Caribbean News Now!

About Us Contact Us


Jump to your country or territory of interest

Advertise with us

Reach our daily visitors from around the Caribbean and throughout the world. Click here for rates and placements.


Submit news and opinion for publication


Click here to receive our daily regional news headlines by email.


Click here to browse our extensive archives going back to 2004

Also, for the convenience of our readers and the online community generally, we have reproduced the complete Caribbean Net News archives from 2004 to 2010 here.

Climate Change Watch

The Caribbean is especially vulnerable to rising sea levels brought about by global warming. Read the latest news and information here...


Follow Caribbean News Now on Twitter
Connect with Caribbean News Now on Linkedin

News from the Caribbean:

Back To Today's News

Bahamas government must clarify CLICO guarantee, says IMF
Published on December 31, 2013 Email To Friend    Print Version

By Alison Lowe
Nassau Guardian Business Editor

NASSAU, Bahamas -- The International Monetary Fund (IMF) has called on the government of The Bahamas to "urgently address" the CLICO (Bahamas) situation, by outlining the terms of a government guarantee.

In the meantime, the Washington, DC-based multilateral organization has commended the government for its "strong commitment" to the matter.

In a statement sent to Guardian Business, IMF mission chief for The Bahamas Mbuyamu Matungulu noted that the fund is keeping a close eye on the matter, and added that it continues to maintain that the CLICO (Bahamas) matter must be swiftly dealt with.

In April the IMF called for the "acceleration" of efforts towards a resolution of the CLICO matter in The Bahamas.

Guardian Business understands that the outstanding matter of how to deal with the insolvent insurer, which was placed into liquidation in February 2009, was raised during a recent IMF meeting with government officials during an annual visit to The Bahamas during the latter part of this year.

In an interview with Guardian Business last week, former creditors committee member, and an outspoken advocate for CLICO (Bahamas) policyholders, Bishop Simeon Hall, called it a "tragedy" that the insurer was able to get into the financial straits that it had and that the government was yet to move on providing the guarantee. Hall is himself a policyholder.

Such a guarantee has been deemed critical to allowing the transfer of the remaining life and health insurance policies to another company. Policyholders were called upon to continue to pay their insurance premiums until a buyer could be found.

In his response to Guardian Business over the weekend, Matungulu said that the IMF has "urged the government to clarify the terms of its guarantee and develop and implement a viable plan for running off guaranteed policies, or transferring them within a short period to a third party."

"We commend the authorities for their strong commitment, and are monitoring the implementation of the government’s reforms in this important area. We look forward to early closure," said the IMF official.

In the mid part of last year, there were understood to be several potential purchasers of the CLICO policies. However, given the delay in the process, it is not clear how much interest remains on the part of these groups to date. There has not been an update to the court on the CLICO matter since 2012.

In June of this year, Minister of State for Finance Michael Halkitis said it was the government's hope that a resolution would be brought to the CLICO (Bahamas) situation before the end of 2013. He said the Christie administration would honor the commitment made by the former government to protect policyholders via a government guarantee of $30 million.

Craig Gomez, of Baker Tilly Gomez, liquidator for CLICO (Bahamas), has stated in a report to the court that any government funds utilized could be reimbursed to the government from the sale of CLICO's assets and "from funds otherwise recovered". Guardian Business understands that the liquidator has been seeking to meet with the government on the issue of the guarantee.

At the end of June 2012, the portfolio of CLICO (Bahamas) contained 13,835 policies with a total surrender value of $20.07 million and a cumulative sum assured of $1.093 billion.

The Bahamian balance sheet showed a solvency deficiency of $22.162 million.

Halkitis declined to comment on the matter when contacted last week by Guardian Business.

Republished with permission of the Nassau Guardian
Reads: 1970

Click here to receive daily news headlines from Caribbean News Now!



No comments on this topic yet. Be the first one to submit a comment.


Send us your comments!  

Send us your comments on this article. All fields are required.

For your contribution to reach us, you must (a) provide a valid e-mail address and (b) click on the validation link that will be sent to the e-mail address you provide.  If the address is not valid or you don't click on the validation link, we will never see it!

Your Name:

Your Email:

(Validation required)

Enter Code

User comments posted on this website are the sole views and opinions of the comment author and are not representative of Caribbean News Now or its staff. Caribbean News Now accepts no liability and will not be held accountable for user comments.
Caribbean News Now reserves the right to remove, edit or censor any comments. Any content that is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will not be approved.
Before posting, please refer to our Terms of Use and Privacy Policy.

2014 Mind Your Eye

Other Headlines:

Regional Sports: