Pamella McLaren, President CARADEM Caribbean Association of Debt Managers Second Annual Meeting La Antigua, Guatemala July 10, 2012 Pamella McLaren, President CARADEM

Order Of Presentation Why an association? Who we are? Regional Challenges Proposed Steps and Accomplishments

Why an Association? Debt problems of small states differ from those of larger countries Commonality shared among Caribbean countries Examine Caribbean solutions for more effective public debt management CARADEM Est. October 2011

OBJECTIVES STRATEGIES Technical and policy discussions Strengthen and improve the effectiveness Disseminate standardized public debt data Practical advice on debt management Strengthen the technical capability Regularly exchange experiences and information Effective and continuous sharing of information Capacity Building Institutional Reform Establish communication network

5 CARICOM Associate Members CARADEM Who we are Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago 15 CARICOM Full Members Anguilla, Bermuda, British Virgin Islands, Cayman Islands, and Turks and Caicos Islands 5 CARICOM Associate Members Caribbean Association of Debt Managers is an association that comprises of 20 members. These are 15 CARICOM full member and 5 CARICOM associate members. CARADEM aims to unify and provide guidance to debt managers across the Caribbean Region.

Executive members Mrs. Pamella McLaren Mrs. Michelle Doyle-Lowe President Mrs. Michelle Doyle-Lowe Vice President Mr. Francis Fontenelle Executive Member Ms. Marlene Jeffers Secretary Ms. Patlian Johnson

Commonwealth Secretariat Caribbean Technical Assistance Centre Associate Partners Commonwealth Secretariat Caribbean Technical Assistance Centre Associate member The associate partners of CARADEM are Commonwealth Secretariat, Caribbean Technical Assistance Centre and … The role of Commonwealth Secretariat are… The CARTAC’s role of includes… Mrs. Michele Robinson Debt Management Consultant

Endogenous and Exogenous Shocks Regional Challenges Development of Domestic Market as a source of liquidity Domestic Markets Improvement of risk indicators for small open economies Liability management Endogenous and Exogenous Shocks Containment of high and unsustainable debt levels Improved monitoring of contingent liabilities Restricted Growth

Proactive Debt Management Debt Management Strategy Cost & Risk Management Policy Formulation Capacity Building Activities Domestic Market Development The outcomes of the said objectives are listed. An informal survey conducted by email to all the CARADEM’s received nine responses. Of the nine countries that responded only 2 countries access the international capital market and none has a published MTDS.

Domestic Market Development Maintaining fair efficient and transparent markets Reducing systematic risk Protecting investors Enforceability of transactions Protection of clients assets Ensure strong and stable demand for government debt securities Efficient money and primary markets Access to a diversified investor base A sound securities custody and settlement system Debt market regulation

Impact Of Global Crisis Increased investor risk aversion Increased cost of funding for emerging economies Increased exposure of risk Countries defer issuance or employ contingency plans

2 1 Proposed Steps Communication Network Mandate Members to Submit Information Public debt management activities Public Debt statistics Institutional developments Communication Network Development of website Structured emails Newsletter 1 2

Accomplishments Linked page at http://www.michelerobinson.net/caradem_caribbean_association_of_debt_managers First publication of CARADEM’S Newsletter Establish Bylaws Establish Mandate

Mandate: A Snapshot Articulate clearly the debt management issues … Assist member countries in the area of debt management… Represent the member countries on debt management… Ensure member countries maintain lines of communication among themselves …

Bylaws: A Snapshot ARTICLE I – NAME ARTICLE II - PURPOSES ARTICLE III- MEETINGS ARTICLE IV – MEMBERSHIP ARTICLE V – GOVERNING BODIES ARTICLE VI – AMENDMENTS to BYLAWS

Suggested Logos

The Way Forward… 1 CARADEM’S LOGO Submit information on research activities 2 Next Meeting 3

CARIBBEAN ASSOCIATION OF DEBT MANAGERS C/O Ministry of Finance & Planning 30 National Heroes Circle Kingston 4, Jamaica West Indies Tel: 1-876-932-5400 Fax: 1-876-932-5975 E-Mail: pamella.mclaren@mof.gov.jm Link : http://michelerobinson.net/caradem_caribbean_association_of_debt_managers