BRIDGETOWN, Barbados – THE Barbados government has announced its intention to reclaim its majority stake in the Barbados National Bank (BNB).
According to Caribbean 360, Prime Minister David Thompson said at a press conference yesterday (Feb. 19) that Cabinet had approved the move to buy controlling interest in the bank.
The Owen Arthur-led Barbados Labour Party (BLP) administration had sold 57 percent of BNB’s shares to the Republic Bank Limited (RBL) of Trinidad and Tobago in 2003. RBL subsequently acquired additional shares in the bank, increasing its hold to 65.13 percent.
“Cabinet felt it was extremely important that every effort be made to retain BNB. Therefore, it has agreed that I can enter into discussions with the government of Trinidad and with Barbadian partners to seek to repurchase our shareholding in BNB at the earliest opportunity.
“Barbados is the third best regulated banking system in the hemisphere behind Canada and Chile. Against that background, the absence of what would be considered an authentic Barbadian bank is something that is regrettable and we think that as part of our national interest and patrimony, it would be desirable to go that route,” Thompson said.
He noted that the government would have to buy the shares at market value, and despite an increase in the price of BNB shares the government was committed to finding the resources to execute the project.
BNB began operation on March 21, 1978 as an amalgamation of government-owned financial institutions. These entities were the Barbados Savings Bank and the Sugar Industry Agricultural Bank and National Housing Corporation.
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