CLICO/BAICO collapse cost over $200m. in losses in SVG, says Finance Minister

The accumulated loss to the economy of St Vincent and the Grenadines (SVG) as a result of the collapse of CLICO and BAICO insurance companies runs into a couple hundred million dollars.

This information was presented last week in Parliament by Minister of Finance, Camillo Gonsalves who was responding to a question from Opposition Member for Central Kingstown, St Clair Leacock.

The finance minister said the accumulated loss to St Vincent and the Grenadines from the collapse amounted to $290.12 million.

This includes losses to individuals, companies, and other financial institutions, such as banks and credit unions.

The finance minister said the devastating effects of the 2009 collapse of CLICO are still being felt, and he gave a breakdown of the losses sustained as a result of the insurance debacle.

He said, however that the good news is that all policy holders of $30,000 or less have been fully settled, pointing out that the CLICO/BAICO collapse “is the worst financial shock experienced by the region.”

Recent legal attempts by former British American and CLICO policy holders (BACOL) to obtain some redress at the Caribbean Court of Justice, using the mechanism of the Articles of the revised Treaty of Chaguaramas, proved unsuccessful.