Mon | Dec 17, 2018

Antigua, Guyana raise concerns about sale of Scotiabank

Published:Tuesday | November 27, 2018 | 5:05 PM
CMC photo

ST. JOHN’S, Antigua, CMC – Two Caribbean Community (CARICOM) governments Tuesday expressed some unease at the announcement that the Canadian-based Bank of Nova Scotia had agreed to sell its operations in nine Caribbean countries to a Trinidad-based financial institution.

The Antigua and Barbuda government said it was “deeply disappointed” that the Bank of Nova Scotia would decide to sell its operations “without any form of consultation with the regulators or the Finance Minister.”

The Guyana government said the agreement “raises a number of issues for the banking sector in Guyana and for the public which the Ministry of Finance, the Bank of Guyana and the Government of Guyana will need to carefully consider.”

The Trinidad-based Republic Financial Holdings Limited (RFHL) said it had entered into an agreement to acquire Scotiabank’s banking operations in nine Caribbean countries.

A RFHL statement said that the banks being acquired are located in Guyana, St Maarten, Anguilla, Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.

It said that the purchase price is US$123 million, which represents US$25 million consideration for a total shareholding of Scotiabank Anguilla Limited, and a premium of US$98 million over net asset value for operations in the remaining eight countries.

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