ST. GEORGE’S, Grenada, Nov 28, CMC – The Grenada government has expressed its “profound disappointment” at the failure to date to get compensation for policy holders of the collapsed Trinidad-based Colonial Life Insurance Company (CLICO) and the British American Insurance Company (BAICO).
Prime Minister Dr. Keith Mitchell, delivering the EC$1.1 billion (One EC dollar=US$0.37 cents) budget to Parliament on Monday, said that Caribbean governments continue to view the situation regarding the collapse of the two insurance companies “as a regional problem, which requires a regional solution”.
Earlier this year, the Trinidad and Tobago government defended its decision to seek a court-appointed liquidator to deal with the assets of CL Financial company saying it was seeking to ensure that taxpayers were not on the losing end of a TT$15 billion (US$2.23 billion) interest-free loan.
Prime Minister Dr Keith Rowley said that there was absolutely “no malice, no conspiracy” on the part of his administration to seek to protect the interest of taxpayers who had originally provided TT$23 billion dollars to bail out the company, whose flagship interests include CLICO, BAICO and the CLICO Investment Bank (CIB).
Rowley told reporters that when the first shareholders agreement was signed with CL Financial in 2009, it called for the government to provide TT$5 billion to bail out of the company at an interest rate.
However, he noted that when the former government came into office in 2010, they provided an additional TT$11 billion that did not attract any interest.
Mitchell told legislators Monday that his administration is also committed to bilaterally following up with the Trinidad and Tobago government “on its previous commitment to provide US$100 million dollars for BAICO Policyholders in the ECCU (Eastern Caribbean Currency Union)”.
Mitchell said that pursuant to Grenada and the rest of the ECCU’s passing of the “Plan of Arrangement Act”, on October 30, 2017, BAICO policyholders voted to facilitate the payment of between EC$0.20 cents and EC$0. 25 cents on the dollar for each policyholder upon full roll-out of the Plan.
“The government of Grenada joins with the policyholders in Grenada and in the other ECCU member states in expressing our profound dissatisfaction with the recovery amounts. We pledge to do our utmost in encouraging maximum collection against the US$121.9 million Judgment secured against the former Directors of BAICO and CL Financial – the parent company”.