BASSETERRE, St. Kitts, CMC – Antigua and Barbuda Prime Minister Gaston Browne says he remains optimistic that Trinidad and Tobago will honour its obligation and pay the remaining US$60 million owed to policyholders following the collapse of two Trinidad-based Caribbean insurance and financial companies.
The collapse of the Colonial Life Insurance Company (ClICO) and British American Insurance Company (BAICO) in 2008 sent shockwaves across the Caribbean, particularly the Organisation of Eastern Caribbean States (OECS).
Browne had indicated that millions of dollars in deposits had been lost by depositors in the OECS after CLICO/BAICO invested in the Trinidad and Tobago economy.
He said a previous Kamla Persad-Bissessar administration had agreed to provide US$100 million in compensation to the OECS countries, of which US$40 million had been paid.
The last Trinidad and Tobago government did not honour the remaining balance, and Prime Minister Browne, who met with Prime Minister Persad-Bissessar during the ongoing Caribbean Community (CARICOM) summit here, said, “While I am aware of the financial problems facing Port of Spain, I remain hopeful of a payment being made.”
“I would say that the discussions were very cordial and we understand fully the fiscal difficulties that Trinidad and Tobago are faced with at this time.
“The discussion centered around paying the balance of 60 million US dollars over an extended period, a period that will not create any significant cash flow problems to the government of Trinidad and Tobago,” Browne told reporters, adding, “I sense that she is willing to honour that commitment that she made several years ago.
“In fact, she honoured it partially by paying the first 40 million US dollars. So I remain hopeful that a final determination will be made in the upcoming weeks. But she did not resist honoring the remaining 60 million US dollars, other than we had to take into consideration the fiscal problems and certain economic problems that Trinidad has at this time,” Browne added.
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