At this important meeting proposals are expected to be presented by the Judicial Managers and discussed by the ministers, with a view to reaching some consensus on the way forward, to bring some relief to those policyholders who have been gravely affected by the failure of the Caribbean Life Insurance Company, CLICO.
However, there is already a warning sound with the Barbados Minister of Finance Christopher Sinckler predicting that unless a collective agreement can be reached on a way forward for the failed insurance company by he and his regional counterparts, devastation could ensue.
This was strongly expressed by Minister Sinckler as he updated the Barbadians on the government’s position on CLICO during a near four-hour delivery of this year’s Financial Statement and Budgetary Proposals in the country’s parliament.
The deficit between the fair market value of the total assets of CLICO and its liabilities to policy holders is just over US$200 million.
But St Kitts and Nevis is the only territory where the assets exceeded liabilities – US$6.59 million in assets owned versus US$4.49 million owed to policyholders; while St Vincent and Grenada showed the deepest deficits of $US42 million and US$43 million, respectively.
Sinckler boldly stated that it is important to appreciate that, should this effort at a resolution fail, the likelihood of a disorderly and separated resolution on a country-by- country basis will ensue with likely devastating consequences for thousands of policy holders including those in St. Kitts and Nevis and Barbados, as the company will be forced into liquidation and become entangled in myriad legal suits.
The meeting is slated for 3rd July, 2012.