Basseterre, St Kitts, 3 February 2009
At a special meeting of the ECCB Monetary Council held on 3 February 2009, members met to discuss the impact of recent developments with respect to the CL Financial Group, possible implications for the ECCU, and action which may be required.
Council noted the media releases by the Central Bank of Trinidad and Tobago, the Government of Trinidad and Tobago and the Central Bank of Barbados, and the proposed strategies for ensuring the continued stability and integrity of the financial systems.
Council also noted the consultations which had taken place between the Governor of the ECCB and the relevant parties in Trinidad and Tobago and Barbados, as well as consultations between individual members of Council and these parties.
Council noted the guarantees given by the relevant authorities with respect to depositors, policy holders and investors in CLICO and CLICO related companies.
Council agreed that there was a need for the member countries of the Currency Union to collectively address the matter with the authorities in Trinidad and Tobago and Barbados.
Accordingly, Council agreed to the undertaking by the ECCB and the Chairman of the OECS Transition Task Force, Dr the Honourable Ralph Gonsalves, to continue the collaboration with all relevant parties on behalf of the ECCU to ensure appropriate coverage for all exposed entities.
Council also agreed to accelerate the completion and enactment of legislation to govern the regulation of the non-bank financial sector, including money services, insurance cooperative societies, and building societies.
Council members would wish to assure all institutions and the public in the Currency Union that their interests are being protected. Council will next meet at its regularly scheduled meeting on 13 February 2009 at which the situation would be further addressed.
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Eastern Caribbean Central Bank
P O Box 89, Basseterre, St Kitts
Contact: Ingrid O