Grenada: First to approve Republic Bank Acquisition of Scotiabank in the Caribbean

Grenada Signs Vesting Order

ST GEORGE’S, Grenada, Friday October 18, 2019 – Prime Minister and Minister of Finance Dr Keith Mitchell has become the first regional leader to sign the vesting order required to facilitate the acquisition of the Bank of Nova Scotia operations by Republic Bank Financial Holdings Limited.

The planned acquisition was first announced in 2018 and in September this year, the Eastern Caribbean Central Bank in consultation with the ECCB Monetary Council approved the application for the transfer of Scotiabank’s assets and liabilities in Grenada and five other Caribbean countries.

Dr Mitchell who is the current Chairman of the ECCB Monetary Council, said it was important for Grenada to show leadership in the conclusion of the matter.           

“I wanted to signal that Grenada is the first to sign that vesting order. I felt this initiative was important to demonstrate that we have in fact settled the issues that were concerning to us. Having sat at the table of the Monetary Council and having to confront all of the issues that faced us with regard to the sale of Scotiabank, I did my best to counsel others to approach this with an understanding of the importance of finance to the region and the implications it has for the regional banking system, knowing the challenges that we face,” he said on Wednesday.

The Prime Minister spoke of the importance of banks in Grenada and other Caribbean countries having international relations with powerful banking institutions.

“I see Republic Bank, given its history of banking relations with international institutions, as an important factor in the decision made in Grenada’s case. Also, for the Monetary Council when we debated the issue, we felt that was a key factor,” he said, underscoring the importance of the acquisition from a regional perspective.

“This has to be seen as a unified approach, especially in the context of the ECCB; it is not just about individual countries. That’s why we have been counselling our friends throughout the region and Antigua and Barbuda in particular that we have to do this together.”

Government has earned just over two million dollars in taxes from the acquisition deal. More importantly, Dr Mitchell said protecting the rights of workers was a key consideration in giving final approval to the acquisition and he spoke of consultation with the Technical and Allied Workers Union in ensuring fair treatment of Scotiabank’s employees.

Also present at Wednesday’s signing ceremony were Technical and Allied Workers Union, Senator Andre Lewis. Managing Director, Republic Bank, Keith Johnson and President General of the Technical and Allied Workers Union (TAWU), Senator Andre Lewis.

Guyana-born Mr. Keith Johnson
Republic Bank – Grenada. Managing Director

They all expressed confidence that the interest of workers was well protected in the acquisition. A Memorandum of Understanding between Scotiabank and TAWU was signed in September, setting out provisions to safeguard the rights of workers with respect to continued employment or severance.

The role of Government in facilitating the transaction was also recognized and assurances were given that customers would continue to experience excellent customer service and appreciation expressed for the loyalty of customers over the years.

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Comments

  • kamtanblog  On October 19, 2019 at 4:35 am

    An interesting development in the banking fraternity.
    Question
    Is ECCB a member of G7 or G20 or is
    Bank of Guyana ?
    Is the ECCB aligned to USD$ ?
    What is value of ECC currency to USD$ ?
    If/when USD$ is no longer worlds reserve
    currency will the ECC follow ?

    Sorry more questions than answers.
    The £ is the most valued currency of
    the planet followed by € CHF $…
    Google exchange rates…
    Curriencies all followed USA in having the
    Gold standard for reserve currencies…
    Printed notes backed by gold reserves
    held in their central banks.
    Today that is history …UK/USA/EU
    printing presses are 24/7 operations…
    AKA QE (quantative easing)…
    Enter new kid on block
    CRYPTO REVOLUTION…
    Apart from the political revolution am
    focused on the economic one.
    The horse and carriage scenario.
    Cannot have one without the other.
    Horse before cart not visa versa

    Let’s see what happens next

    My take

    Kamtan UK/Spain

  • Carmen  On October 27, 2019 at 2:13 am

    Why are they selling and what are the implications of the divestment?

    • kamtanblog  On October 27, 2019 at 12:48 pm

      Crypto currency is fantasy money.
      It will not replace £€$¥ or any other
      currency used as legal tender.
      However it can be used as international
      exchange currency in trade …as per BRICS
      USA EU trading blocks.
      As a single unit currency.
      Am speculating but WTO will have to
      recognise crypto’s as a currency of international trading. Early days.
      Let’s hope the future in trade between
      countries and groups of countries is
      Free and Fair !
      Without protectionist policies as per
      USA EU.
      A very visionary outlook
      My take

      Kamtan

  • Carmen  On October 27, 2019 at 2:15 am

    And why is it that at every turn there is a buzz about cryptocurrency? What was the outcome of the Facebook debate?

  • Carmen  On October 27, 2019 at 1:59 pm

    But why is Scotiabank pulling out of the Caribbean?

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