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REGIONAL
Trinidad and Tobago
Sales off to slow start for retailers
President of the Downtown Owners and Merchants Association (DOMA)
Gregory Aboud says while sales were slow, there was a steady stream of
customers entering businesses, as retail stores reopened their doors for the
first time in two months yesterday.
AMCHAM makes proposals for recovery Road Map
The American Chamber of Commerce of Trinidad and Tobago (AMCHAM
T& T) has put forward a number of recommendations to the Road Map to
Recovery Committee for the reopening of the economy, including
additional support for businesses.
Republic adds 75 cents
Yesterday's overall market activity resulted from trading in 13 securities of
which three advanced, four declined and six traded firm.
THA to issue $300m bond in 4-6 weeks
In the next four to six weeks, the THA anticipates that the $300 million bond
approved to fund some capital expenditure projects will go to market.
Heritage paid Govt $883m in royalties
Heritage Petroleum paid the Government $833 million in royalties, levies,
licenses and taxes last year, Finance Minister Colm Imbert says.
Jamaica
36 stocks advance, 32 decline and 12 trade firm
The Jamaica Stock Exchange (JSE) Combined Index declined on Monday
with an advance/decline ratio of 36/32.
The Bahamas
IMF approves $250 mil. disbursement
The Executive Board of the International Monetary Fund (IMF) has
approved a disbursement of US$250 million to the country under the Rapid
Financing Instrument (RFI).
The Bahamas continued
Shell files application for base power generation
Shell has submitted its application for an Independent Power Provider
(IPP) license to Utilities Regulation and Competition Authority (URCA).
No more COVID travel card, borders open to domestic travel next week
Domestic travellers will no longer need to see a doctor before booking
commercial travel through the islands.
Panama
Fourth bridge consortium pledges support to revitalize economy
The Panama Fourth Bridge Consortium is ready to work with the
government to boost the economy and in a Monday, June 1 statement
pledged " long-term commitment to the bright future of Panama and its
citizens."
St. Lucia
Non-NIC contributors to benefit from ‘Income Support Programme’
The Government of Saint Lucia continues to provide relief for citizens who
have been adversely affected due to the COVID-19 pandemic.
The Dominican Republic
Fuel consumption increases 30% in Dominican Republic
Fuel consumption in the country has increased on average about 30% this
month compared to April, explained the president of the Dominican
Association of Companies in the Fuel Industry (ADEIC), Walkiria Caamano.
Iberostar announces it will open its hotels in the Dominican Republic from
July 17
Iberostar announced that the hotels it operates in the Dominican
Republic will open their doors from July 17.
Starting in June, a new RD $500 banknote will circulate in Dominican
Republic
The Central Bank of the Dominican Republic (BCRD) reported that a new
RD $ 500 banknote, series 2017, will circulate from June 1, which will
contain the isotype or graphic symbol with the visual identity of the
institution.
Venezuela
Long lines, confusion as Venezuela sells Iranian fuel under new price
system
Venezuela on Monday launched a fuel pricing system that largely rolls
back decades of heavy subsidies, creating long lines and leaving drivers
confused as the government seeks to end chronic shortages with gasoline
imports from Iran.
INTERNATIONAL
United States
Stock futures hit three-month high on prospects of economic recovery
U.S. stock index futures hit a three-month high on Tuesday as hopes of a
rebound from a coronavirus-led economic slump prevailed over fears of
disruption from widespread protests over race in the country.
China auto sales growth seen for second straight month, boosting
recovery hopes
China’s vehicle sales are estimated to rise 11.7% on year in May, its top
auto industry body said on Tuesday, cementing hopes of a recovery in the
world’s biggest auto market with the first back to back monthly sales
increase in about two years.
Europe
German stocks shine in Europe as carmakers surge
European stocks hit their highest levels since early March on Tuesday, with
German stocks outperforming as carmakers rallied on hopes of stimulus
and Lufthansa gained after its board approved a state bailout.
French economy will contract 11% in 2020, more hard days ahead
The French economy is set to contract 11% this year due to the
coronavirus crisis and more hard days lie ahead until things bounce back
next year, Finance Minister Bruno Le Maire said on Tuesday.
Japan
Japan's cash balance hits new high as central bank pumps money to
combat pandemic
The balance of money circulating in Japan’s economy reached $5 trillion
in May, hitting a record high for the second straight month, as the central
bank pumped more cash to cushion the blow to businesses and
consumers from the coronavirus pandemic.
Global
Oil prices rise ahead of OPEC+ meeting on output cuts
Oil prices rose on Tuesday to near three-month highs on expectations that
major producers would agree to extend output cuts that have shored up
prices, during a video conference likely to be held this week.
Global shares cruise to three-month highs, dollar shows the strain
World stocks climbed to three-month highs on Tuesday as the global
coronavirus recovery effort won out over U.S.-China tensions and the worst
civil unrest in the United States in decades.
Dollar loses safe-haven shine, sends euro to 11-week high
The euro reached an 11-week high on Tuesday as the dollar lost ground,
with investors maintaining their hopes for a global economic recovery.
Oil prices rise ahead of OPEC+ meeting on output cuts Tuesday 2nd June, 2020 – Reuters
Oil prices rose on Tuesday to near three-month highs on expectations that
major producers would agree to extend output cuts that have shored up
prices, during a video conference likely to be held this week.
Benchmark Brent crude LCOc1 rose 2.2%, or 83 cents, to $39.15 a barrel as
of 1215 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 climbed 2%, or 70 cents, to
$36.14 a barrel.
Brent has doubled in the past six weeks helped by supply cuts by the
Organization of the Petroleum Exporting Countries and others including
Russia, a grouping known as OPEC+.
But oil prices are still 40% down this year.
OPEC+ producers are considering extending their production cuts of 9.7
million barrels per day (bpd), equivalent to about 10% of global
production, into July or August, at an online meeting expected to be held
on June 4.
“Most likely, OPEC+ could extend current cuts until Sept. 1, with a meeting
set before then to decide on next steps,” said Citi’s head of commodities
research Edward Morse.
Under the original OPEC+ plan, the cuts were due to run through May and
June, scaling back to a reduction of 7.7 million bpd from July to
December.
Saudi Arabia has been pushing to keep the deeper cuts in place for
longer, sources said.
UBS analyst Giovanni Staunovo warned that a continuation of the oil price
rally could unleash more stored oil onto markets and therefore prove “self-
defeating”.
“The marked price increase in recent weeks is bringing back crude
production that was shut-in, triggering the unloading of oil stored on
tankers and weighing on refinery margins,” he said.
Price gains have been capped by trade tension between China and the
United States over Beijing’s security legislation in Hong Kong, as well as
manufacturing data on Monday showing the world’s factories were still
struggling.
<< Back to news headlines >>
Global shares cruise to three-month highs, dollar shows the strain Tuesday 2nd June, 2020 – Reuters
World stocks climbed to three-month highs on Tuesday as the global
coronavirus recovery effort won out over U.S.-China tensions and the worst
civil unrest in the United States in decades.
U.S. President Donald Trump’s vow to use force to end violent protests in
American cities and reports that China had ordered U.S. soybean
purchases to be halted had caused a brief wobble in Wall Street futures,
but Europe got shares back on track. [.N][.EU]
The STOXX 600 jumped over 2% and Germany’s DAX surged nearly 4%
after a holiday on Monday as Lufthansa’s board approved its government
bailout and carmakers shone. Volkswagen (VOWG_p.DE), Daimler and
BMW shares all leapt over 6% on talk of a 5 billion- euro government-
funded car buying scheme.[.EU]
The euro hit a two-and-a-half-month high too as the dollar struggled with
its home-grown strains [/FRX], and Italian and Spanish bonds were still
being helped by a proposed 750 billion-euro EU stimulus plan and
European Central Bank buying. [GVD/EUR]
“In a way, it is remarkable that the market remains in this positive mood,”
said Elwin de Groot, head of macro strategy at Rabobank. “Even with
these rising protests in the U.S. and the situation in Hong Kong at the
moment, the market is pushing on and seeing room for optimism.”
Demonstrators, angered over the recent death of 46-year old African
American George Floyd in police custody, had set fire to a mall in Los
Angeles overnight, looted stores in New York and at least five U.S. police
had been hit by gunfire.
Wall Street futures had dipped in Asia but Europe dragged them back up
in its slipstream ahead of U.S. trading. [.N]
World stock markets have rallied nearly 36% from March lows on hopes for
a swift recovery from the coronavirus-induced collapse in world growth.
The tech-heavy Nasdaq is now only 3% from its pre-virus record highs. [.N]
May Purchasing Managers Index data pointed to a fragile but
encouraging recovery in global manufacturing, raising hopes that the
worst is over.
In Asia, Japan’s Nikkei rose 1.2% to its highest since late February and
markets in Seoul, Taipei, Hong Kong and China [.SS] also gained as the
central bank there also provided another shot of stimulus.
“This optimistic read for risk can only persist if measures like orders and
employment continue to improve month to month,” said Alan Ruskin,
chief international strategist at Deutsche Bank.
“Early setbacks would be a very poor sign, but are not expected in the
period immediately following the end of lockdowns.”
BOIL OVER
The dollar was at multi-month lows against most major currencies following
a 5% drop for its main index since March. [FRX/]
The euro got as high as $1.1160, Britain’s pound topped $1.2530 for the first
time in over a month and the Canadian and Australian dollars both rose
around 0.4% as commodity markets continued their recoveries.
“The protests are part of the reason for the sell-off in the dollar over the last
four or five days,” said CMC Markets senior analyst Michael Hewson.
“When there are riots on the streets and the president is saying the military
will be called in, it adds some near-term uncertainty.”
Brent oil rose another 2% to just over $39 a barrel. Traders are expecting
major producers to extend output cuts at an OPEC+ meeting later in the
week. U.S. crude was up 1% at $35.86 a barrel. [O/R]
Copper prices were at their highest in nearly three months on signs that
demand from top metals consumer China was recovering.
Stockpiles dropped at the fastest pace last week since September 2017,
data showed. Aluminium producer Rusal said its customers were gradually
returning after a major slump in April.
“This is real demand. Domestic investment is booming，especially in
infrastructure. Supply and transport slowdowns from South America are
also supporting prices,” said a copper trader in China.
<< Back to news headlines >>
Dollar loses safe-haven shine, sends euro to 11-week high Tuesday 2nd June, 2020 – Reuters
The euro reached an 11-week high on Tuesday as the dollar lost ground,
with investors maintaining their hopes for a global economic recovery.
The optimism persisted within markets despite growing concern over U.S.-
China tensions and mass protests across the United States over the death
of a black man in police custody.
Traders remain hopeful that central banks will continue to buy
government bonds and other financial assets to protect their economies
from the coronavirus pandemic.
The European Central Bank, for instance, is expected to increase its 750
billion-euro Pandemic Emergency Purchase Programme, or PEPP, on
Thursday, probably by around 500 billion euros.
The Bank of Japan, ECB and the Federal Reserve have increased their
balance sheets by 10%, 20% and 70% respectively since the start of this
year, said Kit Juckes, macro strategist at Societe Generale.
The euro last fetched $1.1178, up 0.4% on the day, after rallying to $1.1185,
its highest since March 17.
The U.S. dollar fell to a three-month low of 1.3503 against the Canadian
dollar and was last trading down 0.4%. It also fell against the Australian
dollar, which rose to $0.6852, its highest since Jan. 24.
The safe-haven Japanese yen fell 0.1% versus the dollar to 109.71.
“The strengthening of the commodity-linked currencies and the
weakening of the safe havens suggest that investors’ appetite remained
supported for another day,” said Charalambos Pissouros, senior market
analyst at broker JFD Group.
“It seems that investors continued placing bets on the prospect of a
global economic recovery as governments around the globe continue to
ease their lockdown measures,” Pissouros said.
The U.S. dollar index against a basket of six major currencies fell to its
weakest since mid-March, at 97.44, before settling in neutral territory at
97.82.
The index has fallen about 5% from a peak hit in March, when panic over
the COVID-19 pandemic gripped the world’s financial markets, prompting
investors to scramble for the safety of dollars.
George Saravelos, a currency strategist at Deutsche Bank, said he
expects the dollar to weaken about 10% in narrow trade-weighted terms
to fully take out the risk premium, adding that so far the currency has
fallen 3%. He sees euro/dollar rising to $1.15.
Market risk sentiment was hurt only slightly on Monday when Bloomberg
reported China had told state-owned companies to halt purchases of
soybeans and pork from the United States, raising concern that the trade
deal between the world’s two biggest economies could be in jeopardy.
Later, it emerged that state-owned Chinese companies bought at least
three cargoes of U.S. soybeans on Monday, even as sources in China said
the government had told them to halt purchases.
Optimism has so far also survived the rising social unrest in the United
States, where President Donald Trump vowed to deploy the military to halt
violence if mayors and governors failed to regain control of the streets.
The protests erupted over the death of George Floyd, a 46-year-old
African American who died in Minneapolis police custody after being
pinned beneath a white officer’s knee for nearly nine minutes.
Elsewhere, the pound rose to a one-month high of $1.2567 after reports
that Britain may be willing to compromise on fisheries and trade rules if the
European Union agrees to back off from its demands related to regulatory
alignment and fishing access.
<< Back to news headlines >>
Stock futures hit three-month high on prospects of economic recovery Tuesday 2nd June, 2020 – Reuters
U.S. stock index futures hit a three-month high on Tuesday as hopes of a
rebound from a coronavirus-led economic slump prevailed over fears of
disruption from widespread protests over race in the country.
Some of the worst-hit stocks in the travel sector, including American
Airlines Group Inc (AAL.O), United Airlines (UAL.O), Norwegian Cruise Line
(NCLH.N) and Carnival Corp (CCL.N), climbed between 3.1% and 5.0% in
premarket trading.
Economic data pointing to a quick recovery, trillions of dollars in stimulus
and a restart in business have helped the S&P 500 .SPX climb about 38%
from its March lows, leaving it only about 11% below its Feb. 19 record
high.
Investors, however, are keeping a close eye on Sino-U.S. tensions and
protests in the United States over the death of a black man in police
custody.
Demonstrators set fire to a strip mall in Los Angeles, looted stores in New
York City and at least five U.S. police were hit by gunfire, hours after
President Donald Trump vowed to deploy the U.S. military to regain control
of the streets.
At 6:15 a.m. ET, Dow e-minis 1YMcv1 were up 184 points, or 0.72%. S&P 500
e-minis EScv1 were up 19.25 points, or 0.63% and Nasdaq 100 e-minis
NQcv1 were up 67.25 points, or 0.7%.
<< Back to news headlines >>
China auto sales growth seen for second straight month, boosting
recovery hopes Tuesday 2nd June, 2020 – Reuters
China’s vehicle sales are estimated to rise 11.7% on year in May, its top
auto industry body said on Tuesday, cementing hopes of a recovery in the
world’s biggest auto market with the first back to back monthly sales
increase in about two years.
The China Association of Automobile Manufacturers (CAAM), in a post on
its official WeChat account, said vehicle sales were estimated to rise to
2.14 million in May. It said the numbers were based on sales data it had
collected from key companies, without giving further details.
CAAM expects January to May auto sales in China to fall 23.1% year on
year to 7.9 million units.
As the global auto industry is hit hard by the coronavirus pandemic, China
has become a ray of hope for automakers including Volkswagen
(VOWG_p.DE) and General Motors (GM.N).
In April, China’s auto sales hit 2.07 million units, up 4.4% from a year earlier,
the first monthly sales growth in almost two years, CAAM data showed.
It cautioned last month that even if China contains the outbreak
effectively, its auto sales are expected to drop 15% this year, from over 25
million vehicles in 2019. If the pandemic continues, the annual sales
contraction will likely be by up to 25%.
<< Back to news headlines >>
German stocks shine in Europe as carmakers surge Tuesday 2nd June, 2020 – Reuters
European stocks hit their highest levels since early March on Tuesday, with
German stocks outperforming as carmakers rallied on hopes of stimulus
and Lufthansa gained after its board approved a state bailout.
The pan-European STOXX 600 rose 1.4% to reclaim levels not seen since
March 9. Traders in Germany returned from a long weekend to drive the
DAX up 3.2% to its highest since March 5.
Volkswagen (VOWG_p.DE), Daimler (DAIGn.DE) and BMW (BMWG.DE)
gained between 5.9% and 9% on a Reuters report on Sunday that the
country’s Ministry of Economics had proposed a 5-billion-euro buyer bonus
scheme to boost car sales.
Europe’s automobiles & parts index .SXAP jumped 4.9%, leading gains,
while insurers .SXIP, real estate .SX86P and banking .SX7P rose between
2.5% and 3%.
Lufthansa (LHAG.DE) surged 6.3% as its supervisory board approved a 9-
billion-euro ($10 billion) government bailout even as it forced the German
airline to give some of its prized landing slots to rivals.
German leaders are expected to present a stimulus package on Tuesday
worth 75 billion-80 billion euros ($83 billion-$89 billion) to support economic
recovery after the coronavirus pandemic, according to a media report.
“Broadly firmer stock markets continue to keep market sentiment risk-on,”
UniCredit analysts wrote in a morning note.
“Investors swept aside a succession of negative news and focused on
brighter economic prospects as more and more countries ease
containment measures.”
With restrictions easing across the globe, data on Tuesday suggested the
worst may be over for European manufacturers. All eyes are on the
European Central Bank meeting later this week, where policymakers are
expected to ramp up bond purchases.
Gains across the other markets were tempered by U.S.-China tensions,
with Wall Street futures coming under pressure after President Donald
Trump vowed to use the military to halt protests over the death of a black
man in police custody.
France’s biggest private TV operator TF1 (TFFP.PA) jumped 7.8% as it
announced the launch of a new soccer channel ‘Telefoot’ along with its
partner MediaPro Group.
Norway’s Seadrill SDRL.OL slid 8.2% after writing down $1.2 billion on the
value of its oil drilling rigs and warning that it may have to convert a part
of its $7.4 billion in debt into equity to survive.
<< Back to news headlines >>
French economy will contract 11% in 2020, more hard days ahead Tuesday 2nd June, 2020 – Reuters
The French economy is set to contract 11% this year due to the
coronavirus crisis and more hard days lie ahead until things bounce back
next year, Finance Minister Bruno Le Maire said on Tuesday.
France imposed one of the Europe’s strictest lockdowns in mid-March and
only began removing restrictions on May 11. Cafes, bars and restaurants
were only allowed to reopen for regular business on Tuesday.
“We were hard hit by the virus, we took effective measures to protect
French people’s health but the economy practically ground to a halt for
three months,” Le Maire told RTL radio.
“We’re going to pay for it with growth,” he said, adding that a budget
update being prepared would forecast a contraction of 11% versus one
of 8% forecast previously.
With some 300,000 cafes, bars and restaurants reopening on Tuesday, Le
Maire said that they would continue to benefit from handouts from a
government solidarity fund until the end of the year to help cover fixed
costs.
“Even if it is hard to hear on a day when the sun is shining and the cafes
are reopening, the hardest part is still ahead of us in social and economic
terms,” Le Maire said.
The government is trying to avert a string of retail bankruptcies by seeking
buyers for big clothing chains Camaieu, Conforama and La Halle, which
employ thousands of people, Le Maire said.
Le Maire has already announced sector-specific support plans for the
tourism ad car industries this month. He said measures for the aerospace
industry were being prepared for next week and the start-up and building
sectors would follow afterwards.
<< Back to news headlines >>
Japan's cash balance hits new high as central bank pumps money to
combat pandemic Tuesday 2nd June, 2020 – Reuters
The balance of money circulating in Japan’s economy reached $5 trillion
in May, hitting a record high for the second straight month, as the central
bank pumped more cash to cushion the blow to businesses and
consumers from the coronavirus pandemic.
Armed with a raft of loan programmes aimed at prodding commercial
banks to boost lending to cash-strapped firms, the Bank of Japan is
expected to keep expanding its balance sheet to ease the fallout from
the health crisis, analysts say.
“Japan’s economy will probably be in crisis-mode at least for the rest of
this year. It would be very hard for the BOJ to slow the pace of money
printing,” said Mari Iwashita, chief market economist at Daiwa Securities.
The balance of monetary base, or the amount of cash in circulation and
deposits at the BOJ, stood at 543.4 trillion yen ($5 trillion) at the end of
May, up 2.7% from the previous month, central bank data showed on
Tuesday.
As part of monetary easing steps taken in April, the BOJ expanded a loan
scheme created in March and pledged to pay financial institutions a 0.1%
interest for borrowing money and lending it out to companies. The move
led to a surge in the number of regional banks participating in the
programme.
In May, the BOJ also unveiled its own version of the U.S. Federal Reserve’s
“Main Street” lending programme to channel nearly $280 billion to small
businesses hit by the coronavirus and stop the economy sliding deeper
into recession.
While the BOJ’s aggressive monetary measures are considered essential
to battle the crisis, it complicates its years-long efforts to shift its policy
focus away from the pace of money printing towards interest rates.
After years of heavy asset buying failed to fire up inflation, the central
bank shifted in 2016 to a policy targeting interest rates. Under yield curve
control, it guides short-term rates at -0.1% and long-term bond yields
around 0%.
Japan’s government lifted nationwide state of emergency last week. But
the economy is on the verge of a deep recession as the pandemic
disrupted supply chains, hit global and domestic demand and forced
many businesses to close.
($1 = 107.6400 yen)
<< Back to news headlines >>
IMF approves $250 mil. disbursement Tuesday 2nd June, 2020 – Eyewitness News
The Executive Board of the International Monetary Fund (IMF) has
approved a disbursement of US$250 million to the country under the Rapid
Financing Instrument (RFI).
The government applied to take advantage of the low-cost emergency
loan facility that is available to all member countries in a bid to meet the
urgent balance-of-payments needs stemming from the COVID-19
pandemic.
Tao Zhang, Deputy Managing Director and Acting Chair, said: “The
Bahamas was just recovering from the widespread destruction caused by
Hurricane Dorian in the fall of 2019, when the pandemic led to a sudden
stop in tourism, generating sizable fiscal and external financing needs. The
economic outlook remains subject to an unusually high degree of
uncertainty.
“The authorities’ policy response to the COVID-19 crisis is appropriate,
including the timely adoption of targeted fiscal measures to boost health
spending, support jobs and vulnerable segments of the population. Once
the present crisis subsides, significant and determined fiscal consolidation
will be needed to achieve the targets specified under the Fiscal
Responsibility Act.”
Zhang said: “The Central Bank of The Bahamas’ focus on maintaining an
adequate level of international reserves is welcome. While efforts to
maintain the flow of credit in the economy are warranted, the temporary
relaxation of prudential regulations should continue to be accompanied
by close monitoring of NPL classification and prudent risk management
practices.”
“The disbursement under the RFI will help boost resources for essential
COVID-19related outlays, strengthen reserves and catalyse additional
support from other international financial institutions, development
partners, and the private sector.
He added: “Looking beyond the crisis, it would be important for the
authorities to resume their ambitious reform agenda including enhancing
public financial management and SOE governance, advancing revenue
administration reforms and continuing to improve the effectiveness of the
AML/CFT framework. Strengthening resilience to natural disasters also
remains a priority.”
<< Back to news headlines >>
Shell files application for base power generation Tuesday 2nd June, 2020 – Eyewitness News
Shell has submitted its application for an Independent Power Provider
(IPP) license to Utilities Regulation and Competition Authority (URCA).
The company hailed the move as a significant milestone for its partnership
with Bahamas Power and Light (BPL) on the gas-to-power project.
“We’re pleased and excited to reach this milestone, another key step
towards solidifying the Shell-BPL partnership as we move forward with our
world-class LNG-to-power project,” said Markus Hector, GM Market
Development, Shell LNG Marketing and Trading.
“Shell is ready and willing to work with the Bahamas’ Utilities Regulation
and Competition Authority (URCA) to advance this application so we can
continue to move this project forward as quickly as possible.”
He added: “Now that we have submitted our application, we look
forward to working further with the Government on the Heads of
Agreement with an eye on finalizing this and other agreements.”
In an update, Shell underscored its application is the first time a company
has submitted an application for an IPP license for baseload power
generation in the country.
Other permit applications, like the Environmental Impact Assessment, are
reportedly still underway.
It was also noted the application follows months of negotiation of
definitive agreements, including the structure of the deal, the Power
Purchase Agreement, the Asset Purchase Agreement and the Heads of
Agreement with the Government.
In November 2018, the government signed a memorandum of
understanding (MOU) with Shell NA for the development of a gas-to-
power project.
The project would include the development of a gas-fire 220-plus
megawatt power plant, marine infrastructure to receive liquefied natural
gas; a gas pipeline to bring gas to shore; and an onshore LNG re-
gasification terminal.
BPL has undertaken to cover the costs to construct the entire 220-plus
megawatt power plant at the Clifton Pier site and transfer the assets to
Shell North America for its gas-to-power facility.
Shell has previously indicated plans to purchase the assets at “fair market
value”.
<< Back to news headlines >>
No more COVID travel card, borders open to domestic travel next week Monday 1st June, 2020 – Eyewitness News
Domestic travellers will no longer need to see a doctor before booking
commercial travel through the islands.
In a statement today, the Office of the Prime Minister announced the
country’s borders will be opened for regular domestic commercial flights
and for domestic pleasure craft and yachts to all islands of The Bahamas
on June 8.
The system announced today will replace the application and assessment
process that was initially put in place to accommodate inter-island travel,
effective immediately.
Individuals traveling aboard pleasure craft and yachts leaving from a
marina in New Providence, Grand Bahama or Bimini should submit travel
and health forms before departing.
If leaving from a private dock, individuals will be required to fill out and
submit forms at the point of entry.
The Ministries of Health and Tourism are reportedly developing a digital
solution to help to further streamline this process.
According to the statement, those who have already applied will receive
travel authorization from the Ministry of Health by email prior to June 8.
The reopening of regular commercial domestic travel is part of the
broader opening of the economy and to accommodate hurricane
season preparations.
Commercial airlines are expected to start taking reservations tomorrow.
“Passengers traveling from New Providence, Grand Bahama and Bimini
by aircraft, mailboat or passenger ferry will be required to complete a
standardized travel form and a standardized health form at the time of
check-in,” read the statement.
“These short forms will be used to collect contact information and a
COVID-19 risk assessment for health officials.”
The statement continued: “Airlines are working to ensure various protocols
including, enhanced cleaning procedures for aircraft; ensuring that all
staff utilize masks/facial coverings (PPE). Travelers are reminded that they
must wear masks/facial coverings.
“Operational procedures to ensure physical distancing on board the
aircraft and during the boarding process will be implemented. Physical
distancing will be enforced.
It read: “The Airport Authority and Port Authority have developed various
protocols for the reopening of domestic travel and will continue to make
adjustments as necessary to improve systems.
“Travelers should note that due to physical distancing protocols, the
check-in process may take longer than usual. Please arrive early to check-
in.
It added: “As with other jurisdictions around the world, the reopening of
domestic travel is an ongoing work in progress. Officials will continue to
streamline and fine-tune the process. Officials will also continue to monitor
the process and to adjust as necessary.”
<< Back to news headlines >>
Fourth bridge consortium pledges support to revitalize economy Monday 1st June, 2020 – Newsroom Panama
The Panama Fourth Bridge Consortium is ready to work with the
government to boost the economy and in a Monday, June 1 statement
pledged " long-term commitment to the bright future of Panama and its
citizens."
They add that their team is ready to work closely with the National
Government to develop new infrastructure projects and thus positively
impact the lives of Panamanians.
As a group of companies responsible for the design and construction of
the Fourth Bridge over the Panama Canal "they will put their experience
and the talent of their people to make the project a pride for all."
The Fourth Bridge over the Canal, they highlight, is a work that " will open
the way for the development of the West sector, improving the
connection with the interior of the country and the quality of life of more
than one and a half million Panamanians ."
<< Back to news headlines >>
Non-NIC contributors to benefit from ‘Income Support Programme’ Monday 1st June, 2020 – St. Lucia News
The Government of Saint Lucia continues to provide relief for citizens who
have been adversely affected due to the COVID-19 pandemic.
An Income Support Programme (ISP) for non-NIC contributors has been
implemented and will be managed by the Ministry of Finance and Tourism
collaboratively.
Prime Minister Honourable Allen Chastanet had announced in the Social
Stabilization Plan the provisions for helping those who have lost their
means of earning a living because of the COVID-19 crisis and are not
registered contributors to the National Insurance Fund.
Specifically, persons or entities who generated income as off-shoot service
providers of the tourism industry: taxi drivers, jet ski operators, vendors
(beach, craft and provision market), farmers (agro-processors), tour guide
operators, dive instructors, hairdressers, small bar/restaurant owners,
artistes and entertainers (full list can be accessed by the Government of
Saint Lucia website.) The Ministry of Tourism and Finance will work together
to ensure that this support reaches all who have been affected.
The Ministry of Tourism will be the executing agency for the programme
and responsible for: receiving applications under the ISP, reviewing and
verifying applications of eligibility, approving applicants according to
guidelines. However, a key component of the programme is for
beneficiaries to register with the NIC.
Applicants must electronically complete and submit the relevant
application form which will be made accessible on the Government of
Saint Lucia website (www.govt.lc) and may be accessed from a
computer or a mobile phone.
Eligible applicants will receive a monthly payment of $500 and may be
extended on a month to month basis for a maximum period of three
months.
This initiative is part of ongoing efforts by the government to assist affected
Saint Lucians at this time.
The Income Support Programme, simple strides towards recovery.
<< Back to news headlines >>
Sales off to slow start for retailers Tuesday 2nd June, 2020 – Trinidad Express Newspaper
President of the Downtown Owners and Merchants Association (DOMA)
Gregory Aboud says while sales were slow, there was a steady stream of
customers entering businesses, as retail stores reopened their doors for the
first time in two months yesterday.
Aboud told the Express that business owners expect the return of the
economy will be very slow and it would take some time getting back to
where business was.
He said there were no reports of hiccups from his membership on the
reopening and everyone was glad to restart their businesses.
The president of the association did express concern with some small and
large businesses giving up their premises at various spots in Port of Spain,
due to the closure for two months.
'These are significant happenings and adjustments must be made in order
to plan for the future. We have to hope that the right stimulus package,
which involves the right incentives and accurate understanding of
market, will create some investor confidence, at a time where some
businesses are calling it quits,' he said.
Aboud added that on the bright side many people are relieved to be
back out and to help restore what they once had.
'More time needed'
Also commenting on the reopening of phase three was Trinidad and
Tobago Chamber of Industry and Commerce CEO Gabriel Faria who said
an estimation of 25 per cent businesses in different parts of the country did
not reopen yesterday as they needed more time to clean their premises,
train their staff with new health guidelines and get proper signage.
He said some will restart business from today and others on Wednesday.
Faria noted that the aim of the Chamber now is working on the next
phase with casinos, restaurants, bars and cinemas, to ensure all protocols
are in place for presentation to the Ministry of Health so it can be
evaluated in time for the reopening of their phase.
And the Trinidad and Tobago Coalition of Services Industries (TTCSI)
commended the Government for taking decisive action to accelerate
the reopening of 'low touch' service businesses, namely business and
professional services (engineers, architects and surveyors) yesterday.
On May 18, the TTCSI, the representative body for 56 services associations
with a combined membership of approximately 662,510 companies and
persons, called on the Government to place more emphasis on the
reopening of these specific service providers.
'We have been working closely with the Master Barbers Association of T&
T, the beauty industry and massage therapists to ensure that they develop
appropriate safety protocols for re-opening. These protocols were shared
with the relevant agencies, and we were heartened to hear that they
had been considered,' the TTCSI stated.
These services will reopen in phase four next Monday.
<< Back to news headlines >>
AMCHAM makes proposals for recovery Road Map Tuesday 2nd June, 2020 – Trinidad Express Newspaper
THE American Chamber of Commerce of Trinidad and Tobago (AMCHAM
T& T) has put forward a number of recommendations to the Road Map to
Recovery Committee for the reopening of the economy, including
additional support for businesses.
Prime Minister Dr Keith Rowley on Saturday announced yesterday's start of
phase three and phase four will commence on June 8.
Among the recommendations suggested by AMCHAM are: grants for
small and micro businesses; wage support for businesses that retain
employees; the deferral of Value Added Tax (VAT) and other tax
payments for three months; a waiver of penalties and interests for current
tax payments for, Corporation Tax, PAYE, Health Surcharge and National
Insurance and VAT; the suspension of the Green Fund and Business Levy
through September; and the waiver on stamp duty loans through
December.
It is also proposing that Corporation Tax should be calculated on revenue
for current year versus last year.
AMCHAM said that With the closure of the non-essential businesses and
the stay-at-home order leading to a decline in sales in some of the
essential businesses, direct government support would be needed to aid
in the recovery of these businesses post-Covid-19.
These businesses would require support with liquidity and retention (or
rehiring) of staff.
Some specific recommendations on how these businesses can be
supported are: Grants should also be considered for small and micro
businesses in addition to the Soft loans already announced.
Provide wage support for business es that retain employees throughout
the crisis. We propose a tax relief system where, for each employee that
the registered businesses keeps on their payroll through the next three
months (i.e May to July), the government grants a tax credit (of between
100 per cent to 150 per cent) of the first $6,000 of the employee's salary.
Develop a tax credit for the creation of new jobs.
Corporation Tax should be calculated on revenue for current year versus
last year. Given the significant drop in revenue some companies will end
up in a refund position which will take a few years to get back from
Government.
The business group suggested to fully automate the Customs' process and
functionally integrate with TT BizLink and revamp Customs hours and
redesign locations to increase the efficiency at the Piarco International
Airport firstly and then Sea Ports.
<< Back to news headlines >>
Republic adds 75 cents Tuesday 2nd June, 2020 – Trinidad Express Newspaper
YESTERDAY'S overall market activity resulted from trading in 13 securities of
which three advanced, four declined and six traded firm.
Trading activity on the First Tier Market registered a volume of 188,712
shares crossing the floor of the Exchange valued at $990,863.19. National
Flour Mills Ltd was the volume leader with 96,568 shares changing hands
for a value of $193,136.00, followed by National Enterprises Ltd with a
volume of 26,623 shares being traded for $113,147.75. JMMB Group Ltd
contributed 25,689 shares with a value of $50,093.55, while Trinidad And
Tobago NGL Ltd added 14,350 shares valued at $233,187.50.
Republic Financial Holdings Ltd registered the day's largest gain,
increasing $0.75 to end the day at $133.48. Conversely, FirstCaribbean
International Bank Ltd registered the day's largest decline, falling $0.20 to
close at $7.30.
The Second Tier Market did not witness any activity. Mora Ven Holdings
Ltd (Suspended) remained at $12. The SME Market did not witness any
activity. CinemaONE Ltd remained at $5.74. Endeavour Holdings Ltd
remained at $12.60. The USD Equity Market did not witness any activity.
MPC Caribbean Clean Energy Ltd remained at $1.
<< Back to news headlines >>
THA to issue $300m bond in 4-6 weeks Tuesday 2nd June, 2020 – Trinidad and Tobago Newsday
IN the next four to six weeks, the THA anticipates that the $300 million
bond approved to fund some capital expenditure projects will go to
market.
At last Wednesday’s post Executive Council media briefing, Deputy Chief
Secretary and Secretary of Finance and the Economy Joel Jack said First
Citizens was selected as the arranger and the THA is in the process of
preparing the necessary legal documents as the matter is finalised.
In September 2019, the Cabinet sought and obtained approval for the
THA to issue a bond on the domestic market in the amount of $300 million
for capital works.
Jack said, “During this covid19 pandemic, we have had to adjust our
timelines slightly and we continue to work with our bankers to closely
monitor the financial market to determine the best time to issue the bond.
Within the next four to six weeks the Assembly anticipates that the bond
would be going to market.”
Jack said after the Assembly’s annual rating exercise by Moody’s investor
services earlier this year, an updated credit opinion was issued by
Moody’s for TT, resulting in a revision of the credit rating and also
reaffirming the credit rating of BA1 stable for TT with a change in the
outlook from stable to negative.
“The Assembly’s rating as a sub-sovereign with most of our revenues
coming from the sovereign, our rating was also reaffirmed by Moody’s as
BA1, but the outlook was changed... This was done to reflect the current
rating of the sovereign.”
He said it was important to note that Moody’s has highlighted some of the
credit strengths of the THA “in that we continue to maintain positive
operating margins, we also have balance consolidated financial results,
we have low debts and as well strong liquidity.”
Jack said the rating agency also highlighted its expectation and
confidence that the Assembly would continue in this vein in the medium
term and the immediate future.
“Following this annual exercise, we are also heartened as we continue to
open the Assembly’s operations to scrutiny. Let me give the people of
Tobago the commitment that we would continue as an Assembly and this
administration will continue in our financial responsibility to manage the
finances of the Assembly in a very prudent manner, as we have done in
the past since 2001.
“Even during this covid19 pandemic and post-covid19, we would
continue to ensure that the measures that we will implement would be
both targeted and comprehensive as we confront this pandemic.”
<< Back to news headlines >>
Heritage paid Govt $883m in royalties Tuesday 2nd June, 2020 – Trinidad and Tobago Guardian
Heritage Petroleum paid the Government $833 million in royalties, levies,
licenses and taxes last year, Finance Minister Colm Imbert says.
Imbert made the statement yesterday as he defended Government’s
treatment of Heritage Petroleum. He said the current situation with
Heritage was “a complete turnaround from the situation with Petrotrin in
previous years, where Petrotrin owed the Government billions of dollars in
unpaid royalties and taxes.”
Imbert issued a release which he said was aimed at correcting what he
labelled as “misinformation” in yesterday’s editorial. “In that editorial, the
Guardian accused the Government of favouring Heritage Petroleum
Limited over private companies by waiving the imposition of oil taxes for
the company, specifically supplemental petroleum tax,” Imbert said. “The
editorial also erroneously suggested that because Heritage Petroleum
Limited was not required to pay supplemental petroleum tax in fiscal 2020,
this may have prevented the auditors from questioning whether Heritage
Petroleum Limited was a going concern.”
Imbert said this was “simply untrue and misleading in the extreme.”
Heritage Petroleum Limited is a subsidiary of Trinidad Petroleum Holdings
Limited, which is a wholly-owned state enterprise and was created in 2018
when the former Petrotrin was restructured. “As part of the restructuring of
Petrotrin and the refinancing of the US$850 million Petrotrin bond that was
taken over by Trinidad Petroleum and due for payment in August 2019,
the Government gave an undertaking to make equity investments in
Heritage Petroleum to finance the exploration and production of oil, in
sums equal to the amount of supplemental petroleum tax that would be
due and payable over the period July 2019 to June 2021,” Imbert said.
“As any oil producer will know, investment in exploration and production,
specifically the drilling of new wells, the workover of existing wells and the
maintenance and upgrade of ageing infrastructure, such as pipelines,
pumps, tanks and machinery is critical to the maintenance of oil
production volumes.” Imbert said it is no secret that because of its
financial difficulties, Petrotrin was unable to make the required investment
in exploration and production, which led to a reduction in oil production.
“As the owner of Heritage Petroleum, therefore, the Government is
entitled to make any investment in this important state-owned company
that is appropriate and necessary,” he said. “It is also basic business
common sense for the Government to ensure that the national oil
company has sufficient cash flow to maintain its oil production volumes.”
Yesterday’s editorial to which Minister Imbert refers looked at the KPMG
examination of Heritage Petroleum’s financial statement, which looks at
whether Heritage would have been considered a going concern had the
Ministry of Finance not decided to forego Supplemental Petroleum Tax as
is the law. From the KPMG report, it is clear that the nature of the oil
business is such that small changes can have a significant impact on the
cash flow of Heritage and on determining if the company is a going
concern. It must be noted that while Heritage is not in and of itself heavily
leveraged, it is part of the Trinidad Petroleum Holdings (TPH) group which
owes bondholders US$850 million plus interest. It is Heritage’s cash flow
that is being relied upon to pay that debt. Therefore, if Heritage is to pay
the debt, deal with commodity volatility and moderate commodity
prices, then one can see how the assurance that it will retain its earning
from windfall prices would allow the company to be more viable in the
medium term, ceteris paribus. The editorial points this out and looks at
three issues, the effectiveness of the SPT (windfall tax), the fairness of it and
if Heritage is being favoured instead of free enterprise. The editorial does
not deal with nor deny Heritage made a profit, nor that it paid other
taxes, not that it is in a better financial position than the former Petrotrin.
<< Back to news headlines >>
36 stocks advance, 32 decline and 12 trade firm Monday 1st June, 2020 – Jamaica Gleaner
The Jamaica Stock Exchange (JSE) Combined Index declined on Monday
with an advance/decline ratio of 36/32.
The index declined by 3,116.46 points or 0.82 per cent to close at
378,197.13
The JSE Main Market Index declined by 3,208.18 points or 0.84 per cent to
close at 380,441.80 while the Junior Market Index declined by 15.28 points
or 0.58 per cent to close at 2,617.69.
The JSE USD Equities Index advanced by 0.50 points or 0.26 per cent to
close at 190.79.
Overall market activity
80 stocks traded
36 advanced
32 declined
12 traded firm
Winners
Caribbean Flavours and Fragrances up 13 per cent to close at $11.30
AMG Packaging up 12.26 per cent to close at $1.74
1834 Investments up 9.76 per cent to close at $0.90
Dolphin Cove up 7.59 per cent to close at $7.80
Sagicor Select Financial up 6.58 per cent to close at $0.81
Losers
Eppley down 10.19 per cent to close at $15.52
Derrimon Trading down 7.94 per cent to close at $2.32
G West down 6.90 per cent to close at $0.81
Main Event down 6.05 per cent to close at $4.50
Wigton Windfarm down 5.32 per cent to close at $0.89
Market volume
37.328 million units valued at over $211.706 million.
Volume leaders were Wigton Windfarm followed by Carreras Limited and
Sagicor Select Funds.
<< Back to news headlines >>
Fuel consumption increases 30% in Dominican Republic Sunday 31st May, 2020 – Dominican Today
Fuel consumption in the country has increased on average about 30% this
month compared to April, explained the president of the Dominican
Association of Companies in the Fuel Industry (ADEIC), Walkiria Caamano.
Caamano considered that the increase could be related to the entry of
the first phase of the de-escalation, but explained that the recovery of the
sector began to be seen since the beginning of this month.
“The most affected area is the East due to the impact on the tourism
sector,” he said.
He said that in April fuel consumption had decreased by approximately
60% as a result of the crisis generated by the COVID-19 pandemic.
Gasoline rises again
For the third consecutive week, fuel prices registered increases in the
country. For the week of May 30 to June 5, they will increase to RD $ 5.70,
according to the report issued yesterday by the Ministry of Industry,
Commerce, and MSMEs (MICM).
Premium gasoline will sell at RD $ 186.60 per gallon, for an increase of RD $
3.80 per gallon; the regular will cost RD $ 172.00, for an increase of RD $
4.00; regular diesel will be sold at RD $ 126.90, it rises RD $ 5.70 and the
optimum will cost RD $ 138.60, for an increase of RD $ 4.30.
International Context
According to the MICM statement, the great mobility of people for
Memorial Day in the United States increased the demand for gasoline and
contributed to a 13% rise in the West Texas Intermediate benchmark index
and a 230% increase in Total since it hit bottom on April 28 of the current
year.
<< Back to news headlines >>
Iberostar announces it will open its hotels in the Dominican Republic from
July 17 Saturday 30th May, 2020 – Dominican Today
Iberostar announced that the hotels it operates in the Dominican
Republic will open their doors from July 17.
In this sense, the Coral Level at Iberostar Selection Bávaro, Iberostar
Selection Bávaro, Iberostar Dominicana and Iberostar Punta Cana, will
open on July 17.
For July 31 will be the reopening of: Iberostar Grand Bávaro and Iberostar
Selection Hacienda Dominicus. Finally, on October 1, the Iberostar Costa
Dorada will open.
“The time has come to get back together so that you can once again
enjoy the paradisiacal beaches, delicious cuisine, the charisma of our
people, and a setting of unmatched beauty,” said the network.
The Iberostar Group also announced for June the reopening of its first
hotels in destinations such as Spain (the Balearic Islands, the Canary
Islands, and Andalusia), Montenegro, Greece, and Mexico, among
others.
And it is that the hotel group of the Fuxá family resumes activity, allying
itself with science to ensure the care of people and the ecosystem, hand
in hand with its Medical Advisory Board, which has biologists and doctors
specialized in public health in settings tourism, the Mallorcan company
has developed more than 300 health security measures in line with the
group’s circularity policies that promote the Wave of Change movement
for the protection of the environment and the oceans.
The hotel chain has also opted for external collaboration with SGS, the
world leader in inspection, verification, analysis, and certification, which
has endorsed the sanitation disinfection and sanitation protocols of hotels.
Sabina Fluxá, CEO of the Group, indicated that “the complicated thing is
not to develop security protocols but to do it with a holistic vision, scientific
rigor and without taking a step back in the care of the ecosystem. We are
proud of our measures, but we are proud that they have been
implemented without giving up being a company free of single-use
plastics, as far as the law allows us, deepening our circularity policies and
using products that minimize environmental impact.”
The new procedures include, among other innovations, the use of masks
made of recycled and recyclable materials and measures that favour
frequent hand washing to minimize the use of gloves.
Furthermore, the Iberostar Group has developed a training plan to
accompany all the teams in their adaptation to the new scenario and will
carry out periodic audits of the protocols and procedures.
The training plan covers four areas: general epidemiological training,
application of protocols, training on new consumption habits, and ad hoc
training generated by the Medical Advisory Board.
“At Iberostar, our goal is to take care of everyone: customers, employees,
the community, and the environment through our philosophy, How We
Care. The initiative has generated more than 300 hygiene, safety, and
health actions for rooms, restaurants, swimming pools, and properties that
offer a more personalized and safe vacation experience. The objective is
to make the client feel more secure than ever so that he can put aside
worries and feel as comfortable as ever, “emphasized the business group.
<< Back to news headlines >>
Starting in June, a new RD $500 banknote will circulate in Dominican
Republic Saturday 30th May, 2020 – Dominican Today
The Central Bank of the Dominican Republic (BCRD) reported that a new
RD $ 500 banknote, series 2017, will circulate from June 1, which will
contain the isotype or graphic symbol with the visual identity of the
institution.
In the upper-right part of the main face, where the busts of Doña Salomé
Ureña de Henríquez and Don Pedro Henríquez Ureña appear, the isotype
or visual symbol of the BCRD is integrated, accompanied by the value of
the denomination in numerical characters in a vertical arrangement.
In addition, the isotype or visual symbol is printed with optically variable
magnetic ink, which changes colour from gold to green, and has a drop
effect, giving the sensation of undulating sand.
The RD $ 500.00 banknote with this new isotype or visual symbol contains
the same security features as those currently in circulation, which maintain
their validity for the payment of all public and private obligations.
The Central Bank informs that this 500 pesos bill is issued pursuant to the
provisions contained in Articles 228,229 and 230 of the Constitution of the
Republic and Article 25, paragraphs a) and c) of the Monetary and
Financial Law No. 183-02.
The process of changing the isotype or graphic symbol of the institution
has been completed on the banknotes of national circulation until it
adapts to the new institutional visual identity.
<< Back to news headlines >>
Long lines, confusion as Venezuela sells Iranian fuel under new price
system Monday 1st June, 2020 – Reuters
Venezuela on Monday launched a fuel pricing system that largely rolls
back decades of heavy subsidies, creating long lines and leaving drivers
confused as the government seeks to end chronic shortages with gasoline
imports from Iran.
Cheap fuel was for decades considered a birth right in the South
American oil producing nation, but service stations have run dry in recent
months due to Venezuela’s dysfunctional refineries and U.S. sanctions
meant to force President Nicolas Maduro from power.
Defying U.S. threats, Iran sent a flotilla of five tankers of fuel to Venezuela,
which arrived last week, and Tehran said on Monday it would send more if
requested by Caracas.
Maduro on Sunday created a two-tiered system in which drivers can buy
up to 120 litres per month in local currency for the equivalent of $0.02 per
litre, but have to pay $0.50 per litre above that amount.
The plan’s rollout confused workers and consumers across the country.
By 9 a.m. several stations in Caracas remained closed as staff and security
forces meant to oversee the distribution awaited instructions from state-
run oil company Petroleos de Venezuela [PDVSA.UL], known as PDVSA.
“We do have gasoline, but it is unclear if we are selling at subsidized
(price) or dollarized (price),” said Jefferson Suarez, a military official
managing pump lines at a station in eastern Caracas. “PDVSA workers
have not shown up yet to explain, and I don’t have any idea what is
going on.”
Outside Caracas, the start was even rockier. In the western border state of
Tachira, many stations never opened. In many places, including the
western cities of Barquisimeto and Maracaibo, stations quickly ran out of
the subsidized gasoline.
PDVSA President Asdrubal Chavez acknowledged there were “still things
we need to fix in this process.”
“We ask our people for a little bit of patience as we correct these small
details,” Chavez, named interim PDVSA president last month, told state
television.
BOLIVARS OR DOLLARS?
Payment for subsidized fuel, offered in rations of 30 litres per vehicle at
most of Venezuela’s 1,800 stations, was complicated by malfunctioning
payment machines and a dearth of local currency, forcing some stations
to charge in dollars - a practice not authorized by authorities.
Many stations required an identification card and bank account to
purchase fuel at the subsidized rate, while others required vehicles to be
registered in the ‘Fatherland System,’ a database the government uses to
administer welfare benefits.
After an initial 90-day introductory period, motorists wishing to benefit from
the subsidy must pay with a 'Fatherland Card' affiliated with the system.
Rights groups have raised concerns here the government uses the cards
to track citizens' behaviour as a means of social control.
Lines snaked around blocks at many stations in Caracas, even at those
offering more expensive gasoline in dollars.
“Better to pay them officially at the gas station instead of pay whatever
corrupt government officials decide on the black market,” said Julio
Aponte, 36, a motorcycle delivery driver.
Scarcity has encouraged a black-market forcing people to pay at least
$2 per litre.
PDVSA did not immediately respond to a request for comment. Chavez
said on Monday the new system would help combat “contraband” of
fuel.
Others, while thankful gasoline has arrived, are concerned about how
they would pay once they pass their quota.
“It’s a chain and everything is going to get more expensive,” said Julio
Arrivillaga, 51, a lawyer. “With subsidies it is OK, but I cannot afford $0.50 a
litre on my salary of less than $10 a month.”
<< Back to news headlines >>
