Sistema Económico Latinoamericano y del Caribe Latin American and Caribbean Economic System Sistema Econômico Latino-Americano e do Caribe Système Economique Latinoaméricain et Caribéen

Final Report of the Meeting of experts on the debt burden in the Caribbean region

XL Regular Meeting of the Latin American Council Caracas, Venezuela 26 to 28 November 2014 SP/CL/XL.O/Di Nº 5-14

Copyright © SELA, November 2014. All rights reserved. Printed in the Permanent Secretariat of SELA, Caracas, Venezuela. The Press and Publications Department of the Permanent Secretariat of SELA must authorize reproduction of this document, whether totally or partially, through sela@sela.org. The Member States and their government institutions may reproduce this document without prior authorization, provided that the source is mentioned and the Secretariat is aware of said reproduction.

Final Report

Intra-Regional Relations

Meeting of experts on the debt burden in the Caribbean region Port of Spain, Trinidad and Tobago 24 February 2014 SP/RECDRC/IF-14

Copyright © SELA, February 2014. All rights reserved. Printed in the Permanent Secretariat of SELA, Caracas, Venezuela. The Press and Publications Department of the Permanent Secretariat of SELA must authorize reproduction of this document, whether totally or partially, through sela@sela.org. The Member States and their government institutions may reproduce this document without prior authorization, provided that the source is mentioned and the Secretariat is aware of said reproduction.

Final Report SP/RECDRC/IF-14

C O N T E N T S RAPPORTEUR’S REPORT 3 A. DEVELOPMENT OF WORKS 4 B. CONCLUSIONS AND RECOMMENDATIONS 11 C. CLOSING SESSION 13 ANNEXES: I. AGENDA 15 II. SPEECH BY ALBERTO DURÁN, DIRECTOR OF TRADE OF THE GENERAL SECRETARIAT

OF THE ASSOCIATION OF CARIBBEAN STATES (ACS) 21 III. SPEECH BY AMBASSADOR ROBERTO GUARNIERI, PERMANENT SECRETARY OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC SYSTEM (SELA) 25 IV. LIST OF PARTICIPANTS 29 V. LIST OF DOCUMENTS 39

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RAPPORTEUR’S REPORT 1. In accordance with the Work Programme of the Permanent Secretariat of SELA for 2014, Project I.1. “Support to Latin American and Caribbean integration. Deepening coordination and convergence”, the “Meeting of experts on the debt burden in the Caribbean region” was organized by the Permanent Secretariat of SELA together with the General Secretariat of the Association of Caribbean States (ACS) and was held at the ACS headquarters in Port of Spain, Trinidad and Tobago, on 24 February 2014. 2. Participants included officials from the following Member States of SELA: Argentina, Barbados, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Guatemala, Haiti, Mexico, Panama, Dominican Republic, Suriname, Trinidad and Tobago and Venezuela; representatives of the following organizations: Caribbean Community (CARICOM), Economic Commission for Latin America and the Caribbean (ECLAC), Caribbean Development Bank (CDB), Organization of Eastern Caribbean States (OECS), United Nations Conference on Trade and Development (UNCTAD), Inter-American Development Bank (IDB), World Bank, International Monetary Fund (IMF), General Secretariat of the Group of 24 (G24), CAF-development bank of Latin America, among others. Representing SELA were the Permanent Secretary, Ambassador Roberto Guarnieri, José Gabriel Villegas, Analyst of Relations, and Consultant Victor Olivo. The full list of participants is included in Annex IV. 3. During the opening session, Alberto Durán Espaillat, Director of Trade of the ACS, and Ambassador Roberto Guarnieri, Permanent Secretary of SELA, took the floor. a. Alberto Durán Espaillat, on behalf of the Secretary-General of the ACS, Ambassador Alfonso Múnera, welcomed the initiative and the efforts made by SELA to identify and deal with the issue of the debt burden in the Caribbean, and to organize and convene this event. Durán said that the simple average of the external debt-to-GDP ratio in the Caribbean grew to 74.35% in 2011. He highlighted the negative impact of the public debt on the economic activity, as it has turned into a deterrent to economic growth and development of Caribbean countries. He also stressed the need to address the issue of public debt and fiscal sustainability from a comprehensive perspective, including the impact on investment from the private sector and on foreign direct investments. The full text of his speech is included in Annex II. b. The Ambassador Roberto Guarnieri expressed his gratitude to the Association of Caribbean States for its support to SELA in conducting the event, which reinforced cooperation between the two organizations in coordinating actions and proposals aimed at strengthening the policies of Member States. He said that the issue under consideration is highly relevant for outlining public policies in member countries and that, in its document, the Permanent Secretariat intends to highlight the implications for fiscal policies of the countries concerned and the need for timely attention and solution. He also noted that the problem of heavy debt burden affects the integration process hampering its progress. He added that excessive borrowing prevents countries from maintaining domestic economic stability, among other objectives. He underscored the need to strengthen

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4 governance in this area, both at the national level and at the level of the relevant global institutions. In addition, he referred to the “Initiative for Caribbean Convergence”, promoted by the Foreign Minister of Trinidad and Tobago, Winston Dookeran, which poses an effective approach towards the key factors of production, investment and financing in Latin America and the Caribbean for greater sustainability and mutual growth. The full text of his speech is included in Annex III. A. DEVELOPMENT OF WORKS The presentations made during the meeting as well as the conclusions and recommendations stemming from the discussions are available through SELA’s Web site (www.sela.org) at the following link: http://www.sela.org/view/index.asp?ms=258&pageMs=116108. SESSION I: DEBT BURDEN AND FISCAL SUSTAINABILITY IN CARIBBEAN COUNTRIES The first working session was moderated by Alberto Durán and included a presentation by Víctor Olivo, SELA’s Consultant, who introduced the base document of the meeting: Debt Burden and Fiscal Sustainability in the Caribbean Region. SESSION II: NATIONAL EXPERIENCES IN OVERCOMING THE DEBT BURDEN The second session was moderated by Dr. Víctor Olivo, and the following personalities participated in it: 4. The representative of Suriname, Mrs. Malty Dwarkasing, Manager of the Suriname Debt Management Office, started the session with a presentation entitled “The debt burden in Suriname 2000-2013”. At the end of the presentation, the moderator invited participants to express their opinions and concerns about the issues dealt with by the speaker and during the first session. 5. The representative of ECLAC, Mr. Dillon Alleyne, Deputy Director of the Regional Office for the Caribbean, underscored the significant increase seen in the accumulation of debt over the past three years, particularly in the debt/GDP indicator, which has reached approximately 50%. He highlighted the spiral effect that it has on the economies of the region. 6. Mrs. Dwarkasing replied that, definitely, the government of Suriname is concerned about such increase from 16% in 2009 to 29% in 2013, which makes it necessary to search for financing. She said that when the debt level decreases, the country’s rating increases, and the main concern is to reinforce the fiscal balance and its influence on the debt. She stressed that 2014 is a year prior to elections in her country, which raises expectations about the continuity of the fiscal policy in the event of a change of government. 7. The IMF representative, Mr. Trevor Alleyne, Had of the Caribbean Division, asked about the causes of maintaining a policy that allows for a high proportion of external debt along with variable interest rates. 8. The representative of Suriname responded that such a situation is not due to an official policy. She added that most of the national debt is contracted with multilateral organizations and large creditors. She recalled that Suriname has not sought for new

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creditors, although thoughtful strategies should be established, which would not necessarily change the level of interest rates. She recognized the need to restore a policy on debt management with a broader portfolio. 9. Mr. Ullrich Kinne, Economic Counsellor of the Embassy of Germany in Trinidad and Tobago, asked about the impact and consequences of the law on debt management in Suriname on the national fiscal balance. 10. The representative of Suriname recalled that in 2010 there was a change of government. She said that the tax cap set in 2012 is based on GDP statistics stemming from official data (Statistical Office), on which the debt contraction is founded. She noted that Congress came to the conclusion that it was necessary to have greater flexibility between the external debt and the national debt, as well as an adjustment of relations, based on the national situation. 11. The representative of Mexico, Mr. José Ramón Lorenzo, of the Secretariat of Foreign Affairs, made emphasis on the time and way in which the debt has increased in proportion to the GDP, particularly since 2008. He reflected on the causes of this problem, pointing out that that moment coincides with the international financial crisis. He wondered whether the debt is related to the consequences of the crisis in the Caribbean, or if there is another bottom line structural reason. 12. Dr. Olivo recalled that the relation between the debt and the GDP ratio is bidirectional, which means that the countries with slower growth rates tend to have a higher debt-GDP ratio. He acknowledged that the international financial crisis had an impact on the increase in such ratio in 2008, even though it was already a trend back in 1999. He said that certain countries that show no downward trend as aggregate figures have posted higher ratios that aggravated in 2008. Finally, she said that there is a feedback from the international crisis and the increase debt-GDP ratio in the region. 13. Immediately afterwards, Ms. Antonino Inniss, Debt Strategy Analyst of the Debt Management Unit of the Ministry of Finance of Barbados, made a presentation entitled “Barbados’ Experience for Overcoming Debt Burden”. 14. The last presentation of Session II was delivered by the Representative of Guatemala, Mr. Fredy Gómez, Director of Public Credit at the Ministry of Finance. It was entitled “Institutional and management fundamentals of the debt sustainability in Guatemala, A micro approach”. 15. Then, the moderator gave participants the floor inviting them to express their remarks about the issues dealt with. 16. The representative of ECLAC underscored the need to understand the situation of the Caribbean subregion and find solutions within the framework of sustainable development. He said that the composition of the debt is an important issue, as well as the type of strategies used to reduce it. He mentioned the case of Guyana, which has made considerable investments in the infrastructure sector, thus allowing for cancelling its debt and making structural changes. He also referred to the cases of Bahamas and Suriname, which have experienced a high debt accumulation despite being in a “safe area”, saying that it was a warning indicator that must be taken into account. Similarly, he referred to the presentations made by the representatives of Suriname, Barbados and Guatemala, which showed that the problem of the debt burden is not recent, but has been around for a long time. He noted that the national institutional

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6 changes that were analyzed – creation of debt management units and contingency plans) should have been applied long ago. 17. Dr. Olivo replied that the figures and definitions used in SELA’s study come from international organizations, mainly the IMF and the World Bank. He said that the issue of the short-term debt was deal with as an aggregate, since it is an indicator that shows that GDP growth in the Caribbean is lower than in the rest of Latin America. The problem of the short-term debt in that region does not seem to be very serious. 18. The representative of Suriname recalled the importance of the mining sector for the national economy, which has certainly diversified into the sectors of bauxite, oil and gold (with the latter being the most important one). In view of the high prices of raw materials, the country is establishing a reserve fund for an eventual decline in prices. However, to implement structural changes, more time is needed than just one government term (5 years). 19. The Ambassador of Dominican Republic, José Serulle Ramia, welcomed the initiative undertaken by SELA and the ACS in organizing this event. However, he warned about the fact the dynamics of this type of meeting usually does not go beyond the opinions expressed by a group of specialists and technicians. He said that most of the population does not know the reality of the debt burden, which tends to get worse through time despite the intervention of multilateral agencies specialized in international finance. He recommended adapting the analyses of the IMF and the World Bank to the characteristics and realities of each country. 20. The representative of Mexico, Mr. José Ramón Lorenzo, asked about the characteristics and composition of the foreign debt in the region. 21. Dr. Olivo replied that, in the Caribbean, there is great diversity as regards the composition of the debt (whether foreign or internal, as well as the share of the national banking systems, among other factors). He said that each country should examine those elements in order to outline a specific strategy. The document does not refer to this aspect, since its objective is to identify the problem and its dimension. 22. Ms. Martha Palacios, an official of the Embassy of Venezuela in Trinidad and Tobago, consulted the panel on the alternatives proposed by integration mechanisms, specifically PETROCARIBE, which proposes the payment of fuel for food, as well as the creation of funds to make the debt in Caribbean countries sustainable in the long term. 23. The Ambassador of the Dominican Republic said that his country has been benefited by PETROCARIBE, mainly because of the conditions established in the agreement to conduct such exchanges. He recalled that the Dominican Republic pays for the energy resource with both money and material goods, which implies a long-term debt with very low interest rates. He said that this is not perceived as a debt, but as an equitable exchange. 24. Replying to Mexico, the representative of Barbados said that half of the debt lies in international bonds and the other half is accounted for as a multilateral debt. 25. Mr. Alberto Watanabe, representative of the Secretariat of Foreign Affairs of Mexico, asked about the relevance of including the effect of the variable concerning the ratio of dependency of adult people and savings to GDP, in order to take advantage of the demographic boom in the region and prevent crises such as those that occurred in Greece and Ireland.

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26. Mr. Olivo underscored the difficulties to obtain uniform data valid for a longer period than the one analyzed in the document (1999-2012). He noted that it would be interesting to include more qualitative data (such as education and demographic composition), even though it is a complex measurement because of the available data. 27. Ambassador Guarnieri stressed that emphasis was made on the administrative and institutional strengthening measures to handle the issue of public debt. Public debt is a decision of profound importance – even of an intertemporal nature – and must be made within established institutional schemes that recognize such consequences and guide decisions. In relation to PETROCARIBE, Guarnieri recalled that it is a State-to-State cooperation agreement whose origin dates back to 1974, when the “Agreement of Puerto Ordaz” was signed upon an initiative of Venezuela. That agreement was aimed at contributing to global economic stability and regional cooperation, as a complement to the recycling of surplus in balances of payments of oil producing countries. The agreement is implemented through multilateral organizations – mainly the International Monetary Fund – under the principles of international social justice and solidarity with Central American and Caribbean countries. SESSION III: FISCAL ADJUSTMENT AND ECONOMIC GROWTH: REGIONAL VISION This session was moderated by Mr. Alberto Durán, Director of Trade of the General Secretariat of the ACS. 28. The representative of the Caribbean Community (CARICOM), Mrs. Enid Bissember, Deputy Director of Programmes of the Economic Policy Unit, made a presentation entitled Fiscal Adjustment and Economic Growth: A Regional Perspective. 29. Immediately afterwards, the representative of the Economic Commission for Latin America and the Caribbean (ECLAC), Mr. Dillon Alleyne, Deputy Director of the Office for the Caribbean, delivered the presentation Measures to Stimulate Growth in the Caribbean. 30. Then, Mr. Ian Durant, Deputy Director of the Economic Department of the Caribbean Development Bank (CDB), made a presentation called Fiscal Adjustment and Economic Growth. 31. Finally, the representative of the Organization of Eastern Caribbean States (OECS), Mr. Sean Curtis Mathurin, Programme Official, delivered a presentation entitled Proposed measures to stimulate economic growth: Regional Perspective. The period for questions and answers about these presentations was postponed for Session IV. SESSION IV: FISCAL ADJUSTMENT AND ECONOMIC GROWTH: MULTILATERAL VISION This last panel was moderated by Mr. Alberto Durán, Director of Trade of the General Secretariat General of the ACS. 32. The session started with a presentation that was delivered by the representative of the Inter-American Development Bank (IDB), Mr. Inder Jit Ruprah, Economic Adviser of the Department for Caribbean Countries. It was entitled Debt in the Caribbean?.

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8 33. The second speaker was the representative of the World Bank Mrs. Sona Varma, Country Economist for Latin America and the Caribbean, who dealt with the issue The challenge of managing high debt in the Caribbean. 34. The third presentation, entitled Debt Burden and Fiscal Sustainability in the Caribbean Region was delivered by the representative of the International Monetary Fund (IMF), Mr. Trevor Alleyne, Head of the Caribbean Division of the Department for the Western Hemisphere. 35. Finally, Mrs. Analisa Bala, Advisor of Policies of the General Secretariat of the Group of 24 (G24) made a presentation entitled Debt Sustainability in the Caribbean. Recognizing Unique Vulnerabilities. Then, the moderator gave the floor to participants, inviting them to make remarks and contributions as regards the presentations delivered during Sessions II and IV. 36. Mr. Jorge Viñuela, official in charge of Economic Affairs at the Embassy of Argentina in Trinidad and Tobago, noted that several countries in the region chose debt relief as an instrument for debt reduction. Many countries replaced their foreign debt with internal debt; in this regard, Viñuela asked if there was reasonable limit for internal debt. 37. The representative of the IMF said that there is not a fixed limit on domestic debt. He said that some countries have replaced their foreign debt with domestic debt on two fronts: The first consequence is that it has been more difficult to issue debt and the second is that governments have discovered that they are capable of doing so. He considered that domestic debt has its own set of problems, such as its restructuring, which puts at stake both national insurance funds as the national financial system as a whole. 38. The IDB representative stated that this type of question was very typical in Latin America, relating it to the history of the region. He recalled that the debt crisis was mainly on the external debt. He noted that with the passage of time the internal debt has grown in the region, which has increased concerns among governments and international organizations. He recalled that the Caribbean countries have traditionally had high levels of internal, not external debt. He highlighted the situation of Caribbean countries, who have replaced their domestic debt towards national public institutions, which is a form of financial repression. 39. The representative of ECLAC stated that domestic debt can possibly gain a higher profile, provided that the private financial sector is capable to sustain it, and in this connection he mentioned the case of Jamaica. 40. The representative of Guatemala noted that such question is very common, saying that perhaps one way of analyzing it is to wonder what for? Also, the composition with fixed and variable rates, at a time when rates are likely to climb, might lead us to wonder whether it is not more advisable to get anchored to a fixed rate rather that a variable rate. In each case, vis-à-vis an expected depreciation or another type of risk, it is necessary to think which composition is less exposed to risks. He said that this issue has not been properly studied at the micro-portfolio level, and requires different measures depending on each case, in terms concentration risks and price risks, changes in the types of rate or changes in the foreign exchange rate.

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41. Mrs. Jaqueline Boin, official in charge of economic and commercial affairs of the Embassy of Dominican Republic in Trinidad and Tobago, said that the problem of the debt burden is a financial matter, and on that level it has been dealt with in an excellent way, with high professional and technical quality. She also noted that the solution to an excessive degree of indebtedness also depends on the fiscal policy, the monetary policy and even a growth policy, and these topics have to do, directly, with human development, which requires including cultural, political and environmental variables. 42. The Ambassador of the Dominican Republic, José Serulle Ramia, pointed to the need to take into account the informal economy in dealing with the issue of the debt burden, namely the role that it plays as regards financial flows, the internal market and savings. The problem of the limits of the debt depends on the countries’ payment capacity, based on its production capacity, including services and creative and cultural industries, with the latter being a fundamental factor in the Caribbean region; therefore, integration turns out to be crucial, since we already have an identity. 43. The representative of Mexico, Mr. José Ramón Lorenzo, made two comments. The first one on the complexity of the problem, for which there is not a unique solution (as it includes the fiscal sector, growth and debt structure). The situation is compounded due to the heterogeneity of the Caribbean region. He suggested reflecting on the debt restructuring and the mechanisms that the organizations might recommend as options for the Caribbean. Secondly, referring to the mechanism of PETROCARIBE, he considered that it generates a debt. In this regard, he wondered about its relative weight and importance in monetary terms in the beneficiary countries. 44. The representative of the Ministry of Finance of the Dominican Republic, Ms. Virginia Bello, said that PETROCARIBE is her country’s main creditor. Even though it is a cooperation agreement, it does generate debt. The terms of the agreement depend on oil prices, since their fluctuations change the composition of payment terms in the short and long run. Currently, the debt generated by PETROCARIBE accounts for 25% of the total Dominican debt. 45. The Ambassador Guarnieri pointed out that the debt generated by PETROCARIBE cooperation mechanism allows does not affect, for the exact amount, the availability of international reserves of the recipient country; and in this sense, it accounts for a form of credit to the international reserves of the recipient countries. Regarding the role of multilateral institutions, he recommended to consider the possibility to create a joint technical group – a task force – between the IMF and the World Bank in order to address the issue of the debt burden, in a systematic and coordinated way, with the most severely affected debtor countries and in concertation with creditor agencies. The Ambassador Guarnieri acknowledged the progress achieved by multilateral organizations as regards issues of special interest for developing countries, largely due to the efforts made by Directors at those institutions. He pointed out that they still have the possibility of approaching to Member States requiring fiscal adjustments, in order to ensure that the cost of such measures is not so high. He underscored the importance for Latin America and the Caribbean of exerting pressure jointly on creditor countries so as to guide actions of organizations and make a little more balanced approach to these issues from the decision-making level. In this regard, clear and joint actions by regional integration and cooperation organizations are crucial.

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10 46. The representative of the G-24 highlighted the importance of the “pressure” exerted by debtor countries on changes in policies stemming from the directions and decision-making bodies of those two organizations towards developing countries. 47. The representative of the IMF noted that the agendas followed by technicians and officials of international organizations come from the Directions, often outside the institutions, whereby the countries can use their presence and convening power to propose technical assistance mechanisms in accordance with the different local needs. 48. The representative of the World Bank recommended the countries of the region to join the initiatives offered by multilateral organizations for discussing policies and measures specially focused on Latin America and the Caribbean, many of which can be implemented in conjunction with other multilateral institutions such as the IMF. 49. The representative of Germany thanked for the invitation as an external country of SELA and the ACS. He said that Germany, as a member of the boards of directors of many multilateral agencies, has witnessed the impact of a high index of concessional financing on debt rescheduling. He also underscored the investments that Germany has made in the development of alternative energy sources in the Caribbean subregion, as a catalyst for economic growth and development. 50. The IDB representative referred to initiatives that have been implemented recently by the bank in the Caribbean with the purpose of fostering economic growth, understanding that such growth depends on a strong support of the private sector. First of all, he said that, together with the Governments of Canada and the United Kingdom, the IDB allocates resources for the implementation of programmes coordinated by the private sector in Caribbean countries. Secondly, two years ago, in conjunction with the World Bank and the Caribbean Development Bank, the IDB launched a platform that encourages dialogue among the private sector, the public sector and civil society, called the Caribbean Growth Forum. The third initiative implemented this year is linked to one of the main problems facing Caribbean countries: the energy sector, particularly as regards electricity. The so-called Caribbean Energy Initiative aims at bringing together all political and social actors to search for solutions to improve supply of energy resources in a sustainable manner for the economies of the region. Finally, the proposal for a “Caribbean Air Bridge” seeks the diversification of tourism coming especially from emerging markets such as Brazil, Colombia and Mexico, since this is a very important sector for a large number of Caribbean economies, as stated in the discussions during the meeting. There were no more remarks and the last working session was adjourned.

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B. CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS The “Meeting of Experts on the debt burden in the Caribbean region”, held at the headquarters of the ACS in Port of Spain, on 24 February 2014, provided and opportunity to discuss the status of the problem of high debt rates in several Caribbean countries, both in member countries of this subregion and in Latin America as a whole, with representatives of multilateral organizations specialized in the issue of debt management. As a basis for debates, the Permanent Secretariat submitted the document “Debt burden and fiscal sustainability in the Caribbean region” (SP/RECDRC/DT. N° 2-14) as well as the updated notes of the document at the year 2012 (SP/RECDRC/DT N° 2-14/Add 1). The study examines the issue of the debt burden and fiscal sustainability in the Caribbean region. To that end, a series of indicators and statistic and econometric tools were applied to a set of relevant data on fiscal and debt variables in the Caribbean region, particularly 14 countries (1999-2012). The issues of greatest interest that were discussed at the meeting included the following: 1. Caribbean countries face alarming levels of over-indebtedness, a situation which makes them different from the rest of Latin American countries, has a significant impact on economic growth and social development of the countries affected and may lead to an unsustainable fiscal position over the medium term. 2. The level of over-indebtedness in the region is severely limiting the use of fiscal policies as tools to manage cyclical fluctuations and causing a negative economic growth in the medium and long terms. 3. In 2012, the simple average growth of GDP in Caribbean countries reached 1.17%, compared to 2.93% registered for Latin America and the Caribbean as a whole. In the period 1999-2012, average growth in the Caribbean stood at 2.51%, compared to 3.24% for LAC. 4. The measures aimed at increasing revenue should focus on expanding the tax base and improve the efficiency of the tax collection system. 5. Fiscal consolidation should play a crucial role in restoring sustainability in the current accounts, while contributing to reduce the significant gap between savings and investments. 6. The considerable magnitude of the fiscal efforts needed to reach debt levels that are consistent with fiscal solvency implies that the fiscal consolidation programmes in the Caribbean region should be carefully designed and implemented in a steady way in the medium and long terms. 7. The reduction of public spending and the implementation of structural reforms are difficult tasks for which there are no rules that can be applied to obtain results in the short term. A national development project that allows for the correct use of resources in a sustainable way should be implemented. 8. A structural reform of public spending based on the analysis of the long term role of the government in the economy is vital in order to achieve a lasting reduction in public spending.

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12 9. The high debt level is a limiting factor to fiscal flexibility, increases macroeconomic vulnerability and hinders growth options. 10. The responsibility of those countries that have fallen in a situation of high public debt for adopting policies to reduce such debt cannot be overlooked. Multilateral agencies are also responsible, as they play a key role in overcoming the debt burden in Caribbean countries; they should provide support with their high technical capabilities, based on the domestic needs and priorities of countries. 11. Debt management policy must be a State policy, endowed with its own institutions, capable of managing governance in this area, making debt management effective and sustainable. 12. A broad political consensus and social support are necessary for maintaining the viability of fiscal adjustment programmes through time. 13. Even though they have been classified as middle-income countries, the economies of the Caribbean are structurally different. Therefore it is important to consider additional approaches that go beyond conventional measures for fiscal consolidation. 14. In the Caribbean, more than 60% of the internal debt is in the hands of domestic financial institutions, which are the main creditors. 15. The sole purpose of borrowing is to increase the domestic capacity in terms of actual results that allow for productive and sustainable development with a tangible impact on the population. 16. The debt burden is an issue that requires regional cooperation in order to overcome it, beyond individual actions by the countries affected and the Caribbean subregion. RECOMMENDATIONS 1. An appropriate combination of fiscal consolidation and debt restructuring and relief is crucial to achieve a debt level compatible with fiscal sustainability in the Caribbean. 2. Caribbean countries must try to negotiate and obtain the best possible restructuring. Excessive indebtedness in most of countries of the region hinders the necessary debt reduction without a fiscal adjustment. 3. The adoption of fiscal rules on public spending and primary fiscal balance, along with a medium-term fiscal framework, contributes to the success of fiscal adjustment efforts. 4. Rescheduling debt relief is very important to achieve a level of sustainability. Most of Caribbean countries require fiscal adjustment programmes that provide for a robust fiscal consolidation programme, between 4.24% and 7.9 % of GDP, so as to reach a debt level of 60% in a period of 10 years at least. 5. Efficiency is essential in managing public funding, prioritizing projects on the basis of institutional supervision and monitoring. 6. Public expenditures must be ´planned by taking into account the vulnerabilities inherent to the Caribbean region, such as the effects of natural disasters and regional vulnerability to them, a small productive base and a limited domestic financial sector.

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7. In the long run, commodity-exporting countries should achieve a positive position in terms of net assets to address potential obsolescence of the resource or its depletion, and its impact on tax revenues. 8. Administrative and managerial measures must be adopted for strengthening national institutions with competence in the design and management of the public debt in the countries of the region. 9. A “task force” must be established, made up by professionals of multilateral financial institutions, in order to provide technical assistance to affected countries for debt management with national authorities, in a systematic and coordinated manner. 10. A recommendation is made to promote public-private partnerships to reduce risks and improve competitiveness, with the adoption of policies for productive industrial development that deal with the obstacles faced by the region as a whole: high costs in the labour and energy sectors, deficit in infrastructure, crime, high concentration of export basis and migration of skilled human resources to third countries. 11. Finally, it is recommended to continue with discussions and deepen the analyses on this topic by regional integration and cooperation organizations, with the participation of all sectors of the Member countries of Latin America and the Caribbean. C. CLOSING SESSION 1. In announcing the start of the closing session, Mr. Alberto Durán reiterated the willingness of the ACS General Secretariat to continue with the dialogue and discussions on important issues for the Caribbean region. He thanked for the attendance and participation of the representatives of Member States, Observers and regional and international organizations. He underscored the importance of further encouraging this type of meetings, not only to search for solutions to problems among Caribbean countries, but also to link experiences of other Latin American countries that have gone through similar situations. 2. Afterwards, Ambassador Roberto Guarnieri highlighted the importance of this meeting on the issue of the debt burden and its implications for the Caribbean countries. In his capacity as Permanent Secretary, he thanked participants, particularly the speakers of Member States and the representatives of international organizations. He also referred to the contents of the presentations, underscoring the importance of the debates and the need to give the event a regional projection with a practical and political sense. To this end, he referred to the need to recognize that debt and fiscal sustainability policies hinge on the quality of governance in the countries of the region and the objectives and priorities of international organizations towards the countries of the region. He said that, as Permanent Secretary, he will submit a report on this meeting to the Latin American Council, the highest organ of SELA. Finally, he expressed his recognition and gratitude to the staff of the ACS General Secretariat for their hospitality and contributions to the successful conduction of the meeting and proceeded to adjourn it.

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15

A N N E X I

AGENDA

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17 In compliance with Decision 541 of the Latin American Council, which approved the Work Programme of the Permanent Secretariat for the year 2014, instructions were given to hold a Meeting of Experts on the debt burden in Caribbean countries, with the support of the Association of Caribbean States (ACS). Objectives:

Analyze the debt situation in Caribbean countries and policies for debt relief, focusing on differentiated approaches that respond to the particular characteristics of Caribbean economies.

Exchange experiences among countries in that subregion as regards the subject of debt relief.

Disseminate information about this reality among countries and integration organizations in Latin America and the Caribbean.

Identify debt relief policies, particularly measures to promote investment and to spur economic growth.

Reach conclusions and recommendations with operational use for affected countries, as well as strategic information for other Member States.

PRELIMINARY AGENDA 24 February 2014

Morning

8:00 – 8:30 REGISTATION 8:30 – 8:45 OPENING SESSION

Speech by Alberto Durán Espaillat, Director of Trade of the

Association of Caribbean States (ACS) Speech by the Permanent Secretary of the Latin American and

Caribbean Economic System (SELA), Ambassador Roberto Guarnieri

8:45 – 9:30 SESSION I: Debt burden and fiscal sustainability in Caribbean

countries Moderator: Alberto Durán Espaillat, Director of Trade of the ACS

Presentation of the base document of the Permanent Secretariat of SELA, “Debt Burden and Fiscal Sustainability in the Caribbean Region”

Dr. Víctor Olivo, Consultant-Researcher

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18 9:30– 11:00 SESSION II: National experience in overcoming the debt burden Moderator: Víctor Olivo, SELA’s Consultant

Malty Dwarkasing - Representative of Suriname

Antonino Inniss - Representative of Barbados

Fredy Gómez - Representative of Guatemala 11:00 – 11:30 General debate (Sessions I-II)

11:30 – 11:45 Coffee break

11:45 – 12:45 SESSION III: Fiscal adjustment and economic growth: Regional perspective Moderator: Alberto Durán Espaillat, ACS Director of Trade

Enid Bissember - Representative of CARICOM

Dillon Alleyne - Representative of ECLAC

Ian Durant - Representative of the Caribbean Development Bank

Sean Curtis Mathurin - Representative of the Organization of

Eastern Caribbean States (OECS) 12:45 – 13:00 General debate 13:00 – 14:30 Free time for lunch Afternoon

14:30 – 16:30 SESSION IV: Fiscal adjustment and economic growth: Multilateral vision Moderator: Alberto Durán Espaillat – ACS Director of Trade

Yuefen Li - Representative of UNCTAD Inder Ruprah - Representative of the Inter-American

Development Bank (IDB) Sona Varma - Representative of the World Bank

Trevor Alleyne - Representative of the International Monetary

Fund (IMF)

Analisa Bala - Representative of the Secretariat of the G-24 16:30 – 17:00 General debate

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17:00 – 17:15 Coffee break 17:15 – 17:45 Conclusions and recommendations

17:45 – 18:00 CLOSING SESSION Speech by Alberto Durán Espaillat, Director of Trade of the

Association of Caribbean States (ACS)

Speech by the Permanent Secretary of the Latin American and Caribbean Economic System (SELA), Ambassador Roberto Guarnieri

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21

A N N E X I I

SPEECH BY MR. ALBERTO DURÁN ESPAILLAT, DIRECTOR OF TRADE OF THE GENERAL SECRETARIAT OF THE ASSOCIATION OF CARIBBEAN STATES (ACS)

Final Report SP/RECDRC/IF-14

23 Ambassador Roberto Guarnieri, Permanent Secretary of the Latin American and Caribbean Economic System (SELA); Representatives of Regional and International Organizations; Distinguished Representatives of the Member States of SELA, and Associate Member States of the Association of Caribbean States (ACS); Your Excellencies Ambassadors of the countries accredited to the government of Trinidad and Tobago; Special guests; Participants in general; Welcome you all to the Association of Caribbean States (ACS) and, particularly, to this Meeting of Experts on the debt burden in the Caribbean region. First of all, I would like to present apologies on behalf of the Secretary-General of the ACS, Ambassador Alfonso Múnera, who unfortunately cannot join us today, since he is in Mexico City at the preparatory meetings for the upcoming VI Summit of Heads of State and Government of the ACS, which will be held from 29 to 30 April in the city of Merida, Yucatan, Mexico. In view of Múnera’s absence, I, Alberto Durán, Director of Trade Development and Foreign Economic Relations, have the privilege to act as host of the meeting on his behalf, hoping to count on the collaboration of all of you. At the onset, I must say that it is a great pleasure and a challenge at the same time to address today the subject of the debt burden, which is so important and crucial for the entire region of the Greater Caribbean. We are pleased that this initiative has been identified, analyzed and addressed in depth by the Latin American and Caribbean Economic System (SELA), with which we are very glad to collaborate once again. The analyses conducted in the document that serves as the base for this meeting, with aggregated data about the Caribbean region, show clear signs of a situation characterized by potential fiscal insolvency and excessive debt burden. The simple average of the ratio public debt over GDP in the Caribbean, for the period 1999-2011, was 72,32%, and in 2011 this indicator reached 74.35%. This factor continues to have a significant impact on growth and development in many Member countries. Compounding things, the global financial crisis further worsened the situation of these countries. Some countries have made several attempts to reduce their respective debt, particularly through restructuring and fiscal consolidation. However, initial gains have been minor or were not sustainable due to the lack of comprehensive reforms to complement adjustment efforts. Debt burden relief turns out to be fundamental for our societies in the Greater Caribbean to move ahead. We have to face the imminent threat of a fiscal crisis; the huge costs of debt in the economy; its impact on investments – both private sector and foreign direct investment – and on economic growth. In other words, the public debt has negative effects on economic activities. Thus, the debt can become a hurdle for economic growth. For this reason, we want to address the issue of public debt and fiscal sustainability from a comprehensive perspective. We praise the efforts of SELA in conducting this study through Consultant and Researcher Víctor Olivo, who drafted a document that will be our effective guide throughout our debates. Subsequently, and continuing with the agenda wisely organized by SELA, we will

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24 have speakers, both from countries and international organizations, who will give us new perspectives on this challenge. We are convinced that at the end of this meeting, we, as a region, will be able to envisage with greater clarity the road towards debt relief, fiscal sustainability, growth and economic development. Thank everyone again for your presence today, particularly to Ambassador Roberto Guarnieri, who has been the architect of this very important meeting. We are confident that the conclusions we can reach here will serve to visualize specific solutions, for the benefit of the whole region. You all can rest assured that the ACS will continue to make all the necessary efforts to promote dialogue and cooperation in the search for solutions to the problem of the debt, which is crucial for the future well-being of all the Caribbean. Thank you very much.

Final Report SP/RECDRC/IF-14 25

A N N E X I I I

SPEECH BY AMBASSADOR ROBERTO GUARNIERI, PERMANENT SECRETARY OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC SYSTEM (SELA)

Final Report SP/RECDRC/IF-14 27

Mr Alberto Durán, Director of Trade Development of the Association of Caribbean States (ACS); Your Excellencies Ambassadors of the Member States of SELA; Representatives of Regional and International Organizations; Officials of the General Secretariat of the ACS and of the Permanent Secretariat of SELA; Delegates and Experts; Ladies and gentlemen: I would like to thank the Association of Caribbean States (ACS), particularly to its Secretary-General, Ambassador Alfonso Múnera, for the receptiveness to convening this meeting together with SELA, on a subject which certainly has a relevance of high priority for public policymakers in all our Member States, not only those of the Caribbean, which are surely the most severely affected ones, where the debt burden has repercussions with serious consequences for social development and collective well-being. It is also a matter of special importance to hold this meeting at the headquarters of the ACS, because beyond the importance of the subject, it is a manifestation of direct cooperation between two organizations with similar mandates and objectives as regards the coordination of programmes and consideration of policies for integration and development of their member countries. The event is also intended to make a conceptually rigorous and well informed diagnosis of the issue of the debt burden in the most affected Caribbean countries, and to discuss some relevant conclusions to overcome this crucial problem for economic stability and overall balance in these countries. Recovering and maintaining a sustainable fiscal policy certainly requires a domestic policy for sustained and efficient adjustment, which has to be socially balanced and politically viable. However, it is equally essential to count on the external support from global institutions, which are key in determining international financial governance; and much more so in the case of countries with relatively small economic size whose individual influence on the policies and decisions is very limited. Hence the importance, in this regard, of combined action between these countries and institutions such as the IMF and the World Bank. I would like to recall in this regard that SELA was established in 1975, with the objective – among others – to facilitate and promote dialogue and joint action of its Member States at global economic forums within the context of the reform of the global monetary system and North-South relations. In this connection, with this event we are retaking a central element of the raison d’être of SELA. The other fundamental element of its establishment, which is closely related to the previous one, is integration of Latin America and the Caribbean. Of course, any action that contributes to strengthening subregional integration mechanisms to make them further convergence into a single Latin American and Caribbean economic space is a priority for SELA, and in this regard, the issue of fiscal sustainability in the Member States of the various subregional integration mechanisms is a prerequisite for their progress and consolidation.

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28 Finally, with respect to this issue, I must refer to the initiative undertaken by the Minister of Foreign Affairs of Trinidad and Tobago, Winston Dookeran, who has presented an extremely important initiative for “convergence”, which we have received with great interest at SELA. I had the honour to meet with him and offer him our institutional support for the eventual development and implementation of this proposal. This initiative is a significant piece for our own work at the Permanent Secretariat, for the objective of deepening and ensuring sustainability of existing integration mechanisms, regardless of their specific conditions of endowment of factors and economic dimension, for their gradual convergence into a single Latin American and Caribbean economic space, for efficiency, development and social balance. Thank you very much.

Final Report SP/RECDRC/IF-14 29

A N N E X I V

LIST OF PARTICIPANTS

Final Report SP/RECDRC/IF-14 31

ARGENTINA Jorge Viñuela Commercial Delegate Embassy of Argentina 11 Maraval Road Port of Spain Tel: 868-628-7557/87 E-mail: etrin@mrecic.gov.ar Web site: www.etrin.cancilleria.gov.ar BARBADOS Antonino Inniss Analyst of Debt Strategy Unit of Debt Management Ministry of Finance and Economic Affairs The Corporate Centre Crn. Bay Street and Bush Hill St. Michael Tel: 430-3808; 436-6435 E-mail: innissa@gov.bb Web site: www.economicaffairs.gov.bb BRAZIL Paulo Sérgio Traballi Bozzi Ambassador Embassy of Brazil 18 Sweet Briar Road Port of Spain Tel: 868-622-5779 / 5771 E-mail: embassyofbrazil@tstt.net.tt Web site: www.brazilembtt.org COSTA RICA Edgar García Miranda Ambassador Embassy of Costa Rica 38 Carlos Street - Woodbrook Port of Spain Tel: 868-628-8775 E-mail: Ambassadorgarcia@gmail.comm Tatiana Burgos Ramírez First Secretary Embassy of Costa Rica 38 Carlos Street - Woodbrook Port of Spain Tel: 868-628-8775 E-mail: tburgos@rree.go.cr

CHILE Patricio Cabezas Logan Third Secretary Official in charge of Commercial and Economic Affairs Embassy of Chile 4 Alexandra Street - St. Clair Port of Spain Tel: 868-628-0540 E-mail: echile@tstt.net.tt Web site: www.chileabroad.gov.cl/trinidad-y-tobago ECUADOR Tatiana Unda Analyst Presidential Technical Commission for the New Financial Architecture Ministry of Foreign Affairs and Human Mobility Av.10 de Agosto 21255 Quito Tel: 593-2-299-3200 E-mail: tunda@mmrree.gob.ec Web site: www.cancilleria.gob.ec Carlos González Analyst Direction of Integration Ministry of Foreign Affairs and Human Mobility Av.10 de Agosto 21255 Quito Tel: 593-2-299-3200 E-mail: cgonzalez@cancilleria.gob.ec Web site: www.cancilleria.gob.ec EL SALVADOR Raymundo Ernesto Rodríguez Díaz Ambassador Embassy of El Salvador 29 Long Circular Road - St. James Port of Spain Tel: 868-628-4454 E-mail: rrodriguez@rree.gob.sv

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GUATEMALA Fredy Gómez Gómez Director of Public Credit Ministry of Public Finance Guatemala City Tel: 23229160 E-mail: fgomez@minfin.gob.gt Web site: www.minfin.gob.gt HAITI Maxime Carneus Deputy Director Ministry of Economy and Finance 5 Ave Charles Summer Port-au-Prince Tel: 509 29 92-1012 E-mail: carneus2005@yahoo.fr Web site: www.mefhaiti.gouv.ht MEXICO Mario Eugenio Arriola Woog Ambassador Embassy of Mexico 12 Hayes Street - St. Clair Port of Spain Tel: 868 – 6221422 E-mail: marriola@mexico.tt Web site: www.embamex.sre.gob.mx/trinidadytobago/ José Ramón Lorenzo Domínguez Adviser Subsecretariat for Latin America and the Caribbean Secretariat of Foreign Affairs Mexico City Tel: 52-55-36865737 E-mail: jlorenzo@sre.gob.mx Web site: www.sre.gob.mx Alberto Watanabe Cervantes Adviser Subsecretariat for Latin America and the Caribbean Secretariat of Foreign Affairs Mexico City Tel: 52-55-36865701 E-mail: awatanabe@sre.gob.mx Web site: www.sre.gob.mx

PANAMA Arline González Costa Ambassador Embassy of Panama 25 De Verteuil St, Wookbrook Port of Spain E-mail: embapatt@flowtrinidad.com Darío Castillo Financial Analyst Direction of Public Credit Ministry of Economy and Finance Via España y Calle 52 Edificio Ogawa, 4to Piso Panama Tel: 507-507-7205 E-mail: dcastillo@mef.gob.pa Web site: www.mef.gob.pa DOMINICAN REPUBLIC José Serulle Ramia Ambassador Embassy of Dominican Republic 10 B, Queen’s Park West, Suite 101 Port of Spain Tel: 868-624-7930 E-mail: embadom@hotmail.com Virginia Bello Head of the Division of Information and Market Analysis General Direction of Public Credit Ministry of Finance Avenida México 45 Santo Domingo E-mail: vbello@creditopublico.gov.do Web site: www.hacienda.gov.do Jacqueline Boin Official responsible for Economic Affairs Embassy of Dominican Republic 10 B, Queen’s Park West, Suite 101 Port of Spain Tel: 868-624-7930 E-mail: embadom@hotmail.com

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SURINAME Malty Sh.-D. Dwarkasing Mid-Level Official Office of Debt Management Mr. J. Lachmonstraat 160 Paramaribo Tel: 597-532005 E-mail: mdwarkasing@sdmo.org Web site: www.sdmo.org Sheffron Kartowikromo Second Secretary Embassy of Suriname 11 Maraval Road Port of Spain Tel: 868-628-0704 E-mail: surinameembassy@tstt.net.tt TRINIDAD AND TOBAGO Kirk Francois Director of Hemispheric Integration Ministry of Foreign Affairs 1A Wrightson Road Port of Spain Tel: (868) 623-6894 E-mail: francoiski@foreign.gov.tt Web site: www.foreign.gov.tt Sandra Fraser Senior Economist Ministry of Economy and Finance Eric Williams Finance Building Independence Square Port of Spain Tel: (868) 627-9700 E-mail: fraser-jamess@gov.tt Web site: www.finance.gov.tt

Cindy – Anne Bazzard Senior Economist Ministry of Economy and Finance Eric Williams Finance Building Independence Square Port of Spain Tel: (868) 627-9700 E-mail: bazzardc@gov.tt Web site: www.finance.gov.tt

Mykel Khan Analyst of Economic Policy Ministry of Economy and Finance Eric Williams Finance Building Independence Square Port of Spain Tel: (868) 627-9700 E-mail: khanmy@gov.tt Web site: www.finance.gov.tt Zahrah Mohammed Economist II Ministry of Economy and Finance Eric Williams Finance Building Independence Square Port of Spain Tel: (868) 627-9700 E-mail: mohammedzahr@gov.tt Web site: www.finance.gov.tt Shezelle Bowman Economist II Ministry of Economy and Finance Eric Williams Finance Building Independence Square Port of Spain Tel: (868) 627-9700 E-mail: bowmans@gov.tt Web site: www.finance.gov.tt Jimmy Wong Analyst Ministry of Economy and Finance Eric Williams Finance Building Independence Square Port of Spain Tel: (868) 627-9700 E-mail: wongji@gov.tt Web site: www.finance.gov.tt Richard Cassie Economic Analyst Fiscal and Debt Unit Department of Statistics Central Bank Eric Williams Plaza Independence Square Tel: (868) 625-2601 E-mail: rcassie@central-bank.org.tt Web site: www.central-bank.org.tt

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Kaveeta Ramdhanie Economic Analyst Fiscal and Debt Unit Department of Statistics Central Bank Eric Williams Plaza Independence Square Port of Spain Tel: (868) 625-2601 E-mail: kramdhanie@central-bank.org.tt Web site: www.central-bank.org.tt Kester Thompson Economist II Fiscal Unit Research Department Central Bank Eric Williams Plaza Independence Square Port of Spain Tel: (868) 625-2601 E-mail: kthompson@central-bank.org.tt Web site: www.central-bank.org.tt

Tricia Harewood Economist II Fiscal Unit Research Department

Central Bank Eric Williams Plaza Independence Square Port of Spain Tel: (868) 625-2601 E-mail: tharewood@central-bank.org.tt Web site: www.central-bank.org.tt VENEZUELA Maria Elena Ferrer Diplomatic Official People’s Ministry of Foreign Affairs Esquina Conde a Carmelitas Torre MRE, Piso 2, Caracas Tel: (58-212) 806-4783 Fax: (58-212) 806-0787 E-mail: maria.ferrer@mppre.gob.ve Web site: www.mppre.gob.ve Martha Palacios Embassy of Venezuela 16 Victoria Avenue Port of Spain Tel: 868- 627-9821 E-mail: kikapalacios73@gmail.com

OTHER COUNTRIES

AUSTRALIA Clint Fernández Research Official Australian High-Level Commission In Trinidad and Tobago 18 Herbert Street - St. Clair Port of Spain Tel: 868-822-5450 E-mail: clint.fernandez@dfat.gov.au Web site: www.dfat.gov.au/homs/tt GERMANY Ullrich Kinne Economic Counsellor Embassy of Germany 19 St. Clair Avenue Port of Spain Tel: 868-628-1630 E-mail: v@ports.diplo.de Web site: www.pots.diplo.de

ORGANIZATIONS IN CHARGE OF PRESENTATIONS

COMUNIDAD DEL CARIBE - CARICOM Enid Bissember Deputy Director of Programmes Economic Policy Unit Georgetown Tel: 592-222-0001 E-mail: enidb@caricom.org Web site: www.caricom.org ECONOMIC COMMISSION FOR LATIN AMERICA AND THE CARIBBEAN (ECLAC) Dillon Alleyne Deputy Director Subregional Headquarters for the Caribbean 1 Chancery Lane 1113 Port of Spain Tel: 868-224-8000 E-mail: dillon.alleyne@eclac.org Web site: www.cepal.org/portofspain

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CARIBBEAN DEVELOPMENT BANK Ian Durant Deputy Director Economic Department Wildey - St. Michael Barbados, W.I. Tel: (246) 431-1600 E-mail: duranti@caribank.org Web site: www.caribank.org ORGANIZATION OF EASTERN CARIBBEAN STATES (OECS) Sean Curtis Mathurin Programmes Official Unit of Economic Development Castries 179 St. Lucia Tel: 758-455-6327 E-mail: smathurin@oecs.org Web site: www.oecs.org UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD) Yuefen Li Head Division of Debt and Financial Development Palais des Nations, CH-1211 Geneva Tel: 41-22-9175861 E-mail: yuefen.li@unctad.org Web site: www.unctad.org INTER-AMERICAN DEVELOPMENT BANK Inder Jit Ruprah Regional Economic Adviser Department for Caribbean Countries 1300 New York Avenue, N.W. Washington D.C. 20577, U.S.A Tel: (1-202) 623.1000 E-mail: inderr@iadb.org Web site: www.iadb.org WORLD BANK Francisco Carneiro Lead Economist Department of Poverty Reduction and Economic Management Latin American and Caribbean Region Tel: 202-473-0390 E-mail: fcarneiro@worldbank.org

Sona Varma Country Economist Latin American and Caribbean Region 1818 H St. NW Washington D.C. 20433 U.S.A Tel: 202-473-0390 E-mail: svarma1@worldbank.org Web site: www.worldbank.org/en/region/lac Rohan Longmore Country Economist Latin American and Caribbean Region 1818 H St. NW Washington D.C. 20433 U.S.A Tel: 202-473-0390 E-mail: rlongmore@worldbank.org Web site: www.worldbank.org/en/region/lac INTERNATIONAL MONETARY FUND Trevor Alleyne Head Caribbean Division I Department for the Western Hemisphere 700 19th St, NW HQ1 Washington D.C. U.S.A Tel: 202-623-6510 E-mail: talleyne@imf.org Web site: www.imf.org

GENERAL SECRETARIAT OF THE GROUP OF 24 (G24) Analisa Bala Policy Adviser 700 19th St, NW HQ1 Room 3-600 Washington D.C. U.S.A Tel: 202-623-6117 E-mail: abala@g24.org Web site: www.g24.org

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OTHER INVITED ORGANIZATIONS

CAF-development bank of Latin America Iwan Sewberath Director-Representative Eleven Albion, Dere & Albion St. Port of Spain E-mail: isewberath@caf.com Web site: www.caf.com CHAMBER OF INDUSTRY AND TRADE OF TRINIDAD AND TOBAGO Rianna E. Paul Economist-Researcher Unit of Commercial Development Port of Spain E-mail: rpaul@chamber.org.tt Web site: www.chamber.org.tt REPUBLIC BANK LTD Haydn Lowhar Analyst EIU – Head Office E-mail: hlowhar@republictt.com Web site: www.republictt.com UNIVERSITY OF THE WEST INDIES

Vangie Bhagoo-Ramrattan St. Augustine Port of Spain E-mail: Vangie.bhagooramrattan@firstcitizenstt.com Web site: www.sta.uwi.edu

ORGANIZERS GENERAL SECRETARIAT OF THE ASSOCIATION OF CARIBBEAN STATES (ACS) Alberto Durán Director of Trade Development and Foreign Economic Relations Tel: 868-622-9575 E-mail: aduran@acs-aec.org Web site: www.acs-aec.org

Julio Orozco Director Sustainable Tourism Tel: 868-622-9575 E-mail: jorozco@acs-aec.org Web site: www.acs-aec.org George Nicholson Director Transport and Disaster Risk Reduction Tel: 868-622-9575 E-mail: gnicholson@acs-aec.org Web site: www.acs-aec.org Kariyma Baltimore Adviser Development of Trade and Foreign Economic Relations Tel: 868-622-9575 E-mail: kbaltimore@acs-aec.org Web site: www.acs-aec.org

Paula Velásquez-Lange Policy Adviser Tel: 868-622-9575 E-mail: pvlange@acs-aec.org Web site: www.acs-aec.org Shamfa Richards Secretary Development of Trade and Foreign Economic Relations Tel: 868-622-9575 E-mail: srichards@acs-aec.org Web site: www.acs-aec.org Jean Pierre De Meerleer Sánchez Research Assistant Development of Trade and Foreign Economic Relations Tel: 868-622-9575 E-mail: jsanchez@acs-aec.org Web site: www.acs-aec.org

Rehanna Ramroop Research Assistant Sustainable Tourism Tel: 868-622-9575 E-mail: rramroop@acs-aec.org Web site: www.acs-aec.org

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Nayaatha Taitt Research Assistant Transport and Disaster Risk Reduction Tel: 868-622-9575 E-mail: ntaitt@acs-aec.org Web site: www.acs-aec.org PERMANENT SECRETARIAT OF SELA Roberto Guarnieri Permanent Secretary Tel: (58-212) 9557101 Fax: (58-212) 951-5292/951-6901 José Gabriel Villegas Analyst of Relations Tel: (58-212) 9557112 Fax: (58-212) 951-5292/951-6901 E-mail: jvillegas@sela.org CONSULTANT Víctor Olivo Romero Economist Caracas, Venezuela E-mail: velocityphd@hotmail.com

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A N N E X V

LIST OF DOCUMENTS

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41 SP-RECDRC/DT N° 1-14-Rev. 1

Agenda

SP- RECDRC /DT Nº 2-14 Base Document: “Debt burden and fiscal sustainability in the Caribbean region” Consultant: Víctor Olivo

SP/RECDRC/DT N° 2-14/Add. 1

Base Document: “Debt burden and fiscal sustainability in the Caribbean region” (Updated notes) Consultant: Víctor Olivo

SP-RECDRC/Di N° 1-14 Speech by Mr. Alberto Durán, Director of Trade Development of the Association of Caribbean States (ACS)

SP-RECDRC/Di N° 2-14 Speech by Ambassador Roberto Guarnieri, Permanent Secretary of SELA

SP-RECDRC/Di N° 3-14 Presentation of the Document: “Debt burden and fiscal sustainability in the Caribbean region” Consultant: Víctor Olivo

SP-RECDRC/Di N° 4-14 “The debt burden in Suriname 2000-2013” Ms. Malty Dwarkasing Manager Middle Office Suriname Manager Middle Office

SP-RECDRC/Di N° 5-14 “Barbados’ Experience for Overcoming Debt Burden” Antonino Inniss Debt Strategy Analyst (ag) Debt Management Unit Ministry of Finance and Economic Affairs

SP-RECDRC/Di N° 6-14 “Institutional and management fundamentals of the debt sustainability in Guatemala, a micro approach” Fredy Gómez Director of Public Credit Ministry of Public Finance

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SP-RECDRC/Di N° 7-14 “Fiscal Adjustment and Economic Growth: A Regional Perspective” Enid Bissember Deputy Programme Manager Economic Development Policy, Tax Administration and Research Caribbean Community- CARICOM

SP-RECDRC/Di N° 8-14 “Measures to Stimulate Growth in the Caribbean” Dillon Alleyne Deputy Director a.i., ECLAC Subregional Headquarters for the Caribbean

SP-RECDRC/Di N° 9-14

“Fiscal Adjustment and Economic Growth” Ian Durant Deputy Director Economics Department Caribbean Development Bank-CDB

SP-RECDRC/Di N° 10-14 “Proposed measures to stimulate economic growth: Regional Perspective” Sean Curtis Mathurin Economic Affairs Officer/Statistician Organization of Eastern Caribbean States (OECS)

SP-RECDRC/Di N° 11-14 UNCTAD Presentation Yuefen Li Head Debt and Development Finance Branch United Nations Conference on Trade and Development (UNCTAD)

SP-RECDRC/DI N° 12-14 “Debt in the Caribbean?” Inder Ruprah Regional Economic Advisor Caribbean Country Department Inter-American Development Bank (IDB)

Final Report SP/RECDRC/IF-14 43

SP-RECDRC/Di N° 13-14 “The challenge of managing high debt

in the Caribbean” Sona Varma Senior Country Economist LCSPE Latin American and the Caribbean Region World Bank

SP-RECDRC/Di N° 14-14 “Debt Burden and Fiscal Sustainability in the Caribbean Region” (IMF Presentation) Trevor Alleyne Division Chief Caribbean I Division Western Hemisphere Department International Monetary Fund (IMF)

SP-RECDRC/Di N° 15-14 “Debt Sustainability in the Caribbean: Recognizing Unique Vulnerabilities” Analisa Bala Policy Advisor Inter-governmental Group of Twenty Four (G-24)

SP-RECDRC/Di N° 16-14 List of Participants