The Bank of Saint Lucia (BOSL) has accumulated some three hundred million dollars in bad loans.
But the Saint Lucia government has said that it is its responsibility to ensure that the institution remains afloat.
Minister in the Ministry of Finance, Doctor Ubaldus Raymond, has said that the situation calls for urgent action.
Raymond told reporters here that the government is exploring its options.
He explained to HTS News last night that the Eastern Caribbean Central Bank (ECCB) has held many discussions with BOSL which is under capitalized.
Raymond disclosed that a quarter of all loans at the institution are bad – amounting to almost three hundred million dollars.
He said the government is in discussion as to how best to address what he said was a serious problem.
“We are aware that there are many depositors at the bank and we want to ensure that depositors’ money is safe and the government is doing its best in ensuring that this is done,” the Minister in the Ministry of Finance said.
He declared that there is no truth to reports that BOSL is being sold.
Raymond said whatever will be done, the government of Saint Lucia will remain a shareholder of the bank.
The Republic Bank of Trinidad and Tobago is, according to reports, expected to make a proposal to the government next year.