ECCB 2016/2017 Annual Report

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ECCB ANNUAL REPORT 2016/2017

During the year, the Bank fulfiled its surveillance mandate through the following: •  • Weekly Country Surveillance Reports: The reports provided a high frequency of information on member countries under three broad thematic areas: macro-economic developments, financial developments and socio-political developments. •  • Quarterly Economic and Financial Review (QEFR) and the Annual Economic and Financial Review (AEFR) : The reports provided a historical analysis of developments over the prescribed period. •  • Annual Joint Financial Programming and Debt Sustainability Analysis (FP/DSA) Reports: This report was more diagnostic in nature, integrating the use of Financial Programming and Debt Sustainability Tool Kits to assess macroeconomic imbalances in member countries, relating to fiscal and debt. The report also made policy recommendations to correct those imbalances. •  • Policy Briefs/Sector Specialisation Papers: The papers covered current and topical policy issues and sector specific developments in member countries. •  • Research Papers: These papers addressed specific policy issues in keeping with the Bank’s strategic policy themes. The Bank remained engaged in the implementation of the “Home-grown Adjustment Programme” in Grenada through representation on Grenada’s National Monitoring Committee and participation in the official reviews conducted by the IMF. The Bank also participated in the IMF staff visits and Article IV consultations to Antigua and Barbuda, the

Commonwealth of Dominica, St Kitts and Nevis, St Vincent and theGrenadines and Saint Lucia. During the review period, the Bank partnered with the Caribbean Development Bank (CDB) in a joint diagnostic mission to Saint Lucia. Further technical assistance was provided to all member countries through various networking meetings, seminars and conferences. Staff of the Research Department benefitted from several training opportunities which helped to strengthen the macroeconomic surveillance function. The Caribbean Regional Technical Assistance Centre (CARTAC), the International Finance Corporation (IFC), and the Organisation of Eastern Caribbean States (OECS) facilitated the training which included: 1. Revenue Forecasting and Tax Policy Analysis Workshop, Barbados: 9 – 13 May 2016; 2. Energy Forum, St Kitts and Nevis: 10 – 12 May 2016, and 3. IFC Tax Incentive Workshop, Saint Lucia: 17 – 20 May 2016. THE BASIS OF POLICY Research The Bank’s research programme focused on three primary policy areas namely: 1. Financial Stability 2. Fiscal and Debt Sustainability 3. Growth, Competitiveness and Employment The following papers were initiated or completed during the period to inform the policy discussion by management, the Board of Directors, and the Monetary Council: a. Determinants of Credit-less Recoveries in the Eastern Caribbean Currency Union; b. An Unlikely Transmission? The Links Between