Antigua and Barbuda

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Statement by PM Douglas on ABI Bank

PM DouglasCitizens of Antigua and Barbuda, people of the Eastern Caribbean Currency Union, as Chairman of the Ministerial Subcommittee of the Monetary Council on Banking,

I wish to inform you that we have been closely monitoring the challenges that the ABI Bank has been facing in carrying out its functions and the danger this could pose to the banking system of Antigua and Barbuda and the entire Currency Union.

The Eastern Caribbean Central Bank (ECCB), after due consultation with the Monetary Council has been directed by the Council to exercise the powers conferred on it by Part IIA, Article 5B of the ECCB Agreement Act 1983 and has assumed control of the ABI Bank effective 22 July 2011.

This decision was taken after extensive discussions with the Government of Antigua and Barbuda and after having considered the following:

• The on-going effects of the global recession;
• The fallout from the CLICO/BAICO issue;
• The successful rescue of the Bank of Antigua; and
• The critical importance of financial stability in the Currency Union.

We face some very serious challenges at this time and the Monetary Council has established several institutional arrangements to address these issues in the financial system.

It is for this reason that a Sub-Committee on Banking was set up, given the critical importance of the banking sector in the commercial and economic life of our countries.


We have been able to focus our attention on this sector by using international best practices of stress testing and asset valuation to gain a comprehensive understanding of the risks and vulnerabilities of this sector. It is through these methodologies that we have been able to detect the situation at the ABI Bank and have decided to act to resolve the matter.

We appeal to all persons who do business with the ABI Bank to have patience and understanding as we go about the task of applying the necessary remedies to this case. Let me reassure you that the preservation of the indigenous banking sector in Antigua and Barbuda and by extension, the Currency Union, is one of our highest priorities.

We are confident that the collective action taken by the Government of Antigua and Barbuda, the Monetary Council, and the Central Bank will serve to successfully resolve the situation at the ABI Bank and hasten its return to normalcy.

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5 Comments In This Article   

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Maestro

#5 tenman » 2011-07-24 21:55

Maestro page 57 of the 2008 financial statement says:
"As at 30th September, 2008, the Bank held a lease on its place of operation. The lease is renewable every two years."

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tenman

@John

#4 Maestro » 2011-07-24 00:29

If what you are saying about the ownership oh the HQ to use your words heaven help the employees if the bank is taken over by a current player in the market.hhhhhhhh mmmmmmm.
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Maestro

Long time huh!

#3 STEVE » 2011-07-23 23:04

Who would have believed it when Lennox Weston was saying that what the Antigua government was doing (as per the local banks) will affect the whole currency unit? I certainly did not. I must say that Mr. Weston you were right on track. As old people would say, "your words have not fallen on the ground". U.P.P. move out the way. You are ruining this country.
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STEVE

Preserve Indigenous Banking & The Currency Union PT2

#2 John French II » 2011-07-23 20:48

Notes From A Native Son Of The Rock. They Red Senator from "Uncut" & Red MP From "Fire & Steel" must educate on the Tourism & Hotel Industry's looming problems and the Utility's potential privatization during the Interregnum of Lord Pompous of Bencorp & Parkades, hater of "Pickey Head People"? The Economic & Financial Governance by The Bretton Woods Bandits. The Abdication of The Blues to the IFC & IMF. The State Insurance Corporation's Privatization Process . The Government's Potential Default. Why Has The IMF not pushed for repayment to Local Banks ahead of Foreign? The steady and relentless march of Neo-colonialism & Recolonisation. The Collusion of the Colonial Rag and the Serpent's enticing, the uncaring Intelligensia, with their silver tongues into the Blues Purgatory of Living in The IMF's NEST. These are urgent matters for the Electorate. Heaven Help The Nation Of Antigua & Barbuda - Redonda?
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John French II

Preserve Indigenous Banking & The Currency Union PT!

#1 John French II » 2011-07-23 20:41

Notes From A Native Son Of The Rock. Those Seven Words in the Title Sum It UP. Amen to the Hon PM Douglas of St. Kiits & Nevis, Chairman of the Ministerial Subcommittee of the Monetary Council on Banking, for the OECS. As stated previously We need Statesmen and Good Governance. Let us sincerely hope that both the Red Rabble Rouser Senator and The Red Mouth From The South will use this as an excellent opportunity to calm the depositors fears and prevent a run not only on ABIB but all of the Local Banks. Educate the People on what was the cause of the Liquidity Problems, how ABIB's Board & Management collectively overextended their Reach, Lived Larger Than Life and A&B's Capacity, Entered into an Unwaranted Alliance with The Blues against the "Pickey Head People". Don't forget the Ownership of the Corporate Headquarters and the Princely Lease or is it a King's Ransom. Bring the Sir Dep GG, Lord of All H Surveys from His Perch On Cushou Hill, to the Carpet. Many Men, Many, Many, Many, Many, Many Men wish Death Pon Pickey Head People. Have Mercy Pon Us.
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John French II

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