June 2020 Economic and Financial Review

June 2020 Economic and Financial Review SAINT VINCENT AND THE GRENADINES

Domestic claims 12 (credit) declined by

assets to non-interbank deposits well above

4.3 per cent to $1,026.1m, compared to a

the ECCB prudential benchmark of

decrease of 1.8 per cent in the first half of

20.0 per cent. Meanwhile, the ratio of total

2019, for the most part attributable to a

loans and advances to total deposits fell by

$51.4m decline in net claims on the central

3.0 percentage points to 61.9 per cent at end

government to $81.2m. The net foreign

of June 2020. The ratio of nonperforming

assets of the banking system rose by

loans to gross loans increased to 7.3 per cent

5.7 per cent to $873.4m during the first half

from 6.4 per cent at the end of December

of 2020. Higher net foreign assets reflected

2009. That ratio was above the ECCB’s

an increase in claims on non-residents,

5.0 per cent tolerable limit and reflected a

mainly attributable to a 16.7 per cent

slight decline in the quality of commercial

($93.0m) rise in the external activity of

banks’ loan portfolio.

commercial banks and moderated by a

9.8 per cent ($50.6m) decline in

External Sector Developments

Saint Vincent and the Grenadines’ imputed

St Vincent & the Grenadines Visible Trade

EC$M

share of the Central Bank’s reserves.

400.0

300.0

200.0

St Vincent & the Grenadines Domestic Credit

EC$M

EC$M

100.0

1200.0

1200

0.0

1000.0

1150

-100.0

-200.0

800.0

1100

-300.0

600.0

1050

18 Q1 18 Q2 18 Q3 18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

400.0

1000

Total Exports

Total Imports

Trade Balance

200.0

950

0.0

900

A lower merchandise trade deficit of

18 Q4 19 Q1 19 Q2 19 Q3 19 Q4 20 Q1 20 Q2

To Households

To Businesses

Total Domestic Credit (DMC)

$324.8m was recorded on the visible trade

account in the first half of 2020. The

The commercial banking system remained

narrowing of the trade imbalance was

quite liquid as evidenced by a 0.6 per cent

attributable to a 56.3 per cent increase in

rise to 45.8 per cent in the ratio of liquid

export receipts, mainly re-exports of

12 Due to a change in methodology in compiling the monetary, the nomenclature changed to ‘claims’ from ‘credit’

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