Finance Minister Prime Minister Roosevelt Skerrit says Dominica is among regional states which have approved proposals for the establishment of a new company, to assume the liabilities of British American Insurance Company (BAICO) Limited.
Prime Minister Skerrit told Parliament on Monday that the plan is to have the new company capitalized by contributions from member-governments of the Eastern Caribbean Central Bank (ECCB).
He said last November the Chairman of the Ministerial Sub-Committee on Insurance Prime Minister Ralph Gonsalves articulated the strategy to work together on this issue, based on a number of guiding principles.
According to Skerrit, as of March 29, 2010 the High Courts in seven of the ECCU jurisdictions have approved proposals for the establishment of a new company to assume the liabilities of BAICO.
“It is proposed that the new company be capitalized by contributions from the ECCU governments, a liquidity support fund established by the ECCU states, to which the government of Trinidad and Tobago has contributed $US50 million from its Petroleum Fund,” he said.
PM Skerrit noted there are also prospective strategic investors from renowned regional and international institutions.
These investors, he said will play a significant role in the ownership and management of the new company. “Since the governments preferred role is to stabilize, rather than become directly involved in the long-term management and ownership of an insurance company,” the finance minister added.
He said discussions with these individuals have been progressing well and due diligence is already underway; however their identities cannot be disclosed at the time.
It is hoped that the new company will become fully operational in the next few months.
– DNO Correspondent