ECCB
ANNUAL REPORT 2014/2015
8
EASTERN CARIBBEAN CENTRAL BANK
the establishment of an appraisal institute, which are
intended to improve the property appraisal process for
collateral in the commercial banks.
During the year, the Bank supported the initiative of
the national banks to consolidate their operations to
achieve economies of scale and, in particular, research
undertaken to facilitate the integration of the national
banks.
As part of the Fiscal Reform Programme, the
Monetary Council assessed the debt target of 60.0 per
cent of GDP to be achieved by 2020 and, in light of
the weak growth performance, approved the extension
of the target date to 2030. The Council also agreed
that member governments should consolidate their
fiscal operations to facilitate the achievement of the
target. As part of the fiscal consolidation programme,
the Bank continued to provide technical support to
member countries to strengthen their debt management
capacity through the Debt Management Advisory
Service (DMAS) unit at the ECCB. The Unit is
sponsored by the Department of Foreign Affairs,
Trade and Development (DFATD) of Canada.
In promoting the growth and development of member
countries, the Bank supported the OECS Business
Council as the representative body of the private sector
in the currency union. During the year, the interim
Board of the Business Council was transitioned into a
permanent Board. The Business Council is expected
to coordinate the programmes for the development of
a dynamic and competitive private sector and a viable
export sector. In support of the growth initiatives, the
Bank continued to coordinate the assessment of the
investment climate through The World Bank’s ‘Doing
Business’ Project.
Given the critical role of the public sector in facilitating
growth and development, the Bank continued to consult
with the public sector unions on wages, prices and
productivity particularly in their review of the wage
negotiation process and the structure and operations
of the public sector.
MONETARY STABILITY
M
onetary
P
olicy
Monetary and exchange conditions in the countries
of the Eastern Caribbean Currency Union (ECCU)
remained stable in 2014, primarily influenced by
the continued resilience of the exchange rate. The
integrity of the fixed exchange rate arrangement was
not compromised, as the currency continued to be
adequately supported by foreign reserves. The foreign
reserves to demand liabilities (backing) ratio averaged
95.94 per cent during 2014, comfortably above the
Monetary and exchange conditions in the countries of the Eastern Caribbean
Currency Union (ECCU) remained stable in 2014, primarily influenced by the
continued resilience of the exchange rate
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