$30B GuySuCo bond will put pressure on foreign reserves – Jagdeo

first_img…as “unbelievable” reduction in foreign currency continuesAs Guyana’s foreign currency reserves continue to deplete daily, there are no signs of this changing anytime soon, especially with the $30 billion syndicated bond that was recently secured by the Special Purpose Unit (SPU) of the National Industrial and Commercial Investments Limited (NICIL) to assist with revitalisation of the cash-strapped Guyana Sugar Corporation (GuySuCo).This is according to Opposition Leader and General Secretary of the People’s Progressive Party (PPP), Bharrat Jagdeo, who told a news conference on Wednesday that when the spending of the $30 billion bond begins, it will substantially increase the demand for foreign currency and put pressure on the reserves.“What will happen is: it will put enormous…even more pressure on the foreign currency holdings, because you have more Guyana dollars being spent chasing the same supply of currency… In fact, not the same amount, because it is falling; it is declining because sugar earns less foreign currency…because of the drop-in production and exports, and other sectors have not been doing that well, like forestry,” he stated.Jagdeo said that, from all indications, there has been an unbelievable shortage of currency at the Central Bank. The reserves, according to him, have been declining, and there is no have foreign currency to meet their obligations.“So we are going to have some major problems in the near future. And so we areOpposition Leader Bharrat Jagdeogoing to see this evolve a bit more, because you can’t hide it for long. This is not the end of the problem,” he added.He referred to his last budget debate presentation, when he spoke about how much of the National Budget (the economy) is funded from domestic saving rather than foreign inflows.“It’s above 90 per cent. It used to be, in our era, about 50 percent each of national domestic expenditure funded from foreign sources, and 50 percent from domestic savings, and now it’s gone up,” he pointed out.CrackdownGovernment recently announced plans to implement a crackdown after it was found that local businesses were not abiding by Bank of Guyana (BoG) Act 1998 by trading US dollars where businesses are accepting foreign currency for the purpose of settling payments for transactions, instead of Guyana dollars.A statement from the Bank of Guyana (BoG) stated that pursuant to section (20) of the Act, all monetary obligations or transactions in Guyana shall be settled in Guyana dollars. It reminded also that only banks and licensed cambios were authorised to conduct buying and selling of foreign currencies, while noting that penalties were attached for violations, which include fines and imprisonment.But Jagdeo said that despite plans for a crackdown, based on his party’s intelligence, there have been reports about alleged meetings with Natural Resources Minister Raphael Trotman and calls from the Central Bank to persons demanding that they have to sell part of their money to the bank or to the Gold Board.With the recent influx of foreign shoppers into Guyana, Chinese businesses have been receiving enormous sales, and have been engaged in trading US dollars. This is something the BoG said it is aware of because it has received complaints in this regard. The BoG has also said this is lending to the issue of foreign currency shortage, and has cautioned these businesses must desist from this practice, as it plans to investigate thoroughly.But former Presidential Advisor and Economist Ramon Gaskin has since advised that the BoG and Government look at persecuting those found culpable instead of issuing basic reminders. He feels that unless businesses and persons are made an example, people would not take the warnings seriously.In March 2018, the Statistical Abstract published by the Bank of Guyana reported that the net international foreign currency reserves at the Central Bank were US$498.5 million, a 16 per cent decrease from 12 months prior, which economists and financial analysts had said it is worrying.They have argued that Guyana’s export sectors are under a clear and present danger as the Finance Ministry continues to under serve them, which has also led to a decline in the international reserves. These international reserves are composed of cash and other assets denominated in mainly US dollars.The foreign currency inflows also from the Guyana Sugar Corporation (GuySuCo) are set to decrease by a further US$10 million over 2018 as a result of the closure of three more estates. (Samuel Sukhnandan)last_img read more

Weather: Donegal set for a summer scorcher this Tuesday

first_imgDonegal is set to bask in hot sunny weather this Tuesday as temperatures soar to 26C highs.Tuesday is set to be a dry day full of sunshine in the north west. Temperatures will heat up to 20-26C.Donegal will be treated to a hot start to the week, with Met Eireann forecasting very warm and humid conditions. There is a risk of thundery downpours on Tuesday night.A forecaster said: “Tuesday will be another warm and mostly dry day. After a cloudy start, sunshine will develop quite widely as the day goes on. Top temperatures of 20 to 26 degrees. Light to moderate southeasterly breezes will be fresh and gusty near west and southwest coasts.“Showers will spread from up from the southeast on Tuesday evening and night, bringing the threat of a few thundery downpours in the east and north. Meanwhile, outbreaks of rain will push in off the Atlantic to affect the southwest and west. Lowest temperatures will be around 14 to 17 degrees in mainly light to moderate southerly or southeasterly breezes.”The weather is expected to become less warm and more unsettled as the rain returns from midweek onwards.   Weather: Donegal set for a summer scorcher this Tuesday was last modified: July 23rd, 2019 by Rachel McLaughlinShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)last_img read more

Blues ‘battle United’ for player

first_imgChelsea are locked in a ‘titanic battle’ to sign highly-rated teenage midfielder Paul Pogba from Manchester United, according to the Daily Mirror.Pogba, 18, has been stalling over signing a new contract at Old Trafford and Chelsea are said to be keen to capture him but have picked up mixed messages from his camp about whether he wants to move.AVB remains in the news.The Sun say Daniel Sturridge is considering his future at Chelsea.A friend of the player is quoted as saying: “Daniel will be distraught if Chelsea finish outside the top four — he’s desperate to prove himself at the highest level and that means he wants Champions League football, not Europa League.”Sturridge, 22, was recently reported to want an improved contract at Stamford Bridge and is apparently unhappy at being played on the wing rather than as a central striker.The Daily Mail say Chelsea’s apparent emergency plan to reappoint Guus Hiddink suffered a setback after it emerged he is a serious candidate to take over at ambitious Russian club Anzhi Makhachkala.The Independent, Sun and Daily Telegraph report yesterday’s comments by Andre Villas-Boas’ former president at Porto, Jorge Nuno Pinto da Costa.He suggested that the under-pressure Chelsea manager could take over at Inter Milan and that members of the Blues squad are texting ex-boss Jose Mourinho – who has been linked with a return to west London.Mark Hughes is having a difficult start as QPR boss.Mourinho has been accused of undermining AVB’s position, The Sun declare.The Sun claimed on Tuesday that Jose Bosingwa was one of only three Chelsea players who are fully behind their manager.And The Mirror today quote the defender as saying: “The dressing room has confidence in the coach. Villas-Boas is a good coach and he’s demonstrated that with his success in Portugal.”Meanwhile, the Daily Star claim QPR chairman Tony Fernandes has turned up the heat on manager Mark Hughes with his comments on Twitter following the weekend defeat at Blackburn.Fernandes has been widely reported as having accused Rangers’ players of being ‘spineless’ after tweeting: “Talent is one thing. We need a spine in QPR. We need fighters not just talent.”Follow West London Sport on TwitterFind us on Facebooklast_img read more

Half-time: Fulham 2 Charlton 0

first_imgScott Parker scored against his former club and Hugo Rodallega added a second as Fulham raced into a two-goal lead inside 12 minutes at Craven Cottage.Parker, who spent 14 years at Charlton, volleyed in off the crossbar after exchanging passes with Ross McCormack.And after the Whites maintained their bullish start, Rodallega tapped home from close range after keeper Stephen Henderson had parried McCormack’s shot from inside the box.Parker and Rodallega both returned to the side as two of four changes, with defenders Tim Hoogland and Sean Kavanagh also coming in.Hoogland almost conceded an own goal when he miscued a clearance high into the air, but keeper Marcus Bettinelli tipped it over the bar.Fulham (4-3-3): Bettinelli; Hoogland, Bodurov, Burn, Stafylidis; Parker; Christensen, Kavanagh; Ruiz; Rodallega, McCormackSubs not used: Kiraly, Hutchinson, Zverotić, Roberts, Williams, Woodrow, SmithFollow West London Sport on TwitterFind us on Facebooklast_img read more

Africa’s growth potential – and its ‘Next 10’ biggest cities

first_img18 August 2014Global investors are increasingly taking note of the untapped potential of sub-Saharan Africa, particularly its unparalleled demographic edge. According to a new report by PricewaterhouseCoopers, Africa will be enjoying faster economic growth than any other region – and will have the world’s biggest labour force.Most major international corporations are already active in at least one of the three largest cities in sub-Saharan Africa – Lagos in Nigeria, Kinshasa in the Democratic Republic of Congo (DRC), and Johannesburg in South Africa.However, PricewaterhouseCoopers (PwC) economists believe investors should also be getting excited about the “Next 10” biggest cities in sub-Saharan Africa, namely Dar es Salaam (Tanzania), Luanda (Angola), Khartoum (Sudan), Abidjan (Cote d’Ivoire), Nairobi (Kenya), Kano and Ibadan (Nigeria), Dakar (Senegal), Ougadougou (Burkina Faso), and Addis Ababa (Ethiopia).According to PwC’s latest Global Economy Watch report, released on Thursday, the population of these cities is projected to almost double by 2030, growing by around 32-million people. In fact, the latest UN projections indicate that, by 2030, two of the “Next 10” – Dar es Salaam and Luanda – could have bigger populations than London has now.Cities are the typical entry points for businesses looking to expand into new markets, because they enable closer interaction with customers in a relatively small geographical area.“The report projects that economic activity in the ‘Next 10’ cities could grow by around US$140-billion by 2030,” Stanley Subramoney, strategy leader for PwC’s south market region, said in a statement.This is roughly equivalent to the current annual output of Hungary, Subramoney said, adding that this was a conservative estimate that did not take into account real exchange rate appreciation, despite relatively strong projected growth in these economies.Roelof Botha, economic adviser to PwC, said that, in addition to high rates of GDP growth, rapid urbanisation and the so-called demographic edge, “a number of other economic phenomena in the region are starting to appeal to the global investment community”. These include:Significant new discoveries of mining and energy resources, in particular gold and gas; Substantial investment in infrastructure and capital formation by the private sector, which has witnessed an increase in the ratio of total fixed investment to GDP from 17.7% in 2000 to an estimated 23% in 2013;  Sustained growth in per capital incomes, which has led to demand shifts that are benefiting household consumption expenditure on durables, semi-durables and services; and  The ability of a growing number of countries to raise financing for infrastructure projects on the international capital market, in particular Kenya and Rwanda. Both of these countries have recently managed to sell government bonds globally at single-digit yields, which obviate the need for excessive debt servicing costs. It was factors such as these which had seen a return to sound growth in foreign direct investment (FDI) inflows into a number of key African economies last year, Botha said.However, according to PwC, there are three issues that sub-Saharan Africa has been struggling to resolve for a number of decades, and which could slow the pace at which the “Next 10” cities grow.These are: the low quality of “hard” infrastructure like roads and railways; inadequate “soft” infrastructure like schools and universities: and “growing pains” arising from political, legal and regulatory institutions struggling to deal with bigger, more complicated economies.“The challenges that policy makers face is to convert Africa’s demographic dividend into economic reality by overcoming these hurdles,” Subramoney said, adding: “History suggests this will not be a quick or easy process. Infrastructure development is a key driver for progress across Africa and a critical enabler for sustainable and socially inclusive growth.“However, investors should form their own plans to mitigate these problems by supporting infrastructure skills and development programmes.”SAinfo reporterlast_img read more