Finance Minister Karen Nunez-Tesheira has assured depositors and policy holders at CLICO, CLICO Investment Bank (CIB), CMMB and British American Insurance that their assets are not at risk."In the last fortnight, it has become clear that a situation has arisen within the CL Financial Group which requires intervention by the Central Bank, and where necessary, the Government, into the operations of the financial institutions comprising the group," she told reporters at a news conference with CL Financial Chairman Lawrence Duprey and Central Bank Governor Ewart Williams.
Nunez-Tesheira said government's assessment is that under the present circumstances the government would have to invest cash and put in place other measures to protect depositors and other liability holders, especially life insurance clients and pension fund beneficiaries.
She said Government and the Central Bank have agreed to hire an international firm to assist in the restructuring of the companies.
"We are going to weather the storm. All of us. And the only way to do it is to take action swiftly and decisively," she assured.
Chief executive at state-owned bank First Citizens (FCB), Larry Howai, has confirmed that the Central Bank invited FCB to acquire the liabilities to third party depositors at CIB.
He said he is assisting the Central Bank in ensuring that depositors in CIB are protected and that the changes would not have a negative impact on his own bank's strong balance sheet.
The CL group is a multi-billion dollar empire that spread across the Caribbean and the world with holdings in a wide cross section of the business ventures in the region including:
- Banking and financial services
- Energy and petrochemicals
- Forestry and agriculture
- General insurance
- Life insurance
- Manufacturing, retail and distribution
- Media and communications
- Medical services
- Real estate development
For more details, visit the official CL website: www.clfinancial.com
Read the minister's statement
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