BASSETERRE, St. Kitts – IN a responsive approach to the unfolding challenges facing the Colonial Life (CL) Financial Group and its regional subsidiaries, a contingent of the Federation’s financial and economic experts left today (Mar. 4) to attend an urgent meeting with the necessary stakeholders in Barbados.
Minister of Finance, International Trade and Commerce Hon. Dr. Timothy Harris along with Financial Secretary Janet Harris and Director of Financial Services Fidella Clarke will engage in high level exchanges with Prime Ministers and Ministers of Finance of Trinidad and Tobago and Barbados, respectively on matters to do with regulation of the region’s financial sector aimed at redressing the issue and limiting further exacerbation.
In an exclusive interview with SKNVibes, Dr. Harris informed that other members of the Eastern Caribbean Central Bank (ECCB) Monetary Council are also expected to be part of the discussions in an effort to procure a concrete action plan to safeguard their respective countries.
“Broadly, we are looking at ways of cooperating and collaborating with the monetary and financial sectors in the respective countries in the Organization of Eastern Caribbean States (OECS) and Barbados and Trinidad. We recognize that Trinidad is one of the most significant players in relation to the Caribbean’s financial product and so, we must discuss such matters especially in relation to the subsidiaries of CL Financial.
“We also hope to discuss issues in relation to improvements in the regional financial climate, increased cooperation between various insurance registries and an established insurance and financial protocol taking into account what we have learnt from the ongoing crisis.”
Minister Harris noted that the financial developments are of concern to the Federation as “people’s hard-earned savings, investments and pensions must be protected and the stability of financial systems and in particular the banking and payment system is critical to the health of the economy”. He added that the troubles of CL Financial Group are the first indicators that the insulation experienced from the global financial meltdown was “porous”.
CL Financial had experienced liquidity problems in early January of this year causing a major reduction in the consumer confidence in the financial sector in that country. A number of the company’s regional subsidiaries have subsequently suffered similar challenges with liquidating the various outlets. The problem has been witnessed in Trinidad, the Bahamas and has recently reached Barbados. Members of the OECS are concerned as the problem may soon land on their doorsteps.
Harris stressed the importance of cooperating with the conglomerate as he underscored that that the matter must not be limited to be dealt with on a jurisdictional level. He said it is critical to protect local investors and depositors as the meltdown indicates that being part of the globalized world not only brings opportunities but also brings challenges and threats.
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