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REAL ESTATE RECOVERY

POSITIVE DEVELOPMENTS IN 2018 EXPECTED TO BRING RELIEF TO CARIBBEAN REALTORS BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

Mexico raises close to US$100bn in oil sector investment

It’s been a rocky road to recovery for the region’s realtors. The sector was badly impacted by the financial crisis of 2008 and has been slowly regaining its feet ever since. Last year was another tumultuous year with hurricanes, geopolitical developments and fluctuating currency markets all having an impact on buyers. Caribbean realtors can afford to be optimistic, however, as foreign investors are expected to show renewed interest in the region this year, thanks to growth in tourism, confidence among US buyers and investment in infrastructure. Continued on page 4

What Venezuela’s chaos means for the oil market

Anyone looking for an explanation of the recent uptick in the oil price towards US$70 a barrel need look no further than the unhappy state of Venezuela. Page 7

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THE BUSINESS OF GEOPOLITICS IN THE CARIBBEAN BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

The STAR Businessweek BY CHRISTIAN WAYNE – EDITOR AT LARGE Lewis Carroll once wrote that geopolitics is much like a poor memory, it only works backwards. Profound as the prolific Englishman’s words were, I personally prefer Parag Khanna’s—author of The Second World: How Emerging Powers Are Redefining Global Competition in the Twenty-first Century—definition of geopolitics: “Unlike history, geopolitics is a discipline that looks backwards explicitly for the purpose of looking forward”. In Khanna’s words, if international relations is the meteorology of current events, then geopolitics is the climatology, the deep science of world evolution; geopolitics cannot be updated by clicking “Refresh” on an Internet browser. It would hardly be an astute observation to remark that, as a people, we Saint Lucians have never really cared much for the past, or for the future for that matter. What we care about is the present. Now, the argument can be made that while living in circumstances of desperation, whatever they may be, hindsight and introspection may be luxuries afforded only to society’s grand pontificators, but while hindsight may be optional for an individual trying to carve out a living, it is certainly not optional for a nation and especially not for a nation’s elected leaders; yet, unfortunately, that is what we have had. In simplest terms, geopolitics is the study of what has been done, in order to understand what we must do. In this week’s edition of The STAR Businessweek, we’re straying away from the gravitational pull of Trump’s America and the badlands of Brexit to focus on another sphere of influence that Caribbean islands like ours should consider courting. Though most of these countries may have fallen out of love with former Goldman Sachs Asset Management Chairman Jim O’Neill and most quarters of Wall Street, the dejected underdogs of geopolitik will always find a warm embrace in the waters of the Caribbean—where nothing quite bonds a diplomatic relationship as well as good old-fashioned convenience. For all this and more, begin with The Business of Geopolitics in the Caribbean starting here on page 2.

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In recent weeks The STAR Businessweek has covered the relationship between Brazil and the Caribbean. Brazil’s economy is so big that its performance impacts not only its national progress, but that of South America as a whole. That’s Brazil, and it is a sizeable standalone entity in our region and globally. But Brazil is also a core part of BRICS, the association of five emerging marketpowerhouses, with Russia, India, China, and South Africa, like Brazil, possessing a robust GDP at home, and the capacity to project economic power abroad. BRICS has shared goals, but not necessarily shared consensus about achieving them. Just as Brazil is an important trading partner to many Caribbean nations, so do the other members of BRICS carry much economic sway for our future. So, what does Brazil’s relationship with BRICS mean for our region? And what other factors impact our region’s relationship with the BRICS nations?

WHAT BRICS SEEKS TO BUILD

To understand the future of Brazil and BRICS for our region, it’s essential to first define the most important dynamics of the parties in our region. The five BRICS nations share an interest in creating a new economic order in the world. There are broad strokes to this - Russia and China may aspire to actively challenge the economic power of the US and Europe whereas Brazil and India may prefer consensus-driven reform as opposed to remaking the world anew - but ultimately each nation sees in its four fellow BRICS members willing partners in a campaign for change.

The BRICS bloc also has a fair claim to seek change. Together, the five nations account for 26% of the world’s land mass and almost 50% of its population. By any measure, the BRICS nations have the size, population and projected growth to stake a claim for greater global influence in the years ahead. This notwithstanding, there remain tensions here. China and India share much in common as nations with sizeable territories, huge populations of over 1 billion citizens and a shared recognition that the economic promise of their future has followed after a difficult period of unwanted foreign rule. In many respects, their stories mirror that of many Caribbean nations. Yet India and China also have intrinsic and growing tensions. While there are shades of grey in each system, India is ultimately celebrated as the world’s biggest democracy, whereas the Chinese Communist Party’s (CCP) authoritarian rule is regularly condemned by democratic activists and human rights campaigners. Recent military tensions over Beijing’s South China Sea exploits and creation of artificial islands for territorial claim have rapidly grown the divide.

IN OUR NEIGHBOURHOOD

This strained dynamic is also apparent with Brazil and BRICS in our region. Unquestionably, Brazil holds an advantage over other BRICS nations in pursuing growth and trade in the Caribbean. There is a common history of navigating colonialism and independence in the New World, and economically there’s the advantage of proximity relative to more distant BRICS members.

There’s also the language factor. Though Brazil is Latin America’s sole predominantly Portuguese-speaking nation, its population and economy is so big that it sees Portuguese accompany Spanish and Guarani as the official languages of Mercosur, the South American trading bloc. This is a key example of Brazil’s national economic power, and as a leader of South American trade more widely, as South America can go ‘all in’ for Brazil. Put simply, with these advantages in place, Brazil aspires to a world where its leverage sees BRICS grow to its benefit, but not to the detriment of its direct interests closer to home. Like China and India, recognising Brazil’s relationship with its neighbours is essential to identify the influence and opportunities available in a BRICS-Caribbean relationship. But the advantages forged over time are not without new complications in 2018.

LOOKING NORTH TO NAFTA

In recent times a new dynamic has also entered the fray, one that would have seemed unimaginable just a few years ago. The ascent of Donald Trump to the Oval Office came with a promise to put ‘America First’ and revisit ‘bad deals’. The North American Free Trade Agreement (NAFTA) has been central to this. Like Brazil, the proximity of the US, Canada and Mexico to the Caribbean means NAFTA’s three members will always have strong and enduring ties to our region. But ties can remain strong and enduring without actually growing. They can also pivot in new directions and reset old relationships. Just as Brexit has seen Canada recalculate its relationship with the EU and UK, so would a Trump-driven end to NAFTA see Mexico turn from its North American partners to pursue new trade in Latin America, and potentially with China. Like Brexit, the implications of an end of NAFTA would go beyond the term of a single politician and, instead, be a change that would dramatically alter (for better or worse) the fortunes of a generation. Continued on page 5

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MEXICO RAISES CLOSE TO US$100BN IN OIL SECTOR INVESTMENT BY FT CORRESPONDENT

The biggest competition was seen for 10 blocks in the Salina basin, which Mexico believes contains very attractive sub-salt reserves

Mexico secured almost US$100bn in investment in its most successful oil tender to date as Anglo-Dutch oil major Royal Dutch Shell positioned itself as the biggest player in deepwater exploration and new companies including Qatar Petroleum burst on to the scene. Aldo Flores, hydrocarbons undersecretary, said the $93bn secured was 1.5 times the total investment in nine previous tenders since a landmark reform in 2013 that opened Mexico’s oil and gas sector to foreign investment for the first time in nearly 80 years. Shell, which is also the biggest foreign operator in Brazil’s deepwater sector, obtained a total of nine contracts — four solo, four in partnership with Qatar Petroleum, the world’s largest liquefied

natural gas producer, and one in alliance with Pemex, Mexico’s state oil company. In all, 19 out of 29 contracts on offer in three areas of the Gulf of Mexico were awarded. That brought to more than 60 the number of companies committed to developing Mexico’s promising hydrocarbons assets at a time when Pemex’s production is at a four-decade low, underscoring the country’s potential, particularly when oil prices are at $70. “This is a vote of confidence in Mexico,” said Mr Flores. Mexico holds presidential elections in July in which hard-leftist Andrés Manuel López Obrador is shaping up as the man to beat. Although he has softened initial opposition to the energy reform, Mr López Obrador and his team have hinted that the pace at which the sector is opened up could

slow down if he won. However, analysts agree that rolling back the reform would be virtually impossible and any changes would not be retroactive. Furthermore, any increase in production at a company that is an important government cash cow would be hard to turn down. Juan Carlos Zepeda, head of the National Hydrocarbons Commission, the sector regulator, said that if all the blocks awarded were successful “we’re talking about 1.5m [additional] barrels of oil [per day] — almost doubling the current level of 1.9m”. In gas, the potential for increased production was similar — some 4bn additional cubic feet a day, compared with current output of some 5bn, he said.

While such a success rate may be a stretch, especially in the largely virgin Salina basin in the Gulf where the potential rewards are high but so are the risks, Wednesday’s successful bidders have committed to drilling 23 wells, bringing to 129 the total number of wells committed since the reform. The $93bn investment is contingent on blocks proving commercially successful. The government also stands to gain heavily with a total tax take of 63 to 67 per cent of profits — higher, Mr Zepeda said, than in both US and Brazilian deepwater blocks. Some companies also offered eyepopping cash bonuses to secure their winning bids, amounting to $525m in all. In the highest single cash offer, a consortium made up of Repsol of Spain, Petronas of Malaysia, Mexico’s Sierra Oil & Gas and PTT Exploration & Production of Thailand committed more than $151m. The biggest competition was seen for 10 blocks in the Salina basin, which Mexico believes contains very attractive sub-salt reserves. Other winners included Chevron of the US, Inpex of Japan and Eni of Italy. “This will translate into real and effective work for Mexico — we are all winners,” Alberto de la Fuente, Shell’s country chief, told reporters, adding he saw “no impact” from concerns over the future of the North American Free Trade Agreement. The blocks awarded have a lifespan of up to 50 years. Cash-strapped state-run Pemex raised some eyebrows by winning four blocks, either alone or with partners. The rationale of the oil reform was to allow private investors into Mexico precisely because Pemex did not have the firepower or experience to develop everything itself, especially costly deepwater projects. “In 20 years [exploring in the Perdido], Pemex has not produced a single barrel of oil in deepwater,” noted George Baker, an oil analyst. But one senior executive at the company who asked not to be named said the idea was to bring in partners. “They’re looking for us already,” he said.

TOURISM

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Real Estate Recovery POSITIVE DEVELOPMENTS IN 2018 EXPECTED TO BRING RELIEF TO CARIBBEAN REALTORS

Continued from page 1

Tourism Organization Secretary General Hugh Riley said: “The Canadian market was a strong performer for most of 2017, with arrivals up by 6.4%. We can now look forward to more expansion of that market in 2018. We also continued to focus on our two primary markets, the United States and Europe, with the UK in particular taking a central role. These markets were more robust in 2017 and we trust this will continue in 2018.” More tourists means more buzz, a greater investment in infrastructure and resort projects and a steady stream of revenue for those buyers who are looking to purchase and then rent their properties. It also means greater accessibility with airlines adding more Caribbean destinations to their schedules and upgrades to airports across the region. This year US-based carrier JetBlue will begin new routes from Fort Lauderdale to Grand Cayman and the Dominican Republic and Canadian company Sunwing recently announced new flights into Bonaire and Antigua. Many visitors are making the leap from tourist to resident and investing in property that they can enjoy themselves all year round. Saint Lucia’s innovative Citizenship by Investment Programme (one of the least expensive in the region) was amended in 2017 to incorporate a lower threshold for residency and allow for more applications to be processed each year. This week St Kitts and Nevis followed suit, adjusting its CIP in response to pressure from real estate developers. Families acquiring citizenship through investment in St Kitts and Nevis properties will now see a reduction in the associated government fees.

LOYALTY St Barts and Mustique saw positive annual price growth in recent years

“A couple of big deals recently, around US$10m, suggests a certain appetite has returned to the market,” says Edward de Mallet Morgan, Head of the Caribbean Department at global real estate consultants Knight Frank. “Buyers who have been contemplating the Caribbean for years, and who are perhaps unsure about investing in Europe, or who are deterred by the cooling market in the UK, are feeling that now is the

COMING SOON SATURDAY MARCH 31ST, 2018

time to reconsider the Caribbean.”

PERENNIALLY POPULAR

The Caribbean has always been a popular choice for foreign property hunters, thanks to its pleasant climate, relaxed island lifestyle and beautiful natural environment. Notwithstanding, the market has been experiencing a decade-long downturn since the global financial crisis of 2008. The

formerly lucrative second home market was badly impacted, and real estate investment in the region slumped significantly. In the years since, the Caribbean property market has been taking tentative steps towards recovery, bolstered by climbing tourism numbers and a slow but steady rise in GDP. Summarising the region’s tourism performance at the end of 2017, Caribbean

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The Caribbean encompasses over 7,000 islands and territories so there are plenty of options for house hunters to choose from. Long-term visitors, members of the Caribbean diaspora and investors often show loyalty to one particular island; this is especially true with smaller countries such as Saint Lucia where residents become part of a close-knit community and form an attachment to their neighbours. In recent years the region’s real estate hotspots have been The Bahamas, St Barts and Mustique, according to Knight Frank. In its Caribbean Insight 2018 report, the consultancy firm noted that prices have

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The international real estate market is also set to become more competitive as emerging economies develop and inventory increases. Analysts at Pricewaterhouse Coopers predict that the amount of investable real estate worldwide will more than double between 2012 and 2020

declined across the region by 30% in the last decade although St Barts and Mustique saw positive annual price growth in recent years. Last year’s hurricane season was one of the most active on record, with back-to-back category 5 storms Irma and Maria causing widespread destruction and becoming two of the most expensive natural disasters to hit the region. Those islands within the hurricane belt are steadily rebuilding while those outside are enjoying new popularity as they are seen as a safer option for hurricanewary foreign buyers.

FOREIGN BUYERS

Interest from American buyers, in particular, is on the rise. As the US economy continues to strengthen, consumer confidence is up and more high net worth individuals are looking to invest in property offshore. Thanks to increased flights, the Caribbean is now more accessible than ever and house hunters can extend their search beyond welltrodden destinations, like The Bahamas, to the Eastern Caribbean. Less regulation and taxes in the States has led to more highend US buyers putting their money in the region’s real estate, either by buying, building or investing in resort projects. Edward de Mallet Morgan says that these

buyers are looking for safety, diversity and the tropical lifestyle, and highlights Mustique as being particularly popular. “A noticeable trend is that American buyers are back in Mustique,” he says. “Some [US buyers] are cautious about investing further in New York in the current political climate, or are deterred from Miami by its softening market. They have homes already in Manhattan and the Hamptons and want a place to get away from their usual social set. They want their children to meet a more diverse range of people from around the world but in a place with a reassuringly safe, old-school feel.” In the long-term, British buyers could also have a positive impact on the market. While concerns over Brexit and resulting fluctuations in the pound have dampened buyers’ confidence, analysts believe this will be restored once negotiations are concluded. In the post-Brexit environment of 2019, UK buyers who have traditionally sought their winter sun in southern Europe may be convinced to look further afield, especially given the increase in direct flights between the Caribbean and Europe. Knight Frank cautions, however, that any recovery would be subject to currency volatility.

THINKING LONG-TERM

Seen for many years as a luxury destination, the Caribbean will always have its fans among high net worth buyers but, like any market, real estate has to change with the times. In the long-term, a number of significant global economic and social trends will have a ripple effect on the industry. These include an increasingly migratory population, a growing middle class in emerging markets and the aging global population. The international real estate market is also set to become more competitive as emerging economies develop and inventory increases. Analysts at Pricewaterhouse Coopers predict that the amount of investable real estate worldwide will more than double between 2012 and 2020. As competition deepens between destinations, the Caribbean has to look beyond its natural assets and offer something unique if it wants to regain and retain foreign business. Favourable tax environments, affordable citizenship programmes, unique and varied inventory and reliable infrastructure can keep buyers coming back year after year as they realise that there is more to the islands than a dose of winter sun.

Love is in the air!

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THE BUSINESS OF GEOPOLITICS IN THE CARIBBEAN Continued from page 2

China supports South Africa’s hosting of the BRICS Summit in September 2018

In effect since 1994, the impact of any variation or end to an agreement that has an annual output of US$17 trillion could have a gargantuan effect immediately, and add a new stumbling block to trade throughout the Americas. It’s true that ‘a week is a long time in politics’ but economics within the realm of geopolitics usually proceeds at a slower pace. New relations being sought, negotiations held and ultimately trade deals signed, takes time, usually years. That’s why the relative speed of events in Beijing’s resurgent campaign for diplomatic recognition in the Caribbean, the prospect of Mexico’s withdrawal from NAFTA, and the political blowback via the EU from the Paradise and Panama Paper leaks affirm we are in extraordinary times. The current BRICS chapter is another example of the Caribbean having seen itself confirmed as an

epicentre of global currents.

THE ROAD AHEAD

At its core, this era is a story of blocs: BRICS, Mercosur, the EU, NAFTA. The challenge for the people of the Caribbean is how to seize upon the opportunities while avoiding being pulled into the geopolitics at play beyond it. With so many of our nations still very young in the story of their independence, relationships that grow national trade and our regional identity are important. Our region also has no aspiration to revisit great power struggles of the Cold War. Given the number of interested parties, ensuring that others don’t seek to chart our path is best done by the decisive pursuit of our own. At its heart, seizing upon the offerings of BRICS will ask us to envision what a comparable Caribbean bloc may look like.

The stroke of a pen won’t see such a bloc made overnight, and it’s true that recent episodes in North America and the EU have shown the difficulty of regional political coalitions. But this idea is gaining new momentum in the digital era whereas old challenges of communication and logistics are shrinking. The work of CARICOM and the Organisation of Eastern Caribbean States has shown the foundations for a new step forward here. Our region is a young one, still building a clear sense of regional identity that tells the story of who we are and what we can do that no others can. While great powers in BRICS and trading partners in NAFTA ponder the future of their engagement in our region amidst their own discord‚ the Caribbean can seek to define and grow what our region embodies in the era of blocs. We just need to do it brick by brick.

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The Saint Lucia Government Gazette Company Registration Name: Benmarie Ltd. Description: Real Estate Directors: Stennet Bent; Vanessa Morgan Date Incorporated: 8-Feb-18 Chamber: Amicus Legal, Saint Lucia Name: Caribbean Galaxy Real Estate Ltd. Description: Real Estate Directors: Ying Jin Date Incorporated: 14-Feb-18 Chamber: Amicus Legal, Saint Lucia Name: Notox Inc. Description: Supplier of skin care products Directors: Agnes Savenok Date Incorporated: 14-Feb-18 Chamber: Brickstone Law, Saint Lucia

This project aligns with OECS Strategic Objective No.4: Assure the Security and Well-being of Citizens.

OECS AND CCRIF SUPPORT AT-RISK COMMUNITY IN SAINT LUCIA Situated between two rivers – the Grande Rivière in the south and Petite Rivière in the north – the Anse La Raye community in Saint Lucia is naturally flood prone. In recent years, flood mitigation projects implemented along the rivers have seen a decrease in the severity of floods in the village. However, several factors, such as the sea swells and overgrowth of the mangrove along the Petite Rivière, continue to pose the threat of floods. The Caribbean Catastrophe Risk Insurance Facility (CCRIF) SPC (Segregated Portfolio Company) has partnered with the OECS Commission and the Anse La Raye Disaster Committee to design and implement a community-based intervention to sustainably manage the Mangrove,

reduce the flood risk and enhance local livelihoods. Chairman of the Anse La Raye Disaster Committee, Mr. Stephen Griffith, said the project was critical to mitigate flooding for many residents of the village. “The water was not following its natural course. The mangrove caused the river to make a curve towards the village which, when it rains heavily, would flow into a residential area posing a danger to property and lives,” said Griffith. Mr. Griffith thanked CCRIF SPC and the OECS Commission for the muchneeded assistance to implement the project and noted that residents are already experiencing benefits as heavy rains last December (2017) did not result in the usual levels of flooding. Plans to maintain the sustainability

of the project include the restoration of the mangrove, the installation of a boardwalk and wildlife park, capacity building for at least 20 young persons in Mangrove Management and a sensitisation and anti-litter campaign in the community and in schools. “We will target adults, to try to get them to dispose of their garbage properly, but our primary aim is to target the school children so that they can develop these habits from an early age,” noted Griffith. The Climate Change and Disaster Risk Management Unit of the OECS Commission thanks CCRIF SPC for its continued support. The OECS Commission and CCRIF SPC recently signed off on a second five-year Memorandum of Understanding towards disaster risk reduction.

Name: Skylink Investment Inc. Description: Real Estate, construction, and consultancy Directors: Cloud Poyette; Bertha Augustin Date Incorporated: 14-Feb-18 Chamber: Self-incorporation Name: Villa Sea Breeze Ltd. Description: Property Holding Directors: Duan Jean Baptiste Date Incorporated: 15-Feb-18 Chamber: Brickstone Law, Saint Lucia Name: Captain Ron Tours and Entertainment Activities Inc. Description: Land, air, sea tours and entertainment events Directors: Aaron Alexander; Thomas Ambrose; Gervin Auguste Date Incorporated: 16-Feb-18 Chamber: SEDU, Saint Lucia Name: Solar Creativity Caribbean Ltd. Description: Solar products, deep cycle batteries, golf cart sales and rentals Directors: Neil Dickson; James Dickson Date Incorporated: 16-Feb-18 Chamber: Floissac Fleming Associates, Saint Lucia Name: Castle Valley Inc. Description: Property Holding Directors: Duan Jean Baptiste Date Incorporated: 16-Feb-18 Chamber: Brickstone Law, Saint Lucia

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Name: Shirl’s Variety Ltd. Description: Retail of confectionery at Hewanorra International Airport Directors: Imelda Moonie-Gidharry; Claudius Gidharry; Dwight Gidharry; Indira Gidharry Date Incorporated: 16-Feb-18 Chamber: SEDU, Saint Lucia Name: Rokam Sales Ltd. Description: Real Estate sales and development Directors: Jonathan Kendrick Date Incorporated: 19-Feb-18 Chamber: Peter I. Foster & Associates, Saint Lucia

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WHAT VENEZUELA’S CHAOS MEANS FOR THE OIL MARKET

The effects of the country’s collapse have begun to hit its core business BY FT CORRESPONDENT

On any normal measure, Venezuela should be one of the world’s richest countries. Instead, the country is on the verge of bankruptcy.

Anyone looking for an explanation of the recent uptick in the oil price towards US$70 a barrel need look no further than the unhappy state of Venezuela. Oil production in the country fell 13 per cent in 2017 (against the 2016 average), with the drop accelerating towards the end of the year. In the last three months alone output has fallen by more than 500,000 barrels a day to a 28-year low of just over 1.6m a day. According to the latest figures, the fall far exceeded the amount required under the OPEC quota agreement, especially given the growth of production in Iraq. But for Venezuela, the oil cartel would be struggling to meet its target. The question is whether the decline in Venezuela will continue or production can be stabilised. On any normal measure, Venezuela should be one of the world’s richest countries. With proven oil reserves of over 300bn barrels and a wealth of other natural resources, the 30m citizens of the Bolivarian Republic should be the beneficiaries of a secure regional market for oil supplies and of the skills accumulated in the industry over the last 80 years.

Instead, the country is on the verge of bankruptcy. The government is toying with inventing a currency — the petro — securitised against the contents of an oilfield in the Orinoco basin. But the first requirement of cryptocurrencies is trust and there is little or none of that for the government of President Nicolás Maduro. The inflation rate is running at 1,178 per cent, according to unofficial estimates — the government has stopped publishing inflation data. There are shortages of food and a surge in births caused by a lack of contraceptives. Some 20,000 people were killed last year in incidents related to crime, and the country has become a key base for the trading of narcotics from Latin America in the US and the rest of the world. The collapse of Venezuela as a viable state has accelerated over the past six months and its effects have begun to hit the country’s core business — the production of oil. The state company PDVSA is deeply in debt. Including bonds, notes and other loans, it owes around US$56bn. Schlumberger, the international oil services company, took a writedown of $938m last month because of bills the country has failed to pay. Cuba, once the closest ally of Venezuela’s

Some in Venezuela hope that US intervention, through sanctions or more directly, will bring about a change of regime. But the American appetite for overseas adventures does not seem strong and Venezuela is too weak to pose any threat to the US’s direct interests

hard-left leadership, has taken control of PDVSA’s stake in a local refinery to offset unpaid debts. Russia and China have at times propped up the Maduro government but now the limit of generosity seems to be some relief on repayment terms rather than new loans. Lack of equipment and investment has started to have a serious impact on production, which is now back below the level of Mr Maduro’s predecessor Hugo Chávez. Can production fall further? In theory, Venezuela has the capacity to produce at least 2.4m barrels a day from existing fields, but without investment essential work cannot be undertaken. The appointment of Major General Manuel Quevedo as oil minister and PDVSA chief executive, despite his apparent lack of any experience in the area, suggests that the industry is still a political pawn being used to tie the military into supporting Mr Maduro. The military is powerful in Venezuela but it is hard to see how Maj Gen Quevedo can produce oil from facilities rotting from a decade and a half of neglect. Some in Venezuela hope that US intervention, through sanctions or more directly, will bring about a change of regime. But the American appetite for overseas adventures does not seem strong and Venezuela is too weak to pose any threat to the US’s direct interests. EU sanctions for human rights violations are targeted on key officials but are unlikely to break the nexus of power between the Maduro administration, the army and organised crime. The key requirement is for renewed investment but with debts mounting that is unlikely unless the government changes. Companies that are owed money will stay away. Many expatriates have left, putting the oil industry in the hands of people who are themselves suffering from falling real wages and lack of food. In the absence of regime change there will be no rescue funds from the International Monetary Fund or anyone else. Meanwhile, the opposition, although vocal, lacks any effective power. In these circumstances, the country’s oil production is likely to stay down, and could well fall further during 2018. For Venezuela the situation is a deepening tragedy. For the oil market, and OPEC in particular, the loss of production from one of the most important producers outside the Middle East is a source of salvation.

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Services (brochures, description of similar

NSDI in line with the goals and needs of

assignments, experience in similar conditions,

the Government of Saint Lucia towards a

availability of appropriate skills among staff).

change strategy that includes elicitation, enterprise culture assessment, gap assessment,

Consultants may associate to enhance their

solution evaluation of data portals, change

qualifications. The associations should

strategy including support for legal change

clearly indicate the form of the association

implementation, support for institutional and

(joint-venture or sub-consultancy; member

technological implementation; assistance in the

in charge; other member(s) and/or sub-

implementation of policy, technological and

consultants). Joint ventures shall submit

organizational changes necessary for the NSDI.

letters of intent indicating their intent to

venture.

Project Coordination Unit Department of Economic Development, Transport and Civil Aviation Attn: Project Coordinator Second Floor, Finance Administrative Centre, Trou Garnier, Pointe Seraphine, Castries, Saint Lucia Tel: 758-468-2413 E-mail: slupcu@gosl.gov.lc Website: www.finance.gov.lc

FINANCIALLY SPEAKING Financial Literacy 101 presented by Bank of Saint Lucia

ESSENTIAL TIPS FOR YOUNG PROFESSIONALS An essential part of financial planning is recognizing that our financial needs, goals and priorities will change over time. While no two people share the same situation financially, all of us go through the personal financial life stages. These stages include pursuing education; entering the work force; building your career; starting a family and retirement. If you are a young professional, relatively fresh in the workforce and seeking to build your career, these financial tips should help: BUDGET, BUDGET, BUDGET Create a budget for yourself to effectively manage your money. Tracking how much you spend weekly and monthly shows you where your money goes and how you can save more. Identify and classify your expenses – fixed and variable. This in turn affords you the opportunity to place excess funds into savings or investments or work on eliminating any debt. There are a number of budget apps available to track your use of funds automatically or manually. Take your pick! SET LONG TERM GOALS Once you have budgeted and organized your finances, one of the first things to start saving for is retirement. Yes, the best time to start saving is as soon as you receive your very first salary. Ensure that all savings goals

set are realistic and within your means. To assist with your goals, consider setting up a standing order to transfer funds from your salary account to your savings account automatically every month. ESTABLISHING & BUILDING GOOD CREDIT Having a good credit record demonstrates your responsibility and credit worthiness and can assist you later down the line when it comes to home ownership and future borrowing. If you are fresh out of university then you are likely to have a student loan. Student loans and credit cards can assist in building good credit. Ensure that your monthly obligations are met as per your budget. CONSIDER A CONTINGENCY FUND It is important to be financially prepared from as early as possible. Life comes at you quickly, and so do unexpected surprises – like medical emergencies and unexpected job loss. These can temporarily or seriously throw us off the path to achieving our financial goals. The contingency fund should be built to sufficiently cover expenses over a period of at least 3 months. Faster, safer, more convenient

Budget wisely and set realistic goals, make sound financial decisions from an early stage. Build credit and start saving early to be ready for bigger financial decisions in the future. When in doubt, consult your preferred financial services provider.

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TEL: 1 758 456 6000 FAX: 1 758 456 6720

Ask Ask for it!for it!

about this liberating convenience service from Bank of Saint Lucia!

EMAIL: cardservices@bankofsaintlucia.com WEB: www.bankofsaintlucia.com

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