Monday, December 17, 2018

Josie Warns Of Potential For Dire Consequences From Scotiabank Sale

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Former government minister, Peter Josie, has warned of potential dire consequences from a decision by Scotiabank to exit nine Caribbean countries, including Saint Lucia.

Scotiabank  this week announced plans to sell the Caribbean businesses to Trinidad and Tobago-based Republic Financial Holdings Ltd., subject to regulatory approvals and closing conditions.

However, Peter Josie has expressed concern that  the reserve currencies of the countries of the Organisation of Eastern Caribbean States (OECS) in US dollars could be put at the mercy and in the hands of Republic Bank or its agents in Trinidad and Tobago.

“It means that the Trinidad merchants, these avaricious people, in no time at all will find their hands on the OECS reserve currencies and very soon if that happens, the people and businesses in Saint Lucia and the rest of the OECS will have to line up to get a few dollars to do business,” the former Saint Lucia Labour Party (SLP) leader told RCI’s Midday News Edition Thursday.

He called on the Prime Minister and others to look into the matter and try to summon a meeting of all OECS leaders and Finance Ministers to see if they can halt what is going on.

“It will not be in the interest of these Islands and the inhabitants of the OECS,” Josie declared.

He noted that Republic Financial Holdings Ltd. was not buying Scotiabank in Barbados, Trinidad and Tobago, Jamaica or anywhere else in the Caribbean.

“One of the things we have to look at very carefully, especially in relation to Jamaica and Trinidad, is that these countries do not have the kind of foreign exchange reserves that the OECS has,” the former foreign minister explained.

He observed that the OECS Islands have been able to better manage their reserves.

“Trinidad has almost no foreign currency reserves and their merchants and big businesses are bawling when it comes to trying to get US dollars from their Central Bank,” Josie asserted.

 

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10 COMMENTS

  1. At leaste we heard Gaston Browne defended the Antiguan ppl, but we are not hearing anything from Chastanet. Where is he ? Is he in St Lucia?
    Oh I believe he going to have a meeting with St Lucians residing abroad.
    This is a big SHAME for St Lucians,

  2. Peter Josie stay in your section. Whatever happened when First Caribbean and CIBC merged? Nada..so like Mr. Dixon said, and he is speaking from an informed position having been a former banker, it will be business as usual. Nothing anyone says or does will stop the purchase from happening. It’s all about profit maximization and it will go on. Rally behind BOSL, 1st National and Credit Unions.

  3. This sale will test the ingenuity of our moribund central bank which has sit back done nothing an allowed commercial banks to raid the account of poor customers while giving the rich charges free operations for their high level borrowings. Further the central bank has never sought to explain how the country’s domestic savings became Foreign Direct Investment. Write them , they don’t reply. I guarantee nothing is going to happen. The bank’s will meet and agree on a FEE hike and it will be business as usual. My advice, rally behind our local institutions and our Credit Unions.

  4. I think we St Lucia has the right,to reject the buyers of Scotia Bank.And just cancel the agreement by wich they opened the bank here.We cant stop them from selling,but we can stop the buyer from opening shop here in St Lucia

  5. My Dear Peter the last I check your were an agronomist. Therefore please advice me when you become an ECONOMIST.. Thank you

    • That’s a pretty stupid comment. You think those Trinis give a rat’s ass about the OECS. This is just an opportunity for exploiting a market as their home market is stagnant. And considering the mess they’re in regarding foreign reserves, the OECS will serve as a cookie jar for them. OECS banks should be given first refusal.

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