PM Gaston Browne Urges Kamla Persad-Bissessar to Honor $60 Million OECS Commitment

Antigua and Barbuda Prime Minister Gaston Browne is calling on the new Kamla Persad-Bissessar Government to fulfill a commitment made to the Organisation of Eastern Caribbean States (OECS) during the time of the People’s Partnership government—an obligation that would cost Trinidad and Tobago approximately US$60 million.

During an interview with Jamaican media, held on the sidelines of the recently concluded 49th meeting of CARICOM Heads of Government in Jamaica, Prime Minister Browne expressed his hope that with Persad-Bissessar’s return as T&T Prime Minister, the balance will be paid. He noted, however, that T&T is facing its own financial challenges.

“So, we’re not even asking for all of it to be paid at once. It could be a long-term bond, payable at a low interest rate over an extended period in order to reduce the cash flow impact. But those are negotiations that we hope to have with Kamla (Persad-Bissessar). And I remain hopeful that we’ll be able to resolve the issue,” Browne said.

The issue traces back to a major financial crisis that arose from the collapse of two significant Caribbean insurance and financial companies: Colonial Life Insurance Company (Clico) and British American Insurance Company (Baico). This crisis, which began in late 2008, had a severe impact across the Caribbean, particularly affecting T&T—where Clico was based—and the OECS.

“About a billion dollars was lost by EC (Eastern Caribbean) depositors. Those are funds that were invested by Clico/Baico in the Trinidad economy. And we felt that there should have been greater participation of Trinidad and Tobago in the resolution of the issue. Now, the previous Kamla (Persad-Bissessar) administration had agreed to provide a compensation of 100 million US dollars for the OECS countries, of which 40 million US dollars is paid. Unfortunately, the (Dr. Keith) Rowley administration did not honour the remaining 60 million US dollars,” Browne explained.

While Persad-Bissessar did not attend the CARICOM meeting in Jamaica, PM Browne mentioned that sending a small OECS delegation to T&T for discussions could be a feasible option. “Mohammed will go to the mountain,” he remarked.