TT to pay up more BAICO funds

Prime Minister of Trinidad and Tobago Kamla Persad Bissessar has promised to make a disbursement of US$40 million to the Eastern Caribbean Currency Union (ECCU) in resolving BAICO’s obligation to policyholders and depositors.{{more}}

This represents the second tranche of the US$100 million that the government of Trinidad and Tobago pledged in July 2012. The sum of US$36 million has already been received so far.

In a letter dated June 30, 2014, Persad Bissessar explained to Prime Minister of St Vincent and the Grenadines Ralph Gonsalves that Trinidad’s Minister of Finance and the Economy Larry Howai would be contacting him about the issue.

Gonsalves has been given special responsibility by the heads of government in the ECCU for matters pertaining to failed insurance giants BAICO and CLICO International Life.

In the phases of the BAICO Relief Programme that have been implemented thus far, 1,721 persons in St Vincent and the Grenadines have benefited in the amount of EC$28.5 million.

Phase one, which began in December 2012, saw 716 policyholders receive a total of $4.5 million. These policyholders each had a principal balance of under $30,000.

The second phase began in March 2013 when US$12 million of the pledged US$100 million was transferred to an account at the Eastern Caribbean Central Bank. Again, this saw 374 policyholders in SVG with balances of less than EC$30,000 being paid a total of $5.1 million.

In PM Gonsalves’s 2014 Budget Speech he said that in phase three of the programme, which commenced in November 2013, 631 policyholders, are eligible to receive $18.9 million.

These policyholders are those who have principal balances over $30,000.