Update on Financial Actions by Barbados Authorities – Re: CLICO Matter


Created 03 Feb, 2009
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Update on Financial Actions

by Barbados Authorities - re: CLICO Matter

 

 

On Friday, January 30, 2009, the Government of Trinidad and Tobago and the Central Bank of Trinidad and Tobago announced that they were providing financial support to the CL Financial Group which was experiencing serious cash flow difficulties.

The Central Bank of Trinidad and Tobago took control of Clico Investment Bank, whose assets and liabilities along with those of Caribbean Money Market Brokers will be transferred to the nationally-owned First Citizens Bank.

The CL Financial Group has a number of subsidiaries in Barbados.

Affiliated companies in Barbados include:

· CLICO Property Development Inc.

· CLICO Balance Fund Inc.: Investments and Mutual Fund Management

· CLICO Mortgage & Finance Corporation: Mortgage & Trust Business

· CLICO International General Insurance Limited: General Insurance

· CLICO International: Life Insurance

 

It is for this reason that over the last few days public statements have been made by the Minister of Finance and Economic Affairs, the Governor of the Central Bank of Barbados, the Supervisor of Insurance, and the management of Clico Holdings Barbados Limited. Generally, it was emphasised that Clico Holdings is a well-run company and that the domestic financial system is well regulated and capitalised.

In order to provide further support if necessary, the Central Bank of Barbados today agreed to the following course of action:

1. The Central Bank proposes tomorrow to deposit up to $10 million with Clico Mortgage & Finance Corporation (CMFC)

2. The Central Bank has also opened a facility in the event that CMFC needs to access liquidity support

3. The Bank, with the endorsement of the Ministry of Finance, also proposes to provide interbank guarantees, which cover lending by other banks to CMFC, if necessary.

None of these facilities has so far been utilised by CMFC.

 

 

February 2, 2009



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