Bank of Saint Lucia | Online Banking

JA. Select

9,751.13

61.08

0.63%

TTSE Composite Index

1,429.49

31.31

0.86%

BSE Composite Index

779.10

0.03

0.03%

DOW Jones Indus AVG

20,087.19

188.27

0.95%

S & P 500

2,409.39

11.29

0.47%

NASDAQ

7,150.58

160.73

2.30%

NIKKEI 225

16,522.83

173.72

1.04%

STOXX 600

287.80

11.25

3.91%

FTSE 100

5,151.61

151.07

2.93%

EUR-USD

1.069

0.00

0.42%

USD-JPY

110.71

0.7800

0.7095%

GBP-USD

1.15

0.03

2.46%

ECSE Index

149.87

0.00

0.00%

JSE Main

375,590.05

151.78

0.04%

Brent Crude Futr

28.47

1.77

6.22%

Gold 100 Oz Futr

1,479.30

29.40

1.99%

Silver Future

12.10

0.03

0.23%

JA. Select

TTSE Composite Index

BSE Composite Index

DOW Jones Indus AVG

S & P 500

NASDAQ

NIKKEI 225

STOXX 600

FTSE 100

EUR-USD

USD-JPY

GBP-USD

ECSE Index

JSE Main

Brent Crude Futr

Gold 100 Oz Futr

Silver Future

The Daily Global Market Performance Click Here

ECFH Closing Price as at March 19, 2020: $4.50

Market News

March 20, 2020

Caribbean Banks Association: Virus Changes Business Model

The Caribbean Association of Banks (CAB) has urged members that in the face of the coronavirus pandemic, it cannot be business as usual for the region’s financial institutions;calling on them to utilise every measure to curtail possible impacts.

“As the outbreak of the novel coronavirus (COVID-19) poses a significant and unprecedented threat to the global economy, it is now evident that it will no longer be business as usual for the foreseeable future,” the entity said in a recent release.

The CAB has said that given the pivotal role which banks and other financial institutions play in the macroeconomic stabilisation of economies, these entities are strongly recommended to engage measures that will allow them to be able to provide support and aid in the relief efforts of affected countries.

Wendy Delmar, chief executive officer (CEO) at CAB, advised that banks in responding to the crisis should make it an imperative in ensuring that considerations for short and long-term impacts of the pandemic are fully factored.

“The impact on the income earnings of customers may warrant policy level changes within your institutions,” she said.

Among some of the measures recommended were the now popular work from home and the reviewing of business continuity plans.

“It is now well-established that work-from-home capabilities are of significant importance in ensuring business continuity. Tests should be conducted to assess the level of working from home capabilities within your organisation in expectation of temporary nationwide lockdowns,” she said.

She also urged that banks, in adhering to the World Health Organization (WHO) to put emphasis on social distancing to flatten the curve of the virus and should push towards increasing the sensitisation on the usage of online banking, ATM and point of sale services.

“Having customers utilise avenues that reduce the level of interaction with employees and others reduces the level of virus transmission and is in the best interest of the wider population,” Delmar noted.

The Jamaica Bankers Association (JBA) this week also echoed some similar sentiments this week in ensuring that members of the financial sector in their response in the fight against the virus is one that also safeguards against the health and safety of employees, customers and the community.

Customers are being urged to use the alternate banking channels available to conduct transactions and avoid banking halls where possible. They should also utilise digital and electronic channels, bank online or via telephone by contacting their bank’s call centre and use the bank’s conveniently located ATM machines the release outlined.

Customers were also encouraged to take advantage of their debit and credit cards when making transactions, thereby minimising the handling of cash.

“All member banks of the JBA have committed to working with personal and business banking customers on a case-by-case basis to provide flexible solutions to help them manage through challenges such as pay disruption and industry downturn due to COVID-19. We will continue to monitor evolving economic conditions and consider other measures if necessary,” the association also noted.

Article published March 20, 2020 on thestkittsnevisobserver.com

Jamaica: PM announces NHT relief for mortgagors

PRIME Minister Andrew Holness has announced several measures to be undertaken by the National Housing Trust (NHT) to bring relief to mortgagors caught in the financial backlash from the novel coronavirus disease (COVID-19) pandemic.

These measures, he said, will “ensure the social protection of its mortgagors and contributors, and safeguard persons from losing their homes while improving their disposable income”.

Addressing Parliament during his contribution to the 2020/21 Budget Debate in downtown Kingston yesterday, Holness said there will be a moratorium on loan payments for workers who have been laid off, and special relief for mortgagors who may lose their jobs as a result of COVID-19.

“Effective immediately, mortgagors who are laid off can apply for a moratorium on all loan payments of three months in the first instance,” the prime minister announced.

He said there will also be a “special one-off offer to reschedule loans in arrears”.

“In February 2020, 11,350 mortgage accounts valued at $18.3 billion were in arrears for 90 days and over. Based on the NHT's loan management procedures, recovery activities, including public auction, were implemented. Effective immediately, the NHT will provide an option to reschedule these delinquent loans,” the prime minister disclosed.

He, however, noted that this option will only be made available where the trust has not already entered into a commitment to dispose of the property.

“Mortgagors are therefore encouraged to take advantage of this opportunity, which will be extended for six months, effective April 1, 2020. During this period, the NHT will consider each mortgage on a case-by-case basis, with the option to extend the tenure of the loan, reduce the interest rate, or some combination thereof,” Holness said.

In the meantime, he said mortgagors may also take advantage of the intergenerational loan facility in their rescheduling arrangements.

“All mortgagors who may have difficulties during this period, but whose mortgages are not at the delinquency stage, are being encouraged to make contact with the NHT. They stand ready to assist you,” he added.

Pointing out that the reduction in interest rates is in keeping with the general downward trajectory of interest rates, he said the trust will, effective April 1, 2020, reduce interest rates on all new loans by one per cent (benefiting 8,000 new mortgagors annually), and on all existing loans by 0.5 per cent (benefiting 100,000 existing mortgagors).

The prime minister said the interest rate discounts currently offered to special groups, such as mortgagors aged 55 years and over, the disabled as well as public sector workers, will continue, adding that the interest rate discounts for the disabled will, effective April 1, 2020, also be extended to include the parents of disabled children.

Holness also said legislative amendments are being proposed for the formalisation of lands, community by community, by way of a new adjudication procedure.

“While this new procedure will facilitate the issuing of titles, it will also be a more transparent process. The programme will start with 20,000 titles over a three-year period and this will form the basis of this Government's plans to title the entire country in the medium- to long-term,” he told the House.

Consequently, the prime minister tabled the Registration of Titles Act and the Registration of Titles Cadastral Mapping and Tenure Clarification (Special Provisions) Act for which Cabinet recently approved amendments.

He, in the meantime, said actions towards the implementation of the programme have started with the signing of a contract with a private sector partner.

“They will be responsible for carrying out land surveying activities in the communities and providing new technology solutions to support National Land Agency's operations. This programme will be supported by comprehensive public education at the national and community levels,” Holness said.

The Government, he said, in recognising the challenge of the average Jamaican in being able to afford the cost of titling their lands, will, under the programme, allow individuals in these communities to obtain their titles and pay the cost over time.

Earlier this week, the Administration said all non-essential workers across the private and public sectors should work from home as it continues efforts to contain the spread of COVID-19. In addition, all bars and places of amusement have been ordered closed and bans have been placed on public gatherings with restricted opening hours for markets and food stores.

Article published March 20, 2020 on jamaicaobserver.com

World Bank in $70M Economic Support Grant For Jamaica

WASHINGTON– The World Bank Board of Executive Directors has approved US$70 million in budget support financing to Jamaica to support the country’s reform program and efforts to strengthen and accelerate recent gains in fiscal consolidation and sustainable growth.

The First Economic Resilience Development Policy Loan (ERDPL I) aims to help Jamaica advance its economic reform agenda, while at the same time protecting the poor and vulnerable, including from natural disaster risks.

“Jamaica’s authorities have shown the commitment needed to maintain macroeconomic stability and demonstrated significant progress, including major reduction in public debt,” said Ozan Sevimli, World Bank Resident Representative for Jamaica. “These efforts will contribute to strengthening the country’s capacity to cope with the threats of natural disasters and public health crises.”

The operation is designed around three interrelated pillars to address the most important economic challenges Jamaica faces: strengthening fiscal sustainability and inclusion; enhancing fiscal and financial resilience against climate and natural disaster risks; and improving the investment climate for sustainable growth.

The first pillar helps strengthen institutional mechanisms for greater fiscal responsibility, while also increasing the effectiveness and sustainability of the social protection system within a sustainable fiscal envelope.

The second pillar supports measures to ensure that resources are available in the budget to adequately cope with climate and natural disaster-related shocks.

The third pillar improves policies to reinforce the resilience of Jamaica’s infrastructure to multiple types of disaster risk, including reforms to land titling and to the application approval process for development and building permits, as well as promoting the effective management and sustainable development of fisheries.

The US$70 million budget support operation is financed by the International Bank for Reconstruction and Development. The loan has a maturity of 24 years and a grace period of six years.

Article published March 20, 2020 on thestkittsnevisobserver.com

Markets lifted as central banks, governments pour in cash

LONDON (Reuters) - Stock markets rebounded from some of their recent huge losses on Friday, pulling further away from three-year lows as central banks and governments pledged masses of cash to reduce the economic impact of the coronavirus pandemic.

Shares soared at the start of trading in Europe, with the pan-European STOXX 600 index jumping nearly 5%.

Britain’s FTSE rose 4%, Germany’s DAX gained 6%, and France’s CAC 40 gained 5.86%. Spanish stocks were up 3.8% and Italian stocks gained 3%.

MSCI’s All-Country World Index, which tracks stocks across 49 countries, was up 1.5 %.

But in an indication of the deep damage inflicted on global equities from the pandemic so far, the index remains set to finish nearly 9% lower this week, adding to last week’s 11.1% plunge.

U.S. S&P 500 e-mini stock futures also pointed to a brighter end to the week, adding 3.5%.

As the spread of the coronavirus brought much of the world to a halt, nations have poured ever-more massive amounts of stimulus into their economies while central banks have flooded markets with cheap dollars to ease funding strains.

The U.S. Senate was debating a $1 trillion-plus package that would include direct financial help for Americans, relief for small businesses and steps to stabilize the economy.

Sources told Reuters that China was set to unleash trillions of yuan of fiscal stimulus to revive an economy facing its first contraction in four decades, though on Friday the country surprised markets by keeping its lending benchmark unchanged.

“Markets, in our view, will ultimately settle down if three conditions are met: 1) visibility on the ultimate scale of the coronavirus outbreak and evidence the infection rate as peaked over the long term; 2) deployment of credible and coordinated policy packages; and 3) confidence that financial markets are functioning properly,” asset manager BlackRock said in a note.

It said it was neutral on risk assets and advised investors to take a long-term perspective as “significant value is being created on riskier assets.”

In currency trading, the dollar lost some steam after hitting more-than three-year highs this week as investors dumped many assets in favor of the world’s reserve currency.

The dollar’s surge is a nightmare for the many countries and companies that have borrowed heavily in the U.S. currency, leading to yet more selling of emerging market currencies in a negative feedback loop.

“The speed and aggression with which authorities are wheeling out measures to cushion the economic fallout from the virus and sowing the seeds for a hopefully rapid recovery, has resonated somewhat in equity markets,” said Ray Attrill, head of FX strategy at NAB.

“Yet there is little doubt that funds need to buy dollars to rebalance hedges in light of the 30% fall in equity markets so far this month,” he added. “The dollar remains the pre-eminent safe-haven asset during times of extreme market stress.”

For now, investors in Asia were merely happy Wall Street had not plunged again. South Korean shares bounced 7.4%, though that still left them down more than 11% for the week.

Australia’s beleaguered market eked out a 0.70% gain, and futures for Japan’s Nikkei were trading up at 17,710, compared with the cash close of 16,552.

OIL RELIEF

Aiding sentiment was a rally in oil prices overnight. U.S. crude was 7% higher at $27 a barrel on Friday, up from a low of around $20, while Brent crude stood at $30.

This was a major relief as the collapse of crude prices had blown a huge hole in the budgets of many oil producers and forced them to dump any liquid asset to raise cash, with U.S. Treasuries a particular casualty.

After climbing more than 100 basis points in nine sessions, U.S. 10-year Treasuries steadied around 1.0501%.

At the same time, funds across the world were fleeing to the liquidity of U.S. dollars, lifting it to peaks not seen since January 2017 against a basket of its peers.

“Such price action suggests significant market stress, particularly on the wide range of entities outside the U.S. that have borrowed in dollars,” said Richard Franulovich, head of FX strategy at Westpac.

“It could last until global capital flows and investor risk appetite normalizes, possibly months away.”

The euro rose 0.85% to $1.0781 but was not far off three-year lows, having shed more than 3% for the week so far - the steepest decline since mid-2015.

Sterling continued its wild swings with a blistering 3% rally to $1.1878, having earlier hit its lowest since 1985 around $1.1404. It was still down 3% for the week.

The jump in the dollar has made gold more expensive in other currencies. While it rallied on Friday to $1,503.78 per ounce, it remains down about 1.6% on the week.

Article published March 20, 2020 on reuters.com