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Prime Minister Gaston Browne.
Prime Minister Gaston Browne has accused businessman Jack Stroll of breaking an agreement that would have protected the Global Bank of Commerce (GBC) and prevented a run on the bank.
During a session in Parliament on February 22nd, Browne stated that Stroll’s decision to sue the bank publicly went against the agreement to ensure there would be no run on the bank and maintain an orderly situation where creditors would exercise some level of restraint.
According to Browne, a meeting was held with Stroll, who had deposited over $10 million in GBC, and he was informed that the government was willing to subordinate its deposits with the bank against Treasury Bills issued to Stroll to avert the type of public display now being exhibited by Stroll.
Browne, who is also the Minister of Finance, further explains that because Stroll failed to keep his end of the bargain, the Government opted to set off a portion of the bonds he holds against its own deposits to reduce its liability.
“Banking is based on trust. And when that trust is broken, it’s very difficult for the bank to continue to attract deposits, even to attract corresponding banking. He is now placing all depositors at risk, which, if the bank ends up in liquidation, all the banks could.
Browne claims that Stroll’s recent actions have put all the bank’s depositors at risk as if the bank ends up liquidating, all depositors will lose a significant portion of their deposits.
On that basis, Browne said the government decided to set off a portion of the bonds.
Stroll’s actions have gone as far as affecting the viability of Global Bank, which has put the bank in a precarious situation.
On June 2, 2022, the Cabinet guaranteed to Global Bank of Commerce that the funds would be available to Stroll by August 27, 2022.
However, the Government failed to uphold the agreement and did not honor the guarantee.
As a result, Stroll took the matter to court, citing that the Government had not fulfilled its promise for early redemption of the Treasury instruments he held.
When asked if parliamentary approval was obtained for the payment promised to Stroll, Browne confirmed that it was not necessary for this decision.
“No parliamentary approval was required because it was an agreement we were trying to work out with Jack Stroll. It is internal, so no approval was required”, Browne explained
Meanwhile Stroll says all he wants is his money
What about his money? Nothing for that? Smh!