Read below an excerpt from a World Bank and IBRD March 2009 Report on "How Developing Countries are coping with the Global Crisis". Fiji has a double issue to contend with : both the impact of the global crisis and its own domestic crisis.
"The sharp global contraction is affecting both advanced and developing countries. Global industrial production declined by 20 percent in the fourth quarter of 2008, as high income and developing country activity plunged by 23 and 15 percent, respectively. Particularly hard hit have been countries in Eastern Europe and Central Asia and producers of capital goods. Global GDP will decline this year for the first time since World War II, with growth at least 5 percentage points below potential. World trade is on track to register its largest decline in 80 years, with the sharpest losses in East Asia, reflecting a combination of falling volumes, price declines, and currency depreciation.
Financial conditions facing developing countries have deteriorated sharply. The World Bank estimates that developing countries face a financing gap of $270-$700 billion depending on the severity of the economic and financial crisis and the strength and timing of policy responses. Even at the lower end of this range, existing resources of international financial institutions would appear inadequate to meet financing needs this year. Should a more pessimistic outcome occur, unmet financing needs will be enormous.
The financial crisis will have long-term implications for developing countries. Sovereign debt issuance by high-income countries is set to increase dramatically, crowding out many developing country issuers (private and public). Many institutions that have provided financial intermediation for developing country clients have virtually disappeared. Developing countries are likely to face higher spreads, and lower capital flows than over the past 7-8 years, leading to weaker investment and slower growth in the future.
The challenge facing developing countries is how, with fewer resources, to pursue
policies that can protect or expand critical expenditures, including on social safety nets, human development and critical infrastructure. This will be especially difficult for LICs: the slowdown in growth will likely deepen the degree of deprivation of the existing poor, since large numbers of people are clustered just above the poverty line and particularly vulnerable to economic volatility and temporary slowdowns. Many of the most affected LICs are heavily dependent on official concessional flows, which will be under pressure in donor countries facing their own fiscal challenges.
There is a therefore a strong need to expand assistance to LICs to protect critical
expenditures and prevent an erosion of progress in reducing poverty. Attention must be directed to protecting the poor through targeted social spending, including expanded safety nets, and to maintaining and expanding the infrastructure assets that will be critical to restoring growth following the crisis. A concerted effort is also needed to support the private sector, especially SMEs, which are essential to a resumption of growth and job creation in developing countries. Creation of a global Vulnerability Fund, financed with a modest portion of advanced country stimulus packages, could go a long way to providing the resources necessary for these efforts."
You can get more of this report on this link.
Showing posts with label Fiji. Show all posts
Showing posts with label Fiji. Show all posts
Monday, March 14, 2011
Sunday, March 13, 2011
World Bank Group Significantly Boosts Support to East Asia and Pacific
The World Bank has announced last week that it has adjusted its regional strategy and massively increased its financial and technical support for the region, to address the impacts of the global financial crisis.
Whether Fiji qualifies for this assistance, we are not sure but Government officials could look into it. There will certainly be conditions to be met by the Fiji Government should they wish to access any assistance.
At this stage as well, no detailed study has been done as to the extent that the global crisis has affected the Fiji economy, aside from the effect of the domestic political crisis on the country itself. This would really be an interesting study to do.
Read the World Bank Press release below.
------------------
"The World Bank Group responded quickly to the impacts of the global financial crisis on the countries of the East Asia and Pacific region in fiscal year 2009 with over US$9 billion in financing for development. This represents a significant increase on the amount of financing of the previous year. The World Bank Group also ramped up its technical assistance to help governments in the region address the social and economic impacts of the crisis.
“Although growth in East Asia and Pacific still compares favorably with that of other regions, the poor and the vulnerable have been deeply affected by the global economic crisis,” said World Bank Group Vice President for the East Asia and Pacific Region, James W. Adams “In this region alone, more than 10 million people who would otherwise have moved out of poverty are expected to remain below the poverty line. We have adjusted our regional strategy and increased resources for the region to help countries weather the economic crisis and ensure priority programs remain on track. This includes investments in infrastructure, education, health, agriculture, and social safety nets.”
Many countries in the region were just beginning to recover from the food and fuel crisis of 2008 when the global financial crisis hit. The World Bank Group responded by increasing its support --in loans, grants, equity investments and guarantees-- to help countries and private-sector firms deal with the devastating effects of the global financial meltdown.
Commitments from the International Bank for Reconstruction and Development (IBRD)—which provides financing, risk management products, and other financial services to middle-income countries— increased in FY09 to $6.9 billion, up from $2.7 billion the previous year. The International Development Association (IDA), which provides interest-free credits and grants to the lowest-income countries, provided $1.2 billion in support in FY09.
As the largest provider of multilateral financing for the private sector in the developing world, the Bank Group’s private sector arm –the International Finance Corporation (IFC)— also increased its support to help boost private sector-led recovery. In FY2009, preliminary results indicate that IFC generated $1.1 billion of new business in 45 projects, seven of these are located in conflict-affected countries and regions, while one in every five projects has a climate change component.
Karin Finkelston, IFC’s Director for East Asia and Pacific, said “To help the region navigate the financial crisis, we focused our efforts on the poorest and most vulnerable countries. We are pleased that we were able to increase our financial commitments to IDA countries to nearly $400 million from around $200 million in 2008.”
The Multilateral Investment Guarantee Agency (MIGA) supported infrastructure development in south-west China, where fast urbanization and industrial growth have led to severe wastewater issues. The agency issued guarantees of $75.3 million to support two water projects, which will promote improved water quality as well as better environmental practices.
“As the leading international institution promoting foreign direct investment (FDI) in emerging and transition economies, MIGA can help investors mitigate risks in these uncertain times and play an important role in helping countries attract FDI,” says MIGA’s Executive Vice President Izumi Kobayashi. “MIGA can act as a stabilizing influence in the market.”
The Bank Group’s support in FY2009 in the East Asia and Pacific region by sector is as follows :
Whether Fiji qualifies for this assistance, we are not sure but Government officials could look into it. There will certainly be conditions to be met by the Fiji Government should they wish to access any assistance.
At this stage as well, no detailed study has been done as to the extent that the global crisis has affected the Fiji economy, aside from the effect of the domestic political crisis on the country itself. This would really be an interesting study to do.
Read the World Bank Press release below.
------------------
"The World Bank Group responded quickly to the impacts of the global financial crisis on the countries of the East Asia and Pacific region in fiscal year 2009 with over US$9 billion in financing for development. This represents a significant increase on the amount of financing of the previous year. The World Bank Group also ramped up its technical assistance to help governments in the region address the social and economic impacts of the crisis.
“Although growth in East Asia and Pacific still compares favorably with that of other regions, the poor and the vulnerable have been deeply affected by the global economic crisis,” said World Bank Group Vice President for the East Asia and Pacific Region, James W. Adams “In this region alone, more than 10 million people who would otherwise have moved out of poverty are expected to remain below the poverty line. We have adjusted our regional strategy and increased resources for the region to help countries weather the economic crisis and ensure priority programs remain on track. This includes investments in infrastructure, education, health, agriculture, and social safety nets.”
Many countries in the region were just beginning to recover from the food and fuel crisis of 2008 when the global financial crisis hit. The World Bank Group responded by increasing its support --in loans, grants, equity investments and guarantees-- to help countries and private-sector firms deal with the devastating effects of the global financial meltdown.
Commitments from the International Bank for Reconstruction and Development (IBRD)—which provides financing, risk management products, and other financial services to middle-income countries— increased in FY09 to $6.9 billion, up from $2.7 billion the previous year. The International Development Association (IDA), which provides interest-free credits and grants to the lowest-income countries, provided $1.2 billion in support in FY09.
As the largest provider of multilateral financing for the private sector in the developing world, the Bank Group’s private sector arm –the International Finance Corporation (IFC)— also increased its support to help boost private sector-led recovery. In FY2009, preliminary results indicate that IFC generated $1.1 billion of new business in 45 projects, seven of these are located in conflict-affected countries and regions, while one in every five projects has a climate change component.
Karin Finkelston, IFC’s Director for East Asia and Pacific, said “To help the region navigate the financial crisis, we focused our efforts on the poorest and most vulnerable countries. We are pleased that we were able to increase our financial commitments to IDA countries to nearly $400 million from around $200 million in 2008.”
The Multilateral Investment Guarantee Agency (MIGA) supported infrastructure development in south-west China, where fast urbanization and industrial growth have led to severe wastewater issues. The agency issued guarantees of $75.3 million to support two water projects, which will promote improved water quality as well as better environmental practices.
“As the leading international institution promoting foreign direct investment (FDI) in emerging and transition economies, MIGA can help investors mitigate risks in these uncertain times and play an important role in helping countries attract FDI,” says MIGA’s Executive Vice President Izumi Kobayashi. “MIGA can act as a stabilizing influence in the market.”
The Bank Group’s support in FY2009 in the East Asia and Pacific region by sector is as follows :
- Agriculture and Rural Development, USD520 million;
- Education, USD797 million;
- Energy and Mining, USD526 million;
- Economic Policy, USD2,792 million;
- Financial and Private Sector Development, USD160 million;
- Public Sector Governance, USD460 million;
- Social Development, USD322 million;
- Social Protection, USD215 million;
- Transport, USD855 million.
Thursday, March 3, 2011
Colonial National Bank Interest Rates (Updated 1.9.09)
Schedule of interest rates released by Colonial National Bank are as follows:
Individuals and groups that need investment advice and investment portfolio management services, can use our company, Gilbert & Samuels Company Limited.
Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.
- Business Banking Base Rate – 9.20%;
- Residential Property Loan : Variable Rate – 9.25%, 1 Year Fixed Rate – 7.50%;
- Investment Loan : Variable Rate – 9.25%, 1 Year Fixed Rate – 7.50%;
- Retail Term Deposits: 9 months - 5.00%, 1 year - 3.50%, 1.5 Years - 3.75%, 2 Years - 4.00%, 3 Years - 4.50%.
Individuals and groups that need investment advice and investment portfolio management services, can use our company, Gilbert & Samuels Company Limited.
Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.
Monday, February 14, 2011
Colonial National Bank reduces variable lending rates
In its latest interest rates published on 14 July 2009, Colonial National Bank has reduced its variable lending rates for residential home loans and investment property loans by 0.25% to 9.25%, from 9.50%.
There has been no changes to the bank's deposit rates.
This follows the Reserve Bank of Fiji's recent directive for banks to reduce their lending rates to the levels they were at end December 2008 and for each bank's interest spreads to be not more than 4% after a certain time period given to them.
There has been no changes to the bank's deposit rates.
This follows the Reserve Bank of Fiji's recent directive for banks to reduce their lending rates to the levels they were at end December 2008 and for each bank's interest spreads to be not more than 4% after a certain time period given to them.
Sunday, February 13, 2011
Moving on from a global crisis: business as usual or an inflection point?
Read below comments by the Director-General of the World Bank's Independent Evaluation Group, Dr Vinod Thomas on what the global crisis would mean for countries.
Dr Thomas does note that countries that are open were more vulnerable to the effect of the crisis. He also added that for the financial sector, deregulation (which had been the trend before the crisis) coupled with sensible regulatory policies that are targeted at containing excessive risk taking at the "expense of other people's money" would be advisable for countries.
The article follows.
"Speaking at the Institute of Policy Studies in Singapore on June 19, 2009, Dr. Vinod Thomas, Director-General and Senior Vice-President of the World Bank’s Independent Evaluation Group (IEG), described the current global economic turmoil as a triple crisis comprising the global economic downturn; rising poverty; and climate change. Thomas said that this crisis provides a moment to reflect on the past and actions for the future.
“One can think of this crisis as one that can be solved and we can then move on. We can also think of this as an inflection point where some deep uncertainties about how the ways in which countries have developed and been growing over the last 10-15 years are just not going to happen anymore and that it’s not sustainable.”
The end of globalization?
With those countries most connected to the global economy having been worst hit by the crisis, questions have arisen about whether high levels of globalization will spell doom moving forward. “This crisis adds a certain degree of empirical evidence to an observation that the more you are connected, the more a crisis such as this affects you.”
Thomas also notes that trade has been a mechanism for transmitting the recession to so many countries—Singapore included—demonstrating that there really has been no decoupling. “Asia cannot, as people had imagined, go a separate way from the rest of the world economy, even if the crisis was initiated by the OECD countries.”
Trade and openness remain the policy prescriptions, however; as past experience shows that it is these same globalised economies which have stronger recovery of GDP growth. “In a crisis such as this, those with greater trade shares are hit harder. That does not mean that being connected to the rest of the world is a bad idea, because as the recovery takes place and opportunities show up, those that are more connected to the global economy, with greater shares of trade and investment in their GDP, benefit much more.”
Warning against the trend of rising protectionism, Thomas said that “coming out of the crisis, if the recovery means greater restrictions on trade, then the future growth trajectory will definitely look different from the past. The past growth rates—the honeymoon really—lasted as long as it did because of the increasing openness of the global economy.”
Crisis response
In addition to trade, policy responses have also focused on financial reform, fiscal spending, poverty alleviation, and the environment.
Discussing reforms needed in the financial sector, Thomas noted that “if regulation had a bad name in the past, today it is clear that deregulation- much needed in many economies- needs to be coupled with sensible regulatory policies.”
Thomas also warned against abandoning new or highly innovative financial instruments because of the benefits that they provide: “You need to keep in mind that the intermediation, the leveraging, and the access to credit for large numbers of people can be augmented by many of these instruments… The lesson though is that those need to be matched by a regulatory framework that avoids extraordinary risk-taking at the expense of other people’s money.”
As countries worldwide put in place unprecedented fiscal expansion packages, Thomas noted that we should put a premium on quality over quantity. “You will see huge variations two years from now, with the same dollar producing widely different impacts in terms of the growth recovery, and that will differentiate those who come out of this recovery well, compared to those who don’t.”
The crisis of rising poverty- 150 million more people in poverty in 2008, and 50 million more set to fall below the poverty line in 2009- with its risk of social instability and loss of welfare, is closely linked to employment. The recovery in employment is expected to be slower than economic recovery as employers wait to see if the recovery is real; and as efficiency gains may result in a shift in employment patterns.
While the environment may have been an issue placed on the backburner in previous crises, Thomas said that that is no longer an option, and that climate change means that “the kind of growth that we have gotten used to isn’t feasible going forward. The numbers that are coming out on climate change are just absolutely frightening and if even a part of that is true, then investing in a different way would seem to be a high priority…In 20-30 years, with business as usual, we may be living in an ice-free world. If you think about it, that should be enough to spur action, but that does not spur action anywhere close to what you would like.”
This does not mean, however, that countries should be expected to reduce carbon emissions while they are still developing. “No country has developed rapidly without increasing their carbon footprint. So we have to be realistic. That is the only way development has taken place.”
There is, however, huge room for improvement in the carbon efficiency of development, said Thomas. “A sevenfold variation exists in how carbon intensive you need to be for any given income…so, yes, growth goes with a greater carbon footprint, but, no, it’s not automatic or preordained. There’s huge room for adjusting this as you go forward.”
Uncertainty is at an all time high, and Thomas said that there is a sense that the past is not going to be the best predictor of the future this time around; that the incremental changes that we are comfortable with may miss out on the big picture, especially in terms of risks and opportunities. In this context, Thomas emphasized the importance of flexibility in crisis responses.
“Action waits until there is a crisis”
This crisis does provide for an opportunity to make necessary changes. “We could be at an inflection point as opposed to returning to business as normal. This crisis could be turned into an opportunity to take action on three fronts: economic, social, and climate.”
Citing the examples of fiscal reform in Korea, Thailand, China and Brazil, Thomas said that all of these could be linked to a crisis; and that there are many fronts—human capital, greater competitiveness, social inclusion, infrastructure, public sector governance, new forms of green investment—on which this crisis can spur action."
To read more, click on this link.
Dr Thomas does note that countries that are open were more vulnerable to the effect of the crisis. He also added that for the financial sector, deregulation (which had been the trend before the crisis) coupled with sensible regulatory policies that are targeted at containing excessive risk taking at the "expense of other people's money" would be advisable for countries.
The article follows.
"Speaking at the Institute of Policy Studies in Singapore on June 19, 2009, Dr. Vinod Thomas, Director-General and Senior Vice-President of the World Bank’s Independent Evaluation Group (IEG), described the current global economic turmoil as a triple crisis comprising the global economic downturn; rising poverty; and climate change. Thomas said that this crisis provides a moment to reflect on the past and actions for the future.
“One can think of this crisis as one that can be solved and we can then move on. We can also think of this as an inflection point where some deep uncertainties about how the ways in which countries have developed and been growing over the last 10-15 years are just not going to happen anymore and that it’s not sustainable.”
The end of globalization?
With those countries most connected to the global economy having been worst hit by the crisis, questions have arisen about whether high levels of globalization will spell doom moving forward. “This crisis adds a certain degree of empirical evidence to an observation that the more you are connected, the more a crisis such as this affects you.”
Thomas also notes that trade has been a mechanism for transmitting the recession to so many countries—Singapore included—demonstrating that there really has been no decoupling. “Asia cannot, as people had imagined, go a separate way from the rest of the world economy, even if the crisis was initiated by the OECD countries.”
Trade and openness remain the policy prescriptions, however; as past experience shows that it is these same globalised economies which have stronger recovery of GDP growth. “In a crisis such as this, those with greater trade shares are hit harder. That does not mean that being connected to the rest of the world is a bad idea, because as the recovery takes place and opportunities show up, those that are more connected to the global economy, with greater shares of trade and investment in their GDP, benefit much more.”
Warning against the trend of rising protectionism, Thomas said that “coming out of the crisis, if the recovery means greater restrictions on trade, then the future growth trajectory will definitely look different from the past. The past growth rates—the honeymoon really—lasted as long as it did because of the increasing openness of the global economy.”
Crisis response
In addition to trade, policy responses have also focused on financial reform, fiscal spending, poverty alleviation, and the environment.
Discussing reforms needed in the financial sector, Thomas noted that “if regulation had a bad name in the past, today it is clear that deregulation- much needed in many economies- needs to be coupled with sensible regulatory policies.”
Thomas also warned against abandoning new or highly innovative financial instruments because of the benefits that they provide: “You need to keep in mind that the intermediation, the leveraging, and the access to credit for large numbers of people can be augmented by many of these instruments… The lesson though is that those need to be matched by a regulatory framework that avoids extraordinary risk-taking at the expense of other people’s money.”
As countries worldwide put in place unprecedented fiscal expansion packages, Thomas noted that we should put a premium on quality over quantity. “You will see huge variations two years from now, with the same dollar producing widely different impacts in terms of the growth recovery, and that will differentiate those who come out of this recovery well, compared to those who don’t.”
The crisis of rising poverty- 150 million more people in poverty in 2008, and 50 million more set to fall below the poverty line in 2009- with its risk of social instability and loss of welfare, is closely linked to employment. The recovery in employment is expected to be slower than economic recovery as employers wait to see if the recovery is real; and as efficiency gains may result in a shift in employment patterns.
While the environment may have been an issue placed on the backburner in previous crises, Thomas said that that is no longer an option, and that climate change means that “the kind of growth that we have gotten used to isn’t feasible going forward. The numbers that are coming out on climate change are just absolutely frightening and if even a part of that is true, then investing in a different way would seem to be a high priority…In 20-30 years, with business as usual, we may be living in an ice-free world. If you think about it, that should be enough to spur action, but that does not spur action anywhere close to what you would like.”
This does not mean, however, that countries should be expected to reduce carbon emissions while they are still developing. “No country has developed rapidly without increasing their carbon footprint. So we have to be realistic. That is the only way development has taken place.”
There is, however, huge room for improvement in the carbon efficiency of development, said Thomas. “A sevenfold variation exists in how carbon intensive you need to be for any given income…so, yes, growth goes with a greater carbon footprint, but, no, it’s not automatic or preordained. There’s huge room for adjusting this as you go forward.”
Uncertainty is at an all time high, and Thomas said that there is a sense that the past is not going to be the best predictor of the future this time around; that the incremental changes that we are comfortable with may miss out on the big picture, especially in terms of risks and opportunities. In this context, Thomas emphasized the importance of flexibility in crisis responses.
“Action waits until there is a crisis”
This crisis does provide for an opportunity to make necessary changes. “We could be at an inflection point as opposed to returning to business as normal. This crisis could be turned into an opportunity to take action on three fronts: economic, social, and climate.”
Citing the examples of fiscal reform in Korea, Thailand, China and Brazil, Thomas said that all of these could be linked to a crisis; and that there are many fronts—human capital, greater competitiveness, social inclusion, infrastructure, public sector governance, new forms of green investment—on which this crisis can spur action."
To read more, click on this link.
Tuesday, January 25, 2011
Reserve Bank of Fiji issues Risk Management Policy for Insurance Companies
The Reserve Bank of Fiji has recently issued a Risk Management Policy governing the operations of companies licensed to conduct insurance business in Fiji. The policy puts in place requirements that cover the identification, assessment and management of risks by insurance companies including the development of appropriate risk management frameworks, policies and processes to manage risks.
One of the areas our company, Gilbert & Samuels Company Limited, consults on is the area of risk management. We can help companies identify risks, evaluate those risks and put in place strategies and controls to manage any residual risks that remain within the company.
We can also develop appropriate risk management policies and processes for companies to help them with managing risks within their businesses.
For more information, you can call our office on telephone (679) 3342719 or email info@gilbert.com.fj.
Note : Search for our company, Gilbert & Samuels Company Limited, on Facebook. We post informatoin on the services we offer and the work we are currently doing there.
One of the areas our company, Gilbert & Samuels Company Limited, consults on is the area of risk management. We can help companies identify risks, evaluate those risks and put in place strategies and controls to manage any residual risks that remain within the company.
We can also develop appropriate risk management policies and processes for companies to help them with managing risks within their businesses.
For more information, you can call our office on telephone (679) 3342719 or email info@gilbert.com.fj.
Note : Search for our company, Gilbert & Samuels Company Limited, on Facebook. We post informatoin on the services we offer and the work we are currently doing there.
Friday, January 14, 2011
Colonial National Bank Interest Rates (Updated 14.7.09)
Schedule of interest rates released by Colonial National Bank are as follows:
Individuals and groups that need investment advice and investment portfolio management services, can use our company, Gilbert & Samuels Company Limited.
We also do strategic planning, business continuity planning and capacity assessment consultancies. Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.
- Business Banking Base Rate – 9.20%;
- Residential Property Loan : Variable Rate – 9.25%, 1 Year Fixed Rate – 7.50%;
- Investment Loan : Variable Rate – 9.25%, 1 Year Fixed Rate – 7.50%;
- Retail Term Deposits: 9 months - 3.00%, 1 year - 3.50%, 1.5 Years - 3.75%, 2 Years - 4.00%, 3 Years - 4.50%.
Individuals and groups that need investment advice and investment portfolio management services, can use our company, Gilbert & Samuels Company Limited.
We also do strategic planning, business continuity planning and capacity assessment consultancies. Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.
Monday, October 25, 2010
ANZ Interest Rates (updated 26.10.09)
Schedule of interest rates released by ANZ Fiji are as follows:
- Business Index Rate - 9.95%;
- Residential Property Loan : Standard Variable Rate - 7.75%, 1 Year Fixed Rate - 7.25%;
- Investment Loan : Standard Variable Rate - 8.25%, 1 Year Fixed Rate - 7.50%;
- Personal Loans : Secured - 11.00%, Unsecured - 15.00%;
- Small Loans : Unsecured - 19.50%;
- Retail Term Deposits: 9 months to 1 year - 2.25%, 1 to 1.5 Years - 3.75%, 1.5 to 2 Years - 3.75%, 2 Years to 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by ANZ without prior notice.
Sunday, August 1, 2010
Westpac Interest Rates (updated 2.8.10)
Schedule of interest rates released by Westpac Fiji are as follows:
- Business Lending Rate - 9.99%;
- Residential Property Loan : Variable Rate – 7.75%, 1 year Fixed Rate – 7.25%;
- Investment Loan : Variable Rate - 8.25%, 1 year Fixed Rate - 7.25%;
- Retail Term Deposits : 6 to less than 9 months - 2.25%, 9 months to less than 1 year - 3.00%, 1 year to less than 1.5 Years - 3.50%, 1.5 years to less than 2 Years - 3.75%, 2 years to less than 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by the bank without prior notice.
Companies interested in developing new or reviewing their current strategic plans can contact us on telephones (679) 3342719 or (679) 9921427 or email info@gilbert.com.fj.
We also carry out consultancies on capacity assessments and risk management.
At present we are involved in developing an Organisational Review and Strategic Plan Consultancy.
Sunday, January 31, 2010
Capacity Assessment Consultancy
One of our products is Capacity Assessments of organisations. We have previously carried out this type of consultancy for UNICEF and UNAIDS.
Capacity Assessments are done to evaluate whether an organisation has the capacity, skills and expertise to achieve the objectives and functions that it has set out to do.
Donors are usually interested to have an independent assessment done to evaluate whether the NGO or project that it is intending to fund has the capacity to deliver the intentions and objectives for which the funding is to be provided. In that regard, it usually calls upon an independent person to carry out a capacity assessment on that particular organisation.
Another area where capacity assessment can be utilised is to find out whether an organisation has the capacity, skills and expertise to be able to deliver some function that it intends to provide in the future.
At the moment, we are currently doing a capacity assessment consultancy for Dominion Finance Company Limited.
If you are interested in this type of consultancy, pls email us on info@gilbert.com.fj or call telephones (679) 3342719 or (679) 9921427.
Capacity Assessments are done to evaluate whether an organisation has the capacity, skills and expertise to achieve the objectives and functions that it has set out to do.
Donors are usually interested to have an independent assessment done to evaluate whether the NGO or project that it is intending to fund has the capacity to deliver the intentions and objectives for which the funding is to be provided. In that regard, it usually calls upon an independent person to carry out a capacity assessment on that particular organisation.
Another area where capacity assessment can be utilised is to find out whether an organisation has the capacity, skills and expertise to be able to deliver some function that it intends to provide in the future.
At the moment, we are currently doing a capacity assessment consultancy for Dominion Finance Company Limited.
If you are interested in this type of consultancy, pls email us on info@gilbert.com.fj or call telephones (679) 3342719 or (679) 9921427.
Westpac Interest Rates (updated 1.2.10)
Schedule of interest rates released by Westpac Fiji are as follows:
- Business Lending Rate - 9.99%;
- Residential Property Loan : Variable Rate – 8.50%, 1 year Fixed Rate – 7.75%;
- Investment Loan : Variable Rate - 8.50%, 1 year Fixed Rate - 7.75%;
- Retail Term Deposits : 6 to less than 9 months - 2.25%, 9 months to less than 1 year - 3.00%, 1 year to less than 1.5 Years - 3.50%, 1.5 years to less than 2 Years - 3.75%, 2 years to less than 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by the bank without prior notice.
Companies interested in developing new or reviewing their current strategic plans can contact us on telephones (679) 3342719 or (679) 9921427 or email info@gilbert.com.fj. We also carry out consultancies on capacity assessments and risk management.
Wednesday, December 30, 2009
Reserve Bank of Fiji issues guidelines for local Boards and on microfinance for banks
The Reserve Bank of Fiji has issued three new policy guidelines for licensed banks. The guidelines include :
- Minimum Guidelines for the Establishment of a Local Advisory Board;
- Policy Guideline on Complaints Management; and
- Minimum Requirements for Commercial Banks on Internal Micro finance Divisions and Units.
Of note are the guidelines for the establishment of local advisory boards and that for establishment of internal micro finance divisions by banks operating in Fiji.
Currently, whilst a branch of a foreign bank operating in Fiji is headed by a General Manager (or something similar), he/she and the Fiji operations reports directly to a division of the bank that looks after its foreign operations, at the bank's country of incorporation.
Policies on trading and business are currently established by the foreign branch bank's head office with its Fiji operations requested to comply with those. The establishment of local advisory boards should facilitate the more rigorous review of the applicability of some of those policies to Fiji.
An advantage of a local advisory board is that it would, hopefully, also look into more proactive product development that best suits the customer profiles of Fiji banks, rather than the "advanced and complicated" needs of a foreign customer.
With regard to the other policy requiring the establishment of internal micro finance divisions within banks in Fiji, given Fiji's current economic and business environment, focusing on the establishment of micro and small enterprises and providing necessary training to those interested in how to run a business, would be of immense benefit to the country.
In recent years, most people have been displaced off land and from regular paid employment. Instilling a business and entrepreneurial focus on such citizens will help promote a financially independent attitude that will drive them to fend for themselves by running their own businesses. This will reduce the "hand-out mentality" and a heavy reliance on Government and social security and social welfare safety nets.
Looking at, and developing other incentives to promote the development of small and micro enterprises, would be of benefit to Fiji in the areas of :
- subsidised training for budding business people and entrepreneurs;
- subsidised taxes (perhaps for the first few years of operations until businesses get on their feet);
- setting up commercial tax free zones for such small businesses, subsidised procurement prices for essential business overheads; and
- setting up centres where business owners can learn from each other's experiences and share their own experiences and challenges as well.
The move by the Reserve Bank of Fiji in establishing these policies are commendable and we hope that the objectives of these various policies are met.
The guidelines take effect from 1 January 2010.
Thursday, November 26, 2009
Banks to celebrate as Reserve Bank of Fiji removes interest rate controls
The Reserve Bank of Fiji has announced that, with effect from 1 January 2010, it will be removing the interest rates controls that it imposed on banks in Fiji in April 2009.
The announcement is expected to cause celebrations amongst banks in Fiji who had been under pressure to reduce their interest spreads and margins since the controls were put into effect.
The change in policy stance rose after the IMF made comments regarding the policy mix used by the central bank to conduct monetary policy and urged the authorities to "utilize more market-based instruments". (Quote is taken from IMF Statement after the conclusion of its Article IV consultations in Fiji, which has been posted earlier on this blog).
In recent years, the Reserve Bank of Fiji had been reinstating direct controls to contain credit (e.g. increases/reductions in Statutory Reserve Deposits and controls on interest spreads/margins), after earlier making a move to use more market based instruments.
An excerpt from today's press release from the Reserve Bank of Fiji is provided below.
"The lending rate and interest rate spread polices will be removed. In April 2009, the Bank announced that the weighted average lending rates of banks and other lending institutions should be brought down to 31 December 2008 levels. All commercial banks have now complied with the lending rate policy of the RBF. In addition, banks are on target to meet the 4 percent interest rate margin policy by December 2009.
In removing the lending rate and interest rate spread policies, Mr. Reddy stated that “all commercial banks are advised to maintain the trend in lending rate and any increase in spread above 4 percent in the future will have to be fully justified and explained to the RBF."
The announcement is expected to cause celebrations amongst banks in Fiji who had been under pressure to reduce their interest spreads and margins since the controls were put into effect.
The change in policy stance rose after the IMF made comments regarding the policy mix used by the central bank to conduct monetary policy and urged the authorities to "utilize more market-based instruments". (Quote is taken from IMF Statement after the conclusion of its Article IV consultations in Fiji, which has been posted earlier on this blog).
In recent years, the Reserve Bank of Fiji had been reinstating direct controls to contain credit (e.g. increases/reductions in Statutory Reserve Deposits and controls on interest spreads/margins), after earlier making a move to use more market based instruments.
An excerpt from today's press release from the Reserve Bank of Fiji is provided below.
"The lending rate and interest rate spread polices will be removed. In April 2009, the Bank announced that the weighted average lending rates of banks and other lending institutions should be brought down to 31 December 2008 levels. All commercial banks have now complied with the lending rate policy of the RBF. In addition, banks are on target to meet the 4 percent interest rate margin policy by December 2009.
In removing the lending rate and interest rate spread policies, Mr. Reddy stated that “all commercial banks are advised to maintain the trend in lending rate and any increase in spread above 4 percent in the future will have to be fully justified and explained to the RBF."
IMF Concludes Article IV consultations in Fiji
Taken from the International Monetary Fund website on this link.
The statement raises concerns regarding :
"Statement of an IMF Staff Mission at the Conclusion of the Article IV Discussions with Fiji, Press Release No. 09/427November 23, 2009
The following statement was issued today in Suva after the conclusion of an International Monetary Fund (IMF) staff mission to Fiji:
“A team led by Mr. Ray Brooks, Division Chief in the Asia and Pacific Department of the IMF, visited Suva November 10 – 24 to hold Article IV discussions with the government and other stakeholders.1 The team met with Prime Minister Bainimarama, Reserve Bank of Fiji (RBF) Governor Reddy, Acting Finance Minister Sayed-Khaiyum, Finance Secretary Prasad, other senior government officials, and members of the private sector and civil society. Representatives from the Asian Development Bank and the World Bank also participated in the meetings. The team expresses its appreciation to the authorities for the constructive discussions.
“Economic growth in Fiji has been sluggish in recent years due to political developments, delays in structural reforms, and worsening terms of trade. Job growth has been slow and unemployment rose to 8½ percent in 2008.
“The economy is expected to contract by 2½ percent in 2009 as the impact of the global crisis has been exacerbated by floods that damaged crops and tourist infrastructure early in the year. GDP growth of 2 percent is likely in 2010, driven by the rebound in tourism, the devaluation, the global recovery, and rebuilding after the floods. Growth over the medium-term should rise to 2½ percent with fiscal consolidation and progress on structural reforms.
“Fiji, however, faces considerable downside risks given its external vulnerabilities. Increased liquidity in the banking system poses risks of inflation, macroeconomic instability, and a loss of competitiveness. The growth outlook remains highly uncertain due to political developments, the fragile nature of the global recovery, volatility of commodity prices, the risk of natural disasters, and the complex structural reform agenda.
“We commend the authorities for their efforts to limit the overall deficit in 2009 to the budgeted level of 3¼ percent of GDP. This is being achieved by containing expenditure in the face of an unexpected 10 percent fall in revenue. However, central government debt, at over 50 percent of GDP, is high by regional standards. In addition, government has contingent liabilities of around 15 percent of GDP.
“Fiscal consolidation is needed to reduce central government debt to the government’s target of 45 percent of GDP over the medium term. Limiting the 2010 budget deficit to around 2 percent of GDP—excluding costs associated with civil service reforms—would begin to reduce the debt-to-GDP ratio. In the medium term, expenditure can be contained through a well-designed civil service reform and revenue can be strengthened by rationalizing tax incentives. Transparency in fiscal reporting should be improved by widening the coverage of the budget and publishing quarterly reports on the fiscal outcome.
“Monetary policy should be tightened to contain inflation, protect the reserve position, and lock in the competitive gain from the devaluation. Inflation is projected to rise to 7 – 8 percent year-on-year by early 2010 and any further upward pressure on prices could lead to higher wage demands and macroeconomic instability. Given these risks, the recent increase in the statutory reserve deposit ratio is a welcome step. But further measures are needed to absorb excess liquidity and utilize more market-based instruments. We endorse the authorities’ review of the RBF Act to provide the RBF with more independence.
“The Fiji National Provident Fund (FNPF) should be reformed to make it actuarially sound. The generous rate of conversion of benefits to annuities should be reduced and management should be made independent of government and responsible to beneficiaries. The government should reduce its reliance on the FNPF for financing and the FNPF should not be used to finance public enterprises since these actions undermine the fund’s soundness. We support the government’s intention to conduct a comprehensive study to guide its reforms of FNPF.
“The authorities are planning sweeping structural reform that is required to spur growth, create jobs and reduce poverty. Priorities are civil service, public enterprise and land reform, and price liberalization. The social impact of redundancies arising from civil service and public enterprise reform, and the impact of price liberalization, should be mitigated through well-targeted subsidies to vulnerable groups. The government’s decision to corporatize water, procurement and printing services is a very positive step.
“The IMF Executive Board is expected to conclude the Article IV consultation discussions in January 2010.”
The statement raises concerns regarding :
- constraints on future growth in Fiji and how the "outlook remains highly uncertain due to political developments, the fragile nature of the global recovery, volatility of commodity prices, the risk of natural disasters, and the complex structural reform agenda";
- downside risks including how "increased liquidity in the banking system poses risks of inflation, macroeconomic instability, and a loss of competitiveness";
- relevance and adequacy of monetary policy instruments used;
- the level of government debt and its sourcing mostly from FNPF funds;
- sustainability of FNPF to pay pensions at current rates and its use to fund government debt.
"Statement of an IMF Staff Mission at the Conclusion of the Article IV Discussions with Fiji, Press Release No. 09/427November 23, 2009
The following statement was issued today in Suva after the conclusion of an International Monetary Fund (IMF) staff mission to Fiji:
“A team led by Mr. Ray Brooks, Division Chief in the Asia and Pacific Department of the IMF, visited Suva November 10 – 24 to hold Article IV discussions with the government and other stakeholders.1 The team met with Prime Minister Bainimarama, Reserve Bank of Fiji (RBF) Governor Reddy, Acting Finance Minister Sayed-Khaiyum, Finance Secretary Prasad, other senior government officials, and members of the private sector and civil society. Representatives from the Asian Development Bank and the World Bank also participated in the meetings. The team expresses its appreciation to the authorities for the constructive discussions.
“Economic growth in Fiji has been sluggish in recent years due to political developments, delays in structural reforms, and worsening terms of trade. Job growth has been slow and unemployment rose to 8½ percent in 2008.
“The economy is expected to contract by 2½ percent in 2009 as the impact of the global crisis has been exacerbated by floods that damaged crops and tourist infrastructure early in the year. GDP growth of 2 percent is likely in 2010, driven by the rebound in tourism, the devaluation, the global recovery, and rebuilding after the floods. Growth over the medium-term should rise to 2½ percent with fiscal consolidation and progress on structural reforms.
“Fiji, however, faces considerable downside risks given its external vulnerabilities. Increased liquidity in the banking system poses risks of inflation, macroeconomic instability, and a loss of competitiveness. The growth outlook remains highly uncertain due to political developments, the fragile nature of the global recovery, volatility of commodity prices, the risk of natural disasters, and the complex structural reform agenda.
“We commend the authorities for their efforts to limit the overall deficit in 2009 to the budgeted level of 3¼ percent of GDP. This is being achieved by containing expenditure in the face of an unexpected 10 percent fall in revenue. However, central government debt, at over 50 percent of GDP, is high by regional standards. In addition, government has contingent liabilities of around 15 percent of GDP.
“Fiscal consolidation is needed to reduce central government debt to the government’s target of 45 percent of GDP over the medium term. Limiting the 2010 budget deficit to around 2 percent of GDP—excluding costs associated with civil service reforms—would begin to reduce the debt-to-GDP ratio. In the medium term, expenditure can be contained through a well-designed civil service reform and revenue can be strengthened by rationalizing tax incentives. Transparency in fiscal reporting should be improved by widening the coverage of the budget and publishing quarterly reports on the fiscal outcome.
“Monetary policy should be tightened to contain inflation, protect the reserve position, and lock in the competitive gain from the devaluation. Inflation is projected to rise to 7 – 8 percent year-on-year by early 2010 and any further upward pressure on prices could lead to higher wage demands and macroeconomic instability. Given these risks, the recent increase in the statutory reserve deposit ratio is a welcome step. But further measures are needed to absorb excess liquidity and utilize more market-based instruments. We endorse the authorities’ review of the RBF Act to provide the RBF with more independence.
“The Fiji National Provident Fund (FNPF) should be reformed to make it actuarially sound. The generous rate of conversion of benefits to annuities should be reduced and management should be made independent of government and responsible to beneficiaries. The government should reduce its reliance on the FNPF for financing and the FNPF should not be used to finance public enterprises since these actions undermine the fund’s soundness. We support the government’s intention to conduct a comprehensive study to guide its reforms of FNPF.
“The authorities are planning sweeping structural reform that is required to spur growth, create jobs and reduce poverty. Priorities are civil service, public enterprise and land reform, and price liberalization. The social impact of redundancies arising from civil service and public enterprise reform, and the impact of price liberalization, should be mitigated through well-targeted subsidies to vulnerable groups. The government’s decision to corporatize water, procurement and printing services is a very positive step.
“The IMF Executive Board is expected to conclude the Article IV consultation discussions in January 2010.”
Monday, November 23, 2009
Foreign Exchange Dealer Licence Revoked by the Reserve Bank of Fiji
The Reserve Bank of Fiji has revoked a foreign exchange dealer licence issued to Galaxy International Limited after the company made "serious breaches under the Exchange
Control Act and Financial Transactions Reporting Act, and non-compliance with its conditions of
licence" (refer to Reserve Bank of Fiji Press Release dated 23 November 2009).
Galaxy International Limited was issued with a restricted foreign exchange dealer licence in 2004.
Control Act and Financial Transactions Reporting Act, and non-compliance with its conditions of
licence" (refer to Reserve Bank of Fiji Press Release dated 23 November 2009).
Galaxy International Limited was issued with a restricted foreign exchange dealer licence in 2004.
The revocation of licence has the effect of Galaxy International Limited not being permitted to act as an authorised restricted foreign exchange dealer in relation to the following transactions:
- Sale, purchase and repatriation of traveller’s cheques and foreign currency notes;
- The remittance of proceeds of repatriated Fiji currency notes;
- The issue of bank drafts;
- The use of telegraphic or electronic transfers for payment and receipt of funds; and
- Any other type of transaction that was approved by the Reserve Bank of Fiji for Galaxy
International Limited as an authorised restricted foreign exchange dealer.
The list of other remaining foreign exchange dealers and money changers can be found at the Reserve Bank of Fiji website on this link.
ANZ Interest Rates (updated 24.11.09)
Schedule of interest rates released by ANZ Fiji are as follows:
- Business Index Rate - 9.85%;
- Residential Property Loan : Standard Variable Rate - 8.00%, 1 Year Fixed Rate - 7.75%;
- Investment Loan : Standard Variable Rate - 8.50%, 1 Year Fixed Rate - 8.00%;
- Personal Loans : Secured - 11.00%, Unsecured - 15.00%;
- Small Loans : Unsecured - 19.50%;
- Retail Term Deposits: 9 months to 1 year - 2.25%, 1 to 1.5 Years - 3.50%, 1.5 to 2 Years - 3.75%, 2 Years to 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by ANZ without prior notice.
Sunday, November 22, 2009
Westpac Interest Rates (updated 23.11.09)
Schedule of interest rates released by Westpac Fiji are as follows:
- Business Lending Rate - 9.99%;
- Residential Property Loan : Variable Rate – 8.50%, 1 year Fixed Rate – 7.75%;
- Investment Loan : Variable Rate - 8.50%, 1 year Fixed Rate - 7.75%;
- Retail Term Deposits : 6 to less than 9 months - 2.25%, 9 months to less than 1 year - 3.00%, 1 year to less than 1.5 Years - 3.50%, 1.5 years to less than 2 Years - 3.75%, 2 years to less than 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by the bank without prior notice.
Companies interested in developing new or reviewing their current strategic plans can contact us on telephones (679) 3342719 or (679) 9921427 or email info@gilbert.com.fj. We also carry out consultancies on capacity assessments and risk management.
Sunday, November 8, 2009
Reserve Bank increases Statutory Reserve Deposit Requirement
The Reserve Bank of Fiji has announced that it will increase banks Statutory Reserve Deposits to 7%, from the current 5%.
The increase will reduce the amount of funds that banks available for lending and other purposes.
The move comes as inflation rates rose to 6.3% in September 2009 from 5.1% a month earlier. Year end inflation has been forecasted by the Reserve Bank of Fiji at 9.5%.
Taken together with the Reserve Bank's earlier directive that banks reduce their interest spreads to 4% over 2009, banks will face committed pressure to attempt to maintain their profit margins as they work to meet the Reserve Bank's directive.
Over the last ten years, the Reserve Bank of Fiji has used interest rates as a primary tool to influence interest rates movements. Apparently, this might not have worked as planned so over the last two years, the Reserve Bank has gone back to using more direct means of controlling bank credit through the use of statutory reserve deposit requirements, credit ceilings and specific interest rates directives.
Note : For bank and financial sector compliance advice, pls call our office on (679) 3342719 or email info@gilbert.com.fj. We have assisted a number of financial institutions (in the banking and insurance sectors and the capital markets industries) to put in place policies and procedures to meet any relevant requirements imposed by their financial sector regulators. Our Principal has also sat as a Board Director of a licensed credit institution in Fiji. During his time there (a little over 2 years), he assisted with putting in place appropriate policies and processes and improve the risk and compliance culture within the company. These contributed to the institution making record profits over 2 years consecutive years. Refer to the financial institution's relevant summary financial statements for the 2 years here and here.
The increase will reduce the amount of funds that banks available for lending and other purposes.
The move comes as inflation rates rose to 6.3% in September 2009 from 5.1% a month earlier. Year end inflation has been forecasted by the Reserve Bank of Fiji at 9.5%.
Taken together with the Reserve Bank's earlier directive that banks reduce their interest spreads to 4% over 2009, banks will face committed pressure to attempt to maintain their profit margins as they work to meet the Reserve Bank's directive.
Over the last ten years, the Reserve Bank of Fiji has used interest rates as a primary tool to influence interest rates movements. Apparently, this might not have worked as planned so over the last two years, the Reserve Bank has gone back to using more direct means of controlling bank credit through the use of statutory reserve deposit requirements, credit ceilings and specific interest rates directives.
Note : For bank and financial sector compliance advice, pls call our office on (679) 3342719 or email info@gilbert.com.fj. We have assisted a number of financial institutions (in the banking and insurance sectors and the capital markets industries) to put in place policies and procedures to meet any relevant requirements imposed by their financial sector regulators. Our Principal has also sat as a Board Director of a licensed credit institution in Fiji. During his time there (a little over 2 years), he assisted with putting in place appropriate policies and processes and improve the risk and compliance culture within the company. These contributed to the institution making record profits over 2 years consecutive years. Refer to the financial institution's relevant summary financial statements for the 2 years here and here.
Tuesday, October 27, 2009
ANZ Interest Rates (updated 27.10.09)
Schedule of interest rates released by ANZ Fiji are as follows:
- Business Index Rate - 9.85%;
- Residential Property Loan : Standard Variable Rate - 8.00%, 1 Year Fixed Rate - 7.75%;
- Investment Loan : Standard Variable Rate - 8.50%, 1 Year Fixed Rate - 8.00%;
- Personal Loans : Secured - 11.00%, Unsecured - 15.00%;
- Small Loans : Unsecured - 19.50%;
- Retail Term Deposits: 9 months to 1 year - 2.25%, 1 to 1.5 Years - 3.50%, 1.5 to 2 Years - 3.75%, 2 Years to 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by ANZ without prior notice. For investment advice and portfolio management, pls call our office on telephone (679) 3342719 or email info@gilbert.com.fj.
Wednesday, October 21, 2009
Our Strategic Planning Consultancy
As part of our suit of products, we offer consultancy in the area of strategic planning.
Using a strategic planning model that we have developed, after reviewing other models that are in use, we have developed the current strategic plans for Fiji National Provident Fund, Amalgamated Telecom Holdings, among others.
We have also assisted with developing annual corporate plans for some government agencies/departments. As part of this, we ensure that there is a link between the company's/organisation's strategic plan and its annual strategies and that those responsible for implementing strategies are clearly identified with time frames put in place.
During the current constrained business and economic environment, it might do well for companies to have another review of where they wish to position themselves over the next two to three years and then review/identify new strategies to take them there.
Organisational objectives that might have been relevant in the past two years might need to be reviewed as companies/organisations relook at themselves given the current global/domestic conditions.
If you are a company or organisation that needs assistance in this regard, and need more information on how we can help you, you can call our office on (679) 3342719 or email us on info@gilbert.com.fj.
Using a strategic planning model that we have developed, after reviewing other models that are in use, we have developed the current strategic plans for Fiji National Provident Fund, Amalgamated Telecom Holdings, among others.
We have also assisted with developing annual corporate plans for some government agencies/departments. As part of this, we ensure that there is a link between the company's/organisation's strategic plan and its annual strategies and that those responsible for implementing strategies are clearly identified with time frames put in place.
During the current constrained business and economic environment, it might do well for companies to have another review of where they wish to position themselves over the next two to three years and then review/identify new strategies to take them there.
Organisational objectives that might have been relevant in the past two years might need to be reviewed as companies/organisations relook at themselves given the current global/domestic conditions.
If you are a company or organisation that needs assistance in this regard, and need more information on how we can help you, you can call our office on (679) 3342719 or email us on info@gilbert.com.fj.
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