Basseterre, St. Kitts - St Kitts and Nevis’ Minister of Finance, Dr. Timothy Harris and Financial Secretary, Janet Harris yesterday (Feb. 3) attended a special convening of the ECCB Monetary Council held in Barbados to discuss the impact of the CL Financial Group troubles on the East Caribbean Currency Union.
CL Financial Group is the parent company of Colonial Life Insurance Company (CLICO) and British American Insurance Company and the conglomerate reportedly controls an asset base of over TT $100 billion spread across 65 companies in 32 countries worldwide.
Late last month top officials from the CL Financial Group announced that the company was experiencing financial difficulties. The Trinidad-based company is now relying heavily on the proposed bail-out plan put forth by the Patrick Manning administration and the Trinidad Central Bank where government funding would be provided in exchange for equity in CLICO and the Central Bank would take control of the CLICO Investment Bank.
At yesterday’s special meeting, the ECCB Monetary Council discussed the proposed strategies for ensuring the continued stability and integrity of the region’s financial systems as it is feared that the financial turbulence that almost crippled the US economy will spread to other branches of the region’s financial sector.
Council agreed to the undertaking by the ECCB and the Chairman of the OECS Transition Task Force, St. Vincent and the Grenadines leader Hon. Dr. Ralph Gonsalves, to continue the collaboration with all relevant parties on behalf of the ECCU to ensure appropriate coverage for all exposed entities.
Council members offered assurance to all institutions and the public in the Currency Union that their interests are being protected and that the situation would be further addressed at a meeting scheduled for February 13.
Although officials in the islands where the insurance companies operate have tried to separate themselves from the trouble in Trinidad, regional panic has already begun to spread with policy holders and other stakeholders demanding an account of the insurance companies’ state of affairs.
CLICO officials have announced that a press conference to address concerns will be held tomorrow (Feb. 5) in St. Kitts.
1.jpg)