BASSETERRE – The Timothy Harris Government has been accused of undermining the stability and profitability of the St Kitts-Nevis Anguilla National Bank. Former Prime Minister and Leader of the Opposition the Right Hon. Dr. Denzil L. Douglas leveled the charges Wednesday and further stated that there is speculation that no dividends will be paid to the bank’s 3,500 shareholders for this fiscal year.
He recalled that at the end of fiscal year 2014, the Nevis Island Administration debt to the National Bank stood at EC$138 million in loans directly advanced and in overdraft. “We are aware that an attempt by the Nevis Island Administration (NIA), through the land for debt initiative to advance certain lands that belonged to the Nevis Island Administration to the tune of $29 million in order to actively participate in the agreement to reduce its debt by way of the land exchange,” said Dr Douglas, the former Minister of Finance, who noted the difficulty of the NIA to continue the signed agreement.
He further pointed to a resolution brought to the National assembly in March of this year by the Minister of Finance, Dr Harris to advance a guarantee of EC$140 million to the Premier of the Nevis Island Administration, Hon Vance Amory “we thought that it was an opportunity for the NIA to come good on its promise of the land for debt imitative.”
“But low and behold the Directors of the St Kitts-Nevis-Anguilla National Bank (appointed by Dr Harris in his capacity as Minister of Finance), recently advanced another loan of $140 million to the Nevis Island Administration for 30 years and at an interest rate of 3 percent,” disclosed Dr Douglas, furthering stating that the original loan and the overdraft were at the rate of 9 percent interest.
“A new loan has been advanced to the tune of EC$140 million not at 9 percent but at 3 percent interest for the next 30 years,” said Dr Douglas who bluntly stated that National Bank is losing “two thirds of its revenue on this transaction alone.” Dr Douglas said the arrangement is to keep Premier Vance Amory Concerned Citizens Movement (CCM) in the TUG – Timothy (Harris) Unity Government. He is further of the view that this political arrangement between the National Bank and the Nevis Island Administration will result in the local financial intuition loosing EC$40 million on this transaction.
”That is my concern in terms of the instability and the profitability of the bank,” said Dr Douglas who called upon the bank’s shareholders to take note of the Team Unity Government’s “recklessness in putting the safety, security, certainty, viability, stability and profitability of National Bank on the altar of political expediency in order to keep the CCM as part of the Team Unity government.” Dr Douglas further stated that there is speculation that no dividends will be paid to the bank’s 3,500 shareholders for this fiscal year.