Caribbean News
GUYANA needs banks but fears T&T Monopoly
By Shanieka Smith
Features Writer
#Guyana, June 25, 2022 – For the second time in three years, a planned deal has failed between Scotiabank Guyana and Trinidad and Tobago in First Citizens Limited. Last week, First Citizens issued a legal notice to inform that the Purchase and Sale Agreement between First Citizens Limited and the Bank of Nova Scotia for the sale of Scotiabank’s retail operations in Guyana expired. The agreement was terminated.
However, this time, it is revealed that the Bank of Guyana denied the transaction out of concern that Republic Bank would gain a near-monopoly position in the Guyanese banking sector.
President of the Georgetown Chamber of Commerce & Industry, Timothy Tucker, said, “If the Republic bank, Scotia Bank merger was done, it would have over 50 percent of the depository…so that is why that deal was rejected.”
He added that “Republic bank had made an attempt to buy Scotia Bank Guyana and like any regulator, in any jurisdiction anywhere in the world, if a bank is then going to, if the acquisition of a bank is going to create a monopoly or something that can be detrimental to the depository institutions, then you will have a problem.”
The First Citizens, Scotia Guyana deal received backlash from regulators when it was announced in March 2021.
Guyana’s Minister of Finance, Dr Ashni Singh, and the Bank of Guyana have both criticised the announcement.
“The announcement] was premature and inappropriate, said Minister Singh back then. The Bank of Guyana said FCB, “entered the said agreement without informing the BOG.”
Last year, the lapse caused institutions and business people in the region, especially Guyana, a considerable amount of money.
Tucker said the announcement had raised alarms around the business community and added that a local institution in Guyana, the Bank for Trade and Industry, placed a higher offer for Scotiabank, and Scotia Bank went with First Citizens. While he is uncertain of the reason for that, he said that if the agreement were successful, two Trinidad banks would control over 50 percent of the depository institutions within Guyana.
Tucker made it known that Trinidad and Tobago banks are not blacklisted; the Republic Bank remained the largest bank in Guyana. He added that he would welcome more Trinidad and Tobago banks in Guyana since it only has a few banking institutions. The only issue is that the banks must enter independently and not at the expense of foreign banks like Scotia.
“So the local private sector, while we are advocating hard for our more financial institutions, we don’t mind First Citizens applying for a banking license and coming in as a regional bank, but when we are going to lose one of our international banks to a regional bank, the business sector has a problem with that,” he said,” We don’t control the process. Even if we have a problem with that, it’s a free capital market. Companies are free to sell to whomever they choose to sell. We support that. But at the same time, we are worried about the concentration of our depository institutions into the region alone. This isn’t going for Trinidad banks; it goes for if a bank from Jamaica came to buy Scotiabank. We would fundamentally have an issue with it,” he said.
First Citizens Bank said it would continue to pursue “geographic diversification and digital transformation strategies.” In the meantime, Tucker is hoping it will open other opportunities for Guyana.
By: The MPE Caribbean Report Newsletter
May 9, 2024 – The FCCA Foundation, the charitable arm of the Florida-Caribbean Cruise Association (FCCA), has launched an annual scholarship in honor of former Prime Minister of Barbados, The Right Honorable Professor Owen Seymour Arthur, who played a significant role in advancing the cruise trade association’s vision.
The annual gift of US$25,000 will be awarded to a different Caribbean destination each year to support the work of either an educational institution or a nonprofit organization chosen by the destination.
Barbados will receive the inaugural Owen Arthur scholarship, and next year’s scholarship destination winner will be announced at the ‘Shining Stars FCCA Foundation Dinner’ during Seatrade Cruise Global 2025.
“I am honored that the Foundation can continue the legacy of The Right Honorable Professor Owen Seymour Arthur, who truly inspired my career and empowered so many throughout the Caribbean, as well as making it possible to have the current partnership between the cruise industry and the Caribbean,” said Michele Paige, CEO, FCCA. “Hopefully this scholarship can live up to his memory by providing a platform for future generations in the region.”
By: The MPE Caribbean Report Newsletter
May 9, 2024 – The historic UN Global Conference on the Sustainable Development of Small Island States (SIDS) brought global attention to the significant challenges faced by small islands, underscoring that their concerns were big issues for all.
On April 26, several key figures who contributed to the 1994 Barbados meeting gathered in Bridgetown to commemorate its 30th
anniversary. The outcome of the 1994 meeting was the Barbados Program of Action, which delineated how the world community should address the unique vulnerabilities of islands, particularly in response to climate change.
Despite initial reluctance from powerful UN members to hold more than one SIDS conference, subsequent gatherings in Mauritius and Samoa and a fourth global conference scheduled for Antigua and Barbuda in May 2024 are a testament to some of the successes of the SIDS process.
In Antigua and Barbuda, the international community will convene to review the sustainable development progress of SIDS and propose a new decade of partnerships and solutions to accelerate their journey toward resilient prosperity.
The Barbados meeting last month provided a reflective journey for many, as attendees, including Barbados Prime Minister Mia Mottley, paid tribute to the late Ambassador Miles Stoby of Guyana, the visionary behind the initiative and for whom Barbados was, fittingly, a second
Caption: Ambassador Lyutha al Mughairy (widow of Ambassador Miles Stoby) greets Garth Sandiford, son of late Barbados Prime Minister Erskine Sandiford. Looking on are Barbados Prime Minister Mia Mottley and former UN Under-Secretary General Peter Hansen.
By: The MPE Caribbean Report Newsletter
May 9, 2024 – The Caribbean Tourism Organization’s Sustainable Tourism Conference (STC), held April 22-24 at Radisson Grenada Beach Resort was a resounding success.
The conference is the Caribbean’s foremost event for high-level networking and dialogue on sustainable tourism, providing a crucial platform for tourism policymakers, private sector stakeholders, thought leaders, and strategic partners to address the challenges and opportunities shaping the future of Caribbean tourism.
The meeting highlighted the essential pillars necessary for creating a transformative and regenerative legacy under the theme “The 5 Ps for a Legacy of Caribbean Tourism Sustainability: People, Planet, Prosperity, Purpose & Partnership”.
Thought-provoking addresses from Grenada’s Prime Minister Dickon Mitchell and Adam Stewart, Executive Chairman of Sandals Resorts International, set the stage for discussions about the future of Caribbean tourism.
PM Mitchell stressed the need to include a broader array of stakeholders in the tourism conversation, while Stewart highlighted the importance of partnerships and unity within the sector. The conference was marked by authentic displays of Grenadian culture and dynamic panel sessions.
Caption: Adam Stewart of Sandals Resorts International delivered the keynote address.
The MPE Caribbean Report Newsletter
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