Period: January – March 2009 (First Quarter).
Author(s): Frank Bowen
1. The operating environment:
The operating environment faced a number of issues, including:
1.1 The negative impact of the global economic recession on the fragile economies of the Caribbean, particularly those Island States that rely heavily on Tourism, as the major industry. Already, several countries have experienced redundancies in the Tourism and related Sectors, consequent on reduced visitor arrivals and declining revenues.
1.2 Allegations of “fraud” leveled against two major regional Financial Institutions have led to investigations, receiverships and bailouts. The Stanford Financial Group, specifically, the off-shore Stanford International Bank, based in Antigua has been the target of ongoing United States Security and Exchange Commission (SEC) investigations, with the resulting scandal affecting other companies of the Texan Investor, Sir Allen Stanford. Bank of Antigua (a Commercial Bank) was taken over by a new entity comprising of the Eastern Caribbean Central Bank and several Indigenous Commercial Banks in the sub-region, after a run on its assets threatened the country’s financial stability. Other Companies were placed into Receivership, and his real estate holdings compulsorily acquired by the Government. Redundancies have affected hundreds of employees, with others facing an uncertain future. In Trinidad and Tobago, the Regional Conglomerate, Colonial Life (CL) Financial Group, with investments in: Insurance, Banking and Real Estate Development, was forced to seek a bail-out from the Government of Trinidad and Tobago. However, its regional Insurance Subsidiaries (in Bahamas, Belize and Guyana), are currently engaged in legal wrangles after the respective Governments stepped in to safeguard the assets of investors and policy-holders.
1.3 General Elections, regarded as peaceful, free and fair, were held in Antigua and Barbuda on March 12tth. The incumbent, United Progressive Party (UPP), was returned to office with a slim majority – ten (10) seats to the Opposition Antigua Labour Party (ALP) seven (7) seats.
1.4 Preparations are in high gear for the hosting of the ‘Fifth Summit of the Americas’ in Trinidad and Tobago during April 17th – 19th, 2009. About thirty (34) Heads of State and Government, from the Americas, including Presidents Barack Obama (USA) and Hugo Chavez (Venezuela) are slated to attend.