BASSETERRE, St. Kitts – The St. Kitts-Nevis-Anguilla National Bank is one of several regional banks that will form the take-over team spearheading the stabilization of the Bank of Antigua.
The team will consist of representatives from the local financial institution, the Eastern Caribbean Central Bank (ECCB), the Governments of Antigua and Barbuda and St Vincent and the Grenadines and Antigua Commercial Bank Ltd.ank Ltd. Financial experts from the Eastern Caribbean Financial Holdings Company Ltd, National Commercial Bank (St. Vincent and the Grenadines) Ltd and National Bank of Dominica Ltd.
The ECCB has identified the consortium of indigenous banks from the English-speaking Caribbean to conduct the operations of the BoA, now faced with liquidity troubles.
This announcement follows a decision made by the St. Kitts-based ECCB to take exclusive control of all the funds, assets and other property of the Bank of Antigua as of February 20, as it was viewed that the scandal involving the Chairman of the Board of Directors of the Bank, Robert Allen Stanford, threatened the interests of its depositors and creditors.
On February 17, Stanford had been charged by the US Securities Exchange on the ground of fraud associated with US $8 billion. Depositors have since made frantic attempts to withdraw cash from one of Stanford’s leading Caribbean banks, Bank of Antigua, which created a tangible threat to the nation’s entire financial sector.
The ECCB recognized that without its intervention, the Bank may have been unable to “meet its obligations should the situation persist [and] the financial system of Antigua and Barbuda is in danger of disruption, substantial damage, injury or impairment as a result of the prevailing circumstances”.
The Central Bank also outlined its intentions to take necessary steps to protect the interest of depositors, provide necessary financial assistance to the Bank and acquire, sell, or otherwise deal with the Bank’s assets.
Although detailed information in relation to the full function of the team has not yet been made public, an ECCB press statement indicates that the parties met at the Central Bank’s Headquarters, St. Kitts on February 21-22 and came to a “successful conclusion on the formation of an entity to carry on the operations of the Bank of Antigua Ltd”. This will come into effect as of today, Monday 23, February 2009.
More details regarding the control team and its operation would be forthcoming during a press conference being held at Bank of Antigua’s head office this afternoon.
