Moody’s downgrade signals need for Jamaica to make tough decisions; Other stories Posted on March 6, 2009March 6, 2009 by Your Financial FactSheet Jamaica Observer: Moody’s downgrade signals need for tough decisions On the 4th of March, international rating agency Moody’s Investors Services downgraded Jamaica’s foreign and local currency government bond ratings to B2 from B1 and Ba2 “to reflect deterioration in the country’s fiscal and debt positions as a result of the global economic downturn” .Foreign currency country ceiling for deposits was downgraded to B3 from B2, whilst all other ratings were unchanged. Jamaica Gleaner: “Analysts see no immediate pain from Moody’s downgrade” The downgrade of Jamaica’s sovereign bonds by rating agency, Moody’s, hardly came as a surprise to local analysts, who say that the country’s weakening economic fundamentals were already being factored into the price of the securities. Jamaica Observer: “Deciphering the global downturn” As the global crisis continues, it seems with the new indicators each day that the situation is worsening. Jamaica Observer: “The Clico brand in the Caribbean remains under serious pressure” Clico’s troubles first surfaced publicly in January when the Trinidad and Tobago government offered a rescue package for its parent company CL Financial. Since then, Clico’s operations in the Bahamas, Guyana and Belize have either been liquidated or brought under emergency state control.
Investors flee unit trusts…Managers say hold strain Posted on March 4, 2009March 5, 2009 by Your Financial FactSheet Jamaica Gleaner: Investors flee unit trusts Jamaican investors pulled an estimated $5 billion, or around 30 per cent of their capital, out of unit trusts last year – and the trend seems set to continue, even as managers of the mutuals insist they remain good investment vehicles for people not in a hurry to realise returns. Jamaica Observer: “Dangers Facing CARICOM” BRIDGETOWN, Barbados – Since state intervention in Trinidad and Tobago against CLICO and its financial groups to protect investors and policy holders, three other Caribbean Community (Caricom) governments have successfully moved to the courts to place this giant regional conglomerate under judicial orders in the management of its assets and funds. Clifford, CNNMoney.com: “U.S. Recession to end in within 2 years – survey” Independent financial advisors see a light – however dim – at the end of the current recession tunnel, according to a new survey. In an online study conducted for Charles Schwab, 85% of advisors believe the downturn will end within the next two years. Fifteen percent see it going longer.
BOJ opens forex window for public companies; Other top stories today Posted on February 20, 2009February 20, 2009 by Your Financial FactSheet Jamaica Gleaner: The Jamaican central bank has undertaken to supply key state-owned companies with their foreign currency requirements in what the bank’s governor, Derick Latibeaudiere, says is a temporary move to help ease a demand scramble on the foreign exchange market and pressure on the Jamaican dollar. Jamaica Observer: “Caribbean needs debt relief” – Davies Caricom should approach the West including US president Barack Obama for debt relief and extended lines of credit at a regional summit in Trinidad and Tobago (T&T) in April, said opposition finance minister Dr Omar Davies. It is not begging, said Davies but rather a set of demands to secure the region’s best defence against the worst economic crisis since the 30s. Jamaica Observer: “Why does Jamaica continue with a high interest rate regime?” At his most recent quarterly press briefing on Wednesday, Central Bank Governor Derick Latibaudiere stated that whilst he fully understood people’s concerns about the current high level of interest rates, the fundamental issue was that there was a disequilibrium in Jamaica’s foreign exchange market due to lower supply and greater demand. Jamaica Observer: “Jamaica would be in deeper crisis without multilateral funding-Shaw” Finance Minister Audley Shaw has said that the country would have been in much deeper economic problems today if the Government had not sourced just under US$1-billion in low cost funding from multilateral financial institutions over the past year.