| IMF Executive Board Concludes 2007 Article IV Consultation with St. Vincent and the Grenadines
On February 4, 2008, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with St. Vincent and the Grenadines.1 Background The economy is enjoying its second year of vigorous economic growth. Output grew at close to 7 percent in 2006, the highest in the last decade and well above potential (estimated at 4¼ percent). Economic activity was sustained by construction and government services. In 2007 growth remained strong, despite disappointing tourism arrivals, due largely to tourism-related investments and government capital expenditure. Inflation has risen, mostly reflecting the higher international oil and food prices, and is expected to reach 8.2 percent by end-2007. The current account deficit is expected to remain high in 2007-08 on account of higher imports for various tourism-related projects, and capital spending by the government.
Economy hinders student loan options
College students may need an alternative to alternative education loans next school year. Once easy to get, the availability of private or alternative education loans may be hindered by more stringent regulations on lending, prompted by the unstable economy. A student with a less-than-perfect credit history could get a high-interest loan from a private lender in past years, but this may not be the case now, said Mark Kantrowitz, publisher of finaid.org. The Project on Student Debt identified the mortgage market as the culprit of student loan worries in their article, "The Real Story on Student Loans and the Credit Squeeze." "Mostly because of problems in the mortgage market, there has been a decline in the number of investors willing to purchase some types of financial instrument," the article reads.
Venture share price plunges on production set-backs
Investors punished Venture Production following news of the latest in a series of production setbacks which chief executive Mike Wagstaff said left the management team facing a battle to restore its credibility. Shares in the oil and gas independent fell 64p to 601p after Venture said the start of production from the Chestnut field would be delayed from the second quarter until the third. Venture said it still hoped that annual production in 2008 would be in line with previous guidance. However, coming after Venture confirmed that output fell 7.7% in 2007 following problems involving Chestnut and other fields, the latest bad news on the production front may have raised fresh questions about the firm's ability to deliver complex projects. .
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