Inverse Economics Rides Again: Central Bank of Barbados Reports ‘A Profitable 2010? – HUH?
Barbadians that you think were fairly comfortable as opposed to “wealthy” or “well-off” commiserate daily on either – the price of food after the new VAT rate where the increase appears not to be matching Government’s adjustment which included the removal of the Environmental Levy; the other bill which is under hot scrutiny is their electricity which in comparison to other islands, is on the verge of astronomical!
The Budget which created a facility for zero-rating computer parts to induce entrepreneurship, nevertheless did not market a similar incentive for private home-owners to solar power certain appliances so as to lower their dependence on fossil fuels and/or B’dos Light & Power, this initiative could be claimed in part against Land Tax or Income Tax like how being a Credit Union member and having a Mortgage could be put against Inland Revenue’s edicts.
It is so bad for Bajans and use of Energy that when I was on Bay Street recently to clear my bill, I overheard an old man pleading with a Cashier as he’s a Cancer patient and now he has “...to decide which do I pay for? My medication or my lights?”
Despite all of the above, the Central Bank of Barbados has now put forward a release that indicates last year was profitable – did they they mean an average Consumer, or (more likely) a Supermarket owner or Light & Power? Here’s another tract on Inverse Economics from the Tom Adams Financial Centre;-
The Central Bank of Barbados announced a turnaround in its financial performance in 2010. The Bank, in its just-published Annual Report, confirmed a profit of $3.0 million.
The institution further stated that the 2010 profit will be applied to the accumulated deficit of $9.4 million.
The Bank noted that the financial environment remained challenging during 2010 because of low international interest rates.
The Bank attributed the improved performance in 2010 to savings in expenditure and higher levels of income. Total expenses declined by $3.0 million, while income rose by $9.5 million or 18% over the previous year, primarily the result of gains from sale of securities in view of favourable market conditions.
On the expense side, the Bank’s actuarial contribution to its pension fund declined by $2.3 million. “This reduction reflects the improved performance of the scheme which carried a surplus at the end of 2010,” the Bank stated.
The Bank also reported an impairment provision of $4.2 million for the Caribbean Multilateral Clearing Facility (CMCF), bringing the total provision for this debt to $15.9 million. Another $0.5 million was provided for impairment of foreign assets under management.
At the institutional level, Governor Dr. DeLisle Worrell revealed that the Bank embarked on a process of revising and upgrading its operations to meet the challenges of a changing economy and financial sector.
To this end, he said the Bank adopted a new vision, based on the conviction that a happy well-motivated staff working cooperatively to achieve the Bank’s objectives would lead to higher levels of productivity and standards of service to which the Bank aspires.
“During the course of 2010, the Bank’s staff embarked on a process of consciously working to build equitable, companionable relations across the institution, with an emphasis on building trust, and a culture of mutual support and helpfulness among ourselves,” the Governor noted.