Carib Scope

分类： business

  • New taxes coming, Gov’t confirms

    New taxes coming, Gov’t confirms

    KINGSTON, Jamaica – In a significant fiscal policy shift, Finance Minister Fayval Williams declared Wednesday that Jamaica will implement new taxation measures as part of its forthcoming national budget. This decision responds to the catastrophic economic impact of Hurricane Melissa, which caused devastation equivalent to approximately 41% of the nation’s gross domestic product.

    The hurricane resulted in an estimated US$8.8 billion in damages, creating unprecedented reconstruction needs and increased public service demands while simultaneously reducing government revenue streams due to widespread economic disruption across multiple sectors.

    Williams emphasized that the government faces a critical balancing act between addressing immediate disaster recovery requirements and maintaining Jamaica’s hard-won fiscal discipline. Independent analysts confirm that the magnitude of this fiscal crisis makes new taxation inevitable after nearly ten years without such measures.

    “We recognize the resulting fiscal gap cannot be ignored,” Williams stated, confirming “measured steps” would be taken, including necessary tax initiatives within the budget framework.

    The Finance Minister explicitly rejected financing the entire deficit through borrowing, referencing Jamaica’s painful history with debt traps characterized by decades of high indebtedness, crippling interest payments, and constrained fiscal flexibility. “We have lived through the debt trap before,” Williams noted, adding that the government remains committed to preserving the fiscal progress achieved in recent years.

    While borrowing will continue to play a strategic role, Williams clarified it would be specifically targeted toward capital investments in infrastructure, agriculture, logistics, and digital systems designed to enhance productive capacity and strengthen economic resilience.

    Drawing a clear distinction between recurrent expenses and growth-oriented investment, Williams asserted: “As far as possible, recurrent expenses must be financed by taxation revenue.

    The government simultaneously offered reassurances that equity principles would guide tax design, with officials currently reviewing systemic anomalies to ensure fair burden distribution and protection for vulnerable populations.

    This budget represents a pivotal moment for Jamaica’s long-term economic stewardship, coming after more than a decade of fiscal credibility restoration through debt reduction and sustained primary surpluses following repeated economic crises. Williams framed the current decisions as determinative for whether future generations inherit an economy constrained by unsustainable debt or strengthened through resilience and opportunity.

  • Delta Airlines CEO says World Cup tourists welcome in US

    Delta Airlines CEO says World Cup tourists welcome in US

    MILAN, Italy — Delta Air Lines Chief Executive Ed Bastian delivered a robust defense of the United States as a premier tourism destination during an interview with AFP on Wednesday. His comments come amid growing international apprehension about U.S. immigration policies under the Trump administration, which some fear could deter visitors for major events like the 2026 FIFA World Cup.

    Bastian emphatically distinguished between immigration enforcement and tourism, stating, ‘The U.S. has a focus on immigration. This is not immigration. This is tourism.’ He assured potential visitors that those arriving with proper documentation would encounter ‘no issues’ entering the country.

    The CEO’s reassurances are strategically timed as the United States, alongside co-hosts Canada and Mexico, prepares to welcome a massive influx of international travelers for the month-long football championship starting June 11, 2026. Bastian expressed optimism that the tournament would attract substantial European and international visitors, providing a significant boost to the U.S. travel market.

    Simultaneously, Bastian revealed Delta’s strong financial outlook, projecting first-quarter 2026 revenue growth between 5-7%, driven by sustained demand from premium consumers. The airline’s sponsorship of Team USA at the Winter Olympic Games underscores its commitment to global sporting partnerships.

    In a significant fleet development, Delta announced its January order for 30 Boeing 787 Dreamliner aircraft, with options for 30 additional planes. This move marks a strategic diversification for the carrier, which has historically been a major Airbus customer. Bastian addressed Boeing’s recent challenges, including the 737 MAX groundings following fatal crashes in 2018 and 2019, expressing confidence in the manufacturer’s recovery. ‘Boeing is doing a good job of stabilizing the situation,’ he noted, praising the company’s progress under new leadership.

    The CEO emphasized the necessity of maintaining relationships with both major aircraft manufacturers: ‘As one of the largest global airlines in the world, you can’t rely only on Airbus. You must work with both suppliers.’ He concluded with measured optimism regarding Boeing’s trajectory: ‘We’re now at a point where we’re confident Boeing is on the good side of recovery.’

  • US investor gets green light for $35M cay revival

    US investor gets green light for $35M cay revival

    The Bahamian government has granted full regulatory approvals for US investor Matt O’Hayer’s $35 million acquisition of Great Harbour Cay’s resort infrastructure, ending 50 years of economic stagnation in the Berry Islands. Through his company Vital Shores LLC, O’Hayer will acquire the resort, marina, golf course, water utility, and fuel concession from the Fender family, who have maintained ownership since the early 1990s with minimal development.

    O’Hayer, founder of Vital Farms and owner of three adjacent cays, expressed profound gratitude for the government’s cooperation, stating: “I feel like it’s a real privilege and honour, and I am one of the luckiest guys on the planet to work with the island community.” While development plans remain confidential pending transaction closure, the investor has already demonstrated commitment through local initiatives.

    The economic revitalization effort marks a dramatic turnaround for a destination that never recovered from the 1973 oil crisis and the subsequent withdrawal of original developer Louis Chesler in 1975. The Fender family’s acquisition in the 1990s—supported by tax concessions and Crown grants from the Ingraham administration—failed to produce promised development, leading to agreement revocation in the late 1990s.

    O’Hayer’s preliminary investments include:
    – Nature tours on Lignum Vitae Cay for Royal Caribbean passengers launching this week
    – Partnership with fully Bahamian-owned Bahama Island Group for operations
    – Local employment for tour guides and signage production by Berry Islands students
    – Acquisition of emergency response equipment including fire engines and amphibious rescue trucks
    – Foundation-funded infrastructure improvements already underway

    North Andros and Berry Islands MP Leonardo Lightbourne confirmed the transaction’s advanced stage, noting: “He’s not just talking but putting his money into action. He has a lot of persons employed on the various infrastructure and things he has going on.” Some title transfer complications regarding the government’s compulsory airport acquisition may require tax offsets, but stakeholders widely view the investment as transformative for the long-neglected region.

  • Difficult choices in the upcoming budget

    Difficult choices in the upcoming budget

    Jamaica’s Finance Minister Fayval Williams has articulated a bold vision for economic management, advocating for increased private sector control over national assets where efficiency gains can benefit citizens. Speaking at the 2026 Jamaica Stock Exchange 21st Regional Investments and Capital Markets Conference, Minister Williams faced internal resistance to her position that government should relinquish control of assets when private enterprise can manage them more effectively.

    The minister pointed to successful privatization initiatives including TransJamaica Highway Limited and Wigton Windfarm Limited through initial public offerings, along with revenue securitization from Kingston and Montego Bay airports. These examples build upon Jamaica’s historical precedent of hotel privatizations in the 1980s that ultimately catalyzed the country’s tourism boom.

    Williams identified significant untapped potential within Jamaica’s capital markets, noting that approximately $60 billion could be mobilized from the existing $1.2 trillion in pension and life insurance assets through a modest 5 percent reallocation. This private equity could powerfully complement the $2.4 billion international financial institution support package designated for private sector investments.

    The finance minister outlined plans for developing public-private partnership pipelines potentially encompassing hospitals and schools, while emphasizing the importance of operationalizing a micro stock market initiative by the second quarter of 2026 to complement the existing Junior Market.

    These developments occur against the challenging backdrop of Hurricane Melissa’s aftermath, which has prompted the government to suspend its Fiscal Responsibility Framework for two years. The original debt target of 60 percent debt-to-GDP ratio by FY 2027/28 has been postponed to FY 2029/30, with current projections showing debt rising to 68.2 percent in FY 2025/26 before declining slightly to 67 percent by FY 2028/29.

    A critical challenge emerges in wage expenditure management, with salaries and wages now projected to consume 56 percent of tax revenues in FY 2025/26—a dramatic increase from 36.1 percent in 2021/2022. The Independent Fiscal Commission warns this trend risks crowding out other essential spending and complicates budget planning through protracted wage negotiations.

    Despite these challenges, Jamaica’s credit ratings have improved following the hurricane, reflecting international confidence in the country’s commitment to fiscal discipline. However, maintaining this discipline requires containing a wage bill that has more than doubled over four years while addressing potential revenue shortfalls. The National Reconstruction and Resilience Authority assumes critical importance given the high probability of further economic shocks in the coming years.

  • COMMENTARY: How Dominica’s small businesses are—or aren’t—harnessing renewable energy

    COMMENTARY: How Dominica’s small businesses are—or aren’t—harnessing renewable energy

    Nestled in the heart of the Lesser Antilles, the Commonwealth of Dominica lives up to its ‘Nature Island’ moniker. This volcanic territory, blessed with near-year-round sunshine, abundant rainfall, and powerful rivers, possesses a natural profile almost perfectly suited for renewable energy generation. For decades, this potential simmered quietly, with early adoption seen in household solar water heaters—objects of childhood curiosity for many Dominicans that symbolized a nascent green consciousness.

    The narrative of energy in Dominica is now rapidly evolving, moving from individual households to the core of its small business sector. A cohort of local manufacturers, celebrated for their regional award-winning products, is grappling with the dual pressures of expansion and escalating energy costs. These enterprises, including producers of tropical snacks, pepper sauce, rum, and natural cosmetics, form the backbone of a local economy formalized by the 2018 Small and Micro Business Act.

    Despite operating on a modest scale with fluctuating energy demands, growth is driving a critical reassessment of power sources. Interviews with business owners reveal a common trajectory: as production capacity expands with the addition of mixers, blenders, and refrigeration units, electricity consumption and costs rise in lockstep. This is not a sign of inefficiency but a direct correlation to increased output and operational frequency.

    Currently, most rely on the national grid, operated by the Dominica Electricity Services (DOMLEC), which has harnessed hydro power since 1952. However, one standout example points to a viable alternative. Sea Cliff Eco Cottages and its on-site gin distillery operate entirely on solar energy, supported by battery storage. The distillery recently invested in a larger solar array to accommodate its growing energy needs, demonstrating a proactive commitment to energy independence.

    The high initial investment for renewable technology remains a significant barrier for many. Yet, the long-term calculus is shifting. Businesses like Big G’s Pepper Pot view solar adoption as an essential cost-saving measure for future growth, stating, ‘Where there is growth, there is going to be expenses, and so the move towards renewable solar energy is to save even if it is a dollar.’ Others, like Bonnit Enterprises, are looking beyond solar to future opportunities in biogas, utilizing by-products from their food manufacturing.

    The island’s looming energy solution casts a long shadow over these decisions: geothermal power. With a plant in the volcanic community of Laudat expected to be commissioned in 2026, a cautious optimism prevails. Business owners express hope that geothermal energy will deliver not only cleaner power but also the reliability and lower costs needed for competitiveness. For manufacturers like Jaydees Naturals, this promises an end to the disruptive outages and diesel shortages that crippled operations in 2022-2023, allowing for smoother production and reduced operational stress.

    The journey from the solar water heater on a neighbor’s roof to a future-powered geothermal grid encapsulates Dominica’s energy transition. The ambition and innovation of its small business owners are clear. The extent to which the nation’s renewable energy infrastructure can keep pace with their growing demands will ultimately determine the sustainability and resilience of this vital economic sector.

  • Acht jaar procederen, geen teruggave: beslag 19,5 miljoen euro blijft

    Acht jaar procederen, geen teruggave: beslag 19,5 miljoen euro blijft

    In a definitive ruling that concludes an eight-year legal battle, the Netherlands’ Supreme Court has upheld the seizure of €19.5 million in cash transported from Suriname. The decision affirms The Hague Court of Appeal’s August 2024 judgment, bringing finality to a complex international asset forfeiture case that began on April 17, 2018.

    The funds were initially intercepted by the Dutch Fiscal Information and Investigation Service (FIOD) at Amsterdam’s Schiphol Airport on suspicion of money laundering. The currency shipment, which arrived by air from Suriname, was owned by three commercial banks: De Surinaamsche Bank, Hakrinbank, and Finabank. The Central Bank of Suriname (CBvS) acted as the formal shipper for the consignment, which was destined for China.

    Legal challenges were mounted by both the commercial banks and CBvS against the seizure. Throughout previous proceedings, the Supreme Court had twice ruled that decisions ordering the funds’ return were insufficiently motivated. The Hague Court of Appeal ultimately dismissed these complaints in 2024, allowing the seizure to remain in effect.

    The appellate court determined that CBvS could not claim immunity under international customary law, finding insufficient evidence that the seized funds constituted Central Bank property or were being utilized for its core functions of monetary policy and currency management. The court characterized CBvS’s role as merely facilitative and noted it was not ‘highly improbable’ that criminal courts would eventually order forfeiture of the funds.

    The Central Bank and commercial institutions subsequently appealed to the Supreme Court, contesting the immunity rejection, the legal framework applied to seizure assessments, and the proportionality of maintaining the asset freeze.

    In December 2025, the Advocate General recommended upholding the appellate decision. The Supreme Court adopted this advisory opinion and dismissed the appeals under Article 81 of the Judiciary Organization Act, indicating the complaints lacked grounds for reversal and raised no novel legal questions requiring substantive consideration.

    This ruling concludes a internationally monitored case that has drawn significant attention to cross-border financial enforcement. The funds remain seized pending ongoing criminal investigations.

  • Cement sales in the Dominican Republic rise 2.3% in 2025

    Cement sales in the Dominican Republic rise 2.3% in 2025

    The Dominican cement industry demonstrated notable economic resilience throughout 2025, achieving a 2.3% overall increase in sales volume despite facing headwinds in domestic construction. This growth was primarily propelled by a robust 9.2% surge in export activities, which effectively counterbalanced a period of slowed local market expansion.

    Domestic cement sales experienced a modest uptick of just 0.9%, signaling relative stability in local demand but falling considerably short of the vigorous growth rates witnessed in preceding years. This domestic slowdown aligns with official Central Bank figures indicating a 1.8% contraction in the national construction sector for the same period.

    The industry’s successful export strategy was underpinned by significant capital investments directed toward enhancing production capabilities, optimizing operational efficiency, and ensuring compliance with stringent international quality standards. These strategic advancements have enabled Dominican producers to effectively compete in strategic regional markets.

    Jorge David Pérez, President of the Dominican Association of Cement Producers (Adocem), emphasized the sector’s critical contribution to the national economy. He noted that the export expansion has been instrumental in generating vital foreign exchange earnings, reducing the national trade deficit, and bolstering industrial employment. Pérez further advocated for the implementation of public policies designed to stimulate investment in construction, infrastructure, and housing projects, underscoring the sector’s fundamental role in driving broader economic growth, enhancing competitiveness, and fostering job creation across the Dominican Republic.

  • IMF review highlights economic strengths and debt concerns in ECCU

    IMF review highlights economic strengths and debt concerns in ECCU

    The International Monetary Fund has concluded its comprehensive assessment of the Eastern Caribbean Currency Union (ECCU), revealing a complex economic landscape marked by robust recovery momentum alongside persistent fiscal vulnerabilities. Following high-level consultations with the Eastern Caribbean Central Bank, the IMF acknowledged the currency union’s stabilizing role in this shock-prone region while issuing urgent warnings about debt sustainability challenges.

    Post-pandemic economic expansion has been primarily fueled by resurgent tourism activity and substantial construction investments, driving regional growth to approximately 3% in the previous year. Inflationary pressures have notably abated, tracking global trends in energy and food prices with minimal immediate impact from recent shifts in U.S. trade policy.

    However, the Fund’s analysis reveals concerning fiscal developments. Public debt reduction initiatives have stagnated across member states, attributed to recurrent external shocks. Multiple ECCU nations now face increasing uncertainty in achieving the collective target of reducing debt-to-GDP ratios to 60% by 2035. This fiscal deterioration occurs despite overall economic improvements, highlighting structural challenges in public financial management.

    The financial sector maintains broad stability but exhibits underlying weaknesses. Bank balance sheets contain significant non-performing loans that exceed the ECCB’s 5% benchmark, with many impaired assets remaining unresolved for extended periods. The non-bank financial sector continues to operate under fragmented regulatory oversight, creating potential systemic vulnerabilities.

    Medium-term projections indicate economic moderation to approximately 2.5% growth as tourism sectors approach capacity constraints. This slowdown reflects deeper structural issues including productivity challenges, demographic pressures, and constrained fiscal space for public investment. The IMF emphasized that decades of declining productivity and structural barriers to investment—including limited credit access, administrative bottlenecks, and workforce skill gaps—have diminished the region’s long-term growth potential.

    Critical recommendations include enhanced regional policy coordination through harmonized customs procedures, a unified trade platform, and mutual recognition agreements to reduce institutional inefficiencies. The Fund urged accelerated establishment of the Eastern Caribbean Financial Standards Board to regulate non-bank institutions and create equitable operating conditions across the financial landscape.

    The transition to Basel II/III frameworks continues, potentially necessitating additional capital buffers. The IMF advised targeted asset quality reviews focusing on real estate exposure, foreign investments, and risk concentration patterns to strengthen financial safeguards. These measures would complement the newly implemented deposit insurance scheme and reinforce the regional financial safety net.

  • Over 170 Former BTL Workers Still Await Severance

    Over 170 Former BTL Workers Still Await Severance

    A contentious labor dispute continues to simmer in Belize as more than 170 former telecommunications workers remain entangled in a complex severance payment battle with Belize Telemedia Limited (BTL), despite a landmark Caribbean Court of Justice ruling intended to resolve such claims.

    While BTL maintains it has substantially complied with the CCJ’s 2025 decision—asserting that 98% of eligible former employees have received their severance packages—the Belize Communications Workers for Justice (BCWJ) union contends that dozens of workers are being unjustly excluded due to contested statutory limitations.

    The crux of the disagreement centers on Belize’s six-year limitation period for simple contracts, which BTL insists invalidates claims from workers who departed before 2019. However, affected former employees argue that the CCJ ruling specifically supersedes these domestic limitations, creating a legal paradox that has left them in financial limbo.

    Emily Turner, former BCWJ president, expressed profound disappointment with BTL’s position: “We have engaged BTL previously in very diplomatic ways, expecting favorable feedback, especially after both the Minister of Labor and Prime Minister stated that statute of limitations doesn’t apply. Yet they continue dragging their feet.”

    The timing of the dispute coincides with BTL’s prospective acquisition of Speednet, prompting weeks of organized protests across Belize. Demonstrators have demanded settlement of all outstanding severance claims before the company proceeds with its expansion plans.

    Notably, many affected workers are senior citizens who had their severance benefits converted to pension plans over three decades ago—a practice the CCJ subsequently deemed illegal. Paul Perriott, a former BTL employee, emphasized the broader implications: “This isn’t just about BTL workers. This covers other unions that signed agreements exchanging severance for pension—all things the judge declared illegal.”

    The BCWJ has threatened to escalate the matter internationally through their affiliations with global labor organizations if domestic resolution proves impossible. Turner affirmed their determination: “We’re disappointed, but we are not gonna give up. If we must take this internationally, we will.”

    With BTL’s board expected to review the matter in their upcoming meeting, the standoff represents a critical test for labor rights jurisprudence in the Caribbean region, potentially establishing precedent for how international court decisions interface with domestic statutory limitations.

  • Economy : NATCASH accelerates financial inclusion

    Economy : NATCASH accelerates financial inclusion

    In a significant stride toward economic empowerment, Haiti’s Natcash mobile wallet platform is transforming the nation’s financial landscape by bridging the gap between traditional banking and the unbanked population. Developed by National Telecom S.A. (NATCOM), this innovative digital solution has emerged as a cornerstone of Haiti’s financial infrastructure, particularly enhancing remittance processing for the global Haitian diaspora.

    Natcash’s comprehensive suite of services addresses critical financial needs through mobile-enabled transactions, including seamless money transfers, bill payment facilities, and accessible cash withdrawal options. The platform’s design prioritizes user-friendly accessibility while maintaining robust security protocols, enabling previously excluded populations to participate in the formal economy.

    A groundbreaking aspect of Natcash’s service expansion involves strategic partnerships with international money transfer operators CamTransfer and Unitransfer. These collaborations have established optimized channels for cross-border remittances, providing diaspora communities with transparent, secure, and efficient methods to support families in Haiti through direct wallet deposits.

    The technological architecture underlying Natcash incorporates cutting-edge security measures such as biometric verification, transaction geolocation tracking, and proprietary fraud prevention systems. These advanced features ensure real-time processing accuracy while safeguarding users’ financial assets against emerging threats in the digital landscape.

    Beyond individual users, Natcash’s ecosystem supports small business operations and maintains an extensive agent network that penetrates even Haiti’s most isolated regions. With millions of active accounts, the platform has generated substantial employment opportunities while promoting cashless transactions and enhancing financial literacy nationwide.

    This digital financial initiative represents a transformative approach to economic development, creating interconnected systems that simultaneously address immediate transactional needs while building long-term financial resilience across Haitian society.