The Eastern Caribbean Asset Management Corporation (Amendment) Act 2016 was acceded in the Anguilla House of Assembly on Tuesday, April 12, having been introduced by Chief Minister and Minister of Finance, Mr. Victor Banks.
The legislation did not however have the support of Opposition Leader, Ms. Palmavon Webster, who has continued to disagree with various matters relating to the Government’s approach to the resolution of the banking situation.
Mr. Banks told the House that the legislation amended Section 6 of the Principal Act by putting in place the signatories of all the participating Governments of the Eastern Caribbean Central Bank and Currency Union [as well as Anguilla]. He said there was also the insertion of a new section dealing with “accession” stating that “the Agreement” was acceded to by Victor F. Banks on behalf of the Government and people of Anguilla on the date in question”.
The Chief Minister continued: “Mr. Speaker, all of this is the final leg to put in place the various enabling pieces of legislation [to give effect] to the banking resolution. It is the last piece of legislation which is to do with [the setting up] of the Eastern Caribbean Asset Management Corporation. This is a critical part of the resolution process, dealing with the non-performing loans which will then be managed [by the Corporation]. It will give customers and borrowers another opportunity to dispose of their obligations either by re-formulating their loans, or taking the opportunity to probably dispose of some of their assets; bringing partners or investors into their business; and finally putting themselves in a situation either to be compliant again, or to have met their commitments.”
The Chief Minister got the unwavering support of the Government’s side of the House. On the other hand, Ms. Webster, the Opposition Leader, questioned as always the functioning and intention of the Eastern Caribbean Asset Management Corporation. “Mr. Speaker, the Bill before this Honourable House provides for an institution which, in my mind, will not be accountable to the people of Anguilla,” she charged. “I believe the people of Anguilla should be told a few things:
“What local knowledge will the Asset Management Corporation have on Anguilla’s land heritage, of our critical connection with our land? Who, on behalf of the people, will be monitoring the company’s activities? What would the Government be hoping to achieve in the first three years? What are the Government’s aspirations after it [the corporation] pulls out after the end of three years? Would the ECCB assume full control at that time? What redress will the owners of land have if it is sold at a gross under value? Why does the legislation deprive Anguillians of the right to go to court if aggrieved? What right will the owners of land, subject to non-performing loans, have to redeem their property? What guarantee is there that monies realised from non-performing loans will not be diverted to purposes that better suit the Government of the day? And what does the Chief Minister mean when he says that it will be used for Government purposes? Is that what the British has been concerned about?”
Replying to the contrary, Mr. Banks said the Government had been guided in its decisions on resolving the banking crisis, and the enabling legislation, by a number of experts.
“The Government of Anguilla is not involving itself in arbitrary decision-making when it comes to the resolution of the banking situation in Anguilla,” he stressed. “Following international standards, we are respecting and observing the formulas, the models, which were sent to us by experts from the International Monetary Fund, the World Bank, the Caribbean Development Bank, the Eastern Caribbean Central Bank, the Foreign and Commonwealth Office and all those agencies which have a role to play in ensuring the integrity of the world financial system.”
The Chief Minister further said: “There are strict rules and regulations that such non-performing loans are not owned by a private corporation, but owned by a corporation, in a group of member states of our region, which have an equal share in its ownership; and are guided by rules and guidelines that allow it to carry out its functions in a professional, equitable, fair and just way.”
Mr. Banks argued that such a role and function could not be at “the whims and fancies of a private corporation that comes in and wants to buy up assets at [unfair] prices; but rather an institution acting responsibly, founded and vested in the Caribbean; invested in the OECS; and invested in the Eastern Caribbean Central Bank and its member states, to deliver what is in the best interest of the people of Anguilla.”
