10 year tax holiday for T&TSE SMEs listing

January 5, 2022 by

Trinidadian companies are to benefit from a ten year tax concession to small enterprises that list on the Trinidad and Tobago Stock Exchange, similar to the concession granted to listings on the Jamaica Stock Exchange Junior Market that will result in tax free status for five years and half the tax for the second five years, effective 2022.

The information was contained in his 2022 national Budget presentation by the Minister of Finance, Colm Imbert, in which he announced the tax benefits for small and medium enterprises (SMEs) that are listed on the Trinidad and Tobago Stock Exchange (TTSE).
The incentives come into effect from January 2022 that will result in SMEs will be granted a full tax holiday for five years following a listing on The TTSE and a 50 percent tax holiday for the second five years following the listing, thereafter the standard rate will apply thereafter. These exemptions include Corporation Tax, Business Levy and Green Fund Levy.
Prior to the announcement, the tax concession, initially announced in 2011, that resulted in the tax rate being 10 percent and later increased to 15 percent in 2020, resulted in only two companies listing as a result, in contrast to Jamaica Stock Exchange Junior Market that has been a resounding success, with 46 companies attracted to it with more to come shortly. It is worth noting that Jamaica in 2016 was planning to abolish the incentive, fortunately, that did not happen as such the Junior Market continues to grow and helps to strengthen the economic base of the country.
In commenting on the imminent SME tax holiday, CEO of the TTSE, Eva Mitchell, praised the opportunities this opens up for both the companies covered by the benefits and the public who are eager for new channels for investment. “The country continues to operate under the restrictions and sustained economic blows imposed by the Covid pandemic. The SME sector has been hit extremely hard, and these new tax incentives provide welcomed relief. The fact that they are accessible via listing on the Stock Exchange encourages interest and investment for further growth from our stakeholders. The Stock Exchange is a closely regulated environment which supports public confidence and sustained participation.”

Filed Under: Economy, Stock Market, TTSE Market Tagged With: , , , , , ,

Continued improvement in tourist arrivals

December 9, 2021 by

Stopover visitor arrivals to Jamaica jumped 39.5 percent to 970,435 for the first nine months of 2021, from 695,721 in the first nine months last year and is 52 percent below the 2,020,508 stopovers arrivals in the first nine months of 2019.

Tourism is Jamaica’s bouncing back.

September quarter arrivals grew to 437,890 from 114,402 last year but are 30.5 down on the 629,825 in 2019, a significant improvement over the 45.6 percent drop in the June quarter over 2019.
Preliminary data show that the improvement in arrivals continued into October and November, with the latter figures suggesting that the decline against 2019 is now down to just 22 percent.
For Jamaica, stopover arrivals in September this year fell 30.4 percent to 100,654 from 144,583 in September 2019 but are 251 percent ahead of the 28,648 arrivals in September last year, shortly after the industry reopened to international visitors. Data from the Jamaica Tourist Board show that the September numbers are 34.4 percent lower than the 153,360 stopovers in August.
Unfortunately, the Jamaica Tourist Board continues the bad practice of not releasing arrivals numbers to the public on a timely basis. Accordingly, neither October nor November numbers are yet released. The tourist board should move to a two-pronged approach to releasing the data. First, they should provide the country with the arrival numbers and later release the report as they currently do.

Filed Under: Breaking News, Economy Tagged With: ,

Long term GOJ interest rates spike to 11% high

November 30, 2021 by

Investors garnered interest rates as high as 11 percent on long term bonds issued by the Government of Jamaica last week auctions of three long term bonds that were reopened and raised $10 billion. The average rates were more moderate, with the highest average being 8 percent.
The Government also offered $5 billion of the 10 percent bond due 2037 with a duration of 15.5 years. The auction attracted $6.759 billion that resulted in an average yield of 7.9614 percent. The lowest rate was 6.7 percent for $50 million and the highest success rate was 10 percent. The highest submitted bid was 12.999 percent. A total of 56 bids went after the bond, with 46 being successful.
The 5.675 percent bond due 2029, with a duration of 7.5 years, ended with an average yield of 6.3506 percent. The auction attracted $2.727 billion, of which $1 billion was allocated. The lowest rate was 5.575 percent for $100 million and the highest success rate was 6.94 percent. The highest submitted bid was 11 percent.  This instrument received 43 submissions, with only 18 being successful.
The 4.5 percent bond due 2025, with a duration of 3.5 years, delivered an average yield of 6.2329 percent. Bids from 51 applicants amounting to $4.779 billion chased the $4 billion on offer. Only 44 bids succeeded in getting allocated. The lowest rate was 4.5 percent for $44 million, with the highest success rate of 10.525 percent. The highest submitted bid was 11 percent covering $100 million.
The increased rates come against the background of recent moves by Jamaica’s central bank to hike rates and move towards an era of positive interest rates. Since making their intention known, the bank raised its overnight rate from 0.50 percent to 2 percent in September and November, while rates on 30 days CDs moved to 4.11 percent from 0.59 percent since the beginning of August and 2.15 percent at the September 22 Auction.

Filed Under: Economy, Feature Stories Tagged With: , , ,

Jamaica’s remittances up again in October

November 29, 2021 by

Total remittance inflows climbed a respectable 8.8 percent for an increase of US$24 million to US$296 million, up from US$272 million in 2020.
The increase continues the robust growth remittance inflows enjoyed since May last year. It puts the total inflows for the year to date at US44 million short of the total intake for 2020, when US$2.905 billion was taken in for the year to the end of December. At the pace inflows have grown, the take for the current year could hit a record US$3.5 billion, data released by the Bank of Jamaica is suggesting.

Filed Under: Economy, FX Market, Street News & Views Tagged With: , ,

BOJ CD rates holding steady

November 18, 2021 by

Fresh from hiking their overnight policy rate by 0.50 percent to 2 percent, Bank of Jamaica latest CD offer produced an average yield of 4.34 percent, with the lowest bid coming in at 4 percent.
BOJ offered to sell $9.5 billion of CDs and attracted twice that amount at $18.24 billion. The highest rate payable by the central bank is 4.475 percent, with only 44 percent of the amount of the bid being successful.
The previous CD auction held on November 9 attracted $17 billion for the $12 billion offered and resulted in an average yield of 4.22 percent, with the highest successful bidder getting 91 percent of the amount they placed in the auction with an interest rate of 4.65 percent.

Filed Under: Economy Tagged With: , , ,

Remittances jump 17% in September

November 10, 2021 by

Total remittance inflows in Jamaica jumped 17.2 per cent or US$44.8 million in September 2021 over the $260 million inflows for September 2020 and lifting the gross inflows for the year to date to US$2.6 billion, just US$300 million less than US$2.9 billion inflows for the 2020 calendar year.
The increase for the month is highly positive, in light of a strong 34.5 percent jump in September 2020 over the 2019 inflows for that month.
The total inflows for last year could be equalled or exceeded with the October numbers and could put the inflows for the year at US$3.6 billion by the end of the year. The numbers for September continues the robust monthly increase since last year May, except for a small decline of 2.4 percent in August this year. For the January to August 2021 period, remittance inflows to Jamaica grew by 25.4 percent to US2.3 billion, up from US$1.836 billion in 2020. Prior to August, inflows grew by 30.4 percent, with June and July being up 10 percent, well below 42 percent increase to May.

The data was obtained from the Bank of jamaica.

Filed Under: Economy Tagged With: ,

Have Interest rates peaked?

November 1, 2021 by

Jamaica’s Central Bank 

Interest rates on Certificate of Deposit issued by Bank of Jamaica seem to be levelling off, with the rate at last week’s auction declining from the previous week’s outturn.
Last week’s offer of $7.5 billion in 30 days on Wednesday, 27 October, attracted 76 applications amounting to $13 billion and resulted in an average yield of 3.96 percent, down from 4.53 percent at the auction in the previous week. Bids were received as low as 2.5 percent covering $1.48 billion, with the highest rate bid being 7.34 percent for $20 million. A bid amounting to $550 million received full allocation at 4.79 percent. The total nominal outstanding amount for the 30-day CDs on the settlement date – 29 October, will be $41.5 billion, down from $46.5 billion in mid-October.

Filed Under: Economy Tagged With: , ,

BOJ one year CDs 2.74%

October 24, 2021 by

Bank of Jamaica’s one-year CD offering of $4.5 billion on Thursday, October 21, ended with an average interest rate of 2.74 percent, much lower than the 4.53 percent the 30 days CD cleared at this past week.
The one year instrument attracted 107applications amounting to $15.88 billion, of which only 27 were successful. The highest bidding rate was 8.99 percent for $423 million, but the highest successful rate was 4.76 percent, resulting in 29.4 percent of the amount applied for being accepted by the Bank of Jamaica. The highest rate payable on the full amount of $140 million applied for was 4.5 percent, while the lowest rate applied for was 1.495 percent on $400 million.
The issue is likely to be regarded by the country’s central bank as highly successful. The success of the issue should result in more longer term offerings to lock up liquidity in the market on a longer term basis than the 30 days instruments that are more costly for the bank and more challenging to manage as they mature on a more frequent basis.
Jamaica is now seeing rising interest rates following the Central Bank’s decision in August to raise as a result of surging inflation. Following that decision, 30 day CD rates climbed sharply and the Bank raised its Overnight rate from 0.50 percent to 1.5 percent in September.

Filed Under: Economy Tagged With: , ,

BOJ now paying more than 4.5% on CDs

October 23, 2021 by

Interest rates rose to 4.53 percent in the latest Bank of Jamaica 30 day CD offering of $9.5 billion on Wednesday this week, up from 4.17 percent on Wednesday, October 13 and ended with total CDs outstanding falling by $2 billion to $44.5 billion, but there are signs that rates may be peaking, at least for now.
Signs that the rates may be peaking for a while are visible by the decline in the highest bidding rates and the much larger sum applied for at the minimum rate compared to the previous auction. The highest rate payable on the CDs is 5.5 percent, while the lowest rate applied for was 3.75 percent for $2.5 billion, this contrast with the previous auction in which the lowest bid was just $58 million at 3 percent. The highest submitted bid rate came in at 7 percent and is down from 7.99 percent in the previous auction. The auction attracted $14.74 billion from 42 applications, with 24 being successful.

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BOJ now paying over 4% on CDs

October 20, 2021 by

Interest rates rose to 4.17 percent in the latest Bank of Jamaica 30 day CD offering of 12 billion on Wednesday last week, up from 3.28 percent on Wednesday, October 6 and well over the new overnight rate of 1.5 percent.
Having settled at a low of just over 0.5 percent for the past two years, the latest rate marks a significant shift in a very short time frame, a development that investors should watch carefully.
At the recent auction, the central bank received 53 bids amounting to $14 billion for $12 billion on offer, 46 bids were successful up to 5.27 percent and came after BOJ increased their overnight rate to 1.5 percent. The total nominal outstanding amount for the 30-day CDs $46.5 billion, similar to the week before, but well above the $35.5 billion at the end of July.
At the same time, the Government of Jamaica Treasury bill auction on Wednesday, October 10, rates on the three tenors on offer ended with an average rate of 2.165 percent for the 90 day offer that attracted $2.246 billion for the $700 million on offer. The 181 days offer saw $1.974 billion chasing the $700 million offered and resulted in an average rate of 2.75 percent and the 273 days T-bill pulled in $1.865 billion for $800 million offered and resulted in an average rate of 3.69 percent.
The range for yields for full allotment is 1.45 percent to 2.85 percent for the 91 day T-Bill, 1.5 percent to 3.05 percent or the 182 days T-bill and 2.41 percent to 4.75 percent for the longest dated bill.
On Thursday, October 21, the central bank will auction $4.5 billion 365 days Certificate of deposit.

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