Offshore News: September 2008

20.09.2008 On September 15, the International Monetary Fund (IMF) concluded an Article IV consultation with the Netherlands Antilles. The executive directors of the IMF welcomed the resurgence of economic growth in the country and noted the efforts of its authorities to implement key reforms ahead of the legal and political dissolution of the Netherlands Antilles that is planned for January 2010. They also welcomed the measures aimed at underpinning the balanced budget rule as well as the plans for achieving balanced current budgets in future. Particularly, plans to sustain revenues by means of broadening the tax base and rebalancing the tax burden have been highlighted. According to directors, fiscal policy will need to take into consideration the costs of targeted income subsidies.

05.09.2008 According to Peter Niven, Chief Executive of Guernsey Finance, the government's investment promotion agency, the latest developments within Guernsey's funds industry reveal that Guernsey continues to be a leading jurisdiction for private equity. In the 2nd quarter of 2008, the value of private equity funds in the offshore jurisdiction grew by about GBP 1 billion (2.5%) to reach GBP 36.2 billion. In contrast, private equity funds across Europe fall by some 10% in 2008.
It is also worth mentioning that another Guernsey-based private equity administrator, Augentius, has been celebrating 400% growth in assets under administration since there was a management buyout 2 years ago.

04.09.2008 The State Bank of Vietnam announced that in collaboration with the Vietnam Industrial and Commercial Bank (Vietinbank) it will distribute international aid worth USD 85 million to Vietnam's tax department with a view to modernize their systems. USD 80 million out of this USD 85 million is being funded by the World Bank, and the balance is provided by the Government of Japan. A Memorandum of Understanding on the aid was signed by the Vietnamese government and the World Bank in March.