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Barbados central bank governor: Solution found to settle Clico arrears

Published: 
Wednesday, February 26, 2014

BRIDGETOWN—Governor of the Central Bank of Barbados, Dr Delisle Worrell says a co-operative solution has been found to settle outstanding Colonial Life Insurance Company (Clico) claims in Barbados and the Eastern Caribbean. He said the latest report from the judicial manager made to the Barbados court provided a way forward which seemed fair to all stakeholders.

 

“What it says is that you may not be remunerated for interest that you might have accumulated, but we will at least ensure that you get a product which restores the principle value of what you might have invested with the company,” Worrell said. He said individuals would be entitled to some annuity on maturity, which they could cash out but with a penalty, while in the case of institutional investors, a company would own those assets, which would go on sale overtime.

 

“Institutional investors will get shares in that company and as the assets are sold then they will be paid their principle amount,” he added. The Central Bank Governor said the authorities were taking that route, because of the issue of insurance companies now being restricted in their ownership of property and income generating assets.

 

He said the principle reason for the delay was to ensure the new plan could be applied equally in Barbados and the Organisation of Eastern Caribbean States (OECS), and ensuring that all of the territories were on board. Worrell said the problems facing the Barbados economy were unlikely to affect the plan because the contributions the Barbados government would be required to make are manageable.

 

The appointment of the judicial manager is part of the initiative by Eastern Caribbean governments, including Barbados, to recover some of the assets of policy holders with the Trinidad-based Clico, which is part of the financially troubled CL Financial Group.

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