on such list and the BVI is still a cooperative jurisdiction,” he said. “Once the BVI meets these commitments, it will be removed from the annex.”

He added that the territory “takes its international obligations seriously” and had already been finalising the necessary steps to ensure successful implementation of the recommendations.

This week, BVI Finance CEO Elise Donovan directed queries to the Premier’s Office. Director of Communications Dr. Arliene Penn said, “BVI’s addition to EU’s Annex II is a positive rating for us because it acknowledges that BVI is a cooperative jurisdiction that has implemented measures (in the case of the Country-by-Country Reporting) in accordance with the high international standards prescribed. The BVI remains highly committed to the transparency and international cooperation agenda.”

The EU has hinted for some time that it would seek to modify its requirements for the list, the latest iteration of which was announced last October.

In February 2021, the European parliament passed a resolution calling for a measure that would automatically blacklist British territories like the VI, the Cayman Islands and the Channel Islands that have a zero percent corporate tax rate — and that now have a weakened voice in the EU in the wake of the United Kingdom’s split from the organisation.

The resolution did not mention the VI at the time, but it came before the revelation that nearly two-thirds of companies named in the far-reaching Pandora Papers investigation last year were based in the VI.

Panama, which is already on the EU blacklist, was host to the second highest number.

World response

Meanwhile, the EU Observer reported late last month that tax-reform campaigners are already applauding the news.

Chiara Putaturo, a campaigner with the non-profit Oxfam, praised the move, but complained that the Cayman Islands was not included.

“If the [new] grey-listing … is confirmed, we will see some real tax havens finally at risk to be blacklisted [in the future],” she said. “However, there are still other tax havens that are left off the hook, … such as the Cayman Islands, because the criteria remain weak.”

History

As in other OTs, leaders in the VI have long criticised the EU’s blacklists as arbitrary and misleading, maintaining that the territory’s financial services industry is tightly regulated in keeping with international standards.

Nevertheless, the VI was grey-listed along with other jurisdictions in 2017. In March 2018, the EU concluded that the VI, the Bahamas and Cayman needed further technical guidance from the EU and had until the end of 2019 to adapt local legislation, which resulted in the Economic Substance Act being rushed through the House of Assembly in late 2018.

Thanks to this move, the VI was white-listed, alongside 16 other jurisdictions, in February 2020.

The post Territory added to EU ‘grey list’ first appeared on The BVI Beacon.

The post Territory added to EU ‘grey list’ appeared first on The BVI Beacon.

Caribbean

Business

Sue over blacklist, says economist

admin — Mon, 20 Jun 2022 17:40:01 +0000

Sue over blacklist, says economist

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admin Mon, 06/20/2022 - 17:40

Thursday, April 28, 2022

Original Publisher

Business - The BVI Beacon

Original Article

Sue over blacklist, says economist

Caribbean countries that live in fear of being blacklisted by the European Union should band together and take legal action, according to Barbados-based economist and Caribbean policy expert Marla Dukharan.

“I felt like there should be some legal recourse that should be pursued collectively,” Ms. Dukharan said on Feb. 23 on the regional livestreamed show “Territories Talk,” hosted by Shaina Smith-Archer, chairwoman of the BVI Chamber of Commerce and Hotel Association.

The EU blacklist often comes under fire in the VI for being a moving target.

Ms. Dukharan said it is also unfair. EU member states such as the Netherlands and Ireland are “well known for their extensive money laundering and tax evading activities,” but have never been included on any EU blacklist, she said.

To her, this suggests Eurocentrism or even racism, and perhaps an effort to undermine countries that are “eating part of their pie,” she said of the EU.

Grey-listed

In February, the territory was added to the EU’s “grey list,” along with nine other jurisdictions in the Caribbean and elsewhere.

Besides the VI, the EU added the Bahamas, Belize, Bermuda, Israel, Montserrat, Russia, Tunisia, the Turks and Caicos Islands, and Vietnam, bringing the total on the list up to 25 jurisdictions.

Although the February inclusion does not mean that any penalties or sanctions will be levied against the territory, the move represents a significant setback after the VI rushed through economic substance legislation at the end of 2019 in order to meet EU requirements on tax reform.

The standards for inclusion on the EU lists have frequently changed, and Ms. Dukharan pointed out that the European Parliament itself has noted problems with the selection process.

In 2021, the legislative body proposed that the tax regimes of EU member states be scrutinised along with the rest of the world and subject to blacklisting if they don’t measure up.

“That tells you that you have a legal leg to stand on, because they, the policymakers, have acknowledged that we are not applying our own standards to our own member states, and that’s not fair,” she said. “Why is it that our countries have not come together, found a law firm that will represent us collectively, and taken them to court over this action?”

Fighting back

She added that even a statement from the Caribbean Community condemning the actions of the EU is simply “not strong enough.”

“I think if all of the countries came together from the Pacific and the Caribbean and agitated and protested, I think that there is a chance,” she said. “For example, if you appeal to the United Nations, you appeal to the World Trade Organisation, somebody is going to hear you. But when each individual little tiny micro state appeals individually, it is just white noise.”

She also recommended that countries that object to the blacklist expel EU ambassadors.

“The second thing I think we need to do is take diplomatic action,” she said.

With changing criteria, she noted, even countries that have satisfied the Financial Action Task Force and Organisation for Economic Cooperation and Development standards still run the risk of being blacklisted.

“But we don’t have the courage to do these things because we are small and we are insecure maybe,” she said.

Current list

In a Feb. 24 press release, the EU Council said that the grey list reflects “ongoing EU cooperation with its international partners and the commitments of these countries to reform their legislation to adhere to agreed tax good governance standards.”

The countries on the grey list are working toward meeting the EU’s tax standards, the release stated.

According to the EU, criteriafor the list cover tax transparency, fair taxation and preventing tax base erosion and profit shifting. The next revision is scheduled for October.

Anguilla, Botswana, Costa Rica, Dominica, Hong Kong, Jamaica, Jordan, Malaysia, North Macedonia, Qatar, the Seychelles, Thailand, Turkey and Uruguay were previously added and remain on the grey list.

The blacklist for “non-cooperative” tax jurisdictions, which remained unchanged after the February announcement, currently includes American Samoa, Fiji, Guam, Palau, Panama, Samoa, Trinidad and Tobago, the United States VI, and Vanuatu.

The post Sue over blacklist, says economist first appeared on The BVI Beacon.

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Business

Scotiabank defends bank fees

admin — Sat, 19 Feb 2022 04:20:01 +0000

Scotiabank defends bank fees

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admin Sat, 02/19/2022 - 04:20

Sunday, February 13, 2022

Original Publisher

Jamaica Observer

Original Article

Scotiabank defends bank fees

AT least two executives at Scotiabank are opening up about the factors which contribute to rising bank fees and charges.

Executive vice-president of Scotia Caribbean, Central America and Uruguay (CCAU) and International Banking, Anya Schnoor and Audrey Tugwell Henry, president and CEO of Scotia Group Jamaica, told the Jamaica Observer that while the issue is universal, some of the charges are relevant because of Jamaica's unique circumstances.

"Some of the cost we believe are unique to Jamaica and we think there's an opportunity for us as a country to look at how we can simplify the cost of doing business in the country so that as investors we can pass on savings to our customers," said Tugwell Henry.

She explained that banks, like other businesses, are faced with operating costs which must be accounted for in some way.

"In terms of the issue of a bank's service fee, we're like other businesses. We're faced with ongoing increases to do business and in Jamaica, in particular, banks have a very high operating cost for doing business."

Among the issues the Scotia executives pointed out as being unique to Jamaica is the need for significant security.

Schnoor noted that "in other countries I don't have three and four armed security guards at the entrance to a bank. When we go to Canada there's no security guards anywhere, that's just not something we have. So, there are other things, asset tax, etc, that are different. Every country has its own unique circumstances but the most important thing to realise is that we're looking at this long term."

Similarly, Tugwell Henry explained that "our security is an ongoing and increasing cost. We see the crime statistics in our country and therefore we have to make sure that we are securing our customers and our employees when they do business with us. We also have costs associated with assets, so as our assets grow we pay an asset tax. Banks pay a higher corporate income tax than most other businesses in this country."

She further explained that although bank fees and charges appear excessive, it is still not enough to fully cover the bank's operating costs.

"When we interact and engage with our clients we outlay significant costs in order to provide the service. Our service fees in no way covers the full cost. So, we know that the intermediation of funds is part of our core operation so we do generate revenue from that to provide the service of taking your deposit, there is a significant cost to that and not to mention the cost of handling cash, paying a courier service to load the ATMs, to top them up and maintenance cost for the ATM networks. "

While Jamaica has its unique challenges which largely surround security, Schnoor noted that there are other issues which banks around the world are grappling with. She stressed that Jamaica is not insulated from those issues which also impact bank fees and charges.

"So, today if I want to buy an ATM for Jamaica, if it costs $10 last year. it's costing $20 today and that's just a fact. That's a reality that we all have to face because inflation and a devaluing dollar is affecting our business if you think about what's going on worldwide, and it's not just banking. I'm sure you go to the supermarket every day and are seeing what's happening with inflation, what's happening around the world in terms of supply chain bottlenecks. So, I think in general what companies are facing and what I know every organisation is grappling with is how they manage the day to day input to their business. We're not different, I know at times banks are seen as somehow we're different than every other industry and somehow we don't face the same challenges, but what I would say is we're managing this business for the long term and we know we have to continue to invest because our customers are saying to us, what used to be okay 10-20 years ago is not what they want today," said Schnoor.

In the same vein, Tugwell Henry highlighted that there are certain services which Scotiabank does not charge customers for, including online and mobile services to all customers at all levels, proprietary ABM or point of sale transactions conducted by senior citizens, as well as deposits on any channel.

She also noted that there are costs which Scotiabank must bear, but are seemingly taken for granted in the public domain.

"When we place cash in an ATM - and we have 280 ATMs to stock with cash - that cash is sitting there earning zero. We can't do anything with that cash but the cash is deployed so our customers have access to that cash, so that opportunity cost of us investing that cash is impacted. We also have reserve requirements with the central bank where for every dollar of deposit that we take we have to place a percentage of that with the central bank as reserve, which is standard banking practice and that's a global phenomenon but we place that at zero. So these are costs that are almost taken for granted," she noted.

In the meantime, the Scotia Group president and CEO admitted that there are certain COVID-related costs that the bank took on at the onset of the pandemic which is starting to take a toll on its operating cost.

Caribbean

Business

The IDB approves aid for US $ 1.65 billion in six countries; will give a non-refundable loan to Haiti

admin — Fri, 10 Dec 2021 09:40:01 +0000

The IDB approves aid for US $ 1.65 billion in six countries; will give a non-refundable loan to Haiti

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admin Fri, 12/10/2021 - 09:40

Sunday, December 5, 2021

Original Publisher

Economy – Dominican Today

Original Article

The IDB approves aid for US $ 1.65 billion in six countries; will give a non-re…

Washington, USA

The Inter-American Development Bank (IDB) approved eight financial operations for Argentina, Brazil, Ecuador, Haiti, Honduras, and Uruguay for a value of US $ 1.65 billion.

The operations they will be destined for aim to strengthen public finances, reactivate the economy, and improve health services, water and sanitation, and transportation.

These funds are also expected to contribute to improving resilience to natural disasters, food security, the business climate, and connectivity in rural areas, among other areas, the IDB reported in a statement.

Within this aid package, there are two loans for Argentina for 500 million. The first seeks to finance access to public health services for the Province of Buenos Aires population, and the second is to improve the safety of road networks in the same area.

For Brazil, a loan for US $ 80 million was approved to improve the coverage of drinking water and sanitation in Manaus and for urbanization projects, digital transformation, and inclusion of gender and diversity.

The loan for Ecuador amounts to 400 million. It will finance a program to strengthen the institutional and regulatory framework to improve the business climate, promote international trade and enhance financial stability and access to financing.

For Haiti, the IDB has planned non-reimbursable financing for US $ 60 million to improve the food security of rural households, including the country’s farmers, fishermen, seafood traders, and rural workers, by promoting rural productivity and connectivity markets.

This project will be co-financed with 18.3 million from the Global Agriculture and Food Security Program.

In the case of Honduras, the 400 million loans will help to face natural and public health disasters. They will cushion the impact of a natural disaster or a severe or catastrophic health event on public finances.

Finally, the IDB approved two loans for Uruguay for 210 million. The first, of 145 million to promote the post-pandemic economic and fiscal recovery, with measures to protect the income of vulnerable households and increase the liquidity of micro, small and medium-sized enterprises.

The second loan for Uruguay, of 65 million, will be used to rehabilitate different road sections.

Caribbean

Business

ScotiaGroup Jamaica boss gets regional role

admin — Thu, 09 Dec 2021 14:40:01 +0000

ScotiaGroup Jamaica boss gets regional role

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admin Thu, 12/09/2021 - 14:40

Thursday, December 2, 2021

Original Publisher

Jamaica Observer

Original Article

ScotiaGroup Jamaica boss gets regional role

Scotiabank yesterday announced that its Jamaica chief, Audrey Tugwell Henry, will be given additional responsibilities as the senior vice-president (SVP) of its Caribbean North and Central operations.

The appointment, which takes effect January 1, 2022, will see Tugwell Henry expanding her oversight of Scotiabank's operations to include the Bahamas, Cayman, Turks & Caicos, in addition to its Jamaican operations.

It comes just a year after Tugwell Henry was appointed the president and CEO of Scotia Group Jamaica in January 2021.

Commenting on the appointment Anya Schnoor, executive vice-president of Scotiabank's

Caribbean, Central America and Uruguay region, said, "I am extremely pleased to announce

Audrey Tugwell Henry's well-deserved promotion to SVP with responsibility for Caribbean

North and Central, in addition to her current role as president and CEO, Scotia Group

Jamaica. Audrey is a transformational leader with over 30 years' experience in the financial

services industry. In a little under a year in her current role, she developed and executed clear

business strategies to reposition the bank as it navigates the effects of the economic

environment, while delivering sustainable results for the business."

In her new role, Tugwell Henry will focus on driving growth in the region and charting forward

the bank's customer-first strategy, which is underpinned by the ongoing digital

transformation of the bank's operations.

Tugwell Henry holds a Diploma in Education from Church Teachers' College: Mandeville, a Bachelor

of Science degree in Management Studies from The University of the West Indies, and a

Master's of Business Administration from the Mona School of Business & Management - UWI,

Mona.

Caribbean

Business

Transwave Jamaica objects to new data privacy law

admin — Fri, 01 Oct 2021 07:20:02 +0000

Transwave Jamaica objects to new data privacy law

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admin Fri, 10/01/2021 - 07:20

Sunday, September 26, 2021

Original Publisher

Jamaica Observer

Original Article

Transwave Jamaica objects to new data privacy law

Rappler.com and c oda.com, in a weekly technology feature, have highlighted the objection made by Transwave - a non-government organisation (NGO) engaged in transgender advocacy - to the latest version of legislation to facilitate a digital national identification system in Jamaica.

The Government of Jamaica is designing and developing the National Identification System (NIDS), aiming to capture and store personal identity information for citizens and persons ordinarily resident in Jamaica.

On full roll out the NIDS project promises a new identification system which, it is hoped, will make it easier and cheaper for citizens and legal residents to prove identity, thus lessening the burden of opening bank accounts and accessing social services from government agencies, among other benefits.

NIDS is expected to reduce transactional costs, assist in cutting bureaucracy, and improve the delivery of government services. Among other benefits, it will make it easier to access birth certificates, especially for mothers and people with special needs.

The proposed Bill is just the latest attempt by the Jamaican Government to roll out the NIDS.

This following 2019 when the Supreme Court struck down a law passed in 2017 that required all citizens to enrol, indicating that it violated privacy rights. The revised Act was tabled by Delroy Chuck, Jamaica's justice minister, in the House on September 21, 2021 for the start of debate in the Lower House of Parliament.

The current revision has changed the enrolment requirement from mandatory to voluntary, and was reintroduced in 2020. It is expected to be passed into law at the end of 2021.

The plan is for issuance of a lifelong national identification number to every person. The use of biometric (fingerprint or retina scan) data is also being explored.

Coda.com says critics believe that it falls short of providing clear privacy safeguards. They also argue the request for personal information could dissuade certain populations from applying for the ID, including trans Jamaicans or people experiencing homelessness who do not have a fixed address.

The website named an advocate, Renae Green, executive director of the trans rights non-profit group TransWave Jamaica, as being concerned. The latest attempt would require any Jamaican who wants to apply for an ID to give authorities documentation showing their sex assigned at birth, which would be displayed on the back of the card, it was noted.

Green said on coda.com that she "fears that this requirement could create considerable risks by 'outing' trans Jamaicans who don't identify with their sex assigned at birth, exposing them to possible discrimination and violence while they use the card in their daily lives".

"For a lot of trans people who are in the process or have transitioned, they just want to be able to exist and go about their business. What that looks like for a lot of people is not having to disclose their trans status," she said. "The Bill opens us up to be outed."

While the Jamaican Bill stipulates that digital ID enrolment is voluntary, opponents say they fear it could end up as a functionally mandatory system.

The Jamaican Government, meanwhile, has started the procurement process for NIDS infrastructure. Facilitated by a US$68-million loan from the IDB, the Office of the Prime Minister has made a call for consultants to aid with project implementation of aspects of NIDS, indicating that roll out of the technology aspect of the project has begun.

The Office of the Prime Minister, in the last week of July 2021, invited applications for a manager of card production services, project director, a manager of public key infrastructure (PKI), a PKI administrator, a security officer and a master user and enrolment coordinator. All hires will be done pursuant to the IDB's procurement policies.

The IDB-funded project, similar to ones implemented in South Korea, Finland and Uruguay, is expected to improve the quality and efficiency of public services, as well as spur the development of e-government.

It is also projected that the provision of online services by the private sector, such as e-banking and e-commerce, will benefit from the implementation of this system.

Caribbean

Business

BUSINESS MONDAY: UNCTAD official: Developing countries need access to adequate financing

admin — Sun, 25 Jul 2021 03:50:01 +0000

BUSINESS MONDAY: UNCTAD official: Developing countries need access to adequate financing admin Sun, 07/25/2021 - 03:50

Monday, June 28, 2021

Original Publisher

Barbados Advocate - Business

Original Article

BUSINESS MONDAY: UNCTAD official: Developing countries need access to adequate …

THE administration of new US President Joe Biden holds the key to developing countries including Barbados, getting access to new financial allocations under the Special Drawing Rights (SDRs).

This is the view of Richard Kozul-Wright, Director of the Division on Globalization and Development Strategies at the United Nations Conference on Trade and Development (UNCTAD).

He has told a news conference in Barbados that the international community needs to wake up to the myriad of problems facing these countries, and warned that without significant financing, these countries will remain in a debt crisis.

The official highlighted several challenges facing developing countries, among them the fallout from COVID-19, including slow distribution of vaccines, lack of access to adequate financing, growing debt, lack of policy space, and a situation where the G7 and G20 countries promised a lot but failed to deliver.

“These are real concerns; we need to discuss them at UNCTAD 15,” he remarked.

He argued that both the G7 and G20 groups of industrial nations had failed to deliver on their commitments to developing countries, with the latter taking a year to make good the plans with the SDRs.

However, the UNCTAD official reasoned that the allocations will be effected with the new US administration.

Kozul-Wright told the media that only the UK of the G7 countries had met the target of making available 0.7 per cent of their GDP to funding. That is going to add an additional Bds$300 billion (US$150 billion) in financing to the developing world.

As for the global trading system, he said that there is a concerted push to dilute Special and Differential Treatment (SDT), a broad-based facility developing countries have been agitating for since the Uruguay Round of global trade talks and which continued within the Doha Round.

The UNCTAD official said that a whole series of issues are coming to a head this year.

The Director of the UNCTAD Division explained that they have done a study which shows that failure by developing countries to get the necessary assistance will mean their inability to achieve the sustainable development goals by 2030.

Furthermore, there will be two other scenarios facing them – one is that they will have to borrow at a scale that will push their debt-to-GDP ratios well into triple-digit figures; and the other is that they will have to grow their economies by at least 12 per cent, which is very unlikely.

Mr. Kozul-Wright informed that the end of this year will be crowded given the plans to have the UNCTAD 15 conference here, and the World Trade Organisation’s (WTO) Ministerial conference as well as the Climate Change meeting in Glasgow.

He pointed out that these events are going to be circling around the same kind of challenge, leading to a number of questions.

According to him, “Are we going to build back together and better, or are we going to build separately or not at all?”

He went on, “The chances at the moment are in favour of the latter, which is a matter of concern for the Caribbean.”

Business

Caribbean

Business

Resurgence of COVID infections, PAHO chief reports

admin — Sun, 25 Jul 2021 03:20:01 +0000

Resurgence of COVID infections, PAHO chief reports admin Sun, 07/25/2021 - 03:20

Friday, July 16, 2021

Original Publisher

Barbados Advocate - News

Original Article

Resurgence of COVID infections, PAHO chief reports

The Head of the Pan American Health Organisation (PAHO) Dr Carissa Etienne has warned that many countries of the Americas are seeing a resurgence of coronavirus infections.

“In the Caribbean, infections are also going up,” Dr. Etienne reported, highlighting that Cuba saw the highest number of weekly cases since the start of the pandemic, and cases have tripled in the British Virgin Islands just weeks after reopening to cruise ships.

She said that COVID-19 cases rise when complacency sets in.

“We are all tired, but after experiencing successive peaks of infections in the same locations, we must break this cycle by embracing public health measures early and consistently.”

Dr. Etienne told PAHO’s weekly virtual press briefing on Wednesday that as of this week, the region reported nearly 74 million cases and 1.9 million deaths from COVID-19.

“And while new cases are down nearly 20% from last week, many countries are seeing a resurgence of infections.”

Cases are increasingin Central Americancountries, including El Salvador and Guatemala, where COVID deaths have also surged. And in Mexico and the United States, infections are rising.

“Meanwhile, South America is reporting a mixed picture. COVID infections, hospitalisations and deaths are dropping across most of the continent, including in Brazil, Peru, Uruguay, and Chile. However, infections are once again mounting in Argentina; and in Colombia, they’re reaching their highest-ever levels, raising concerns about the health system’s ability to cope as 98% of ICU beds are already in use.”

The Director said that when variants of concern circulate, it’s even more important that countries step up surveillance, especially while vaccine coverage remains low.

“Money, more than public health, has determined how quickly countries can secure the tools that they need to combat this virus. As countries that struck deals with vaccine manufacturers pull further ahead, vaccination coverage continues to linger in the single digits for much of our region.”

Moreover, Dr. Etienne warned that the pandemic is creating serious social and economic impacts.

“COVID-19 has not just ravaged our health systems, it has fractured social protection programmes and destabilised our economies,” she said, revealing that a new study from the Economic Commission on Latin America and the Caribbean (ECLAC) reported that more than seven million companies have closed amid the pandemic.

“More than a third of people in our region are living in poverty and one in four worry about where they will get their next meal. Unemployment rates are higher here than any other developing region. The report shows how the pandemic continues to be fuelled by inequality. And unfortunately, our region is the most unequal in the world.

“We urge countries to continue prioritising health and social safety nets as part of their COVID response and as they turn their sights to COVID recovery,” she added. (TL)

News

Caribbean

News

Kaya plans Montego Bay opening for Q4, 2021

admin — Fri, 23 Jul 2021 08:20:01 +0000

Kaya plans Montego Bay opening for Q4, 2021

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admin Fri, 07/23/2021 - 08:20

Wednesday, July 14, 2021

Original Publisher

Jamaica Observer

Original Article

Kaya plans Montego Bay opening for Q4, 2021

Cannabis store Kaya Herb House says plans are in place to open in St James, in late 2021 while the groundwork is also being laid for further Caribbean expansion.

Kaya Herb House was the first medicinal ganja retail operation in the Caribbean. Its retail centres, which can house 1000 patrons each, are now located in Drax Hall, St Ann; Lady Musgrave in Kingston and in Falmouth, Trelawny. Plans for a store in Rose Hall, St James, have been delayed, but are expected to mature in the fourth quarter 2021.

Group Chairman and CEO Balram "Bali" Vaswani told the Jamaica Observer, "We have had to evaluate the timing of our current expansion on the island. We need to embrace the changes as before most new patrons were coming from hotels in big buses, while in recent times, they have come from high-end luxury villas and Airbnb.

Formerly, visitors to the island accounted for 30 per cent of Kaya Herb House sales with the other 70 per cent due to locals. However, that has changed. Now it is 85 per cent locals and 15 per cent visitors, with buyers also moving to more frequent buying and less spending, Vaswani said.

Company revenue fell by 80 per cent in April 2020 compared to April 2019. It has, however, started to grow again, but at the end of June 2021, it was still down 35 per cent of what it was in the similar period in 2019, Vaswani said.

Meanwhile, the company is closely watching Montego Bay. The CEO said, "Although we are optimistic with the increase in tourists, the guests are not leaving the hotel unless they are going directly to an excursion based on the safety and quarantine rules in place at each location."

Kaya is continuing to buildout across Jamaica while working with partners in the Caribbean to lay the groundwork for Barbados , Trinidad, St Vincent, Bermuda, and The Bahamas, which Vaswani describes as countries "where the regulatory framework is more aligned to support our growth strategy."

He said that based on the existing pandemic, "it is very important for us to remain well-positioned for improving top and bottom-line performance in 2021, driven by our current growth initiatives locally as well as strategic partners and franchise operators in Uruguay and Cayman as they continue to further their expansion.

The company exports to partners in Cayman and has partnered with Quantum Ventures Holdings Limited in Uruguay, under a licensing agreement to open two locations.

Kaya operates as a group of companies with subsidiary herb houses encountering some challenges since COVID-19.

Vaswani said, "although we were profitable in 2019, in 2020 our board made a very difficult decision to stay open at all locations seven days a week. "

The company's Retail Herb Houses continue to be its greatest revenue centres, and, he stated, "we expect that with the prevailing circumstances surrounding travel and entertainment, this trend will continue. In each of our operating years, we have been able to increase our revenue, while seeing a decline on our expenses side especially during the pandemic."

He observed, "We have seen the tourist corridor recovering slowly compared to Kingston. Our Kingston location has seen a higher frequency of visits, but with a smaller spend per customer while both Ochi and Falmouth have been trending upwards in amount of patronage per day from Villas and Airbnb rentals.

Vaswani projected, "We can forecast when Sandals Dunns River, RIU , Bahia Principe and Moon Palace move to pre-pandemic bookings, we can expect to see an overall positive impact on the group in both medicinal and non-medicinal sales."

Vaswani said that the company's best product line is ganja or flower as it is referred to in the industry, at 61 per cent of sales, followed by oil and other by-products made from the plant at 39 per cent.

Other merchandise including souvenirs and other accessories are usually purchased by locals "in terms of necessity" compared to impulse buys by tourists, so that has been the greatest lag in terms of revenue streams, the CEO outlined.

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Barbados on a digital high

admin — Thu, 22 Jul 2021 21:20:02 +0000

Barbados on a digital high

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admin Thu, 07/22/2021 - 21:20

Thursday, July 8, 2021

Original Publisher

Business – Barbados Today

Original Article

Barbados on a digital high

The Inter-American Development Bank (IDB) says regional states, including Barbados, could dramatically increase employment levels and improve sustainable development if they closed the digital connectivity gap with nations of the Organisation for Economic Cooperation and Development (OECD).

Importantly, the study has revealed that in Latin America and the Caribbean, major broadband penetration and 4G technology coverage gaps still existed compared with OECD countries.

Moreover, the average citizen in the region was spending more than 20 per cent of his or her income to access broadband services, a level way above the three per cent recommended by the International Telecommunication Union to make it affordable.

At the same time, the new IDB study titled Digital Gap in Latin America and the Caribbean: Annual Broadband Development Index Report, showed Barbados ranked among the top performers, making significant strides in the area.

The study, which evaluated the state of broadband penetration in 26 countries in the region and estimated the size of the gap vis-à-vis OECD nations.

The study suggested that millions of direct jobs could be created in the Caribbean and Latin America, leading to economic growth of approximately 7.7 per cent and result in an increase in productivity by 6.3 per cent.

There was good news in the study about Barbados in the global ranking of the index, which included a total of 65 countries.

“Barbados, Uruguay, and Argentina were the countries that advanced the most in the ranking, climbing 11, nine, and six positions, respectively, from 2018. In the case of Barbados, the reason for the hike was a dramatic improvement in the Public Policies and Strategic Vision pillar; in Uruguay, in the Infrastructure pillar; and in Argentina, in the Strategic Regulation pillar,” it was noted.

The best-placed regional country in the 2020 ranking was Barbados, in position 31, followed by Chile, Costa Rica, Brazil, Argentina, Uruguay, and The Bahamas, in positions 33, 38, 39, 40, 42, and 43, respectively.

“Delays in improving connectivity and digitalization in Latin American and Caribbean countries have dramatically exacerbated the economic and social impact of COVID-19. But this reality also offers a historic opportunity to reduce inequality, and create jobs and sustainable economic growth,” said IDB president Mauricio Claver-Carone.

“The IDB is taking steps to drive a digital ecosystem that will help the region attain these investments, design national broadband plans, and create the public-private partnerships needed to expand coverage for all citizens, especially those who are most vulnerable,” he added.

To close the gap, countries in the region would need US$68.5 billion, according to the IDB. Of the total, 59 per cent should go to improving connectivity in urban areas, something which is mostly handled by the private sector.

In contrast, 41 per cent would go to rural areas, where public investment is typically the main source of funding. According to the study, more public-private partnerships were needed to close the divide with OECD countries.

Based on the index’s results, the report has recommended that for Caribbean countries, there should be greater investment in infrastructure and in updating regulatory frameworks.
(IMC1)

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