ST. JOHN’S, Antigua – FOLLOWING the Eastern Caribbean Central Bank’s (ECCB) decision to take over the Bank of Antigua, the Government of Antigua-Barbuda has expressed its gratitude to the regional entity and the indigenous banks of the Eastern Caribbean Currency Union (ECCU) for their foresight and pre-emptive action to stabilize the country’s financial sector.
When Texan multi-billionaire investor Allen Stanford was charged by the US Securities and Exchange Commission (SEC) on February 17 for a fraudulent US $8 billion investment scheme, hundreds of anxious depositors withdrew funds from Bank of Antigua, one of Stanford’s leading institutions on the island. The ECCB intervened on February 20 and took full control of the bank and its assets to prevent large-scale liquidity problems that were inevitable after the mass cash withdrawals. The Central Bank subsequently identified a number of indigenous banks that would operate the Bank of Antigua and assist the stabilization effort.
During a February 23 press conference, Minister of Finance and the Economy Hon. Dr. Errol Cort said his government is very grateful to the Governor of the ECCB for providing the necessary liquidity to the Bank to allow it to continue functioning and meeting the demands of its customers. It was not revealed how much money was injected into the then cash-strapped bank.
“The Government wishes to thank the ECCB and in particular its Governor, Sir K. Dwight Venner, for its unwavering assistance and for supporting our efforts to assure the general public and in particular the customers of the Bank of Antigua Ltd. that their deposits with the institution remain secure. Further, we are grateful for the instrumental role played by the ECCB in identifying these strong, indigenous banks in the Organization of Eastern Caribbean States (OECS) region that will inject the necessary capital to allow for the continued viability of this institution.
“It must be stated that this joint effort on the part of the Government, the ECCB and the indigenous banks across the region is a remarkable reflection of the OECS unity and is a practical demonstration of the integration movement.
“On behalf of the Government and people of Antigua-Barbuda, I wish to thank our brothers and sisters of the OECS region for their cooperation and for their invaluable contribution towards securing the stability of our financial space. This new entity sets the stage for the creation of a strong, indigenous, OECS bank which is rooted in several indigenous national banks across the region that, on their own, are financially sound and resilient.”
Dr. Cort also thanked the Antiguan contingent for working assiduously to “preserve the stability of the domestic banking sector, maintaining confidence in the ECCU financial system, protecting the interests of all who operate legitimately within our financial space and above all safeguarding the deposits of the people of Antigua-Barbuda”.
Antigua News