Speaking in the budget debate in the Senate, Watson appealed to all citizens to have “sympathy and empathy” for Clico investors, adding that every taxpayer will have to assist the government in resolving the matter.
He promised that the Ministry of Finance would soon release more information on how the government proposes to deal with the CL matter, which he said is "a very unusual one" that must be dealt with "in a careful a manner as possible.”
Watson said Clico owes depositors $12 billion, which represent about a quarter of the $49 billion national budget. He reiterated that 90 per cent of the the 250,000 Clico investors “have absolutely nothing to worry about.”
He stated that investors can use the Clico insurance policies to secure loans and mortgages. “That in my view went a considerable way, if not a total way, in making sure that the systemic risk that was posed has been put under control,” Watson said.
However, he explained that the major concern is what happens with the people who invested in plans that carried interest rates that were higher than the market value.
Government initially offered to pay $75,000 to each investor and pay the rest in 20 year bonds with no interest.
“We give the assurance that of the 25,000 people investing in these schemes, this repayment covers 40 per cent of the population of the remaining 25,000,” Watson said.
He admitted that it is very challenging to deal with the existing debt of $12 billion, noting that it is the taxpayer who is putting money out to fund the payout.
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"Food from animals, the total amount of fat and sugars which should contribute smaller portions of our diet, are high and increasing. Their consumption needs to be reduced. Food from plant sources - fruits, vegetables, roots and tubers, peas and beans - which can be grown plentifully in the region, which should be eaten in large quantities and which are known to reduce the prevalence of some of the chronic diseases is not eaten enough. Their intake needs to be increased. This skewed availability of foods, which is partly responsible for the rising incidence of diabetes, high blood pressure, stroke, heart disease and some of the cancers, is...."
FOOD,NUTRITION and HEALTH in the Caribbean - A Time for Re-examination by Dr Dinesh P. Sinha.
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