Interest Rates

[Dr.Dudd]

Re: Interest Rates

No FX control – BoJ Governor
Wednesday, 18 February 2009
Governor of the Bank of Jamaica (BoJ) Derrick Latibeaudiere has blasted critics who have accused the Central Bank of not doing enough to stem the slide of the Jamaican dollar.

At the BoJ's quarterly briefing Wednesday morning, Mr. Latibeaudiere stressed that the bank took various measures in the latter part of last year, which were aimed at stabilising the market.

He also took issue with those articulating a return to foreign exchange controls.

The BoJ Governor noted that such a move could only result in a negative outcome.

"No amount of tinkering can change the fundamental issue that given the world conditions there is a lower supply of foreign exchange and there's a greater demand for foreign exchange. You cannot fix an exchange rate system and try to sell foreign exchange around it, ultimately the forces in the economy would not be reflected in the exchange rate and you would very quickly have a black market develop ... we have been there before and I hope that we never go there again," said Mr. Latibeaudiere.

Earlier this week, reports surfaced that the Government could be considering a return to capital controls in the foreign exchange market but the

This has since been denied by the administration.

[Dr.Dudd]

Re: Interest Rates

Drop interest rates now - Azan

In the meantime, the Jamaica Manufacturers Association (JMA) had strong words for the BoJ at a press conference held earlier.

The JMA charged that the method used by the Central Bank to defend the Jamaican dollar by hiking interest rates is ineffective and is damaging to the productive sector.

It bluntly pointed out that BoJ methods have not worked in the past and will not work now.

According to the manufacturing association, while the rest of the world was taking steps to stimulate their economies, Jamaica was doing the opposite.

Omar Azan, JMA President said hiked interest rates and a free falling dollar have crippled manufacturers.

"As a business person, what I'm looking for is to be able to borrow money at a rate that I can compete with my regional partners and a dollar that is stable that I can plan my business ... I don't want to be costing at X and the following week it's at Y, so wherever we can find a stable dollar whether it be $5 or $100, as business people we would like a stable dollar and hiking interest rates is like chemotherapy, it's only a short term fix," said Mr. Ozan.

He reiterated his organization's plight and claimed that the stimulus package rolled out by the Prime Minister has lost its bite because of the devaluation of the dollar.

Mutual Guarantee Scheme

The JMA said it had some solutions for the Government all of which are anchored by a boost in production.

"To reverse this cycle, the Government has to begin freeing up credit and stimulating production ... failure of the Government to act boldly and swiftly will only deepen the impact of the recession on the private sector and lead to greater job losses. The JMA is therefore recommending the implementation of the Mutual Guarantee Scheme which would broaden access to financing for small businesses whose lack of collateral either denies them credit or forces them to pay the high cost of capital," said Mr. Azan.

He added that the JMA will stop at nothing to get the Government to change its interest rates policy,

<span style="font-weight: bold">The JMA head said the group would not sit back and allow Jamaica to suffer the same fate as Zimbabwe, which is grappling with hyper inflation which has made its currency virtually worthless. </span>

[Dr.Dudd]

Re: Interest Rates

Fall in JA$ affects Kingston Wharves
Thursday, 19 February 2009
At least one major player in the local shipping industry is being affected by the fall in the value of the Jamaican dollar against its US counterpart.

Kingston Wharves said for the quarter ended December 31 its results were negatively impacted by the adverse movement in the exchange rate.

<span style="font-weight: bold">A significant portion of the exchange loss sustained by the group was related to US dollar loans that were used in the refurbishment of facilities.

As a result, Kingston Wharves suffered a fourth quarter loss of $71 million compared to a profit of $139 million during the corresponding quarter in 2007.</span>

Revenue for the fourth quarter was $652 million a reduction of $69 million or 9% compared to the similar quarter of 2007.


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[Q3210]

Re: Interest Rates

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: evanovitch</div><div class="ubbcode-body">wat production Q and by whom? it neva seem to have done much bak in di days... </div></div>

where were you in the 60s? Jamaica was a devloping nation back then. Industrialization was very much a part of our focus...then came along Michael Manley and ended up with the night-Mare, Portia simpson Miller.

[Q3210]

Re: Interest Rates

As a result, 29 staff were dismissed. Competitors next door the Port Authority owned container terminal also laid off in excess of 100 staff.

[evanovitch]

Q, Abu Dhabi tekking ovah di port i undastan

[Gen]

Re: Q, Abu Dhabi tekking ovah di port i undastan

well if dem allowed fi tek ovah the ny ports a guess dem can tek ovah yard ports nuh choo ?

inna the gleaner yuh see dat ?

[Q3210]

Re: Q, Abu Dhabi tekking ovah di port i undastan

Where you saw that? Sunday Gleaner? Haven`t heard it on the radio or TV news yet.

AP Moeller`s operations contract was not renewed by the Port Authority of Jamaica is what I do know.

[evanovitch]

Re: Q, Abu Dhabi tekking ovah di port i undastan

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Q3210</div><div class="ubbcode-body">Where you saw that? Sunday Gleaner? Haven`t heard it on the radio or TV news yet.

AP Moeller`s operations contract was not renewed by the Port Authority of Jamaica is what I do know. </div></div>

an mi undastan dat is Abu Dhabi gwine to get it

[evanovitch]

dem buying intoJPS wid plans fi odda tings i undastand

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> A cash-rich company with tentacles stretching around the world has acquired a 40 per cent stake in the Jamaica Public Service Company (JPS) as <span style="font-weight: bold">part of its first foray into the Caribbean.</span>

<span style="font-weight: bold">Abu Dhabi National Energy Company </span>(TAQA) yesterday announced that it had completed the purchase of 50 per cent of the shares in the Caribbean portfolio of.....</div></div>

[evanovitch]

Re: dem buying intoJPS wid plans fi odda tings i undastand

Foreign shareholder nabs big chunk of Jamaica Public Service Company (JPS)
<span style="font-weight: bold">Published: Thursday | February 19, 2009</span>


Arthur Hall, Senior Staff Reporter
A cash-rich company with tentacles stretching around the world has acquired a 40 per cent stake in the Jamaica Public Service Company (JPS) as part of its first foray into the Caribbean.

Abu Dhabi National Energy Company (TAQA) yesterday announced that it had completed the purchase of 50 per cent of the shares in the Caribbean portfolio of Marubeni Corporation, the Japanese firm which is the majority stakeholder in the JPS.

However, there was no information from the firm as to how much it would pay and the amount of money it would invest in the region.

TAQA, however, did indicate the possibility of personnel changes in the Marubeni operations in the region, as it declared that its 50 per cent interest would be represented at board level at each facility and in key management positions.

The sale of the Marubeni shares was confirmed by Finance Minister Audley Shaw.

Strategic synergies

In a release issued yesterday, Shaw said Cabinet had approved the deal which will see the Government maintaining its 20 per cent stake in the JPS.

&quot;The ownership of 40 per cent of the shares in the JPS by TAQA, which takes effect on March 4, 2009, will introduce new and important strategic synergies in the injection of capital and technology and diversification of power generation to, over time, increase efficiency and reduce cost at the JPS,&quot; Shaw said.

According to Shaw, the JPS plans to aggressively expand electricity generation by 500 megawatts over the next five-10 years.

&quot;(This) will involve a mix of energy-generation technologies, including renewable energy such as wind and hydro power, clean coal and efficient oil-based equipment.&quot;

Tomofumi Fukuda, president of Marubeni Caribbean Power Holdings, said the agreement with TAQA would bring even greater value to Caribbean utilities and to JPS in particular.

[email protected]

[barosa]

Re: dem buying intoJPS wid plans fi odda tings i undastand

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">&quot;(This) will involve a mix of energy-generation technologies, including renewable energy such as wind and hydro power, clean coal and efficient oil-based equipment.&quot;</div></div>
There is no such thing as &quot;clean coal&quot; at the moment, not even in the US. That will be a long term idea and importing clean coal could be a possibility. But I suspect that the new &quot;part owners&quot; will eventually turn Jamaica into a Wind Turbine and Solar producing Electicity nation. This will give them untold profits to eventually own it 100% if we let them... on us...
____________________________

Boy! Aren't we living in interesting times?

[Q3210]

Re: dem buying intoJPS wid plans fi odda tings i undastand

I heard on Mottie`s show where the JPS is presently applying for an increase in rates so as to guarantee their profit margin whether they are efficient or not.