A financial expert stated on Tuesday that one of the issues that led to the insolvency of Clico Investment Bank (CIB) was that the company had non-performing loans of billions of dollars.
Maria Daniel, a manager and partner at the accounting firm of Ernst and Young said the loans included an unsecured US$2.6 million loan facility to a government ministry in Cuba for infrastructure and services upgrade.
She said the total arrears on the loan is US$14 million, adding that the only payment ever made was on October 14, 2003.
Daniel said the Cuban loan was among the top ten major non-performing third party loans at CIB. Others included loans for a mega mixed-use tourism development in St Lucia, a hotel development in Martinique and a bottling plant in Jamaica.
In addition, Daniel said several inter-company and related party loans were also among those deemed to be in arrears.
She noted that CIB had written of one billion dollars from the Loans and Advances section because of bad debts.
She said the total arrears on the loan is US$14 million, adding that the only payment ever made was on October 14, 2003.
Daniel said the Cuban loan was among the top ten major non-performing third party loans at CIB. Others included loans for a mega mixed-use tourism development in St Lucia, a hotel development in Martinique and a bottling plant in Jamaica.
In addition, Daniel said several inter-company and related party loans were also among those deemed to be in arrears.
She noted that CIB had written of one billion dollars from the Loans and Advances section because of bad debts.
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