Claims that the new Eastern Caribbean Asset Management Corporation (ECAMC) Act is against the poor have been shot down by at least two parliamentarians on the government side.
The new act which was given the green light at parliament late Tuesday 10th November 2015, has been described by the Parliamentary Representative for Roseau central Joseph Isaac as one that will affect the lower classes in society.
However, Acting Prime Minister Dr. John Colin McIntyre and the Minister for Trade, Energy and Employment Ian Douglas do not share that view.
“We would want the bank to focus on ensuring that those indigenous banks reduce their delinquency, improve their liquidity and ensure the most important one is to ensure the practice of good corporate governance,” Isaac said on Tuesday.
He said he is making reference to this because there are problems in the Organization of the Eastern Caribbean States (OECS)
“Specifically I want to talk about where I know in Dominica is not necessarily a little farmer taking loan or a small business man taking a loan, the non performing portfolio has a high percentage of bad loans that were given in some instances to maybe friends of people; so these are some of the factors,” Isaac stated.
He continued, “It is the big man where his friends give him the big loan doesn’t meet the proper criteria, fails the bank and brings up the portfolio in terms of the quantum of non-performing loans. And the small man when you aggregate the small men together, the farmers the small business man, the fisherman, the housewife and her husband who is taking a small mortgage to build a two bedroom house , these are the people who will be affected because again we don’t know where that legislation will stop.”
However Acting Prime Minister, Dr. John Colin Mc Intyre, who commented on the concern to state owned DBS said the Act speaks to all performing loans in excess of 500,000.
“Let’s be honest; poor farmers are not going to contract loans of over 500, 000,” he argued.
Dr. Mc Inyre pointed to the time in 2008 when “we were shocked by the global financial crisis and a number of banks were placed under problems resulting from poor performing loans.”
He said what the government and the Eastern Caribbean Central Bank (ECCB) are trying to do is to “clean up these banks that are under water,” who are struggling with toxic assets that do not allow the bank with “that latitude to operate.”
“So if we clean out these banks now to be on a clean footing and they can operate and better serve us while at the same time through this corporation, we can start to take care and how we can look at refinancing, repositioning of these loans so that we can clean them up.”
He added that foreclosure and seizing property is the last resort.
Meantime Douglas who also spoke on the matter noted that as governments they must protect deposits and depositors.
“Because anytime we allow a bank in the region to fold or to go under, really, at the end of the day the ultimate victims of that situation are the depositors.”
Douglas pointed to the CLICO Insurance financial fiasco.
“We saw what happened with CLICO with persons who have spent all of their lives in England working in the winter, working in adverse conditions and saving their little pennies up coming home moving back to the small islands after retirement at the ages of 70 and 75 on average sometimes 80 years and are enjoying their little pensions invested in those companies and when those companies folded there were a lot of grassroots persons within the currency union and in fact the entire region who lost and those losses amounted to millions,” he said.
“So governments have to be responsible in this new dispensation to pass legislation to protect the deposit of depositors and that is what we are trying to do here Madam Speaker,” Douglas said while making his presentation to the debate in Parliament on Tuesday.
The act was approved by parliament on Tuesday.
All i am prepared to say is that i have a serious problem with a Banking act of this magnitude passing de house with no input absolutely from de Minister of Finance who also happens to be the Prime Minister.
WHAT EMERGENCY!!
SKERRIT CAME TO ISLAND DE DAY AFTER DE ACT PASS IN PARLIAMENT!!!!!!!!
SOME DOMINICANS ACTING LIKE MOO COWS!!
3 readings in one day!!!!!!
MY GOODNESS ME!!!
AND DE MAN COME BACK TO DE COUNTRY DE FOLLOWING DAY!!!!!!
ARE WE A BUNCH OF CLOWNS????????
Go to de minutes of de house and see who is on record to support de Bill!
De minister of Finance Roosevelt Skerrit PM IS NOT ON RECORD TO SUPPORT DE BILL PEOPLE!!!!
ALL U SOTTT!!!!!!
WE BEING TREATED LIKE A BUNCH OF CLOWNS IN THIS CIRCUS!!!!
3 READINGS IN ONE DAY!
DE PM HIMSELF COULDN’T BE PRESENT FOR DE FINAL READING?
WE COULDN’T DO 2 READINGS AND WAIT FOR DE MINISTER OF FINANCE TO PUT DE ICING ON DE CAKE?!!
SKERRIT DON’T EVEN LIKE SPENDING TOO MUCH TIME IN THIS FOOL’S PARADISE!!!!!!!!
Ian Douglas: “Because anytime we allow a bank in the region to fold or to go under, really, at the end of the day the ultimate victims of that situation are the depositors.” Dude, you are not fooling this chap. When a bank folds, the losers, the one you refer to as “ultimate victims” are the shareholders. Ian D is a big fat liar and thinks every one is a fool! Banks a monopolies, they do not bank for the interest of depositors! Banks are for-profit entities.
You’re both right.
Mr Douglas is right, because when any organisation goes bankrupt the losers include its creditors. And strange though it may sound, depositors are creditors of a bank. There were a lot of depositors at BTCB who lost out when that bank folded, for example.
But you’re obviously right also, because shareholders’ investment is now worth zero, so they’ve lost too. You’re also right that banks do not bank for the interest of depositors — if you want that, go to a credit union.
I see Dwight by all means want to get out his final salvo/Legacy before he demit office at the end of this month. The bill gives the new company unlimited power to act on the collateral pledged for loan financing. As such this long process that they now go through will be eliminated and the understanding that is now exercised will go out the window. And yes the poor man will be the one most disadvantaged.
But this does not solve the problem in the ECCU as it relates to quality of assets and making the banking system safe. what is needed in the indigenous banks is good corporate governance and good risk management which is lacking in these banks and is the cause of the above 20% NPL in these banks. The regulator have failed to get this under control and the prudential guidelines which are currently in place will not provide the necessary support that is needed in regulating the banks. The ECCB is extremely weak in regulating these corporate governance and risk management issues
Yes it is. The Trans Pacific Partnership is especially against the poor. (TPP)
I don’t think he understood what he is explaining. So of them just want be on DNO.
We’re the banks and the DAIC consulted for their input before this law was enacted.Why wasn’t there public discussion opportunities on the provisions of this law before the rush to enact it into law?I know that the private sector is weak and the DAIC by extension is in suspended animation so I wonder whether they can articulate how this law will impact them.Most of these government ministers don’t even understand the full impact of this law on the economy and the private sector, but the i’s have it.
As usual this government does not believe in open mature democratic practices such as full disclosure and doing business above board,hence the rush to rubber stamp the wishes of the dear leader,PM Skerritt. It might be a good piece of legislation, but things can always be improved by openness and timely dialogue.
, Remembering CLICO’s massive fraud and the boss behind that, Ian.
How could Dominicans forget the massive fraud that took place in CLICO?
Dominica Social Security (DSS), Credit Unions, NBD, individuals all invested in CLICO. Yes Ian, those Dominicans, invested their hard earned money, hoping to get some returns for the future. About $70 million dollars gone. Dominicans were frantic, bawling.
But who was the former boss of CLICO, nuh? It was Leroy Parris, who received our diplomatic passport. Remember, never forget. Who gave it to him? Whose close friend was he? How did he come to get our diplomatic passport? To do what? Ambassador-At-Large? Wasn’t it revealed that the same Former CLICO boss, funded Skerritt’s DLP election campaign in 2005? The cabal has never denied that. Ian knows and Dominicans know that Clico’s former boss was implicated in that massive fraud. All the evidence and facts are there to show. But still have our diplomatic pasport
There is no REAl Money behind these loans. Only credit issuance. The banks in reality lose nothing. They can print as much money as they choose. But the international bankers are a greedy lot and it they issue you credit (virtual) you had better pay it back or they will move in and make some changes. Now you are seeing them.
i am one that will not put my pennies in al you bank in Dominica all of it staying right here in England
I would hate to think anyone expects anything sensibly from Isaac. Every time he opens his mouth is pure garbage. He is certainly not an educated and informed character.
You need to respect Mr. Isaac. He is qualified, knowledgeable, experience and a thorn in DLP side
he is a qualified engineer who has been employed assisting businesses and also is a young successful businessman. what are your qualifications?
I wouldn’t even bother responding to this one. Cannot stop laughing from reading you and Shocked responses lol
But Observer and Shocked want me to die laughing man. lololol The mere fact that you can say he is a successful businessman you obviously don’t have clue about his sad short lived business career. And short live I say because he is a failure. So I not even going to waste time writing more. I cannot stop laughing lol
This guy Isaac is brighter than all the DLP clowns put together. The problem is that you are too political to understand what he is saying!
I support no political party. I have not read the the bill. Based on DNO’s reporting, Mr Issac really does not know what he is talking about. He should find out about the ECCB’s prudential guildelines with regards to the banking sector before he bigins to make those uninformed comments.
smh…. anytime the taxpayers have to bail out a failing bank. I don’t need to know what other requirements are in the act. The Gov’t is really the tax payers, that can’t be right. On this basis alone Mr Isaac has a point.
http://www.innercitypress.com/uncorruption5macau111115.html
@The Goose and the Gander thank you for sharing this link, i am a critical thinker and want to educate myself, was skerrit trip to macau for his personal benefit or the well-being of the country, do we get any account for our tax dollars?
Do Dominicans even read? When you have a nation that does not read and the local press does not push to get the information out, you are left with an ignorant and uninformed nation. Anyways I hope DNO will put this out in a timely manner because we need to know and have a right to know what is happening to our country, Look here: http://www.innercitypress.com/unscandal5dominica111015.html
it is a potential tax / deposit levy.
there is no way you can socialize the losses without hitting either the tax payer or ordinary depositors.
DNO if you do not want people to comment just say so. It makes no sense to have people take time to write blogs and you not moderating them, That has been your style for many days, especially if you feel skerrit going to get blows. If you have got the time to moderate just say so and I for sure will just read your news and exit your page. All you just scared of Skerrit and his hungry attorneys. But you can do what you want, but the news still going out on international networks.
Isaac, if you do not understand the bill please ask question.
There gaps that need to be plugged in all of this. This is like trying to fix the cart after the house has bolted. The public (tax payers) has to bail out private financial institutions whose debts is bigger than their income. Is there a review of the banks corporate responsibilities, the criteria for loan/mortgage applications. Are proper financial audits carried out to prevent surprises and these accounts are publicly stated.
Let us not forget that peoples savings need to be protected, so allowing the bank to be liquidated/fail may not be a good outcome. However if an “important” bank fails (i.e it is “too” big to fail) in Barbados, how does that impact on Dominica, what is its contribution. How is is the “formula” formulated for use in deciding who contributes what, when.
These workers guys are just full of it, you think banks in this day and age go by well I know you and you’re a big boy so I will give you a loan. Who are you trying to fool with that? Boss stop playing with the little people minds. I know people who has a business to show they making money so they can repay their loans these people don’t give them loans, is like you have to be working for someone for them to want to give you loan. Why everything you all try to educate the public on has to be lies?
ka-ma- la: Mammie what do you think of the new act?
mammie: God bless our doctor aaron and your family and also the family of our loving pm.
ka-ma- la: thank you mammie but what do you think of the new act?
mammie: which act you mean the letter of the novice asking our pm to resign? day can do what they want but our loving a blessed PM and his family is covered by the blood of jesus christ. my Pm where ever you are we love you.
ka-ma- la: Mr Cucum what do you think of the new act?
Mr Cucum: well i doh hear much about it but i believe is a good ting because i hear on kairi dat it good.
ka-ma- la: so Mr Cucum do you think the Pm should step aside aside as demanded by mr Linton?
Mr. Cucum: no is jealous dem man jelaous.. even if de Pm get ah money he will give de people some and dat is why i doh beleive de Pm should resign
Tony: if only we could get the Roseau people to believe us like mammy and Cucum boy we would have more seats.
When are the Banks going to reduce interest rates on loans to allow more investment into the productive sectors? They were so quick to reduce interest on savings from 3% to 2%…The Banks need to develop strong Marketing and research departments to invest a lot of the Capital they have sitting there, only depending on the little man to come with Ideas..Where are the business development departments in our Banks?
As a matter of fact Dr. Mc Intyre our farmers should be competent and capable enough to afford loans of $500,000..cause they are the ones producing and bringing in foreign exchange through exports..The Banks should woo farmers into Investing more..Building a dwelling home for 500,000 can’t compare with that investment in farming. That misconception comes from the heads down, it’s entrenched in the mentality of the society and even the banks..they will feel uncomfortable to give that money to a farmer but will give to a man with meager monthly salary
Really happy to see some debate on the matter but Mr. Isaac needs to explain his position more clearly.