CBCS reduces the pledging rate.

~In light of global financial market expectations~


Willemstad/Philipsburg:---  The Centrale Bank van Curaçao en Sint Maarten (CBCS) decided to ease its monetary policy stance by reducing the pledging rate1 by 0.50 percentage point to 5.25%. This decision is based on the solid and stable foreign exchange position and import coverage in the monetary union, and the expected reduction of the federal funds rate. However, the Monetary Policy Committee (MPC) of the CBCS will continue monitoring the domestic and international economic developments closely, particularly the key indicators for monetary policy in the union, and will adjust its policy if necessary.
“According to the latest projection, the deficit on the current account of the balance of payments of the monetary union is expected to drop from 15.8% of GDP in 2023 to 13.9% in 2024, due mainly to an increase in net current transfers from abroad”, stated executive director, Dr. Jose Jardim. Net exports will remain practically unchanged as the increase in the export of goods and services will be offset by a higher import bill. “In line with the increase in tourism activities in 2024, foreign exchange earnings from tourism and transportation services are projected to rise across the monetary union. Meanwhile, the projected increase in imports is driven mainly by higher merchandise imports. Especially, merchandise imports by the wholesale and retail trade sector is expected to go up, reflecting increased tourism spending and higher domestic demand across the monetary union. The ongoing private investments in Curaçao and Sint Maarten will also result in higher merchandise imports by the construction and utilities sectors”, he explained.
In the first eight months of 2024, gross official reserves increased by NAf.168.2 million. The rise in reserves was attributable mainly to the transfers from abroad by the World Bank in connection with the reconstruction of Sint Maarten, pension funds and the Dutch Ministries of the Interior and Kingdom Relations and Finance, and the net sale of foreign exchange by the commercial banks to the CBCS. However, the withdrawal of dollar deposits by commercial banks (including those in Bonaire), combined with transfers abroad by other financial institutions, moderated the increase in foreign reserves. Against this background, gross official reserves are expected to grow in 2024 as the projected external financing and capital transfers will exceed the deficit on the current account of the balance of payments.
The import coverage rose from 4.6 months at the end of 2023 to 4.8 months at the end of August 2024, driven by the rise in gross official reserves moderated by a minor increase in the projected target import of goods and services. Meanwhile, the projected average import coverage for the entire year is expected to reach 4.7 months, well above the norm of 3 months. Meanwhile, the
1 The pledging rate is the rate at which commercial banks can borrow at the CBCS in case of a liquidity shortage.
Liquidity of the commercial banks, measured by their current account balances with the CBCS, decreased by 15.2% up till the end of August, driven primarily by the net withdrawal of dollar balances at the CBCS, the increase in required reserves, and the net purchase of CDs.
Following strong interest rate hikes in 2022, more moderate increases in 2023, and no changes since July 2023, the U.S. federal Reserve (Fed) seems to be approaching the moment of a first cut of its policy rate. Due to slower economic growth and cooling inflation, the Fed is expected to start gradually lowering its fed funds rate as of its next policy meeting on September 18, 2024. Even though inflation is still above the 2.0% target, the Fed is expected to balance its dual mandate of moderate inflation and maximizing employment, which has recently shown signs of slowing down. “Given the expectation of a first cut in the fed funds rate, interest rates in the international money market are likely to decline gradually over time and, consequently, the interest rates in the money market of the monetary union of Curaçao and Sint Maarten, considering the peg of the NAf. to the U.S. dollar”, Dr. Jardim indicated.
Against this background, the CBCS decided to change the pledging rate for the first time since September 2023, by reducing it from 5.75% to 5.25%. Furthermore, the CBCS will continue to offer attractive rates on its weekly auctions of CDs with the aim to hold more bank liquidity domestically to support the preservation of a solid foreign exchange position”, Dr. Jardim concluded.


Willemstad September 16, 2024
CENTRALE BANK VAN CURACAO EN SINT MAARTEN


22 Begin ESL Classes at USM as part of Livelihood Restoration Plan.

usmesl16092024PHILIPSBURG:--- Twenty-two individuals from the National Recovery Program Bureau’s (NRPB) Livelihood Restoration Plan this week began a transformative journey by pursuing English as a Second Language (ESL) at the University of St. Martin (USM). This initiative is a key part of NRPB’s effort to support residents who were relocated from areas adjacent to the landfill. The relocation of this community was necessary for the NRPB to make crucial interventions in the waste management at the dump under the Emergency Debris Management Project (EDMP) in the aftermath of Hurricane Irma, which devastated St. Maarten seven years ago.
USM’s ESL program has helped dozens of residents over the years to learn English or improve their English language skills.
“This initiative is about much more than learning a new language,” said USM ESL Coordinator Corinne Lejeuz-van Putten. “It’s about empowering individuals with the skills they need to rebuild their lives and contribute meaningfully to the community. We are proud to support NRPB in this important endeavor.”
The resettled residents of Pond Island are being supported by NRPB according to World Bank guidelines, which ensure that they are either better off or, at the very least, not worse off after their relocation. In addition to ESL classes, NRPB’s Livelihood Restoration Plan includes vocational courses such as Financial Literacy, Basic IT/Computer Operational Skills, and a Food Handlers Certification. The courses were chosen based on the skills of the relocated people with the intention of helping them to find employment or to create a supplemental source of income.
This project is implemented by the NRPB on behalf of the Government of St. Maarten under the St. Maarten Trust Fund, which is financed by the Government of the Netherlands, and managed by the World Bank. The Livelihood Restoration Plan is part of the NRPB’s broader Resettlement Action Plan that helped relocate these residents to better living conditions.
The participants took placement tests last week to gauge their English proficiency and determine which level of the ESL course they would begin studying. ESL classes for everyone begin on September 23rd and are made up of three 2-hour sessions a week. The course focuses on speaking, listening, reading, and writing, providing a well-rounded foundation for students to enhance their English-speaking skills. With USM’s commitment to small class sizes and personalized instruction, participants can expect guided support as they learn.
Alvaro Vadillo, EDMP Project Manager at NRPB, expressed the organization's focus on restoring and improving the livelihoods of people affected by the Emergency Debris Management Project. “By offering comprehensive programs such as ESL, we ensure that the individuals we resettled are supported and empowered to succeed. This initiative, guided by the World Bank’s safeguard policies, is part of our broader obligation to guarantee that the communities we work with are not left worse off. Knowing the participants are taking steps toward better futures demonstrates the positive impact of the Livelihood Restoration Plan.”
The collaboration between NRPB and USM reflects a shared goal of empowering St. Maarten residents to build better futures. The Livelihood Restoration Plan (LRP), with its focus on restoring and enhancing existing livelihoods, reflects the NRPB’s commitment to supporting people affected by the EDMP by helping them continue what they know best while also providing opportunities for improvement and diversification.
According to Dr. Gale T C Rigobert. Dean of Academics, “USM’s role in this initiative underscores its ongoing dedication to lifelong learning and community development.” USM offers several degree programs in areas such as business, social work and education, along with GED courses, which equip people with high school equivalency diplomas.
For more information on ESL and USM, contact This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.usm.sx.

 

TelEm Group taking decisive steps to ensure financial recovery and growth.

schoolsreport15092024Pond Island:--- The TelEm Group of Companies, in acknowledging a recent public discourse surrounding its financial state, strongly asserts that recently leaked information from within the company is misleading and is causing unnecessary harm. This erosion of trust is a serious concern, mainly as TelEm’s management works diligently to restore the company to profitability and stability.
Management is addressing these concerns directly, emphasizing that while TelEm faces financial challenges, much of the circulated information has been taken out of context and, in some instances, is blatantly incorrect. While this has caused some damage to the company’s relationships with lenders and vendors, management remains committed to a clear, long-term plan to rebuild TelEm’s financial health and reputation as a leading telecommunications provider in St. Maarten.

 Building a Leaner, More Efficient Company
The current financial challenges stem from developments over several years, and management has been transparent with all stakeholders, including lenders, about the situation. However, significant progress has already been made in restructuring the company and setting it on a path to recovery.
“We have implemented strategies to develop a leaner, more efficient TelEm Group, one that St. Maarten can be proud of,” management said. “We are surprised that certain individuals would choose to undermine these efforts by sharing misleading information, jeopardizing recovery. The motives behind such actions are unclear, but our focus remains on delivering positive outcomes.”
Positive Developments and Investments in the Future
Contrary to some of the negative narratives, TelEm has already embarked on several key initiatives that are bringing about tangible progress:
• SMPR-1 Undersea Fiber Cable Repair: TelEm has completed repairs on the SMPR-1 undersea fiber cable, which will soon be fully operational. This will enhance capacity for both business and residential customers and reduce costs associated with purchasing capacity from competitors.
• Upgrading Mobile Platforms: A technical team is upgrading TelEm's 3G and LTE platforms, leading to a more reliable network. These improvements will also set the foundation for the rollout of 5G services in 2025.
• Expanding Mobile Internet Services: New developments with TelEm’s Internet Service Provider (ISP) core will expand mobile internet coverage across the island, including the French side. This effort is critical to delivering better and broader service to all residents.
• Power System Revamp: TelEm has significantly upgraded power and backup systems at critical sites, including the SMITCOMS building and Earth station.
• New Billing System Launch: By the end of the year, TelEm will introduce a new, integrated billing system that will support the delivery of new digital services, including mobile phone payment options. This state-of-the-art system will improve customer service and streamline processes.
• Fiber-to-the-Home (FttH) Expansion: TelEm’s FttH project continues to expand, positioning the company as the premier fiber-optic service provider in St. Maarten. The ongoing efforts to connect more homes and businesses to fiber are key to providing world-class internet service to all customers.
Addressing Financial Challenges and Building for the Future
Management acknowledges that TelEm has faced significant financial hurdles, including an arbitration judgment related to a breach of contract. However, these issues are not new and have been part of an ongoing restructuring effort.
“You cannot talk about bankruptcy (as some have) or other dire consequences without recognizing the efforts being made to stabilize the company,” management stated. “It was clear that foundational issues had to be addressed, and we have taken tough but necessary decisions to set the company on a path to recovery.”

Rebuilding Trust and Moving Forward
Management remains confident that, with time, continued support from stakeholders, and ongoing improvements, TelEm can survive this challenging period and thrive in the future.
“Telecommunications is a highly dynamic and evolving industry. Our focus is on getting the basics right and rebuilding the trust of our customers and partners,” management said. “We ask for patience and understanding as we continue these efforts, and we assure all our stakeholders that TelEm is on the right path.”
Management would also like to extend a heartfelt thank you to TelEm’s customers for their loyalty and support during this time.
“Your trust in our ability to provide quality service is the foundation upon which we build a stronger future,” management asserts.

SLA's with school bus operators, Student Transportation Management System approved.

schoolbusessla15092024PHILIPSBURG:--- Demissionair Minister Lyndon Lewis has signed several Service Level Agreements (SLAs) with bus operators providing school transportation services on St. Maarten. These agreements aim to standardize and improve the management of school bus services on the island.

The SLAs are comprehensive and address key issues such as:

• Established routes
• Standards for both buses and drivers
• Responsibilities regarding bus operations and the supervision of students
• Remuneration and insurance requirements
• Other relevant operational matters

In addition to the signing of the SLAs, Minister Lewis is also pleased to announce that the Council of Ministers has approved the introduction of the Student Transportation Management System. This system is designed to bring structure and efficiency to student transportation, which has become increasingly expensive and challenging to control.

"Over the years, school busing has become costly, averaging over NAF 4.5 million annually, with the potential to increase. This is largely due to a lack of proper structure and insufficient staff to carry out the necessary controls," said Minister Lewis.

The new Student Transportation Management System will address these challenges by streamlining the administration and management of school bus services. However, Minister Lewis stressed that several administrative processes still need to be completed before the system is fully implemented.

The Ministry remains committed to ensuring a safe, efficient, and structured transportation system for students across St. Maarten, and the signing of these SLAs and the introduction of the Student Transportation Management System are important steps towards achieving that goal.

 

Lewis receives quality inspection report for public schools: urgent improvements needed.

lyndonlewis09052024PHILIPSBURG:--- The Inspectorate of Education has conducted a comprehensive Quality Inspection Report and presented it to Demissionair Minister of Education Lyndon Lewis. The report, finalized in June 2024, examines the quality of education in public schools across St. Maarten and provides detailed recommendations for improvement.

The inspection occurred between October 2023 and March 2024 and included lesson observations, interviews, and desk research. In addition, the inspection team conducted a thorough review of school facilities and materials. The goal of this process was to ensure that all students receive a sufficient education by identifying weak and very weak schools and providing actionable recommendations for improvement.

"The quality of education in our public schools is of utmost importance. This report serves as a reminder to school managers of their responsibilities and provides recommendations to help schools implement effective improvement plans," stated Demissionair Minister Lyndon Lewis.

“When we came into office, we faced several issues that have surfaced in the report and started to put plans in place to tackle these issues. Some could be handled in the short term; most require long-term decision-making and simple political will, which I have in abundance but won’t get the opportunity to exercise. I won’t be here for the long term, but the next Minister will face these same issues and will have to continue the work and cooperation with the inspectorate and public education in general,” Lewis said.

Overall Findings:

• A structured lesson plan template was not evident across the teacher population.
• Classroom management across the teacher population needs improvement.
• Inconsistencies were found in instructional procedures.
• Teachers did not consistently state the objectives of their lessons.
• Grammar and subject-verb agreement used by most teachers require improvement.
• The use of differentiated teaching methods is lacking.
• Student-teacher relationships in some cases were found to be poor.
• School climate and enthusiasm for learning need significant improvement.
• There is a lack of teacher motivation.
• Teachers are transferred between schools annually or mid-year, creating disruptions in learning.

While Minister Lewis acknowledged the concerns highlighted in the report, he emphasized the Ministry's commitment to addressing these challenges. "This report is crucial, and I have shared it with the Council of Ministers for their review. I look forward to discussing the findings in detail to ensure that the quality of education in our public schools is not only improved but maintained at a high level," said Minister Lewis. "However, I will reserve further comments on specific actions until after the Council of Ministers has had the opportunity to review and discuss the necessary steps."

The report also includes recommendations for improvement at three levels:

• School Management: To enhance leadership and management practices.
• Department of Education: To ensure that the education system is structured and supported effectively.
• Ministry of ECYS: To implement broader policy changes to address systemic issues in public education.

Minister Lewis concluded, "We will keep the public informed as we make progress in improving the quality of education for our children in public schools. Our goal is to ensure that every student in St. Maarten receives the best possible education in a supportive and motivating environment."

 


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